1 CREATIVE AUDIENCE ENGAGEMENT Exhibitors have diversified 2 CREATIVE AUDIENCE ENGAGEMENTPREMIUM 3 CREATIVEPREMIUM AUDIENCE ENGAGEMENT LOCAL 4 CREATIVE AUDIENCE ENGAGEMENT their offer to the preferences BOUTIQUE LARGE ARTPLEX ARTHOUSE POP-UP GIANT COMMUNITY of modern audiences ... CINEMA CINEMA CINEMA SCREEN SEATING FORMATS THEATRE WHAT’S NEW IN EUROPEAN CINEMAS? PAGE 2 Accessibility A increasingly diverse and Smart The cinema going experience Innovative Venues starts days before your visit engaging experience along Theatre creative AUDIENCE to the theatre – often on a all touch points of the Design Interactive Event- Screenings Immersive mobile device customer journey Driven ENGAGEMENT Sound, Community- Image and PAGE 4 Ancillary Cinema Motion Content Film Literacy Lobby Entertain- INNOVATION AND THE Alternative ment Content BIG SCREEN EXPERIENCE PAGE 18

Social

Media Digital social Data- Engagement Analytics Innovation Personali- sation Cinemas continue to PAGE 24 Brand make huge investments in Partner- technology and innovation ships to offer ever more immersive PLACING CINEMAS AT THE CENTRE OF experiences to audiences EUROPE’S GROWTH STRATEGY FOR FILM PAGE 31

x2 3 HOURS ROOM FOR GROWTH: NUMBER OF FILMS ALTERNATIVE CONTENT 5 IN 10 8 IN 10 SCREENED IN CINEMAS FORECAST TO CONTRIBUTE 98% 2100 3000 UNIC CINEMA VISITS IRELAND AND EUROPEANS EUROPEANS A DAY HAS ALMOST DOUBLED DIGITISED PREMIUM IMMERSIVE SOUND PER CAPITA: FRANCE: DISCUSS FILM ON WATCH TRAILERS TIME TEENAGERS IN 15 YEARS $ 1 BILLION SCREENS LARGE INSTALLATIONS SOCIAL MEDIA ONLINE SPEND ON MOBILE 1.5 3.3 IN 2019 WORLDWIDE SCREENS AND WORLD WIDE ARTHOUSE POP-UP5 CREATIVE AUDIENCEGIANT ENGAGEMENT PREMIUM LOCAL 1 CREATIVE AUDIENCE ENGAGEMENT ARTPLEX CINEMA CINEMA SCREEN SEATING COMMUNITY THEATRE WHAT’S NEW IN EUROPEAN CINEMAS? WELCOME PAGE 2 from Phil Clapp Accessibility A increasingly diverse and Smart Welcome to this, our latest report exploring innovation and changeInnovative Venues engaging experiencein alongEuropean cinemas. Theatre creative AUDIENCE all touch points of the Design Interactive UNIC, the Union InternationaleEvent- des Cinémas | International Union Screenings Immersive customer journey of Cinemas, is the EuropeanDriven grouping of cinema trade associations Sound, ENGAGEMENT and key operators, now covering 36 territories. We promote the social, cultural and economic benefitsCommunity- of a vibrant cinema-going culture Image and PAGE 4 acrossAncillary Europe and seek to provideCinema an influential voice for cinemas Motion on issuesContent of shared interest.Film Literacy Lobby Audience growth and box office results over recent years across UNIC territories clearly show thatEntertain- cinema-going in Europe is thriving, INNOVATION AND THE becomingAlternative an ever more engaging, diversement and immersive experience. This Contentis thanks in large part to on-going investment in innovation by BIG SCREEN EXPERIENCE cinema operators and their partners. This report explores how the sector embraces new technological and consumer trends by exploring PAGE 18 three key areas: creative audience engagement; the big screen expe- rience; and social innovation.

As our partners in government and across the industry value chain consider the future of our industry, we hope that this report helps social further to position cinema operators at the centre of their growth strategies. Innovation We hope you enjoy reading this report. Cinemas continue to PAGE 24

Phil Clapp, CEO of the UK Cinema Association,make is President huge of investments in the International Union of Cinemas. technology and innovation to offer ever more immersive PLACING CINEMAS AT THE CENTRE OF experiences to audiences EUROPE’S GROWTH STRATEGY FOR FILM PAGE 31

x2 ROOM FOR GROWTH: NUMBER OF FILMS ALTERNATIVE CONTENT SCREENED IN CINEMAS FORECAST TO CONTRIBUTE 98% 2100 3000 IRELAND AND HAS ALMOST DOUBLED DIGITISED PREMIUM IMMERSIVE SOUND FRANCE: IN 15 YEARS $ 1 BILLION SCREENS LARGE INSTALLATIONS 3.3 IN 2019 WORLDWIDE SCREENS AND WORLD WIDE 2 WHAT’S NEW? 3 WHAT’S NEW?

