Breaking the box office: rise of the region in the global film industry
In the next five years, the Mena region will account for five per cent of global box office revenue, with the UAE and Saudi Arabia to join the world’s top 10 markets by 2030.
That was the message delivered by speakers at the second Mena Cinema Forum, which was held this week at the Conrad Dubai. The three-day event also highlighted some of the challenges the cinema industry is facing and offered an insight into the market’s growth potential in the region.
“It is critical we focus on creating an immersive experience for our audiences,” said Cameron Mitchell, chief executive of Majid Al Futtaim Cinemas. “That is what we, as an industry, can offer. We must learn from the mistakes others in the movie industry have made.”
He used Blockbuster as an example of a business that failed to evolve. He said the home movie and video game rental service, which at its peak had more than 9,000 stores worldwide, had every chance to adapt in a changing market. “Blockbuster ignored those chances,” he said. “Today, the brand has mostly retired and has a single store.”
Mitchell said that while many consider streaming services such as Netflix to be the cinema industry’s main threat, they should instead be seen as an opportunity for the movie industry to grow. “Streaming services encourage people to like and appreciate films,” he said. “The popular belief is that the box office industry is dwindling in the face of these new services, but statistics show us otherwise. Since 2010, the industry has grown by 30 per cent worldwide. After all, cinemas offer an immersive experience that home movies do not.”
Observing data, he added, was vital to keeping up with the times. “Whether a customer seems more inclined to watch romantic comedies or action movies, it is important that we are the first to know so that we can create tailored campaigns to cater to a wide range of audiences.”
Majed Al Suwaidi, managing director of Dubai Studio City, stressed the importance of original, regional content to promote the industry’s growth. “Content is key,” he said. “We need to support up-and-coming talent, provide them with a platform on which they can hone their skill sets and encourage them to create and produce movies.”
Al Suwaidi told The National that Dubai Studio City predicted a strong expansion into the film industry to address the growing need for content creation. “There is a demand for relatable stories from the region,” he said. “The idea is to cater to the different demographics of the industry and to provide the right ecosystem for content creators. Whether people want to develop their skills as technicians, producers or filmmakers, our aim is to provide the right platform for them to do so.”
The US and China, which together account for about 24 per cent of the global population, are responsible for the majority of global box office takings. “The two countries generate about 53 per cent of the total $41 billion (Dh150.57bn) in box office revenue,” said Rajkumar Akella, managing director of comScore. “While the Mena
There are about 1,400 cinema screens across the Mena region that could rise by 35 per cent over the next three years
region is already a major contributor to the industry, we will be witnessing a significant rise in box office revenue generated from the region.”
There are an estimated 1,400 cinema screens across the Mena region and Akella said this number was expected to grow by 35 per cent over the next three years. Saudi Arabia, which announced in 2017 that it would lift its 35-year ban on cinemas, is expected to have more than 45 cinemas by 2020.
“By 2030, the UAE and Saudi Arabia are set to be among the top 10 leading markets of the industry,” he said. “Saudi Arabia alone will generate more than $1.5 billion in box office revenue.”
Akella said that the industry would be responsible for creating more than 30,000 jobs in the kingdom, pumping an estimated SAR90bn (Dh88bn) into the Saudi economy.