|
|||||
|
|
|
|
|
|
Main player | Bert-Claeys (3) | Nordisk Films/MGM | UGC | Riech | Assos Odeon |
|
8 | 8 | |||
|
72 (16.7%) | 41 (13%) | 231 (5.2%) | 420 (11.5%) | 14 |
|
6,550,000 | 3,000,000 | 17,100,000 | ||
|
40% | 34.5% | 14.8% | (15%) (e) | |
Player II | UGC | Dagmar Scala | Gaumont | Flebbe | Spentzos |
|
3 | 2 | |||
|
29 (6.7%) | 9 (2.8%) | 193 (4.3%) | 130 (3.6%) | |
|
2,050,000 | 847,000 | 13,213,000 | ||
|
12.5% | 9.5% | 11.4% | (7%) | |
Player III | Heylen (2) | Grand Teatret | Pathé | UCI | |
|
10 | 1 | |||
|
25 (5.8%) | 6 (1.9%) | 93 (2.1%) | 42 (1.2%) | |
|
1,200,000 | 367,000 | 8,460,000 | 3,600,000 | |
|
7.5% | 4.5% | 7.3% | 3% (1) | |
Total for 3 Main
Players
|
21 | 11 | |||
|
126 (29.2%) | 56 (17.7%) | 517 (11.7%) | 592 (16.3%) | (10%) (e) |
|
9,800,000 | 4,214,000 | 38,773,000 | ||
|
60% | 48.5% | 33.5% | 25% | (20%) (e) |
(1)
Box office receipts
(2) The Heylen network went into liquidation in September 1993. Since then, the third biggest Belgian network is Hanne (with 22 screens) (3) The Bert-Claeys network opened a new multiplex at the end of 1993 "Metropolis" in Antwerpen. Source: MEDIA Salles/BIPE Conseil |
|
||||||
|
|
|
|
|
|
|
Main player | Ward Anderson | Cinema Cinque | MGM | Lusomundo | Cinesa (UCI) | MGM Cinemas |
|
29 | 22 | 25 | 128 | ||
|
80 (42%) | 43 (1.4%) | 66 (15.8%) | 58 (25%) | 73 (4.0%) | 414 (23.6%) |
|
3,736,000 | 2,791,400 | 5,500,000 (e) | 8,000,000 | 29,900,000 | |
|
47.5% | 3.3% | 26% | 55% | 10% | 28.9% |
Player II | UCI | Safin | Jogchem's Theatres | Castelo Lopes | Empresa Balana | Odeon Cinemas |
|
2 | 12 | 72 | |||
|
22 (11.6%) | 30 (1%) | 46 (11.1%) | 14 (6.0%) | 30 (1.7%) | 306 (17.4%) |
|
1,750,000 | 4,000,000 | 21,600,000 | |||
|
22% | 10% | 10% | 5% | 20.8% | |
Player III | MGM Aldephi Carlton | Wolff | Atalanta | Bautista Soler | UCI | |
|
2 | 15 | 24 | |||
|
8 (4.2%) | 27 (6.5%) | 16 (7.0%) | 23 (1.3%) | 213 (12.1%) | |
|
840,000 | 3,000,000 | 17,800,000 | |||
|
10.5% | 9.5% | 5% (e) | 3.75% | 17.2% | |
Total top 3 players | (2 players) | |||||
|
33 | 52 | 52 | 224 | ||
|
110 (58%) | 73 (2.4%) | 139 (33.4%) | 88 (38%) | 126 (7%) | 933 (53.1%) |
|
6,326,000 | 15,000,000 | 69,300,000 | |||
|
80% | 5%(e) | 45.5% | 70% | 18.7% | 66.9% |
Source: MEDIA Salles/BIPE Conseil |
Integration of the sector in terms of admissions
The degree of integration can, however, also be measured by the market
share (in terms of the numbers of admissions) of the three main players
in each country (see Table 11).