EU10* BOX OFFICE WHAT’S NEW IN VS. HOME ENTERTAINMENT SECTOR INITIATIVE EUROPEAN CINEMAS? REVENUE IN 2015 Cinemathon International 29% 58% UNIC helped establish ‘Cinemathon Inter- Physical Cinema national’, a design thinking-led initiative with Video the aim of creating innovative business strate- gies for European cinemas. The first workshop brought together a diverse group of business strategists, technologists, architects, festival organisers, designers, artists, food entrepre- Cinema-going in Europe is thriving, becoming an Moreover these changes have led to a significant neurs, VR creators, and leading experts from ever more engaging, diverse and immersive experi- increase in the number of international and local many other fields. With the help of experi- ence thanks to creative entrepreneurship and on- films screened in cinemas. 6% 7% enced design thinkers, five multidisciplinary going investment in innovation by cinema operators Digital Video Pay-TV VoD teams worked on different opportunity areas, and their business partners. European cinema operators of all sizes and loca- each developing a prototype for the cinema- tions continue to embrace innovation and experi- going experience of the future. In 2015, the 36 European territories represented by ment with new ways to engage audiences. As UNIC saw admissions increase by six per cent and cinema-going becomes an increasingly eventful Take a look at the ‘Cinemathon International’ box office revenue by 12.5 per cent. This positive and digitally-connected experience, the sector €8.8 BILLION initiative and its five prototypes: growth trajectory is reflected around the World: in confidently competes with the myriad of online BOX OFFICE REVENUE 2016, industry analysts IHS Markit reported a box entertainment options available to consumers today. cinemathon.squarespace.com office rise of 9.1 per cent for 20 selected countries when compared to already record breaking results Cinemas are engaging with those who love the in the previous year. big screen in an ever more personal and seamless +12.5% fashion, as we will show in this report. European cinemas were among the first in the INCREASE FROM 2014 industry to commit to digitising their businesses. 163 % (276) Over the past 10 years, cinemas across UNIC 1.26 territories – in partnership with colleagues in film NUMBER OF FILMS distribution – invested more than € 1.5 billion in BILLION the digital transition of their theatres. SCREENED IN ADMISSIONS CINEMAS (EU7) 116 % UK (761) The introduction of digital technology has led (Evolution in % / to a paradigm shift across the cinema landscape. Theatrical releases) Massive improvements in sound and projection +6% quality, more flexible and efficient operations and INCREASE 83% POLAND (343) sophisticated audience engagement strategies continue to transform the experience and attract FROM 2014 increasing numbers of guests to our theatres. 59% GERMANY (596) 49% DENMARK (257) 48% ITALY (593)

30% FRANCE (654)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 5 CREATIVE AUDIENCE ENGAGEMENT

Changing consumption habits and audience demo- graphics present cinemas with a huge opportunity Cinema operators continue to engage in more innovative and personal ways with those who love the big screen. to experiment with new audience development and Creative and collaborative use of technology – combined with exclusive theatrical experiences and marketing approaches to the long tradition of showmanship in the sector – attract more film fans to CREATIVE offers a unique opportunity to significantly increase their theatres, their efforts audience reach as well as frequency of cinema visits. As illustrated by the data below, there is huge poten- being driven by a few key tial for growth in attendances across Europe. trends:

Why is there this confidence in the continued AUDIENCE appeal of the big screen? The shared experience of cinema-going with friends and family grows in value as consumers have access to a multitude of online distractions, while media consumption in the home increasingly happens in solitude. A visit to the cinema is part of the wider ‘experience economy’, ENGAGEMENT and as such has to deliver value along the customer journey.

AVERAGE VISITS TO THE CINEMA Cinemas – with the help PER YEAR: of digital innovation – have turned into smart venues, enabling operators to EUROPEAN track, analyse and predict UNION: audience behaviour. Mobile devices and 1.9 social media are today UNIC a central element of TERRITORIES: the cinema-going experience. 1.5 The cinema ‘offer’ FRANCE: 3.3 has become increa- IRELAND: 3.3 singly diversified, SPAIN: 2.0 catering for changing POLAND: 1.2 and more fragmented preferences.

Courtesy of 123rf / Photo: dolgachow 7 CREATIVE AUDIENCE ENGAGEMENT

Country-wide online ticketing platforms provide a Dedicated mobile solutions by both large and single destination for film fans to discover new film small operators enable consumers to discover, releases and seamlessly buy tickets for their local MORE THAN share and buy tickets for films. MORE THAN theatre. 50% 80% 87% Odeon Booking Chatbot OF CINEMA-GOERS OF EUROPEANS OF CINEMA-GOERS DeinKinoticket.de DISCUSS THEIR WATCH FILM USE THEIR MOBILE In December 2016 leading European cinema operator EXPERIENCE ON TRAILERS ONLINE PHONE AFTER www.deinkinoticket.de is the leading cinema ticketing SEEING A TRAILER Odeon launched a ‘chatbot’ allowing cinema-goers to SOCIAL MEDIA find a cinema and book tickets for a film of their platform in Germany that works across the country’s PLATFORMS choice using Facebook Messenger. The technology leading cinema chains. was introduced by Facebook in April 2016. The chatbot was developed by social technology company Gruvi. On-demand cinema platforms enable film makers, facebook.com/odeon independent distributors and film fans to crowd- fund and plan community-driven screenings of specialised films and event cinema. By creating and curating online video channels around upcoming releases and the cinema experi- Examining innovative engagement ence itself, operators convert consumer awareness ourscreen online into tangible ticket sales. strategies along all ‘touch points’ Collaborative platforms such as ourscreen enable users of the cinema-going journey enables to promote film and event cinema screenings until a us to establish a picture of how the Pathé Netherlands critical mass of fans have committed to booking a YouTube Strategy show in their local theatre. In collaboration with parti- sector is currently working to trans- cipating cinemas, ourscreen then organise content form its relationship with audiences. Pathé Netherlands runs a highly visible YouTube delivery as well as ticketing, bringing further diversity, channel that provides original interviews with talent, events and community dynamics to the big screen. Rather than starting in the cinema lobby, the film trailers and reports from local film events. cinema journey begins days or even weeks before, ourscreen.com most likely on a smartphone or a tablet. Research youtube.com/user/pathenl confirms that around 80 per cent of Europeans watch film trailers online. Similarly, evidence from the US confirms that an even greater share of cine- Through creative approaches to film literacy, cine- ma-goers – 87 per cent – use their mobile phone mas can educate and inspire the next generation of after seeing a trailer or an advertisement for a film film fans to get excited and inspired about cinema. elsewhere. The role of social media in activating cinema-going is constantly growing: more than Abaton Kino, Hamburg, Germany, courtesy of vierfotografen 50 per cent of cinema-goers discuss their experience Watershed’s Cinékids before, after and sometimes – to the irritation of some – during the film screening! Cinékids events are monthly film screenings and workshops for children aged 6-11 that allows them This has profound impacts on promoting the to experience, explore and analyse movies. theatrical experience as operators and their busi- ness partners increasingly shift marketing invest- watershed.co.uk ment and innovation efforts online. 8 CREATIVE AUDIENCE ENGAGEMENT 9 CREATIVE AUDIENCE ENGAGEMENT

