Lights, cinema, action: GCC cinema industry set to boom

dubai - Population growth and need for local content to drive investments in the sector

The UAE's cinema industry will continue to grow at a steady rate over the next few years, aided by a growing population in the country, increasing investment in cinema experiences and demand for local content.

"Here in the UAE, you have more than 200 nationalities and this creates a very unique opportunity for everyone in the industry," said Debbie Stanford-Kristiansen, CEO of Novo Cinemas. "Going to the cinema on the weekend or after work with friends and family is a popular activity, not just in the UAE but across the GCC."

She further noted that when it comes to offerings today, there is never a one-size-fits-all approach for companies.

"It's all about understanding the various customer demographics that are present and then tailoring your offerings to meet their needs and preferences. Some customers like to watch movies in 3D, while others are more comfortable with 2D. Younger audiences love to experience MX4D movies, but they are not as popular with older audiences."

Luxury offerings such as Novo's Majlis experience is also being very well-received.

"It turns a normal movie experience into something that is memorable, comfortable and unforgettable," she added. "Younger audiences are looking for very dynamic offerings, so we are looking to invest further in new technologies such as Imax Experience and Dolby Cinema. Another concept that was very well-received was our decision to introduce valet parking services, that can have you up into the cinema from the parking in less than five minutes."

The biggest challenge, however, she said, was catering to millennials who are always on the look out to try something new and who are increasingly looking to other platforms for video content.

"We have devised experiences that will get millennials back into the cinema by introducing more gaming elements. It is important to listen to what the customer wants. Our feedback from millennials is that they want more alternative content, so we are looking to hire out our cinemas for different events such as sports championships, product launches and training sessions. We are even looking at working with big brands such as Netflix to showcase season finales. And, of course, we want to support regional filmmakers and give them a platform to air their content," she explained.

Cameron Mitchell, CEO of Majid Al Futtaim Cinemas, said the GCC is set to witness a boom in its cinema industry, especially after the ban on cinemas was lifted in Saudi Arabia. Majid Al Futtaim, which operates 355 cinema screens, is investing Dh2 billion in adding 600 cinema screens in Saudi Arabia.

"All eyes in the industry are on Saudi Arabia right now," he said. "We will invest $100 million in a year to open 100 cinema screens - part of the Dh2 billion plan to open 600 cinema screens in Saudi Arabia in the next three to five years. Overall, we will operate around 1,200 cinema screens across the region in five years' time. With the Saudi market opening, we see a lot of opportunities in the region's cinema and entertainment industry."

He added: "We have opened our first cinema complex in Saudi Arabia in May this year, right after the government announced the opening of the cinema industry for the public. We were closely working with the government and as a result were the first operator to open a cinema screen in the Kingdom. Our focus, not just in Saudi Arabia but across the GCC, will be on providing the best service that is possible. Cinemas across markets such as Europe have really slowed down a bit when it comes to innovation and new experiences, but markets such as the UAE are different; you have high-quality cinemas with a wealth of amazing food and beverage and other entertainment offerings."

Total cinema revenue in Saudi Arabia is expected to reach $1.5 billion in 2030, according to research by PwC Middle East.

"By 2030, Saudi Arabia is expected to host 2,600 cinema screens that will entertain its growing population," said Martin Berlin, Middle East partner and global deals real estate leader at PwC Middle East. "Based on global and regional benchmarks, we expect the Kingdom to accommodate between 300 and 370 cinema locations."

The GCC region, which currently has 1,300 cinema screens in operation, is expected to see the development of more than 1,000 new cinema screens in the next three to five years. Globally, the number of cinema screens has crossed 150,000; and in the Middle East and North Africa region, the number of cinema screens is expected to jump 38.4 per cent, according to PwC research.

Another study by PwC also showed that box office revenue in the Mena region exceeded $500 million. This is about 1.25 per cent of the global box office revenue of $39.92 billion recorded last year, up three per cent from 2016. More than $3.54 billion investments in cinema screens across the Gulf is expected to boost the region's cinema industry.

The booming cinema industry across the region will also spell plenty of opportunities for local filmmakers and content creators, said Jan Runge, independent advisor on cinema strategy and implementation.

"There is a fine creative talent in the region; cinema today is international and what we are looking at here in the Mena region is to be part of a $40 billion dollar global industry. Dubai as a hub of GCC entertainment has world renowned cinemas tailored to the needs of various customers from different backgrounds."

- rohma@khaleejtimes.com