Annex 2: Country Studies  
Greece
 
 Key Points  
Screens and Admissions
 
 
 Greece
EU
Greece
EU
 
Admissions
Admissions
No. of screens
No. of screens
1960-92
-96%
-80%
NA
-40%
1980-92
-45%
-38%
-42%
-24%
1985-92
-12%
- 3%
-10%
- 9%
 
 1992
Greece
EU
   
Average*
Total
Number of screens
405 (est)
(155 screens in winter)
  
16,621
Number of seats ('000)
100 (est)
  
4,509
Number of admissions per seat
93
124
  
Total number of admissions (millions)
9.3 (est)
  
561.0
Number of admissions per head of population
0.90
1.61
 
 
* unweighted average
(est) estimated total for both summer and winter theatres
 
The structure of the Greek cinema industry is very peculiar: exhibition is effectively divided up into two markets: The summer cinemas are about 250 and they operate under difficult economic conditions (the operating period is too short to permit investment in upgrading; less popular films etc.). They are therefore in a bad state technically, and their activity is declining. The net trend is towards reduction of this sector of "screens", with owners ceding ground to property developers as they lack the power to make their operations profitable and renovate their buildings.
 
The winter cinema sector has dwindled to less than half the size it was in 1970, and now seems to have stabilised.
 
 
Concentration in Exhibition
 
Precise statistics are not at our disposal concerning the market share of different kinds of exhibitors in Greece. From the results of the quantitative survey we can, however, deduce that 80% of screens in the sample are independent family-owned operations, 4% are communal theatres, and 16% of the industry is owned by the circuits.
 
The circuits own a limited number of screens, and are organised regionally. The principal groups are found in Athens and Salonica. These cities account for more than 50% of the population and the economic activity of the country. In the exhibition sector, the estimated share of total admissions of these two urban areas is around 70%.
  
 
Access by Films to Screens
 
 Companies involved in both distribution and exhibition - 1992 
Distribution market share
(% admissions)
Exhibition market share
(% admissions)
Elke
NA
10% (Assos Odeon)
Spentzos
NA
2.5%
Prooptiki
NA
1.5%
 
Commercial relations between distributors and exhibitors are distinguished by vertical integration. Firstly, systematic practices of exclusive agreements between two parties exist (each exhibitor has "his" regular distributors, who are his exclusive sources of all programming material). The distributors decide the release plan of their films, and of the theatres. Only the cinemas which experience a very high number of visits (+ 200,000 admissions/year) have any possibility of providing themselves with films from distributors other than those with whom they have an exclusive agreement.
 
In addition to the level of vertical integration caused by the commercial practices described above, one notes also the significant degree of direct integration between distributors and exhibitors, as the leading distributors maintain the principal circuits, which they use as a privileged channel for the release of their films. Since 1985, in fact, the three main Greek distributors have hired cinemas located in the most dense areas of population, and have thus gained control of about 15% of the exhibition market.
 
These vertically integrated distributors, like Elke, have also become associated with sponsors in order to revitalise their circuits, to increase the public profile of the sponsor on the one hand, and the potential returns from film distribution on the other.
 
There are no regulatory obstacles to vertical integration or to exclusive agreements.
 
UIP is present in the Greek distribution market. However, foreign players like UIP have not invested in the exhibition sector as yet, nor in the construction of multiplexes.
 
 
Ticket Prices and Exhibitors' Shares
 
 1992
Greece
EU average*
Average ticket price incl. taxes (ECUs)
2.85
4.19
Average rental as a % of box office net of tax
50%
47.2%
Exhibitor's average share (%)
50%
52.8%
Exhibitor's share of ticket price (ECU)
1.20
1.93
Exhibitor's average share per screen (000 ECUs)
13
63
* weighted average
 
The level of prices charged in Greece are, compared with the EU average and not taking into account any differences in purchasing power, the lowest in the Community.
 
The same applies to the average share of box office receipts per screen received by the exhibitor: it is nearly five times smaller than the average returns per theatre received by an exhibitor throughout the countries studied. This estimate would undoubtedly be higher if we excluded returns from summer cinemas which only average 10,000 admissions p er season per screen, all staying well below the average in European countries.
 