· The degree of integration of the market is also very variable: ranging from 10% (Italy) to 80% (Ireland). This variation suggests that defining a common, coherent and relevant regulatory regime for the whole of the European Community will prove difficult.
· The countries where
the highest degree of integration occurs are mostly the smaller ones. Here
one company, or a group of companies, tends to control nearly all the market
(in terms of admissions): this is the case in Ireland, with Ward Anderson,
Belgium with the Bert-Clays group, and Portugal with Lusomundo. In these
three cases, the companies concerned are all nationally-owned and controlled.
In the United Kingdom, there is also a high degree of horizontal integration.
But the structure of the industry there is different: the market is obviously
substantially larger than that of the countries mentioned above; it is
also by nature more oligopolistic, as the proportion of the market controlled
by the main player does not exceed 30%; the major players are also North-American
companies or their subsidiaries(2).
The Netherlands' industry also belongs to this group
of highly-integrated countries, as a fourth player, Minerva, closely follows
Wolff; it controls 9% of the market. The four main players between them
account for 73% of admissions (including programmed cinemas).
· The degree of integration is lower in Denmark and France, where the proportion of the market by admissions controlled by the three main players is 30-50%. Netherlands and Denmark are characterised by the power of MGM's cinemas (a 50/50% joint-venture with Nordisk in Denmark), however in France the three main circuits are national players.
· In Germany and Spain, the market is more fragmented, and the three main players account for less than one third of admissions. The degree of integration is at its lowest in Italy, as, apart from Cinema Cinque, the rest of the sector was dominated by regional companies until 1992. The founding, in 1993, of a new cinema network by Cecchi Gori has to be taken into account, but has not, as yet, fundamentally altered the situation. Moreover, the big international players (particularly UCI and Warner) are now taking an active interest in Italy. It is worth noting in this context that these three countries - Germany, Spain and Italy - are countries where regional factors are very strong, a fact which undoubtedly creates a powerful obstacle to the creation of national networks within the exhibition sector. These countries constitute the majority of the "extensive pole" of the exhibition industry as defined above.
· If their contribution is measured by admissions rather than numbers of screens, then the part played by the market leaders is mostly larger, as Figure 14 shows: there is a marked "leader-effect" which is by no means confined to exhibition, but which, in exhibition, is derived chiefly from the fact that the screens of the main players are almost invariably in the best locations. This "leader-effect" is also linked to the nature of programming of the circuits, as the "leader" can benefit, in terms of advertising, choice of films and cinema quality, to a greater extent than the rest of the sector.
· The difference between screen share and admissions share is not uniform across countries. It is particularly high in Belgium, Portugal and Denmark; this is partly because the three main players' numbers of admissions and the number of weekly admissions per seat are both higher there than elsewhere. By contrast, the difference is more moderate in the UK and Ireland, which reflects the fact that the big networks there (MGM and Odeon in the UK, Ward Anderson in Ireland) have a mixed bag of cinemas: certainly, some of these are modern and profitable, but there are also some old cinemas of which it is difficult to dispose.
|
||
|
|
|
Belgium |
|
|
Denmark |
|
|
France |
|
|
Germany |
|
|
Greece(e) |
|
|
Ireland |
|
|
Italy (e) |
|
|
Netherlands |
|
|
Portugal |
|
|
Spain |
|
|
U.K. |
|
|
Unweighted Average |
|
|
Weighted Average |
|
|
Source: MEDIA Salles/BIPE Conseil |
The circuits and joint-programming arrangements
The arrangements for programming screens allows us to create another
indicator to measure integration. In order to increase their bargaining
power vis-à-vis the distributors, exhibitors effectively band together
to form groups or programming collaborations.
Cinemas can be classified into four main categories:
· Cinemas which are not owned by a circuit, but which are programmed by a circuit or a group ("affiliated to a circuit or a programming group"); the group is a legal entity, distinct from the cinemas which belong to it.