The cinema-going journey is ever more eventful and experience driven. Teen screenings and ladies SF Bio Staff Ambassador nights are just two of the many formats that help Patrons of the SF Bio flagship cinema ‘Filmstaden cinemas attract specific audiences to the big screen. Sergel’ in Stockholm enjoy the pleasure of receiving a welcome introduction from a staff member before film screenings. The greeter welcomes the audience, Filmtheater Hilversum tells them briefly about the film they are going to – Ladies Nights enjoy, and indicates directions in case audience members need to take a break. The shared experience Filmtheater Hilversum’s ‘Ladies’ Nights’ offer female is accentuated and the cinema gets a ‘face’, making cinema-goers the option of watching new-release, the visit a more personal experience. hand-picked films in female company. Food and beverage specials as well as gifts complement the screening.

Cinemas can significantly increase their audience reach by partnering up with third-party platforms and brands, from Facebook to a local newspaper or community initiative. SECTOR INITIATIVE

Yorck Cinema Group Pan-European Study on – Der Tagesspiegel Youth Audience Engagement Berlin-based art cinema group Yorck recently launched a 360 degree partnership with leading Berlin broad- In 2016, with the help of members and partners, UNIC commissioned a major sheet Der Tagesspiegel. New subscribers receive two research project examining youth audi- annual cinema passes for Yorck’s 12 venues. The part- ence preferences regarding cinema-going nership also includes an hourly raffle of passes during across three key territories (United King- the Berlin Film Festival and a comprehensive reciprocal dom, Germany, Spain). Research results media partnership. are currently tested with young consum- ers in co-creation workshops to further develop and understand innovative ideas and concepts. Results will be shared Audience engagement is of course not confined towards the beginning of 2017. Contact to the digital space. Cinemas across Europe are us if you are interested in running a co- working with staff and volunteers to make the creation workshop in your country. cinema-going journey as enjoyable and personal as possible. [email protected]

Les Fauvettes, Paris, France, courtesy of AFP / Photo: Thomas Samson 10 CREATIVE AUDIENCE ENGAGEMENT 11 CREATIVE AUDIENCE ENGAGEMENT

Distributors are responsible for the vast majority As cinema operators and their business partners DATA-DRIVEN of marketing efforts around a film release and have experiment and collaborate to get data analytics a detailed understanding of the box office perfor- in cinema right, an exciting opportunity arises mance of different types of films. Both parties stand for the promotion of local and European films, INNOVATION to reap major benefits were they to share data as as well as for the success of independent cinema well as resources with a view to make cinema mar- operators. Using adaptable and cloud-based data keting more fine grained and personalised. analytics solutions to significantly grow the audi- IN CINEMA ence share of local films is an opportunity that SECTOR INITIATIVE the European film industry as well as European support bodies should carefully evaluate. French Cinema To gain better customer insight, Innovation Award cinemas across Europe are cur- The French CNC – Centre National du rently rolling out a variety of data Cinéma et de l’Image Animée – in 2016 launched its first ever Innovation Award to analytics programmes. Customer celebrate innovative practices in cinema exhibition. Operators could submit pro- loyalty schemes, as well as smart jects covering all types of innovation ways to recruit patrons, lie at the (technological innovation, programming, service innovation, communications, thea- heart of many such endeavours tre design, etc.). The first winners of the award – which will in the future be orga- Integrated software solutions further help to nised every year – were Le Caroussel collect information from a variety of internal (Verdun) and L’A tal ante (Bayonne). Four and external sources, including the point of sales, further cinemas received special recogni- metadata about each film title, the date and time tions during a ceremony at the Deauville of the cinema visit, as well as other external factors Congress of the French Cinema Associa- such as information about local events or the tion (FNCF) in September 2016. weather. cnc.fr Providing more personalised cinema offers and promoting these to individual customers via email, social media or text messages – possibly linked with a dynamic pricing approach – all serve to increase footfall.

Providers of data analytics services promise a 10–20 per cent increase in admissions if data programmes are implemented with the appro- priate expertise.

A key milestone of introducing further data-driven innovation in cinema will be to transform the relationship between cinema operators and film distributors. Cinema operators increasingly possess deeper and more personalised customer insights.

