russian movie theatres market trends of development of the new modern cinemas media salles seminar,...

Russian Movie Theatres Market Trends of development

of the new modern cinemas Media Salles Seminar, CEI-2004, 21 June 2004, Amsterdam

Oleg Berezin, CEO, Nevafilm, Russia

Russian Movie Theatres MarketTrends of development of the new modern cinemas

Oleg Berezin, Nevafilm

Source: Nevafilmwww.nevafilm.ru NEVAFILM JSC • CINEMAS • STUDIOS • DUBBING • DIGITAL • RESEARCH

Russian Box Office: Russian Box Office: Key notesKey notes 01 June 2004Y

CIS BO (01.06.04) - $118.4MRussian BO (01.06.04) - $102.0M

TOP1 in CIS Box Office - $14MThe Lord of The Ring: The Return of the King

TOP5 films in CIS BO with BO over $10M:The Lord of The Ring: The Return of The KingTroy (18 days in release!)Terminator-3Matrix: ReloadMatrix: Revolution

Russian films with BO over $2MAntikiller-2: Antiterror - $2.68M72 meters - $2.53MDon’t even think!-2 - $2.10M

European films with BO over $1MLove Actually - $2.07MTais-Toi/Ruby and Quentin - $1.03M

© Kinobusiness Today

Box Office Russia, mln $$1997Y - 2003Y,and 2004F

620 18

34,5

65,1

101

168

240

1997 1998 1999 2000 2001 2002 2003 2004

Cinema admissioms in Russia Millions

20,223,5 24,57

30,1636,4

40,5

68

95

1997 1998 1999 2000 2001 2002 2003 2004F

Russian Cinema Market Russian Cinema Market 2003Y 2003Y

The “working” cinemas 2003Y509 cinemas / 778 screens

The Modern Cinemas 2003Y343 cinemas / 542 screens

More than 1 screen per 100’000

0,5 -1,0 screens per 100’000

0,4 – 0,5 screens per 100’000

0,2 – 0,4 screens per 100’000

less 0,2 screens per 100’000

No cinemas

© Nevafilm

Modern screens by Russian regions 2003Y

The Russian market of Modern Cinemas 2003Y

Quantity of modern cinemas in Russia

62105

150

280

343

100130

220

350

542

400

750

1999 2000 2001 2002 2003 2004F

cinemas screens


Modern Cinemas Moscow St.-Petersburg Regions 2003YSingle Screen 34 5 177 2162-3 screens 17 5 84 1064-7 screens 13 3 3 198-11 screens 2 2Total of Cinemas 68 13 262 343The Total of Screens 151 28 363 542



Jan – Jun 2004Y: + 17 cinemas / 69screens

General trends of the Cinema MarketGeneral trends of the Cinema Market

1996Reconstruction of existing cinemas

2001Redeveloping of the existing cinemas to multi-screen cinemas

2004The new construction of the cinemas in Shopping Centers




Moscow 55 screens in 12 Shopping CentersShopping Center IKEA MEGA MALL – 11-plexShopping Center “Atrium” – 9-plexShopping Center “Kaluzhskiy” – 9-plexShopping Center “Gold Babylone” 6-screenRamstore City – “Nescafe IMAX®” + 4-screens Shopping Center Ramstore – 4 screensShopping Center “Ramstor-2” – 4-screens Shopping Center “XL” – 4-screensShopping Center “GUM” – 2-screensShopping Center “Mitino” – 2-screensShopping Center “Dinamit” – 2-screensShopping Center “Okhotny Ryad” – 1 screen

St.-Petersburg 26 screens in 5 Shopping CentersShopping Center “Baltiysky” - 2-screenShopping Center “Zanevskiy Cascade” – 5-screensShopping Center “Nord” – 6 screensShopping Center “Akademichesky” – 5 screenShopping Center “Mercury” – 8 screens

Nizhniy NovgorodShopping Center “Shokolad” – 4-screens

PodolskShopping Center Ramstore – 4 screens

YekaterinburgShopping Center “Yeakaterininskiy” – 3-screen

VolgogradEntertainment Shopping Center “Radezh” – 2 screens

KazanShopping Center “City Center” – 3 screens


The basic trend of the Cinema MarketThe basic trend of the Cinema MarketCinemas at Shopping CentersCinemas at Shopping Centers

Ramstore City, MoscowNescafe IMAX®

Kinosphera Cinema, 4-plex 2003

IKEA MEGA MALL, Moscow Kinostar De Luх (11-plex)