· Cinemas which are not owned by a circuit, but are part of a programming agreement ("sharing programming arrangements"); this is a more flexible arrangement, where there is no legal entity formed. These arrangements can cover cinemas which are more or less geographically widespread.
· Cinemas which are independent and
responsible for their own programming.
|
||||||
Circuit, group or alliance |
|
|
|
|
|
|
Principal circuits
(screens owned) |
National | Bert-Claeys
72 40% |
MGM/Nordisk
41 |
UGC
231 (14.8%)
Gaumont 193 (11.4%) Pathé 93 (7.3%) 33.5% |
Riech
420
|
Assos
14 |
(Principal circuits, number of
screens owned, share of admissions) |
Regional | UGC
29 (13%)
Heylen (1) 25 (7%) Hanne 22 (5%) Rastelli 16 (3%) Drieghe 16 (3%) Hemelaer 15 (3%) 34% |
Dagmar }
Warner } 9 (9.5%) Scala } |
Soredic
Davoine Raymond Other |
Flebbe
130
|
|
Principal circuits or groups
(screens affiliated) |
National | MGM Nordisk
15 |
||||
(number of screens affiliated,
share of admissions) |
Regional | |||||
Principal alliances; | National | |||||
(Principal alliances,
number of screens; members' share of admissions) |
Regional | |||||
Independent, self-programming
cinemas |
||||||
Number of screens
% of all screens Share of admissions |
247
57% 26% |
246
79% 52% (2) |
2,640
60% 40% |
3,157
87% 75% |
||
(1) The Heylen circuit
went into liquidation in 1993
(2) With the Grand Teatret Source: MEDIA Salles Survey |
|
|||||||
Circuit, group or alliance |
|
|
|
|
|
|
|
Principal circuits
(screens owned)
(share of admissions) |
National
|
Ward Anderson
80
42% |
Cinema Cinque 43
Istituto Luce 10
|
MGM(6) 66
Jogchem's 46 Minerva 36 Wolff 27 42%
55% |
Lusomundo 58
Castelo Lopes 14 Atalanta 16
70% |
Cinesa 35
8.5%
10% |
MGM }
Odeon } Warner } UCI } 1161 Apollo } Nat.Am.} |
(Principal circuits, number of screens owned, share of admissions) | Regional | UCI 22 (12%)
MGM 8 (4%) |
Other circuits (30
to 50 cinemas each): Safin, Arco Film, Germani-Poggi, Quilleri-Di Sarro |
Empresa
Balana (Catalonia) 30 5% |
Minors
80 |
||
Principal circuits or groups
(screens affiliated) |
National | Marginal | Cinema Cinque
(programs for 250 cinemas) |
73 screens which have an agreement
with at least one of the four major distributors: |
Marginal | Cinesa
38 affiliates
|
Marginal |
number of screens
affiliated, share of admissions) |
Regional | Marginal | MGM
10
Jogchem's 39 Minerva 7 Wolff 17 18% |
||||
Principal alliances; | National | ||||||
(Principal alliances,
number of screens; members' share of admissions) |
Regional | ACEC
48 1.5% |
|||||
Independent, self-programming
cinemas |
|||||||
Number of screens
% of all screens Share of admissions |
79 (4)
42% 20% |
2,550 (5)
89% 88% |
168
40% 27% |
130 (e)
55% 29% |
N.D.
69% 65% |
420
25% 20% |
|
(4 ) Independent cinemas
= ICAI (the Independent Cinemas Association of Ireland)
(5) Of which FICE: 294 members - 9% market share (6) From 1994, there is a cooperation between MGM and Minerva. Source: MEDIA Salles Survey |
Market share of jointly-programmed screens
The share of the total EU market (in terms of admissions) of jointly
programmed screens (including circuits, groups and alliances) is about
56% (unweighted) or 53% (weighted to take into account the sizes of different
national markets).
