4 The Commercial Position of the Cinemas
 
4.1 Technical equipment
 
Principal indicators
 
The indicators chosen to define the level of technical quality and cinema modernisation, shown in Table 25, firstly take into account the sound system (particularly the percentage of cinemas equipped with Dolby); this is probably the most obvious sign of the level of cinema modernisation. The proportion of single-screen cinemas in the industry, and the proportion of multiplexes, as well as the level of computerised ticketing have also been measured. Finally, screen density which is closely associated with population density, reveals how easy access is to a cinema. This completes the list of criterion for examining the level of cinema modernisation.
 
On the other hand, we have not considered the proportion of large format screens (too complex to evaluate) or the number of connected products on offer (catering, etc.)(5) which is linked to cultural habits (a bar or restaurant often form part of the cinema establishment, particularly in Southern countries) and which do not necessarily constitute a criteria for modernisation.
(5) These are analysed below.
 
The position country by country
 
In this context, there are stark contrasts between the various European industries. Three groups of countries can be identified as follows:

 
· Countries where cinemas in general are of good quality
 
Firstly, Belgium and Great Britain, where cinema renovation has occurred most recently, coinciding with the growing influence of the multiplexes. It is in these countries that most of the modernisation statistics (percentage of screens with Dolby, percentage of screens with computerised ticketing, percentage of multiplexes) are highest.
 
Germany, Denmark and the Netherlands also offer the public good quality cinemas; their renovation has sometimes been carried out with government help (particularly in Denmark and the Netherlands, where only municipal cinemas benefit from subsidies for renovation). In France, cinema quality is quite good, although varied, and is linked to the strategy of the three main circuits and certain independents of creating multiplexes as well as the modernisation policy in rural areas. But many single-screen cinemas still remain in France and Germany which are both ancient and less well-equipped (especially for sound).
 

  • Countries where some of the sector satisfies quality criteria

    •  
    In Spain, recent investment has enabled improvements in technical levels in a part of the sector, but there is a considerable number of insufficiently equipped cinemas alongside these modern cinemas.
     
    In Ireland, where a watershed divides the independently owned cinemas and the multiplexes.
     
  • Countries where, in general, cinemas have not benefitted from the investment necessary for modernisation

    •  
     
    These include Italy, Portugal and Greece. In Italy the lack of financing means for new cinemas has not allowed the construction of multiplexes. In Portugal it is undoubtedly lack of competition which explains the situation; the operators have no incentive to modernise their establishments. Modernisation will only occur as a result of the advent of the multiplexes. In Greece, the industry has not benefitted either from the attention of the authorities or the large international groups, and sites are very run down, clearly below European standards.
     
    The position regarding type of cinema
     
    It comes as no surprise that, on average, facilities such as computerised ticketing and Dolby sound are mostly the prerogative of the multiplexes (they account for 90% of computerised ticketing systems, as opposed to only 7% for single-screen cinemas), and the same applies, in lesser proportions, for the split between circuits and independent cinemas. By contrast, 16mm film projection is confined to less popular cinemas and films, in municipal cinemas and the like.
     
  • The presence of powerful circuits generally goes hand in hand with good quality cinemas. These companies effectively have the capacity to finance the necessary renovation policies themselves; this is far from being the case for the independently owned cinemas. We should emphasize that, in France, this policy of renovation has been actively supported by the authorities, the investment subsidy being defined by the amount of levy on tickets sold (TSA).

