Region:Middle East
Author(s):Kshitiz Pratik, Anurag Jha
Product Code:KR1175
The report titled “Saudi Arabia Movie theater market outlook to 2026: growth is driven by ambitious government initiative, influx of multi-national movie theater companies and pent-up demand for feature cinema” provides a comprehensive analysis of the Saudi Arabia Movie theatre market. The report also covers an overview and genesis, of revenue generated by the industry. Further, the report also includes the competition overview of the cinema market. The report concludes with future market projections of each product segmentation.
Saudi movie market to show a steady growth rate over the review period 2021-2026F. The movie theater industry in Saudi Arabia rose after a 35-year hiatus under the leadership of millennial King Salman. The competition is currently concentrated between a few market leaders who contribute a major chunk of the revenue generated by the market.
The Saudi government, in a bid to increase entertainment opportunities in Saudi Arabia, allowed the screening of movies in 2018. AMC Cinemas was the first international movie theater chain to operate in Saudi Arabia with the KAFD screen that accommodated 490 patrons. As of December 2021, more than 50 movie theaters were operational across Saudi Arabia, with a maximum number of theatres in Riyadh. It is a concentrated market, largely dominated by three major movie theater operators namely AMC, VOX, and MUVI Cinemas, with the latter being a homegrown venture. Saudi Theatre Market is set to grow at a positive growth rate in the period 2021-2026F. With licenses being granted to more and more international movie theater operators, the market stage can be expected to enter late growth during the forecast period. As more players enter the market, the competition is also estimated to become less concentrated.
By Ticket Sale: Ticket sales constitute the majority share of total movie theater revenues. As the cinema industry is still nascent, this segment will continue to dominate.
By F&B revenue: F&B revenues are still growing and are not at par with countries with fully matured theater industries, where their share of revenue dominates movie theater revenue. Theaters have recently started to involve third-party vendors to operate in their locations. On average, Saudi spends between 40-60 SAR on F&B.
By Advertisements and Sponsorships: Advertisement and sponsorship revenues are related to the pricing of the advertisement exhibition and the duration of the exhibition. Moreover, advertisements can be digital, in movies, and traditional in terms of posters and banners as well
Theatre Market Market Segmentation
By Source of revenue
Investment Model
Major Players Covered in Saudi Arabia Theater Market
1.1 Saudi Arabia Movie Theater Market
2.1. Market Definitions
2.2. Abbreviations
2.3. Market Sizing and Modeling
2.3.1 Consolidated Research Approach
2.3.2 Market sizing Approach – KSA Movie Theater Market
2.3.3 Sample Size Inclusion Table
2.3.4 Limitations
2.3.5 Final Conclusion
3.1 Increased Focus on Local Filmmaking
3.2 Heavy Investments to Develop New Destinations and Projects
3.3 Expansion of Leisure Industry Offers Investment Opportunities
4.1. Saudi Arabia Movie Theater Market Overview, 2021
4.2. Revenue Streams of Saudi Arabia Movie Theater Industry
4.3. Saudi Arabia Movie Theater Market Size, 2021
4.4. Saudi Arabia Movie Theater Market Segmentation By Revenue Source (Ticket Sales, F&B and Advertisements and Sponsorships), 2021
5.1. Saudi Arabia Movie Theater Market Competition Overview
5.2. Customer Preference for Cinema Viewing Experience in Saudi Arabia
6.1 Assumptions
6.2 Fixed and Capital Costs
6.3 Wages and Salaries
6.4 Interest Cost Calculations
6.5 Operating Expenses
6.6 Revenue Model
6.7 Conclusion
7.1. AMC Theaters
7.2. Vox Cinemas, Majid Al Futtaim in Dubai, UAE
8.1. Investment Scenario
8.2. Retail Real Estate Supply in Saudi Arabia
8.3. Regulatory Scenario
8.4. Overview of New Cinema Regulatory Regime
8.5. Movie Operator’s Obligations Towards GCAM
8.6. Procedure to Obtain License and Set up Operations of a Movie Theater
9.1. By Source of Revenue (Ticket Sales, F&B Revenue, Advertisements, and Sponsorships), 2021 & 2026F
10.1. Recommendations for Existing Players
10.1.1 Ticket Booking Aggregator
10.1.2 Experimenting with Different Pricing Models
10.1.3 Content of Film Exhibition
10.1.4 Competition from Streaming Applications
10.2.5 Recommendations for New Entrants
10.2.6 Sustainable Funding Models
10.2.7 Target Hotspots of Retail Supply
10.2.8 Mode of Entry
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