Cinema First workshop audience research


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FIndings of an industry workshop into how to build cinema audiences. Commissioned by UK cinema body Cinema First. This research appears on leading media audience site, which is gathering feedback from anyone interested in the field.

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Cinema First workshop audience research

  2. 2. OUR OBJECTIVE FOR TODAY• …is not to arrive at any answers• It is to explore as a group whether there is value in shared thinking, learning and exploration about how to profitably increase cinema admissions• And where that value might lie• We are not looking in this session for commitment to shared action
  3. 3. If something is going to be better, it is new, and ifit’s new you are confronting problems andchallenges you don’t have references for.To solve and address those requires aremarkable focus. There’s a sense of beinginquisitive and optimistic, and you don’t seethose in combinationvery oftenJonathan Ive
  4. 4. A SUGGESTED MINDSET FOR TODAY: Can If vs. Can‟t because
  6. 6. Our Objectives for today• To explore as a group whether there is value in collectively thinking about how to increase cinema admissions• Where that value might lie• Help frame the future strategy of Cinema First
  7. 7. Today’s session CosWhere are we at? Some numbers
  8. 8. UK Film RevenuesMillion 2004 2005 2006 2007 2008 2009 2010 2011£Cinema 769 776 762 821 854 943 1006 1080Home 2953 2708 2559 2644 2628 2386 2325 2180EntVOD 0 0 0.20 0.8 7.7 24.8 45.2 59.6Total 3722 3484 3321 3465 3490 3354 3376 3320 Again a decline in overall value of circa 10%
  9. 9. Cinema AdmissionsMillion 2004 2005 2006 2007 2008 2009 2010 2011West. 948 852 875 858 862 915 814 890EuropeNorth 1,484 1,376 1,395 1,401 1,356 1,418 1,341 1,261AmericaWorld 7,415 7,365 7,689 7,064 7,103 6,951 6,834 6,674 741 million visits lost since 2004 – 10% decline world wide
  10. 10. UK AdmissionsMillion 2004 2005 2006 2007 2008 2009 2010 2011UK 171 164 156 162 164 173 169 171 Despite large investments admissions are flat-lining.
  11. 11. But more films are being made then ever Number of 2002 2010 films produced Europe 1102 1508 World 3792 5543 Over supply of films into a declining market place
  12. 12. Some conclusionsTotal value of film is in decline.The value of cinema as a % of the value chain isincreasing. By 2014 it will be equal with allhome entertainment in Europe. (Atapproximately $10 billion each)Cinema admissions world wide are at best leveland maybe in gentle decline.
  13. 13. Where do we stand? Wondering…?.
  14. 14. CrisesCan we see it coming? When do we act?
  15. 15. Things change quickly
  16. 16. PETER: CINEMA AT A CROSSROADS• Pressure for change• £7bn 2004  £8.4bn 2011 • Decline in gross revenue • Larger in US than UK• Admissions also declining• Generally, not an increasing market • Despite large investment• Yet, an increasing number of films being produced each year• Total value of film is in decline (including home entertainment)
  17. 17. DISCUSSION
  18. 18. DISCUSSION• How do we know if we are in a crisis? Can we see it coming? • Things change very quickly• Need to respond to early indicators • E.g. NY headlines• £200m invested in digital in last 18 months – haven‟t yet seen return• We‟re fishing from the same pond • Need to drive organic growth • Saturation point with increasing prices (yet can‟t compromise theatre experience)• We are reactionary – need to be forward-thinking • E.g. Avatar 3D (2010) - „flavour of the month‟ one moment, the next 3D was receiving bad press• Older audience
  19. 19. DISCUSSION• How engaged are the youth? • E.g. Gaming is huge among teens • This should ring alarm bells for us• Disappointment around the films • Off-putting for future films• What films belong in cinema? • Need to be „choiceful‟ • Opportunity with digital• Getting young people in the habit• Volume of films is misleading: same number of big films released, but getting „bigger‟ • Many small films getting lost. Should we include breadth?• Making the experience bigger than the film
  20. 20. DISCUSSION• Demographic is constantly changing, e.g. ageing population • Opportunity with niche audiences • There are many solutions – not just „one size fits all‟ • Different challenges per group• Orange Wednesdays – wanted to broaden choice, but this didn‟t • We weren‟t aligned with Orange• Cinema-going competing with other lifestyle activities • Time free for teens changes across the year (e.g. Exams, school holidays, etc) • Consumption is huge (e.g. using different technology simultaneously) • Other pressures • Different groups within teens• Membership – you can gamble on a risky film without the same disappointment of having paid full price for a ticket
  21. 21. DISCUSSION• Frequency • Look to other countries with high frequency • Loyalty card • Experience• Games industry – a distraction for us?• More people NOT going, than going • Need to target these people (organic growth)• We need to agree on the issue• Targeting frequency and demographic • Need more strategic data – esp. on those going vs. not going• Value for experience• Need to invest in brilliant basics• Need to share data
  22. 22. DISCUSSION• Gaming + TV have evolved hugely over the past few years – community, internet streaming, etc • Cinema hasn‟t...• Standards + expectations have grown • Investment is often just to keep infrastructure updated to „standard‟• Films that appeal to different audiences – not just youth• Quality vs. volume • Disconnect between production + exhibitors/ distributors • Need to bring them together • (Although can‟t blame this disconnect entirely, as production + distribution are often the same)• Industry model • Public funding• Updating our business practices – changing how we work as an industry
