Question 1

Is the Australian cinema market still a growth opportunity for investors?

Accepted Answer

The market is entering a period of structural decline, with Australian cinema revenues forecasted to contract at a -0.4% CAGR through 2023. Per capita admission rates have already dropped from 4.1 in 2010 to 3.6 in 2018 as consumers pivot to digital alternatives.

Question 2

How aggressively are streaming services competing with traditional film distributors?

Accepted Answer

SVOD platforms have become high-volume content engines, with Netflix alone distributing 75 original films in 2018. This scale of production directly challenges the traditional theatrical window, especially as standard Australian ticket prices reach highs of A$30.

Question 3

Can cinema subscription models like MoviePass work in this region?

Accepted Answer

The failure of MoviePass, which reported monthly losses of US$40 million in May 2018, serves as a warning against unprofitable pricing structures in the exhibition space. Any local subscription attempt must balance consumer demand for value against the high cost of theatrical overheads.

Question 4

Are there emerging theatrical formats that could offset falling attendance?

Accepted Answer

Innovation is currently led by Asian markets, where players like iQiyi are launching on-demand mini-theatres to capture niche demand. This regional influence is already visible in the local market, where 39% of movies released in Australia in 2018 originated from Asia.

Cinema market trends 2019 – Australia and New Zealand

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Frequently Asked Questions

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