Cinemas in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: May 2024
ANZSIC J5513Revenue
$1.4bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
11,410
Businesses
363
Wages
$XXX.Xm
Cinemas in Australia industry analysis
Cinema operators have faced significant challenges in recent years. Intensifying competition from other sources of entertainment, like SVOD services, has negatively affected demand. Volatile economic conditions have also made it difficult for cinema operators to boost patronage and average spend. In response, cinemas have tried to differentiate the cinema experience from other forms of entertainment. Operators have upgraded their projection systems and renovated their cinemas to include more premium offerings, including recliner seats and gourmet food and beverage options. However, public health measures implemented in response to the COVID-19 pandemic forced cinemas to close temporarily or operate at reduced capacities. Cinemas' revenue is expected to contract at an annualised 7.9% over the five years through 2023-24, to $1.4 billion. This trend includes an anticipated drop of 2.4% in 2023-24, largely due to ongoing cost-of-living pressures.
Trends and Insights
- Consumers are cutting back on discretionary spending due to rising interest rates and inflated cost-of-living expenses. This threatens cinemas with reduced attendance during 2023-24.
- Revenue from ticket sales has plummeted. Even after pandemic restrictions were removed, an increasing preference for viewing movies via streaming services instead of at cinemas has stifled demand.
- Cinemas are typically located in highly populated areas. This is to increase the potential pool of customers, creating more opportunities for ticket sales.
- Competition for cinemas has risen in recent years. This has primarily come from SVOD services, which offer people a convenient movie watching experience at home.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 7.9 % over the past five years, to reach an estimated $1.4bn in 2024.
Trends and Insights
Cinema operators face intensified competition
- The growing popularity of SVOD services is ramping up competition for cinemas, causing the cinemas market to shrink.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Competition from SVOD will continue to intensify
- SVOD services are forecast to continue growing in force in the Australian market as they increase investment in new and exclusive content, siphoning from demand for cinemas.
Biggest companies in the Cinemas in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Event Hospitality & Entertainment | 376.3 | |
Hoyts | 353.3 | |
Village Roadshow | 254.2 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Film screenings, Food and beverages and Screen advertising. Film screenings is the largest segment of the Cinemas in Australia.
Trends and Insights
Competition from SVOD services is harming demand for film screenings
- The film screenings segment is responsible for over half of the industry’s revenue, which is determined by ticket prices and the number of ticket sales.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Motion Picture and Video Production in Australia
- Motion Picture and Video Distribution in Australia
- Video Post-Production Services in Australia
International industries
- Movie Theaters in the US
- Movie Theatres in Canada
- Cinemas in the UK
- Cinemas in China
Table of Contents
About this industry
Industry definition
The Cinemas industry includes companies that provide screenings of commercial motion pictures to the public. The industry includes independent and chain operators, with establishments ranging in size from single-screen theatres to multi-screen multiplexes. The industry also includes film festival operators.
What's included in this industry?
Film screeningsFood and beveragesScreen advertisingPrivate cinema screeningsCompanies
Event Hospitality & EntertainmentHoytsVillage RoadshowPurchase this report to view all 5 major companies in this industry.
Related Terms
BLOCKBUSTERSVODMULTIPLEXIndustry Code
ANZSIC 5513 - Cinemas in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Consumers are cutting back on discretionary spending due to rising interest rates and inflated cost-of-living expenses. This threatens cinemas with reduced attendance during ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Revenue from ticket sales has plummeted. Even after pandemic restrictions were removed, an increasing preference for viewing movies via streaming services instead of at cinem...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Cinemas are typically located in highly populated areas. This is to increase the potential pool of customers, creating more opportunities for ticket sales.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Competition for cinemas has risen in recent years. This has primarily come from SVOD services, which offer people a convenient movie watching experience at home.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The largest cinemas have expanded their presence in the market. This has been supported by their increased investment in premium concepts and their opening of new sites.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Event Hospitality & Entertainment's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Hoyts's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Village Roadshow's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Event Hospitality & Entertainment, and factors influencing its performance in the industry
- Description and key data for Hoyts, and factors influencing its performance in the industry
- Description and key data for Village Roadshow, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Real household discretionary incomes significantly affect demand for cinemas. Higher incomes allow for more discretionary spending, increasing demand for cinemas.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Cinemas have suffered reduced profitability due to fierce competition from SVOD services. Rising cost-of-living pressures have constrained cinema operators' attempts to boost...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Cinemas industry in Australia in 2024?
The market size of the Cinemas industry in Australia is $1.4bn in 2024.
How many businesses are there in the Cinemas in Australia industry in 2024?
There are 363 businesses in the Cinemas industry in Australia, which has grown at a CAGR of 0.9 % between 2019 and 2024.
Has the Cinemas industry in Australia grown or declined over the past 5 years?
The market size of the Cinemas industry in Australia has been declining at a CAGR of 7.9 % between 2019 and 2024.
What is the forecast growth of the Cinemas industry in Australia over the next 5 years?
Over the next five years, the Cinemas industry in Australia is expected to grow.
What are the biggest companies in the Cinemas market in Australia?
The biggest companies operating in the Cinemas market in Australia are Event Hospitality & Entertainment, Hoyts and Village Roadshow
What does the Cinemas in Australia include?
Film screenings and Food and beverages are part of the Cinemas industry.
Which companies have the highest market share in the Cinemas in Australia?
The company holding the most market share in Australia is Event Hospitality & Entertainment.
How competitive is the Cinemas industry in Australia?
The level of competition is high and increasing in the Cinemas industry in Australia.