  23. 23. DISCUSSION• Single vision – harness energy for desire to change• Research the types of people going to the big hits (and not other films) • Encourage second viewing by utilising e-mail databases, for example• 3D receiving negative press – we need a consistent story to back it • Communicate overall “Isn‟t cinema great?” story • Quality of experience• Admissions – heavy cinema goers would see all if they had time • Therefore there is more potential in those going every so often...• Make a night of it – could see two films for less, for example• Green Witch campaign grew admissions • Which marketing works? • Need to experiment
  25. 25. DISCUSSION• Need to agree our compelling case• Customer journey • Or about looking after current consumers?• Technology  cinema more than just seeing films • Especially pertinent re: access (outside London)• Population growing – yet admissions static• Value in a shared approach
  26. 26. OVERALL
  28. 28. EXHIBITORS
  29. 29. Area Specific commentsImprove/ create great We‟re in the experience economyconsumer experience From selling the tickets to delivery of the film Vs other competitive activities (future proofing) Selling customer experience, in context of competitors (external competition and other channels of film watching) Deliver basics brilliantly (experience) each time or money back Redesign cinema experience around best of hospitality business Perception vs. Reality Youth customer experienceBetter Understanding Better Understanding of consumers expectations (already done?)of consumers Understanding our audience and creating a common language for all to use Better understanding our consumer – why are they watching elsewhere? What irritates them, and how do we get around that? Understanding consumers‟ needs Proper segmentation around usage, and fit within contemporary media landscape Routinely measure key drivers of satisfaction/ dissatisfaction vs other alternatives.... quarterly U&A?
  30. 30. Area Specific commentsTarget particular a) Youthaudiences Developing a diverse film watching habit while young Make cinemas more welcoming to young b) Older Older – filling screens weekdays Supporting each other in connecting with older group and bringing them back more oftenCommunity Use screens to help out local schools Invite participation and contribution to what‟s showing when
  31. 31. Area Specific commentsFocused/ Proper Current promotional model past its sell-by date: need proper marketingmarketing and todaycommunication Building and utilising consumer databases Deliver integrated Marketing Plan celebrating virtues and value of cinema Major campaign, broadly supported about cinema being the best place to experience film Working together to deliver end to end CRM Better CRM – Amazon „like‟ recommendations Direct local marketing supportEase/ choice/ Make purchasing and booking of tickets easy/ spontaneousflexibility New distribution for impulse buys Provide consumers with greater choice, on their terms Creating demand for choice and flex as well as delivering it Improve access and choice, esp outside South East Offer choice of productInnovation and Isolate lowest cinema-going region and prototype radical ideas to boostprotoyping admissions Innovation for youth Paperless ticketing
  32. 32. Area Specific commentsOther Broadening the perceived offering Converting consumer demand at its peak Prototyped ideas Lapsed consumers/ reappraisal Communicate that cinema offers good VFM vs competition Increase social nature of cinema-going: group benefits + social media Promote as if „no release window‟ Focus on potential or infrequent users, not cognoscenti Filmcard for young people Communicate range of product more clearly Find out what‟s not working, and have a positive attitude to dealing with it Create high level industry forums to discuss key issues Link with book clubs to offer deals on upcoming films
  33. 33. WORDLES: BUILDS• Customer experience • May be based on previous experiences – we need consistency • Tailored to suit each individual • Who is talking to the audience? • Lots of different dialogues • Make it personal – twitter conversations, not databases• Distributors + exhibitors to work more closely to share knowledge and come up with new ideas• Growing the market is very important as costs/ etc are increasing• Availability of alternative content – digital • Non-film content • Innovative with my relationship with the consumer• Shared learnings – e.g. Teen screen
  35. 35. SUMMARY OF SUCCESS/FAILURE FACTORS Pressure for Change + A shared vision + Capacity to change + Realistic workplan = Success + A shared vision + Capacity to change + Realistic workplan = Slow death Pressure for Change + + Capacity to change + Realistic workplan = Anarchy Pressure for Change + A shared vision + + Realistic workplan = Nervous breakdown Pressure for Change + A shared vision + Capacity to change + = Great hype No resultsSource: Michael Hay/ IKEA
  36. 36. AGREEMENTS FROM THIS MORNING1. There are strong reasons to want to look at how to profitably increase cinema admissions2. There would be a value in formally articulating that case and prompting the industry to address that issue3. And then in sharing an approach to addressing it4. The time is right, then, for Distributors and Exhibitors and Producers to work together more closely on this in the UK than they have till now5. It needs to start on clear foundations. Knowledge, not just data. In a common language