(Girl) Courtesy of Stocksy / Photo: Good Vibrations Images; (Friends) Courtesy of iStock / Photo: SolStock 12 CREATIVE AUDIENCE ENGAGEMENT - A number of highly innova tive European technology Personalised Movie Marketing start-ups provide data analytics services to the Movio’s data analytics and marketing platform extends into social media analysis and targeted wider cinema industry. text messaging towards individual customers. Movio Media provides distributors with a direct marketing tool that uses de-personalised customer data gathered from cinema exhibition. Returns of Movio Media are shared with the partner cinemas that made available their data. movio.co

Converting Online Efforts Audience Insights into Ticket Sales

Showtime Analytics’ cloud-based platform helps understand customer trends by aggregating data Creative agency Powster works with all six major from loyalty programs, ticket and retail trans- US studios and more than 50 independent distri- actions, email newsletters, web booking, mobile butors around the World to create online desti- apps and social media, visualising results in a nations for new films. The underlying Powster single view and allowing for better scheduling platform guides users to cinema ticketing systems and marketing campaigns. by constantly updating and integrating cinema locations and show times. showtimeanalytics.com powster.com Predictive Analytics Dynamic Pricing

Gower Street Analytics recently partnered with leading movie measurement provider comScore Berlin-based Smart Pricer applies pricing strategies (formerly Rentrak). Their first joint product is a from the airline industry in the entertainment sec- global distribution-planning tool that generates tor, currently piloting its dynamic pricing software estimates for films with a planned release date, with a number of internationally integrated as well up to 18 months before their release. It takes into as independent cinema operators. Its web-based account film specific as well as external factors, software allows sports clubs, cinemas and theatres and compares these with historic box office to increase revenue by using data to dynamically performance of comparable films. adapt prices to demand. gower.st smart-pricer.com

Kino Scala, Brno, Czech Republic, courtesy of Kino Scala 14 CREATIVE AUDIENCE ENGAGEMENT 15 CREATIVE AUDIENCE ENGAGEMENT EUROPA CINEMAS’ AUDIENCE DEVELOPMENT AND INNOVATION LABS

Europa Cinemas is a unique international network of cinema operators, totalling 2,350 screens across 596 European cities, dedicated to attracting audi- ences for ‘non-national’ European films. The net- work is supported by the European Union and widely recognised as a flagship initiative of Euro- pean cultural support.

Recognising that cinemas across Europe navigate a new digital landscape with plenty of innovation Re-Imagining potential to engage with audiences for European Cinema Spaces films, the network has in recent years organised in Modern a series of ‘audience development and innovation Times labs’.  Branding the Cinema Kino Europa, Zagreb, Croatia, courtesy of ShowBizzPress Experience A recent lab in Bologna, ‘The Cinema Experience in the Age of Digital The lab format is output-focussed and in Bologna Staff Skills Distractions’, attracted representa- and Audience was organised around key collaborative projects, 2350 Engagement including the development of a modern cinema SCREENS tives from large and small operators. Marketing innovation manifesto, site visits, one-to-one cinema ACROSS Diverse innovation surgeries, the development of a market- Participants took part in a range Cinema ing strategy for young audiences and an elevator of learning exercises, collaborative pitch session around innovation projects. 596 Offers EUROPEN workshops and panel presentations, Some of the discussions during the lab were CITIES focussed around key inno- Programming captured via Storify on Twitter (#ECBoLab2016). for Niche More detailed information can be obtained from vation themes: Communities Europa Cinemas. FOLLOW THE Data Analytics DISCUSSIONS ON and Customer europa-cinemas.org TWITTER/STORIFY  Co-Creation Relationship and Curation Management of the Cinema #ECBOLAB Experience Forming 2016 Innovative Partnerships 16 CREATIVE AUDIENCE ENGAGEMENT 17 CREATIVE AUDIENCE ENGAGEMENT

“We see VR as complimentary to the cinema experience. Take the Star Trek franchise – you VIRTUAL REALITY could go on the bridge of the Enterprise and AND CINEMA command it after the film.” Richard Gelfond, IMAX CEO, in Screen Daily

Virtual Reality (VR) has recently raised high and pan-European operator Odeon & UCI Cine- expectations among media commentators, users mas, for example, whose first joint VR centre is set and the investment community as global techno- to open in Manchester towards the end of the year. logy platforms including Facebook and Google In the future, before or after seeing the film on released VR devices into the consumer market. the big screen, audience members in dedicated During the 2016 Cannes Film Festival and cinemas will be able to enjoy tie-in VR content in several other industry events, VR experiences cutting edge VR stations. were widely showcased and discussed by cinema professionals. As bespoke VR spaces, including individual pods featuring interactive seats, headsets and control- While arguably still in an early stage of develop- lers, are integrated in cinemas around the World, ment – both technologically and creatively – VR consumers can expect major international film proposes an interactive, singular and highly im- releases to increasingly be accompanied by VR mersive experience, which radically diverts from content. Michael Bay, for example, is currently the shared practice of enjoying a film on the big working on a VR experience to accompany screen. It challenges the artistic intent of tradi- Transformers: The Last Knight in June 2017. tional story telling: in cinema, some would argue, you don’t choose a path – you enjoy being told a VR solutions are also used to promote new film story and share the experience with your friends releases. Studios increasingly partner with creative or family. agencies to develop VR-environments to promote upcoming releases. London based Are VR and cinema therefore incompatible? Powster partnered with Warner Bros. around Evidence seems to suggest the opposite: far from the 2016 release of Tarzan to offer users to find rejecting VR, film makers, cinema operators and cinemas and show times in an immersive 3D their business partners embrace it as a highly jungle and to experience 360° videos in VR. innovative companion experience that can further upgrade the cinema-going journey. Take IMAX The Virtual Reality Cinema, Amsterdam, The Netherlands, courtesy of &samhoud 19 INNOVATION AND THE BIG SCREEN EXPERIENCE

Audiences agree that nothing beats experiencing great 1700S films on the big screen, together with your friends and MAGIC LANTERN SHOWS family. This is confirmed by research, which continues to show that cinema-going remains one of the most popular leisure activities that exist today.