    •  
  • However, this general rule has exceptions:
    •  
    Whatever the country and the type of cinema, ease of access to the cinema and, particularly, availability of parking, is still very limited: 60% of cinemas do not offer privileged access to a car park, and this percentage increases the larger the population catchment area served (i.e. inner cities are worse).
     Table 25: Analysis of Cinema Facilities
     
    Density
    Number of Screens per 100,000 Population
    Sound Quality
    % with Dolby
    Cinemas
    % with more than 6 Screens
    Cinemas
    %
    Single Screen
    Ticketing
    % with computerised ticketing
     
    General Indicator
    Belgium
    **
    ***
    ***
    ***
    ***
    ***
    Denmark
    ***
    **
    **
    **
    **
    **
    France
    ***
    **
    ***
    **
    *
    **
    Germany
    **
    **
    **
    **
    ***
    **
    Greece
    *
    *
    -
    *
    *
    -
    Ireland
    **
    **
    ***
    ***
    **
    **
    Italy
    **
    **
    *
    *
    *
    **
    Netherlands
    *
    ***
    *
    ***
    ***
    **
    Portugal
    *
    *
    **
    *
    *
    *
    Spain
    **
    **
    **
    *
    **
    **
    UK
    *
    ***
    ***
    ***
    ***
    ***
    EU Average
    **
    **
    **
    **
    **
    **
    Source: MEDIA Salles/BIPE Conseil
     
     
     
     Table 25b: Legend to table 25 - Methods of estimating quality levels
     
    *
    **
    ***
    Density 
    Number of Screens per 100,000 Population
    1.5 < x < 4
    4 £ x £ 6
    6< x < 8
    Sound Quality 
    % with Dolby
    10% < x < 30%
    30% £ x £ 55%
    55% < x
    Cinemas 
    % with more than 6 Screens
    0.5% < x < 5%
    5% £ x £ 15%
    15% < x
    Cinemas 
    % Single Screen
    x > 60%
    30% £ x £ 60%
    x < 30%
    Ticketing 
    % with computerised ticketing
    0% < x < 20%
    20% £ x £ 35%
    x < 35%
    General Indicator 
    Total number of points
    5 < x < 7
    7 £ x £ 12
    x < 12
    Source: MEDIA Salles/BIPE Conseil
     
     
     

     

     
     

     Table 26: Percentage of cinemas equipped with computerised ticketing
    Single-screen cinemas
    7.1%
    2 screen complexes
    30.8%
    3 to 5 screen complexes
    50.4%
    6 to 7 screen complexes
    62.3%
    Complexes with 8 or more screens
    90.0%
    All Screens
    39.3%
    Source: MEDIA Salles/BIPE Conseil
     
     
     Table 27: Percentage of cinemas equipped with computerised ticketing
    Cinemas belonging to a circuit
    63.7%
    Independently owned 
    cinemas
    17.3%
    Cinemas owned by public authorities, or a non-profit making organisation
     
    24.1%
    Source: MEDIA Salles/BIPE Conseil
     
     
     Table 28: Projection equipment 
     
    16mm Projector
    35mm
    Projector
    70mm
    Projector
    All Screens
    9.1%
    99.0%
    5.8%
    Cinemas belonging to a circuit
    4.5%
    98.9%
    5.1%
    Independently owned cinemas
    8.5%
    99.2%
    5.8%
    Cinemas owned by public authorities, or a non-profit making organisation.
     
    43.2%
     
    98.2%
     
    11.5%
    Source: MEDIA Salles/BIPE Conseil 
     
     
    Conclusions
     
    The level of cinema modernisation is varied. The creation of cinema complexes brought with it in the 1980s the rise of modern multiplexes, but the next stage, which consists of equipping the cinemas with top of the range equipment (stereo; catering infrastructures) has only been carried out by the circuits and a handful of independent cinema owners in countries where the government has not implemented a policy of renovation, or where the appearance of the multiplexes has been delayed. The influence of the multiplexes on the average quality of cinemas is evident, in countries like the United Kingdom, Belgium or even Germany. For the spectator, the development of the multiplexes meant cinemas endowed with a technical quality and comfort hitherto unknown. Moreover, this increased competition constituted, without doubt, an incentive for other operators, forcing them to make a considerable effort to modernise. This explains why the Belgian cinema industry is, from the technical point of view, one of the best in Europe. Amongst the countries in southern Europe, Spain boasts the best conditions: the rate of installation of Dolby systems, and the proportion of multiplexes clearly ranks it higher than Greece or Portugal.