- Cinema attendance in the UK peaked in the late 1930s/early 1940s and has generally declined since then, with some fluctuations. - Over the last decade, there have been increases in the number of 3D screens, digital screens, and multiplex screens in UK cinemas. - Internet movie websites and movie-related searches on Yahoo have seen significant growth in unique users from 2009-2010. - Surveys found that cinema audiences enjoy film advertising and are more likely to see a film in theaters if it's in 3D. Younger demographics and males are more represented among regular cinema goers.

1. Laura Chaibi
Director of Research, EMEA

3. cinema trends
film intent
discovery/influencers
changing distribution
changing role of
internet advertising

4. 1984

5. 0
200
400
600
800
1000
1200
1400
1600
1800
1935
1937
1939
1941
1943
1945
1947
1949
1951
1953
1955
1957
1959
1961
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1981
1983
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1987
1989
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1995
1997
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2001
2003
2005
2007
2009
2011
2013
2015
2017
2019
UK cinema attendance
(millions)
Source Film Distributors' Association , UK admissions
millionsofattendees
trend
1
9
8
4
1
9
4
6

6. cinema trends in last decade
Source www.cinemauk.org.uk H1 2009 3D screens
avg. spend per head +40%: £9.99 to £13.91
3600 screens: +51% increase
more digital screens: 71% of digital screens 3D
cinema ticket avg. £5.05 – 2nd lowest in Europe
75% all screens are multiplex screens: +50% to 2735 screens
59 screens / head vs. 70 EU vs. 129 USA
cost of film production
less suburban and rural cinemas than 10 years ago
less risks more few, bigger, better…

7. cinema 2010 onwards...
3D
+30%
£1.3bn
+ 10%
174m
+ 6%
Source Mintel March 2010

8. 0
500
1,000
1,500
2,000
2,500
Sep-2009 Oct-2009 Nov-2009 Dec-2009 Jan-2010 Feb-2010 Mar-2010 Apr-2010 May-2010 Jun-2010 Jul-2010 Aug-2010 Sep-2010
movie website trends
Source: comScore, Oct 2010
millionsofuniqueusers
40%
visit movie sites
(6m)

9. 0
500
1,000
1,500
2,000
2,500
Sep-2009 Oct-2009 Nov-2009 Dec-2009 Jan-2010 Feb-2010 Mar-2010 Apr-2010 May-2010 Jun-2010 Jul-2010 Aug-2010 Sep-2010
movie website trendsmillionsofuniqueusers
Source: comScore, Oct 2010

10. 0
500
1,000
1,500
2,000
2,500
Sep-2009 Oct-2009 Nov-2009 Dec-2009 Jan-2010 Feb-2010 Mar-2010 Apr-2010 May-2010 Jun-2010 Jul-2010 Aug-2010 Sep-2010
movie trends & Yahoo! movies channel
Source: comScore, Oct 2010. entertainment films category
millionsofuniqueusers
(6m)

11. getting closer to film fans
Yahoo! Connections panel, Sept 2010, sample 1500, cinema goers visited in the last 6 months sample 1005
UK: 1500 people cinema goers: 1005 people
28%
35-44
22%
25-34
22%
16-24
28%
45-54
52%
men
48%
women

12. 45%
enjoy film advertising more than
other types of advertising

13. 44% 23%44% 20% .atE19%
19% 19% 13% 13% 12%
cinema audiences: definite backers
Chronicles of
Narnia
Harry Potter
part 2
Pirates
Caribbean 4
X-Men
TRON Legacy
Harry Potter
part 1
Transformers
3 Hangover 2Little FockersTwilight

14. 32% 23%28% 20% .atE19%
18% 18% 17% 17%
Hangover 2
18%
potential cinema converts
Chronicles of
Narnia
Pirates
Caribbean 4
Harry Potter
Part 2
Final
Destination 5
Little
Fockers
Kung Fu
Panda
TRON Legacy
Harry Potter
Part 1
Transformers
3

15. X--Men
Shrek 4
31% 27%30% 22% .atE15%
15% 14% 13% 13% 11%
DVD wins – the sequels rule
Harry Potter
Part 1
Pirates
Caribbean 4
Iron Man 2
Harry Potter
Part 2
Chronicles of
Narnia
The
ExpendablesTwilight
Transformers
3

16. X--Men
The
Expendables
24%
Shrek 4
24%24% 20% .atE20%
20%
Girl Who Played
with Fire
19% 19% 19%
Harry Potter
Part 1
18%
DVD potential: 1 in 5 still to decide
Chronicles of
Narnia
Pirates
Caribbean 4
A-Team
Harry Potter
Part 2
How to train
your Dragon

17. Transformers
3
Little
Fockers
18%
Salt
18%18% 17% .atE16%
16% 15% 15% 15% 15%
DVD potential: 1 in 7 to convert
Iron Man 2 Kung Fu
Panda
Karate Kid
Knight & Day
The Last
Airbender
TRON Legacy Hangover 2