Once again, this indicator shows considerable variation around the
mean:
Table 12c: | ||
|
|
|
Belgium |
|
|
Denmark |
|
|
France |
|
|
Germany |
|
|
Greece |
|
|
Ireland |
|
|
Italy |
|
|
Netherlands |
|
|
Portugal |
|
|
Spain |
|
|
U.K. |
|
|
Unweighted Average |
|
|
Weighted Average |
|
|
Source: MEDIA Salles/BIPE Conseil |
Independent cinemas probably encounter most difficulty
in obtaining prints of the films they want in the first two groups of countries,
or may find it increasingly difficult to do so. Independent exhibitors
are likely to become increasingly marginalised as the power of multiplexes
grows.
It is worth noting that in certain countries - the Northern
European ones - dealings between self-programming independents and distributors
are generally facilitated by the existence of standard conditions for the
exhibition of films which are negotiated between the distribution companies
and the exhibitors' trade associations.
The intensity of competition within local markets
In order to understand better the extent of competition within the
principal European countries, we have split the urban areas into three
categories:
|
|||||
|
|
|
|
|
|
Capital | Strong competition | Duopoly: Kinépolis + UGC = 93% market share | Oligopoly: Nordisk + municipal exhibitors; Nordisk: 20% | Dominance of the major circuits
(Madrid, Barcelona) |
Dominant position of two circuits, UGC and
Gaumont;
Competition between independents |
Big towns
(*more than 250,000) |
Varies from town to town | Quasi-monopoly: Antwerp: Heylen (2) 85% | Aarhus: Oligopoly: 3 exhibitors | Few competitors: 1-3 circuits per big town | Often duopoly (1) or dominant position
of two circuits
|
Middle-sized towns
100,000-250,000 |
Varies from town to town; regional circuits | 2 quasi-monopolies; 2 duopolies; 1 dominant position | Odense (Nordisk)
Esbjerg (Nordisk) Monopolies |
Few competitors | Dominant position or monopoly (due to recent swaps of cinemas between the circuits) |
(1) In France in the big
towns, 2 circuits control between them 60-85% of the market; there are
some monopolies (Caen; Nancy)
(2) In September 1993, the Heylen circuit went into liquidation. In October 1993, the Kinepolis group opened a multiplex in Antwerp, which gave them a quasi-monopoly of that market. Source: MEDIA Salles/BIPE Conseil |
|
|||||
|
U.K | Ireland | Portugal | Netherlands | Italy |
Capital | Strong: all national circuits + independents and art-houses | Dominant pos.
Ward Anderson - UCI - MGM But competition from art-houses |
Dominant position
Lusomundo Some independents |
Dominant position
MGM (+specialist cinemas) |
Dominant position Cinema Cinque - Safin; some
independents
|
Big towns
(*more than 250,000) |
Dominant position
(Multiplex+ Odeon or MGM + independents) |
not applicable | Dominant position or monopoly Lusomundo | Rotterdam and the Hague: monopoly MGM; other towns: competition between circuits and independents; Utrecht: duopoly MGM and Wolff (and art-house and experimental cinemas) | Strong competition in the North & Centre
(except Florence); average in the South
|
Middle-sized towns
100,000-250,000 |
Odeon or MGM or minors +
indep. in some cases |
Monopolies (Ward Anderson or independent) | Monopolies | Duopolies: circuits and a little competition from independents | Average competition |
Source: MEDIA Salles/BIPE Conseil |
|
||
|
|
|
MGM (with MGM/Nordisk)
(MGM on its own) |
|
|
UCI (with Cinesa)
(without Cinesa) |
|
|
UGC |
|
|
Odeon |
|
|
Gaumont |
|
|
Higher total: |
|
|
Lower total: |
|
|
Source: MEDIA Salles/BIPE Conseil survey |
(2) As of November
1993, MGM, the largest exhibitor in the UK, is controlled directly by Crédit
Lyonnais in Paris, rather than by MGM/U in Burbank, CA.