2003

Atrium, Moscow«Formula Kino», 9-plex

2002

Kaluzhsky, Moscow«Cinema Park», 9-plex

2004

Zanevsky Cascade, St.-Petersburg«Kronverk Cinema», 5-plex

2003

Yekaterinburg, Shopping CenterCinema “Yekaterininsky”, 3-plex

2003

Ramstore, MoscowThe first cinema in Shopping Center

“Formula Kino”, 4-plex 30.03.2000

9 months per year Russians spend inside the premises

20 % of all Shopping Centers in Moscow had zones of entertainment




Coming Soon on screens in Shopping Centers

“Park House” Shopping CenterInvestKinoProject, Volgograd

“Grand Canyon” Shopping CentreCinema Park, St.-Petersburg

«Neptune Center» Shopping CenterSt. Petersburg

“Park House” Shopping CenterInvestKinoProject, Yekaterinburg

“Bratislavsky Krug” Shopping CenterKinomax, Moscow

Some Developers which plan to add Cinema in Shopping Centers

“Ramstore” Company (Moscow)“Adamant” Company (SPb)“Vremya” Company («Park House»)“Tasher” Company (Regions)“Macromir” Company«Trade Quarter - Region» CompanyIKEA Company (“Mega”)

+ more, more, & more…

“Rodeo Drive”, Shopping CenterSt.-PetersburgКоличество киноэкранов в Торговых Центрах

4 8

26

68

220

0

50

100

150

200

250

2000 2001 2002 2003 2004F

01.06.04100

Количество киноэкранов в Торговых Центрах

4 8

26

68

220

0

50

100

150

200

250

2000 2001 2002 2003 2004F

01.06.04100

Cinema screens in Russian Shopping CentersКоличество киноэкранов в Торговых Центрах

4 8

26

68

220

0

50

100

150

200

250

2000 2001 2002 2003 2004F

01.06.04100

Количество киноэкранов в Торговых Центрах

4 8

26

68

220

0

50

100

150

200

250

2000 2001 2002 2003 2004F

01.06.04100

Cinema screens in Russian Shopping Centers




Source: Expert RA

Some the new Shopping Centers with Cinemas in Moscowwhich are planned to be open in 2004Y - 2005Y

16-screens in the Shopping Center “Veymart-2” (will be operated by Yekaterinburg-Art)12-screens “Kinostar De Lux” (IKEA Mega Mall -2, will be operated by Rising Star Media / National Amusements)10-screens Shopping Center “na Profsoyuznoy”8-screens “Ramstor na Vernadskogo” (in the Shopping Center, will be operated by Formula Kino)5-screens “Ranstor na Sevastopolyskoy” (in the Shopping Center, will be operated by Formula Kino)5-screens “Ramstor na Yartsevskoy” (in the Shopping Center, will be operated by Formula Kino)8-screens “Tri Kita” (in the Shopping Center)7-screens “Bratislavskiy Krug” (in the Shopping Center, will be operated by “Kinomax)4-screens “Grand” (in the Shopping Center)8-screen Shopping Center “5th Avenue” (will be operated by “Cinema Park”)……..

Source: NevafilmSource: Nevafilmwww.nevafilm.ru NEVAFILM JSC • CINEMAS • STUDIOS • DUBBING • DIGITAL • RESEARCH

Some the new Shopping Centers with Cinemas in St.-Petersburgwhich are planned to be open in 2004Y - 2005Y

8-screen in Shopping Center “City Mall”10-screen in Shopping Center “Rodeo Drive” 7- screen in Shopping center “Pik” (will be operated by “RosKinoProkat”)12-screen in Shopping Center IKEA MEGA MALLMultiplex in Shopping center “Planet Neptune”Multiplex in Shopping Center “Cosmos”3 x multiplexes in Shopping Centers “O’key”

Target Markets in Regions:

Nizhniy NovgorodYekaterinburg

KazanPerm

NovosibirskSamaraSaratov

VolgogradTumen

KrasnodarKrasnoyarsk

UfaRostov

Omsk




Way of Russian market develop:

Moscow St.-Petersburg Regions


Modern Cinemas: Modern Cinemas: MoscowMoscow

Population 10.1M people (7% of the total)

Average income per head per year in 2003Y$7’968

Share in the common incomesof the population of Russia 25%

Modern Cinemas in MOSCOW, Russia

5468 72 80 90100

151

178

240

300

2002 2003 06.2004 2004F 2005F

cinemas screens

51%

59%

25%

2003 2004F 2005F

Rate of a gain of quantity of screens (% by the previous year)

Key notes 2003Y11 screen “Kinostar De Lux”&Nescafe IMAX®

Key notes 06.200412 screen “Formula Kino”&9 screens “Cinema Park”

