Cinema is recessionproof

1
Cinema is recession-proof 

• History has proven that in times of recession,
  admissions remain buoyant because luxuries are
• shelved for the more affordable and upbeat treat
  of a trip to the cinema.
• This trend is currently being proved with cinema
  admissions in July 2008 hitting 21.4 million,
• making it the 2nd highest month for admissions on
  record.
• Phil Clapp, head of the Cinema Exhibitors
  Association, notes that cinema attendances rose
• During downturns at the end of the 1970s and
  start of the 1990s. He commented that
• The box office seems to be resistant to
  recession. In relative terms the
• cinema is a cheap night out, and in times of
  general doom and gloom
• people look for things that cheer them up and
  help them to escape it
• all. Cinema does that.

2
Ad spend on cinema is up

• Nearly 115m of ad spend was pulled from UK
  advertising budgets in the first half of 2008,
  from
• every medium except cinema.
• Cinema is the only medium to have shown a
  positive growth in revenues across Jan-Jun 2008,
• with spend increasing year-on-year by 13.82m.

Data refers to year-on-year change in ad spend
across five product categories during January to
June 2008, compared with January to June 2007.
Source Nielsen. http//www.brandrepublic.com/Medi
aPmBulletin/News/838672/Advertisers-prune-ad-spend
-115m-first-half-2008/?DCMPEMC-Media-PM-Bulletin

3
Cinema success is contagious

• Mamma Mia! has not only become the highest
  grossing film of 2008 but has prompted the
• resurgence of all things ABBA, demonstrating
  cinema's unique ability to inspire audiences.
• Mamma Mia!s success has had an immediate effect
  on CD sales with ABBA's Gold - Greatest
• Hits album currently topping the UK charts for
  the fifth time in history, and the soundtrack to
• the ABBA-inspired film taking the top spot in
  July 2007.

4
Summary of Cinemas Strength

• 1. Cinema is historically recession-proof. This
  trend is currently being proved with cinema
• admissions in July 2008 hitting 21.4 million,
  making it the 2nd highest month for admissions on
• record.
• CAA/Nielsen EDI
• 2. Cinema is the only medium to have shown a
  positive growth in
• revenues across Jan-Jun 2008, with spend
  increasing year-on-year by 13.9m.
• Media Week/Nielsen
• 3. Cinema has the unique ability to inspire new
  trends, stimulate the resurgence of old trends,
• and attract broad new audiences to the medium.