  37. 37. AGREEMENTS FROM THIS MORNING6. From this would need to emerge a common sense of what the issues and their underlying causes really were7. We are clear that there will not be „one size fits all‟ solutions8. We have started to identify some key areas (like Experience) that might then benefit from a shared understanding9. As we move forward, there are useful learnings and stimuli to be gained from other categories who have faced similar challenges and overcome them10. There would be real value for Cinema First in being a sharer of existing data and knowledge, existing but not widely shared/ used, in addition to helping originate new knowledge
  38. 38. BUILDS• Profitability, including admissions• Value chain  exhibitors, distributors, production • Especially re: what the market wants• Shared understanding• Pressure for change must be clearly articulated• Info sharing – what goal? • Responding quickly• Brand loyalty • Tends to be actors – what about exhibitors?
  40. 40. WHY ARE WE DOING THESE?• We want to explore the potential for working together• Clearly realistic about the degree to which we can really get to powerful solutions in 30 minutes‟• This next half hour is more about collectively getting a feel for how productive we might be as an industry in collaboratively tackling different opportunities around increasing cinema admissions• ...Opportunities you yourselves have identified in your answers to our email leading up to this day together
  42. 42. FIRM FOUNDATIONS• This exercise is about establishing enough underlying rigour and knowledge to give us all confidence that we would be tackling the right issues, in the right order, with enough insight into the underlying causes• What do we need to have more data on as an industry to allow us to be sure we are tackling the right problem(s) and opportunities in boosting overall admission figures? • What more data needed to know tackling ?? problems? • Understanding what a good + bad experience is, and track this • Share all existing data and analysing it to increase knowledge • Really analyse where best to put efforts in cinema going, e.g. Heavy on light cinema goers • Data on industry ?? Where from and trends? E.g. Warlord. • What is the ideal consumer „state‟ over the year, and where are there gaps? • Team up with P&D + DCM as they are looking for consumer data + gaps • Resource getting the data – like Tesco
  43. 43. FIRM FOUNDATIONS2. Which of these kinds of data would it be useful for us to take a collaborative approach to collecting, analysing and sharing? • All of them3. What might be the first three steps we wanted to consider in taking this further? • Talk to the sales houses re: other plans • Do an industry ?? and collate and analyse it • Commission some customer experience + tracking survey (innovatively)
  45. 45. ENRICHING CINEMA-GOING AS ACUSTOMER EXPERIENCE• Why might enriching the cinema-going experience help increase overall admission figures? • “All about the experience” • Social, OOH, spectacle, competitive edge = market edge • Competitors innovate – part of what people expect • Positive – end-to-end • Small things make a big difference • Social – shared – enhances • Q. How multiply enjoyment? • Experience increases frequency – how to define what the experience is Retailer – compelled to innovate • Danger = we get complacent •  Command a premium
  46. 46. ENRICHING CINEMA-GOING AS ACUSTOMER EXPERIENCE• What kinds of experiential enrichment in particular might be particularly powerful to help us do this? • Before • Ticket purchase • Location – mall, out of town, high street • How to ensure their activity is in-sync? Environment cohesion, end-to-end • During • Social experience – before/ after • How welcomed, how feel, remove irritation, paperless ticketing, impulse-buying – other distribution points • More personalised experience – booking online, understanding/ sharing the data • Feed anticipation – encourage to tweet/ share. Buttons on way out to share views • After • Customer service • Ushers
  47. 47. ENRICHING CINEMA-GOING AS ACUSTOMER EXPERIENCE• Which other industries could we usefully learn from here? • Social media experience – how learn from TV/ Twitter? • Customer service/ hospitality – airlines, e.g. Virgin • Experience • Apple – staff empowered to take lead • Hamley‟s • Fast food – McDonald‟s re-branding • Pret – staff engaged and friendly • Online • Amazon (and put customer first; present right choices, ask for feedback)
  48. 48. ENRICHING CINEMA-GOING AS ACUSTOMER EXPERIENCE• Where might the benefit lie in taking a more collaborative approach as an industry on this issue? • Does improved experience enhance enjoyment of the film? • Testing • Learning from elsewhere stimulates as individuals • Out of which comes possible collective innovations to test • Learn about audiences and stakeholders • Potential solutions – trial simple ideas
  50. 50. MAKE CINEMA GOING A MUCH EASIERCUSTOMER EXPERIENCE• Why might making the cinema-going experience an easier one from start to finish help increase overall admission figures? • Cinema as escapism – away from the drudgery • Must be easier than competing offers• What moments in particular during the customers cinema-going experience might be particularly influential in helping us increase overall admissions? • Booking – lack of a central booking hub • Lack of lead-in time – “Buy it now” messages don‟t work. Reminders? • Do you need to book to screen? • A role for aggregators • Lessons from airlines • Impulse customers lost?