18. film discovery & influencers

19. 48%
40%
29%
18%
more likely to see film at cinema if 3D
seen a 3D film in the past year
3D makes films a significantly better
viewing experience
I would pay more to see a film in 3D
% respondents who agree
Source FAME 2010 Base: All respondents aged 15+ , all cinemagoers who agree with the statements
3D bringing audiences into cinema

20. film companions
Q: Thinking back to the trips you've made to the cinema over the last
month, who did you go to watch these films with?
Source Yahoo CP study Sept 2010 Sample 1005
62% 63%
friends partner

21. early awareness and late planning
heard about the most
recent film they saw at
least 1 month ago
plan their cinema visits
up to a maximum of 1
week in advance
52%
67%

22. 73% turn to the internet for new film info
Q: On first hearing about a new film how would you go about finding more information?
trailers
actively
search
Source Yahoo CP study Sept 2010 Sample 1005
ask friends /
family
follow ents.
news online
trusted film
site
Internet
via my mobile
43%
41%
30%
29%
15%
6%

23. better digital canvas

25. power of search – ubiquitous
17%
trailers
16%
critics
reviews
21%
film/ents
focused site
23%
search
actors
27%
official
website
96%
search
film name
Q. Thinking back to the last time you conducted an online search for information about an upcoming film, which search term or key word did you
use? Please select all that apply.
Q When conducting an online search for information, what type of site would you most like to see at the top of the search results?
Source Yahoo CP study Sept 2010 Sample 415
When conducting an online search for information, what type of site would you most like to see at the top of the search results?When conducting an online search for information, what type of site would you most like to see at the top of the search results?When conducting an online search for information, what type of site would you most like to see at the top of the search results?When conducting an online search for information, what type of site would you most like to see at the top of the search results?When conducting an online search for information, what type of site would you most like to see at the top of the search results?

26. Algo results
Ads
Search box
Web of Things
Shortcut
Rich
Results
Vertical
shortcut
Yahoo! Search experience: Yahoo! + Microsoft
filters

27. related
people
explore
related movies
official site, news,
media & twitter
tapping into celebrity addiction

28. Yahoo! Search rich media evolution

30. changing distribution…

31. motivation: already saw it or wanted to
saw in cinema and
enjoyed it
impulse buy
share with friends/family
special offer
missed it in cinema and
want to see it
58%
58%
41%
28%
35%
wanted to see DVD /
Blu--Ray extras 17%
Q: Thinking about the "new film releases you have purchased in the last year, for what reasons did you buy them?
Source Yahoo CP study Sept 2010 sample 677

32. 3 in 4 want to own favourite TV series
48% older films
59% TV/Drama Series
62% reduced price
older film release
Q: Thinking about the non film dvd's purchased in last year which sector were they from? Source Yahoo CP study Sept 2010 Sample 796/393
Q: Thinking about the "older film releases you have purchased in the last year, for what reasons did you buy them?
non film DVD’s
gifts

33. DVD decline
DVD sales
market values
627,000 blu-ray players
sold in 2009
-22%
-9%
+57%
Source Mintel DVD Player - March 2010

34. understanding
price
penetration
Source Mintel Sep 2009 Base: 2,000 internet users aged 16+
the blu ray debate

35. Source Mintel DVD - March 2010
changing strategy
female friendly
emotional benefits
PS3
educate: triple play sell

36. Source Yahoo! What women Want, August 2010. D7. In which rooms have you accessed the Internet at home during the last month? Sample men and women 3446
no room is sacred from the internet
71%
living
room
54%
bedroom
25%
kitchen
31%
dining
room
16%
garden
8%
bathroom
8%
playroom

37. watching movies/TV via the internet
Source What Women Want Yahoo, sample 3446
68% 31%
a few times a
week +
11%
once a day +
ever
Q: How often do you use the internet to Watch movies or television shows

38. 34% watch again
31% cost
48% time
1 in 4 downloading
Q: What were your motivations for downloading the film, rather than seeing it in the cinema or buying/renting the DVD?
Source Yahoo CP study Sept 2010 Sample 257

39. changing role of internet advertising

40. film ads online lead to consumer action
Q: When you see an online ad for a film that appeals to you which of the following actions have you taken as a result?
Source Yahoo CP study Sept 2010 Sample 597
58%
sound
53%
search
39%
set up
seeing

41. SRO: social recommendation optimisation
friends, family & colleagues
friends and family ask for
my opinions about films
Q: Which source do you trust most when making a decision about which film to see?
Q: My friends and family ask for my opinions about the latest films
Source Yahoo CP study Sept 2010 Sample 1005
46%
most
trusted

42. friendvertising: paid/owned/earned*
paid
advertising
owned
assets
earned
social
70%
20%
10%
45%
45%
10%
20%
70%
10%
budget
*for guidance
contacts engagement

43. consumer top 5
thank you

44. Laura Chaibi
Yahoo! Director of Research and Insights EMEA