Having invested massively into the transition to digital cinema over the past decade, cinema operators across Europe continue to innovate and upgrade their thea- INNOVATION tres to provide cutting-edge and ever-more immersive 1890S cinematic experiences. Together with a growing FIRST CINEMA SCREENINGS supply of films as well as ‘event cinema’ offers, more 1895 dynamic and flexible programming helps to meet in- FIRST FILM SHOT creasingly diverse consumer preferences. BY LUMIÈRE AND THE BROTHERS The digital shift has enabled all types of cinemas to 1950S better engage with their customers: in some UNIC TWO-SCREENS CINEMAS 1950S—1970S territories the market share of independent cinemas WIDESCREEN has for example increased, reflecting their ability to GOLDEN AGE offer more – and more diverse – films and other types of content to their local communities. 1970S 1960S—1980S BIG SCREEN MULTIPLEX These developments are complemented by a rapid STADIUM SEATING THEATRES diversification of the cinema offer itself. Many opera- (1st GENERATION) tors invest in ground-breaking technologies – from immersive sound systems to extra-large screens of 1980S so-called ‘Premium Large Formats’ – and experiment FIRST MEGAPLEX EXPERIENCE with new theatre designs to further improve immer- sion and comfort. 1988 KINEPOLIS BUILD A long tradition of embracing innovation to the 2000S FIRST MEGAPLEX benefit of audiences continues. TRANSITION TO DIGITAL CINEMA SATELLITE DISTRIBUTION EVENT CINEMA

2010S 2009 € 1,5 BILLION 98% DIGITISED SCREENS ”AVATAR“ INVESTED IN DIGITAL CINEMA IMMERSIVE SOUND HIGHEST-GROSSING BY EUROPEAN EXHIBITORS IN E-DELIVERY FILM OF ALL TIME LAST DECADE LASER PROJECTION HIGH DYNAMIC RANGE x2 HIGH FRAME RATE PREMIUM LARGE FORMAT NUMBER OF FILMS RELEASED IN IMMERSIVE MOTION EUROPEAN CINEMAS HAS ALMOST INTERACTIVE CINEMA 2015 DOUBLED OVER THE PAST 15 YEARS VIRTUAL REALITY FIRST HDR FILM

Courtesy of: photocase.com / zettberlin 20 INNOVATION AND THE BIG SCREEN EXPERIENCE 21 INNOVATION AND THE BIG SCREEN EXPERIENCE

The immersive Magi Pod concept Cinema operators continue to invest in and experiment developed by industry pioneer Douglas Trumbull seats just 60 to 70 people with a vast array of innovations and creative solutions. but uses all the latest technological innovations to create an unparalleled The following snapshots of new developments in cinema experience for cinema-goers. technology may not yet be available in every theatre but to some extent indicate the industry’s direction of travel.

Immersive Sound Event Cinema Close to 3,000 immersive sound systems have in Digital cinema has made it possible for operators recent years been integrated in auditoriums around to bring live events to their cinemas and diversify the World. This new technology – enthusiastically their programming beyond the film offer. It is embraced by many leading film directors and today possible for cinema-goers to enjoy opera, producers – delivers a sense of true immersion, ballet, sport and even museum visits on the big as cinema-goers can hear sounds as if they were screen – with the unique opportunity of getting witnessing the action in real life. much closer to the action than they could have been in real life. 3D Laser Digital cinema – significantly helped by the 2009 release of James Cameron’s ground-breaking film Illumination Avatar – brought 3D films to the attention of mass This new projection technique enables cinema audiences. Stereoscopic films have since comman- operators to achieve new levels of image quality ded a healthy market share in many UNIC territo- and brightness in their screening rooms. Laser- ries. As film makers and leading technology labs illuminated projectors could potentially replace around the World continue to experiment with xenon lamps in the future, promising more this still evolving technique, 3D is here to stay. energy-efficient operations in the long term. High Dynamic Premium Range Large Formats Some compare the emergence of High Dynamic Premium Large Formats are branded screening Range – a ground-breaking imaging technique that rooms involving extra-large screens and carefully reproduces a greater range of colours and lumino- designed sound systems to fully immerse audiences sity – to the introduction of colour in cinema. It into the cinematic experience. More than 2,100 expands artistic possibilities for film makers and of such screens have been launched around the significantly enhances the audience experience. World, providing audiences with more choice.