  51. 51. MAKE CINEMA GOING A MUCH EASIERCUSTOMER EXPERIENCE• In-cinema experience • Queuing – lack of box offices • Lessons to learn from Top Table, etc • Theatre – maybe more relevant – less price-related • Mobile ticketing – QR codes • Staff training – Indies vs. circuits? • B&Q – employing older staff • Social experience = socially experienced • Self check-outs• Choice • Often too limited • Choice of seat? Can you change? Can you add?• Negative lessons • Live concerts • Theatre
  53. 53. MAKE THE CINEMA THE COMMUNITY HUB• Why might making the local cinema more of a hub for the community increase overall admission figures? • Drive engagement/ share identity/ experience • Drive goodwill/ positivity
  54. 54. MAKE THE CINEMA THE COMMUNITY HUB• What ways in which we might do this might be particularly influential in helping us increase overall admissions? • Drive 2-way communications to improve • Service the community in a way that suits the catchment: service, price, choice • Priority: time + effort into understanding • Resource stuff • Bottom up  top down • Outreach „touch points‟ • Businesses – public + private • Schools, libraries, clubs, sports, doctors – micro-environment knowledge and comms
  55. 55. MAKE THE CINEMA THE COMMUNITY HUB • PR/ coverage • Transportation (20 mins) • Competing activation • Family groups/ clubs • Create advocates • Bars/ restaurants • Social media • Cost + benefit • Volunteers?
  56. 56. MAKE THE CINEMA THE COMMUNITY HUB• Which other industries could we usefully learn from here? • Waitrose (ethical, charities) • Majestic wine • B&Q• Where might the benefit lie in taking a more collaborative approach as an industry on this issue? • Distributors + exhibitors - test + learn + share
  58. 58. DEVELOPING CRM PROGRAMMES• Why might developing strong CRM programmes against specific types of cinema goers help increase overall admission figures? • Specific audiences – knowledge and recommendation• Which consumer types might be particularly important, if we could influence them in this way, in helping us increase overall admissions? • Everyone! • In particular: families, adults, students
  59. 59. DEVELOPING CRM PROGRAMMES• Which other industries could we usefully learn from here? • Retail: Amazon (recommendation) • Music • Tickets – e.g. SeeTickets, TicketMaster, Evention • Songkick • Insurance – Compare the Market • Wine – Naked Wines (collective, community) • Travel – Trip Advisor, Experia
  60. 60. DEVELOPING CRM PROGRAMMES• Where might the benefit lie in taking a more collaborative approach as an industry on this issue? • Common knowledge/ language • E.g. Film centre, audience types, film tagging • Efficient use of funds • All embody... • All... • BFI • ... • DCM iPad - ... • ... • BUA • Investor trusts/ FDA/ ...
  61. 61. BUILDS• Film-makers – exhibitors disconnect• Strategic partnerships – being proactive to get more big films• Catalyst for joining up• Exhibitor: seat capacity no. 1 • Opportunity to show things other than film • Community?• Olympics opportunity• Behavioural data in digital can be harnessed • Many channels• Community – could link a number of factors. Should not be used in isolation. • What is it that consumers „dig‟ in their cinema? • Why do some sell out every show? What are they doing well that we can borrow?• Marketing, PR – keep it local
  62. 62. BUILDS• Using relevant channels for the relevant audience • Focus• Convenience, ease – big potential, especially impulse buys • More people would book online if it was easy • Need to implement the entire journey – get rid of paper tickets! • Reminders• We need to communicate internally what we‟re doing first • If we don‟t know, how will our customers know?• Opening week – huge demand. We manage this well!• Hotel industry – build image around the smart, big city locations.