The new screensin Shopping Centers

2003 2004F 2005F



51%59%

25%


Modern Cinemas: Modern Cinemas: St.-PetersburgSt.-Petersburg Modern Cinemas in St.Petersburg, Russia

9 1319 22

30

14

28

56

70

120

2002 2003 06.2004 2004F 2005F

cinemas screens




100%

150%

70%

2003 2004F 2005F


The new screensin Shopping Centers

Key notes 2003Y5 screen “Zanevsky cascade”

Key notes 06.200426 screens “Kronverk Cinema” in 4 Shopping Centers

2003 2004F 2005F

Reconstructionof the existingcinemas




Modern Cinemas: Modern Cinemas: RegionsRegions (excluding Moscow and St.-Petersburg)(excluding Moscow and St.-Petersburg)




54%

21%

32%

2003 2004F 2005F


The new screensin Shopping CentersReconstruction

of the existingcinemas

2003 2004F 2005F



54%

21%

32%

Modern Cinemas in Regions, Russia

217262 272

298

350

236

363 371

440

580

2002 2003 06.2004 2004F 2005F

cinemas screens

373

Average Box Office per the one screen Average Box Office per the one screen

Russian Box Office vs. Q-ty of Modern Screens

$320K$310K$291K

$274K$257K

$173K

-

100

200

300

400

500

600

700

800

1999 2000 2001 2002 2003 2004F

Box Office, $M Screens, q-ty AVG BO per screen, $K




Box Office vs. Q-ty of Modern Screens in MOSCOW

$417K

$468K$504K

-

100

200

300

400

500

600

2002 2003 2004F

Box Office, $M Screens, q-ty AVG BO per screen, $K

Average Box Office per the one screen in Moscow Average Box Office per the one screen in Moscow




Source: ScreenDigest, Media Sales,Kinobusiness TodaySource: Nevafilmwww.nevafilm.ru NEVAFILM JSC • CINEMAS • STUDIOS • DUBBING • DIGITAL • RESEARCH

Russian Cinema Market: Russian Cinema Market: forecastsforecasts

1991 1993 20011995 1997 1999 2003 2005

Qu

ality

of

cin

em

a e

nte

rtain

men

t

Forecast of growth Attendance and Box Office Russia, Mln

0

100

200

300

400

500

600

Attendance, mln.people 40,5 68 95 130 165 198

Box Office, mln.$ 101 168 226 307 398 501

2002 2003 2004 2005 2006 2007

The basic tendencies of the Russian Movie Theater Market 1996 - 2007

Moscow St.-Petersburg Main cities Regions

Modernization of working central cinemas

1996Y 1997Y 1997Y 1999Y

Reconstruction of old cinemas 1997Y 2000Y 2000Y 2000Y

Construction of multi-screens cinemas in shopping centers

2000Y 2003Y 2004Y 2005Y

Construction of multiplexes in separate buildings

2003Y 2005Y 2006Y 2007Y

Forecast of the Russian modern cinema market

0

200

400

600

800

1000

1200

1400

1600

Cinemas 280 343 400 470 550 600

Screens 350 542 750 1000 1200 1400

2002 2003 2004 2005 2006 2007



Source: ScreenDigest, Media Sales,Kinobusiness TodaySource: Nevafilmwww.nevafilm.ru NEVAFILM JSC • CINEMAS • STUDIOS • DUBBING • DIGITAL • RESEARCH

Russian Cinema Market: Russian Cinema Market: basic trendsbasic trends

THE BASIC TRENDS OF DEVELOPMENT OF THE RUSSIAN CINEMA MARKET

Growth of the movie theater market against a background of the social and economic rise of the country;

Increase in the share of multi-hall theaters and multiplexes, especially within Shopping Centers;

Reduction of the per-screen profitability of the existing theaters due to increased competition and appearance of new players on the market;

Increase in the volume of investments in the construction of new movie theaters due to increased competition and higher requirements and expectations of the spectators

More stringent government control of the quality of construction, especially that of large multiplexes facilities;



NEVAFILM STUDIOS™ The one of the most modern

Postproduction Film Studio in Russia

NEVAFILM DUBBING™The largest Russian Dubbing Studio

of language dubbing films for theatrical release

NEVAFILM CINEMAS™Cinematic design and consulting

Supply & installation the cinema equipment

NEVAFILM DIGITAL™ - Development of Digital Cinemas in RussiaSupply and installation the DC equipment


Thank youThank youfor your attention,for your attention,

and welcome to Russia!and welcome to Russia!

If you have any questions If you have any questions about Russian market about Russian market

Welcome to booth #204!Welcome to booth #204!



The special report about Russian Cinema Market

russian movie theatres market trends of development of the new modern cinemas media salles seminar,...

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