The method of remuneration of distributors is proportional in the winter cinemas (40 to 50%); the rate is fixed per film per screen. The exhibitors in summer cinemas, on the other hand, pay a fixed price of the order of 30 ECUs per day for the showing of the film.
 
 
Cinemas Provision
 
1992
Greece
EU*
Number of screens per 100,000 population
3.9
5.24
Number of seats per screen
-
266
% large screens
80%
24%
% Dolby
15%
51.4%
% multiplexes (7+ screens)
0%
10.7%
* weighted average
 
The quality of the Greek industry is well below that of European norms. The density of the industry is very low (even when the statistics take account of the total numbers of sites, including the summer cinemas) with only 1.5 screens for every 100,000 inhabitants.
 
Globally, the move to renovate cinemas began late (in the middle of the 1980s) and it is only really relevant to the circuits. No new cinemas have been constructed in Greece in the last twenty years, be they new cinema complexes or isolated screens.
 
As for the "multiplex" concept, it is not relevant to the market, as Greece only possesses two multi-screen establishments, each with two screens; one is located at Athens, and the other at Salonica.
 
Amongst the winter cinemas, those which are sponsored (in particular the Assos Odeon) have benefited from recent renovation, and have the best technical standards.
 
The summer cinemas are extremely decrepit, and their bad quality discourages distributors from releasing exclusive premiere films during the summer. This is the reason why all new film releases are through the winter cinemas.
 
 
Programming
 
 1992
Greece
EU*
US films' market share
93%
74%
European films' market share 

  - of which national films
5%
 
2%
24%
 
17%
Art-house & experimental: screens as % of all screens
0%
10.8%
Art-house & experimental: share of admissions
0%
9.7%
* weighted average
 
If one only considers the economy of first-run films, therefore, one can state that cinema exhibition ceases during the summer months.
 
Programming only therefore occurs from October to May, which limits the operating margins of distributors and exhibitors, and reinforces the ties of vertical integration and the exclusive nature of agreements.
 
The share of admissions of US films reaches a European record level in Greece, with 93%. It is also one of the three countries (with Portugal and Belgium) where the national film makes the lowest contribution (2%). By contrast, the Greek film still held a market share of 40% in the 1960s. In thirty years, therefore, the consumption of the Greek films in their native territory has almost completely disappeared.
 
 
Role of the Public Authorities
 
 1992
Greece
EU*
Taxes: 

                              - VAT 
                              - Other taxes 
                              - Rights (musical) 
 
 
8.00%
8.0%
-
 
 
10.80%
5.18%
-
- Total/ticket (in ECU)
0.46
0.65
Financial assistance:                      - Total (in ECU Millions)
 
 
0
 
 
52.7
                    - Per ticket (in ECU)
0.00
0.09
* unweighted average
 
Up to today, none of the actions taken to try to stem the shrinkage in the numbers of screens and admissions have been initiated by the public authorities.
 
The Greek exhibition sector has witnessed the appearance of a type of player new to Europe, who have brought with them financial support for cinemas: these are commercial sponsors. These enterprises are distributors of mass-market brands (like drinks and cigarettes), and have chosen to encourage the exhibition sector in exchange for the use of the sector as a communication channel, or for publicity for their brands. The architecture and the name of cinemas reminds the public of the brands concerned, and the enterprises are able to communicate through other media the programming and films taking place in the cinemas, while mentioning their brands, which enables them to increase the public profile of their products, and sometimes, particularly in the case of cigarettes, to bend the rules which forbid advertising.
 
Even so, it is the commercial companies like BSN (Kronenbourg) which are trying to heighten public awareness of the decline in the summer cinema sector, which, despite its financial difficulties, is an integral part of the Greek cinema culture.
 
A new film law was put forward in 1993, and the recent assumption of responsibility for exhibition by the Ministry of Culture, leads us to hope that the sector will benefit in years to come from more attention from the public authorities.
 
The Greek exhibition industry will not probably attract foreign investment until the sector benefits from a general trend of subsidies and support by the State. The number of visits has already fallen to less than a time a year per person, so measures to preserve the image of cinema-going in the eyes of the public are therefore urgent.