(Above) Courtesy of technologyreview.com / Photo: Leonard Greco; (Below) Courtesy of Barco 22 INNOVATION AND THE BIG SCREEN EXPERIENCE 23 INNOVATION AND THE BIG SCREEN EXPERIENCE

As continuous innovation and change become a Immersive Video Game central element of the cinema business, identifying ‘game-changing’ technologies, evaluating new Motion Competitions consumer trends and ensuring that investments in Immersive motion, also called ‘4D’, brings Digital technology made it possible to watch upgrades lead to tangible returns have become key SECTOR INITIATIVE cinema-going to a whole new level, with seating and participate in video game competitions – or challenges. technology plunging audience members into the e-sport – on the big screen. Huge crowds of young scenarios they witness on the big screen through gamers have already taken part in online events The European cinema sector, with its multitude of UNIC Technology Group an array of multi-sensory stimulants such as wind, that were broadcasted live in cinemas around the languages and uniquely diverse structure, faces fog and water, along with moving seats and 3D world, as this new trend has yet to realise its full particular issues. To ensure interoperability and Bringing together senior cinema techno- glasses. potential. access to films for all types of cinemas, the develop- logy executives from more than 20 coun- ment of a new generation of technology standards tries – in partnership with key suppliers, will be a strategic imperative for the industry in the service providers and international bodies future. such as the European Digital Cinema Innovative High Forum, the Society of Motion Picture European cinema benefits from a resilient and and Television Engineers and the Inter- Theatre Design Frame Rate dynamic tier of independent operators. Some of national Cinema Technology Association Cinemas of all sizes and locations have been ex- A handful of visionary film makers – including the smaller and more specialised cinemas among – the UNIC Technology Group works to perimenting with innovative theatre designs and Peter Jackson and Ang Lee – have been experi- this group – having gone through the challenging assist cinemas in their endeavour to navi- seating arrangements to improve the experience menting in recent years with this technology, process of digitising their screens – now face par- gate a new and technologically complex inside the screening room, with high-end cinemas shooting films in higher frame rates than the ticular challenges when it comes to maintaining cinema landscape. and dine-in theatres adapting their services in typical 24 frames per second of standard motion existing equipment and financing further techno- order to target the needs of a specific audience. pictures, resulting in hyper-realistic images. logical innovations. There is a need for more infor- The Group has developed a forward plan mation sharing and awareness-raising regarding that lays out key challenges and oppor- the trajectory of key technologies amongst this tunities brought by digital technology. community. It has issued several statements – often in collaboration with its US sister organi- sation the National Association of Theatre Owners – calling for open standards and raising awareness amongst the creative community regarding the capabilities and limitations of cinema operation. The Group is currently actively pursuing a strategy to co-ordinate SMPTE DCP roll-out across Europe – a key operational transition the industry has to collectively manage in the coming years.

Cinema operators interested in the work of the UNIC technology group are invited to contact [email protected]

(Left) Courtesy of UNIC / Photo: Stuart Isett; (Right) Courtesy of UNIC 24 SOCIAL INNOVATION 25 SOCIAL INNOVATION

STRONG SECTOR INITIATIVE French Study on COMMUNITY Innovation in Cinema IMPACTS Exhibition

Cinema lies at the heart of the French support strategy for film. The French Whether located in large cities or in rural areas, CNC has therefore recently commis- cinemas are often the only meeting opportunity sioned an independent research project for people from all walks of life and all age groups. into the “The Cinema of Tomorrow”, They stimulate dialogue around a range of impor- which was published in October 2016. tant issues and provide a highly enjoyable alterna- The study takes stock of recent innova- tive to our everyday cares. tions and future developments in cinema exhibition that have or will influence the Cinemas also create local employment – especially wider cinema sector and considers key among younger people and students – and are trends from around the world. Visit the essential to the development of the creative indus- website of the CNC to take a look at the tries, a cornerstone of modern knowledge-based report in French or get in touch with economies. Establishing a cinema in a certain area UNIC for an English summary.

Courtesy of Secret Cinema can have significant impacts on urban regeneration by attracting local businesses as well as new inha- cnc.fr SOCIAL bitants and workers.

Kino Muza is a historic cinema located in the Polish city of Poznan and a member of the Europa Cinemas network. The cinema since 2008 is Everyman Canary Wharf, London, UK, courtesy of Everyman Cinemas administered by the local municipality and has become an important INNOVATION cultural hub for the local community. Kino Muza has developed a highly praised film education project that attracts thousands of children and teenagers from kindergarten to high-school. Cinemas are local hubs of culture, innovation and Europe’s innovation agenda clearly recognises The diverse and innovative programming of the cinema has community and have incredibly positive impacts on that economic and social progress in 21st century- society. Evidence shows that the sector can help economies go hand in hand. What role can cinema helped revitalize local interest in film culture and continues address a variety of social challenges in novel ways, operators play in addressing some of the social to attract more people to the big screen year-on-year. including through urban regeneration, combating challenges Europeans face in more effective and social exclusion as well as by providing fulfilling sustainable ways? kinomuza.pl careers and better employment. Research shows that each € spent on a cinema ticket has above-the-average multiplier effects on neigh- bouring commercial activities, including the restau- rant sector and retail. City planners across Europe therefore include cinemas in their strategies to build The role of cinemas in raising awareness around and sustainable and prosperous communities. providing access to a diverse European film offer is therefore ever more important to maintain competi- tiveness and diversity in European cinema. UNIC data for a number of territories shows that the level of local and European films enjoyed in cinemas has continuously increased over the past years if one takes a longer-term perspective. In this context, sup- CULTURAL port networks such as Europa Cinemas help main- tain audience demand for non-national European Mustang, 2015, courtesy of Cannes Film Festival titles and are the best way to promote a pan-Europe- CHANGE-MAKERS an market for local films.

