March 22, 2011

Alternative Content in cinemas is a small but growing presence in the world's cinema screens, as digitisation of the global screen estate progresses in 2010 and 2011. Content is being driven by the highly visible success of a range of cultural 'crown jewels', at the top of which is New York's Met Opera. This report establishes sector revenues, genre breakdowns, the main providers, key parameters for successful content, digital and 3D screen counts, and the role of 3D.

Alternative Content in Cinemas is still a relatively small but growing revenue generator in global cinema terms, driven by a broadening of content and the rapid growth of digital cinema around the world. The US market is worth $112m in 2010, which accounts for 58 percent of global sector revenues.

Operas, popular music and sports form the backbone of live and recorded events screened in cinemas, and 3D is also now becoming a factor in non-theatrical cinema events. Market growth and exhibitor interest is also attracting new entrants into the Alternative Content arena, from technical providers, global cultural and sporting brands interested in widening access to their particular events, event providers in other media, and owners of a range of content (charities, music companies, radio shows and documentary makers).

Highlights:

• Alternative Content in the USA was worth $112m in 2010, a growth of 51.7% over 2009, constituting 58% of global sector revenues
• The widening of networked screens, especially for live events, pushed the average revenue per event in USA to $1.37m in 2010
• The most screened events are Opera, based on the success of the Met Opera: Live in HD which grossed $48m for the 2010/11 season
• NCM Fathom is the leading Alternative Content provider in the USA, providing a majority of all US on-screen events in 2010
• There were 37,000 digital cinema screens globally at end 2010, of which 22,000 were equipped with 3D.
• The average weekly occupancy of a cinema auditorium during its opening times is an estimated 25-30 per cent

In this report:

• Alternative Content is a growing sector but still makes up a very small proportion of overall cinema revenues
• Opera was the most screened genre in USA in 2010, followed by Sport and Popular Music.
• Ballet and Theatre are growing genres for 2011
• Alternative Content in USA is being driven especially by screen advertiser NCM Fathom
• Live events make up the majority of events in 2010, up from 44% in 2009 and 22% in 2008.
• Events for which there has been restricted access in the past, especially cultural events, have proven to be a success in cinemas
• Live 3D events, starting with sport and moving across genres in 2011, are becoming a reality in cinemas
• Growing digital screen base and increased visibility of in-cinema non-theatrical events has attracted a range of new companies to this arena.
• Some alternative content companies are also widening out their offer to independent feature film

Tables and charts included:

• Development of Alternative Content genres in US cinemas
• US Alternative Content genres in 2010
• By the Numbers: Met Opera: Live in HD
• Average revenues per US AC event
• Live vs Recorded split
• US AC revenues as a proportion of global total
• US Alternative Content Revenues in $m
• Global Alternative Content Revenues in $m
• Drivers and positioning of Alternative Content in cinemas
• NCM Fathom revenues in $m
• NCM Fathom quarterly revenues in $m
• Contribution of NCM Fathom to NCM revenues in %
• Alternative Content Events in USA, by primary provider
• Worldwide development of digital compared to 35mm screens
• Alternative Content Events in USA, by year
• Global 3D screens as a proportion of all d-screens

Pages: 19

Tables & charts: 16

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