Cineworld profits from 3-D films boom
Have you ever heard about 3D movies? 3-D stands for 3 Dimensional. It’s a feeling of being a part of the movie. Today, more and more movies in the cinema are visible in 3-D. But why does the popularity of such a movie increases?
In the past, the cinema was a popular place if you wanted to watch the newest movies. But today people go to the cinema less, because they can already download the latest movies on the internet for free. Which means that the popularity of the cinema decreases.
But, Cineworld, the UK’s cinema chain, has found a solution to boost the popularity of the cinema by investing in 3-D technology. 3-D movies give you the feeling that you’re in the movie. You get het feeling that the movie isn’t projected on a flat screen anymore but that you’re a actually part of that movie. It’s a motion picture that enhances the illusion of depth perception. For example, the popular rock group U2 let filmed their “Vertigo tour” show in 3D, so that viewers could imagine that they were at the concert.
The investment of Cineworld had the advantage of increasing ticket sales witch 11.5 per cent. This can be translated to a revenue of 333.4 million pounds for the 53 weeks to December 31. But the success of the 3-D blockbuster movie Avatar had a positive influence on this amount. Thanks to this movie, the pre-tax profits raised from 27.6 million pounds to 30.8 million pounds. The intention of the movie makers was to create the biggest-grossing film of all time. They succeeded, three weeks ago Avatar was awarded with three Oscars.
According to Cineworld, the prospect for the coming year goes to Disney’s remake of Alice In Wonderland, which is already a huge success in cinemas.
To make the investment profitable, the cinema chain raised the average ticket price by 7.5 per cent to 4.71 pounds last year. They also made it more attractive by introducing two-for-one deals on Coca-cola and sweets. If you buy one of them, you’ll get the other for free. This stimulated customers who usually don’t buy food and drinks at the cinema, like popcorn for example. This turned into a dividend of 6.8 pounds a share for the shareholders previous year. So an attractive financial result could be published.
According to me, 3-D cinema is the only way to get the people back to the cinema. I have no doubt about this sort of movie viewing, because you can’t experience this effect when you’re at home, you can only watch the movie then. Some years ago, the internet became popular on a large scale so people got more trusted with it and they started downloading movies that were just released in the cinemas. But investors found the right way to rebuild the popularity of cinema, even in our regions. Since 2 years, the Kinepolis cinema has also been offering 3-D movies, which has already increased the popularity of the cinema.
What’s also remarkable in our regions is that the price of a cinema ticket increases, what’s hard during today’s financial crisis. So we feel the influence of investors on the price of our ticket.
The total cost of filming a 3-D movie is also higher than filming on the old fashioned way. So I am convinced that it’s an attractive market for prospective investors. Money in this market is definitely needed to bring this sort of movie to a standard. That’s the reason why I should also invest in this market.
I can conclude that the success of 3-D movies could be really important for prospective investors. It’s more than just a hype. It’s even a method to defeat the illegal piracy of copying movies. One day, it will become a standard for movies in the cinema. When this standardization is reached, it will maybe turn over to our living rooms.
Source: http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article7057842.ece
In the past, the cinema was a popular place if you wanted to watch the newest movies. But today people go to the cinema less, because they can already download the latest movies on the internet for free. Which means that the popularity of the cinema decreases.
But, Cineworld, the UK’s cinema chain, has found a solution to boost the popularity of the cinema by investing in 3-D technology. 3-D movies give you the feeling that you’re in the movie. You get het feeling that the movie isn’t projected on a flat screen anymore but that you’re a actually part of that movie. It’s a motion picture that enhances the illusion of depth perception. For example, the popular rock group U2 let filmed their “Vertigo tour” show in 3D, so that viewers could imagine that they were at the concert.
The investment of Cineworld had the advantage of increasing ticket sales witch 11.5 per cent. This can be translated to a revenue of 333.4 million pounds for the 53 weeks to December 31. But the success of the 3-D blockbuster movie Avatar had a positive influence on this amount. Thanks to this movie, the pre-tax profits raised from 27.6 million pounds to 30.8 million pounds. The intention of the movie makers was to create the biggest-grossing film of all time. They succeeded, three weeks ago Avatar was awarded with three Oscars.
According to Cineworld, the prospect for the coming year goes to Disney’s remake of Alice In Wonderland, which is already a huge success in cinemas.
To make the investment profitable, the cinema chain raised the average ticket price by 7.5 per cent to 4.71 pounds last year. They also made it more attractive by introducing two-for-one deals on Coca-cola and sweets. If you buy one of them, you’ll get the other for free. This stimulated customers who usually don’t buy food and drinks at the cinema, like popcorn for example. This turned into a dividend of 6.8 pounds a share for the shareholders previous year. So an attractive financial result could be published.
According to me, 3-D cinema is the only way to get the people back to the cinema. I have no doubt about this sort of movie viewing, because you can’t experience this effect when you’re at home, you can only watch the movie then. Some years ago, the internet became popular on a large scale so people got more trusted with it and they started downloading movies that were just released in the cinemas. But investors found the right way to rebuild the popularity of cinema, even in our regions. Since 2 years, the Kinepolis cinema has also been offering 3-D movies, which has already increased the popularity of the cinema.
What’s also remarkable in our regions is that the price of a cinema ticket increases, what’s hard during today’s financial crisis. So we feel the influence of investors on the price of our ticket.
The total cost of filming a 3-D movie is also higher than filming on the old fashioned way. So I am convinced that it’s an attractive market for prospective investors. Money in this market is definitely needed to bring this sort of movie to a standard. That’s the reason why I should also invest in this market.
I can conclude that the success of 3-D movies could be really important for prospective investors. It’s more than just a hype. It’s even a method to defeat the illegal piracy of copying movies. One day, it will become a standard for movies in the cinema. When this standardization is reached, it will maybe turn over to our living rooms.
Source: http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article7057842.ece
Geen opmerkingen:
Een reactie posten