Ensuring that film lovers from a variety of back- ACCESS AND grounds and age groups are able to enjoy films on Across UNIC member territories more than 38,000 the big screen is of course paramount to the contin- cinema screens create awareness around and inter- ued appeal of cinemas. On the one hand dynamic est in local, European and international films, there- The Turkish, French and German co- DIVERSITY pricing strategies by some operators facilitate differ- by enabling hundreds of millions of cinema-goers to production Mustang, winner of the 2015 ent entry options depending on the spending will- discuss stories that entertain them, make them LUX Prize, tells the lives of five young ingness of each customer. On the other, there are a think and enable them to reflect on everyday life. variety of promotion campaigns for different audi- girls confronted with forced marriage While digital technology has helped establish ence groups, including ticket reductions for senior In a world where fast-paced cultural experiences and sexual repression in rural Turkey. the unparalleled and diverse film offer that is citizens, kids/ teenagers or the unemployed, just to increasingly happen on mobile devices – and yet at This debut film by Deniz Gamze Ergüven today available to consumers, it has also – and name a few. The famous € 4 campaign for under 14 the same time often occur in solitude – the shared stirred debate and controversy in France perhaps counter-intuitively for some – strengthe- year-olds in France is one such example of a sector experience of watching a film on the big screen con- – for being submitted as the country’s ned the position of mainstream films on major wide initiative that significantly increased the share tinues to create a sense of identity and community. Best Foreign Language Film Oscar – VOD services. of young audiences in French cinemas. Cinemas therefore remain places where important and in Turkey – for its criticism of local cultural trends and social change emerge. Whether conservatism and patriarchy. Through it is the 2015 Lux Film Price winner Mustang, a fairy tale depiction of its subject, Oliver Stone’s Snowden or France’s incredible inter- the film managed to reach beyond its national Box Office hit Intouchables – none of these geographical frontier and triggered a works would have enjoyed the transformative impact they had without the social platform of the universal debate about women’s rights cinema theatre. and feminism. After considerable delay, Fiesta del Cine is an audience development initiative organised by Spain’s and despite local opposition, the film leading audiovisual organisations. The concept is simple: twice a year was released in October 2015 in Turkey during three days of ‘Fiesta’, cinema tickets cost only € 2.90. As a result – 4 months after its French release. this sector-wide initiative attracts millions of visitors all across the country Mustang was a great box office success, and enables them to enjoy a unique cinema-going experience. grossing more than € 4 million, almost four times its original budget. fiestadelcine.com 28 SOCIAL INNOVATION

Finally, cinemas across Europe have made signi- ficant investment in improving access to their Moviereading App theatres. Digitisation has facilitated the use of sub- titling and audio description technologies inside The Moviereading app supports hearing- the screening room for those with visual or hearing and visually-impaired people in enjoying impairments. Some operators offer special screenings the big screen experience. The Italian app to enable film fans with cognitive or learning disor- provides perfectly-synchronized subtitles ders to enjoy the big screen experience. Odeon & On 9 October 2016 UNIC’s partner or audio description on their mobile device UCI cinemas in the UK, for example, have long for any movie, in any theatre, with the offered special screenings for cinema-goers with organisations the International Confede- autism or other cognitive needs. ration of Art-house Cinemas (CICAE) and simple push of a button. Use of the app Europa Cinemas – with support from the is widespread in Italy and Scandinavia Creative Europe MEDIA programme – teamed and is currently being tested in Germany up with more than 1,000 cinemas to present and Spain. a curated program including previews, children’s moviereading.com films and historical classics to celebrate European cinema. artcinemaday.org

NEXT Into Film is an education organisation GENERATION working with children and young people in the UK. It enables schools and youth groups to set up their own film clubs CINEMA (15,900 clubs in 2015), to watch films together, to create their own films, and of course to experience film in the cine- Next to providing kids and teenagers with afforda- ma. Supported by the UK cinema indus- ble cinema tickets, across Europe the sector experi- try, Into Film thereby empowers children ments with a range of new ways to attract younger and teenagers to develop a critical un- people – traditionally our core audience. Alongside derstanding of audiovisual culture while engaging and daring film offers, more sophisticated encouraging them to become loyal cine- digital engagement by cinemas that create experi- ences that teenagers can instantly share, the estab- ma-goers in the future. lishment of attractive events and the development of creative partnerships with distributors and outside intofilm.org brands all help in this endeavour.

Courtesy of Into Film 30 CONCLUSION 31 CREATIVE AUDIENCE ENGAGEMENT PLACING CINEMAS AT THE ASSOCIATION CENTRE OF EUROPE’S GROWTH MEMBERS STRATEGY FOR FILM

Innovation and the Big Screen demonstrates how While perhaps well-intentioned, Europe’s approach European cinema operators of all sizes and loca- to cinema has of late exaggerated the cultural and tions have embraced innovation and change to economic contributions that digital platforms make the benefit of their audiences and the wider film to the European project while at the same time sector. Their efforts to provide ever-more engaging, underestimating the importance of promoting a diverse and immersive experiences confirm the fair, competitive and culturally diverse cinema eco central role that cinemas continue to play in system. promoting a vibrant European film culture. Developing a comprehensive innovation strategy for Austria Italy As governments and industry leaders across Europe Europe’s film sector – one that puts cinemas at the Fachverband der Kino-, Kultur- Associazione Nazionale Esercenti Cinema come together to examine how best to equip the centre of Europe’s cultural and creative ambitions und Vergnügungsbetriebe Associazione Nazionale Esercenti Multiplex European film sector for future business and audi- – could help recalibrate this approach. ence growth, they must likewise place cinemas at Belgium Netherlands the centre of those efforts. This particularly applies Fédération des Cinémas de Belgique Nederlandse Vereniging van ­Bioscoopexploitanten to the European Commission and the European Parliament, currently reviewing a range of poli- Denmark cies that will significantly shape the future of our Danske Biografer Film & Kino industry. Russia Finnish Cinema Exhibitors’ Association Kino Alliance

France Spain Fédération Nationale des Cinémas Français Federación de Cines de España

Germany HDF KINO e.V. Sveriges Biografägareförbund (Hauptverband Deutscher Filmtheater) Switzerland Greece SKV – ACS Association Cinématographique­ Suisse Federation of Greek Cinemas Turkey Hungary Turkish Cinema Operators’ Association­ Mozisok Orszagos Szovetsege UK Israel UK Cinema Association Cinema Industry Association

(Children) Courtesy of iStock / Photo: nullplus; (Hall) Courtesy of Dolby Digital Cinema 32 CREATIVE AUDIENCE ENGAGEMENT 33 SOCIAL INNOVATION OPERATOR BOARD OF DIRECTORS MEMBERS 2015–2017 President: Phil Clapp (UKCA) Senior Vice-President: Jean-Pierre Decrette (FNCF) Vice-Presidents:

Cinémas Gaumont Pathé Nordic Cinema Group Mario Mazzetti (ANEC) Belgium, France, the Netherlands, Switzerland Estonia, Finland, , , Jaime Tarrazon (FECE) Norway, Sweden Edna Epelbaum (ACS) Cinemax Slovakia Nordisk Film Biografer Kim Pedersen (Danske Biografer) Denmark, Norway Cineplexx Albania, Austria, Croatia, Greece, Italy, Kosovo, Odeon & UCI Cinemas Group Macedonia, Montenegro, Serbia, Slovenia Austria, Germany, Italy, Ireland, Portugal, Spain, United Kingdom CONTACT Cineplex Germany Omniplex Cinemas Ireland and Northern Ireland Jan Runge (Chief Executive) Cineworld and Cinema City International [email protected] Israel, Ireland, Hungary, Poland, Svenska Bio Czech Republic, Romania, Bulgaria, Slovakia, Denmark, Finland, Sweden unic-cinemas.org United Kingdom facebook.com/UNIC.cinemas UGC @Jan at UNIC Kinepolis Group Belgium, France – – Belgium, France, Luxembourg, the Netherlands, Tel: +32 2 880 99 39 Poland, Spain, Switzerland Vue International Denmark, Germany, Ireland, Kino Arena Italy, Latvia, Lithuania, Poland, Bulgaria Taiwan, United Kingdom

Mars Entertainment Group Yelmo Cines Turkey Spain

Movies@Cinemas Ireland Design: Sandra Ruderer 34 CREATIVE AUDIENCE ENGAGEMENT 35 CREATIVE AUDIENCE ENGAGEMENT 36 CREATIVE AUDIENCE ENGAGEMENT OPERATOR PASSIONATE ABOUT MEMBERS THE BIG SCREEN Partner of European Cinema Exhibition Programme UNIC is proud of its partnership with leading brands in the European cinema space

Cinémas Gaumont Pathé Nordic Cinema Group Belgium, France, the Netherlands, Switzerland Estonia, Finland, Latvia, Lithuania, Norway, Sweden Cinemax Slovakia Nordisk Film Biografer Denmark, Norway Cineplexx Albania, Austria, Croatia, Greece, Italy, Kosovo, Odeon & UCI Cinemas Group Macedonia, Montenegro, Serbia, Slovenia Austria, Germany, Italy, Ireland, Portugal, Spain, United Kingdom Cineplex Germany Omniplex Cinemas Ireland Cineworld and Cinema City International Israel, Ireland, Hungary, Poland, Svenska Bio Czech Republic, Romania, Bulgaria, Slovakia, Denmark, Finland, Sweden United Kingdom UGC Kinepolis Group Belgium, France Cine Ideal, Madrid, Spain, courtesy of Yelmo Cines Belgium, France, Luxembourg, the Netherlands, Poland, Spain, Switzerland Vue International Denmark, Germany, Ireland, Kino Arena Italy, Latvia, Lithuania, Poland, Bulgaria Taiwan, United Kingdom

Mars Entertainment Group Yelmo Cines Turkey Spain

Movies@Cinemas

Ireland Cover: (Screening room) Courtesy of IMAX; (Lobby) courtesy Cine32, Auch,of Encore Heureux Architectes / Photo: Sébastien Normand; (Man) France, Courtesy of 123rf / Photo: dolgachov. Inside: (Couple) / Photo:Ravasio; Michela Courtesy of Stocksy (Lobby) courtesy / Photo: Cine32, Auch,of Encore Heureux Architectes Sébastien Normand; (Girls) France, Courtesy of Fotolia.com / Photo: Nebojsa Bobic. 37 SOCIAL INNOVATION

UNION INTERNATIONALE DES CINÉMAS / INTERNATIONAL UNION OF CINEMAS AV. DES ARTS 10-11 BOÎTE 11, 1210 BRUSSELS / BELGIUM