Appinio Research · 01.08.2024 · 13min read
Cinemas have been struggling. In fact, the world’s second-largest cinema chain, Cineworld, filed for bankruptcy back in 2022. Since the pandemic, the number of cinema screens in the US has fallen 5.25%. That may not sound like much, but that’s equivalent to over 2,000 screens.
The picture is much the same in the UK; since 2020 the number of cinemas has fallen every year from 879 venues down to 825 in 2024. Meaning 6% of cinemas have closed post Covid in the UK.
(UK Cinema Association)
But 2024’s Summer Box Office seems to have bucked that downward trend thanks to some major Box Office hits.
Pixar’s Inside Out 2 recently became the highest grossing animated film of all time by overtaking Disney’s Frozen 2, and it’s also the 12th (so far) highest grossing film ever. Inside Out 2 has already made over £1 billion in ticket-sales, making it the 54th film to make more than one billion dollars, amongst the likes of The Super Mario Bros. Movie, and Toy Story 4.
(Deadline)
At the same time, Despicable Me 4 has continued to smash Box Office record after Box Office record. Within a fortnight of opening, Despicable Me 4 crossed $632 million in global earnings - making Gru and the Minions the first ever animated franchise to reach $5 billion worldwide takings and the 12th biggest franchise ever.
(Deadline)
Despite Inside Out 2 and Despicable Me 4 launching in direct competition with each other, both films have seen tremendous success. Perhaps, animated films are exactly the draw cinemas have been crying out for?
Our most recent Appinio board, “Back to the Drawing Board: UK Animation Study” explores in depth why animation is performing so well. We asked 500 Nationally Representative respondents in the UK for their thoughts about animation and the cinema. To find out more, follow the link.
Are Audiences Moving on From Movies?
Of course, the pandemic cut cinema viewership to almost zero throughout 2020. But four years on and audience numbers are failing to get back up to pre-pandemic levels, in fact ticket sales are still roughly a third lower than before Covid. Box Office takings are also nearly a third lower, despite the average price of a ticket having increased 8% due to inflation.
Many cinemas aren’t operating as profitably as previously because audience numbers are down.
The pattern of reduced profits doesn’t just apply to cinemas but to film studios too.
On July 25th 2024, Disney stock fell below $90 USD a share which is a significant drop from $190 USD in March 2021.
Disney has struggled to generate a box-office hit with titles like Indiana Jones and the Dial of Destiny, Wish, The Marvels and Strange World all speculated to have made a loss after marketing costs are taken into account.
Pixar and Sony have also been plagued with Box Office flops;
- Turning Red had a worldwide total of $21.8 million and had an estimated budget of $175 million
- Lightyear is considered one of the biggest bombs of 2022
- Both Morbius and Madam Web were financial failures and bombed by filmed critics, but they did generate some excellent memes
This far on from Covid, it seems unlikely that risk of infection is the reason why film attendance continues to stay down - begging the question of why aren’t audiences returning to cinemas?
Have audiences simply fallen out of love with the big screen, has the cinema become too expensive, or maybe studio strikes have affected the number of films available to watch in the first place.
Let’s take a look at some of these factors and whether animation is affected differently.
Is Animation More or Less Popular Than Non-animated Films?
Our Appinio study found that on average, UK audiences are actually more likely to want to watch non-animated films at the cinema than animated films. 45% of people said they would watch a non-animated movie at the cinema, versus 43% who said they’d watch animation at the cinema. This suggests that animated formats are marginally less likely to attract people to the cinema.
However, animation varies in popularity amongst age groups, and it’s more popular amongst younger demographics;
- 18-24 year olds were the only age group that indicated a stronger preference to watch animated movies (45%) at the cinema over non-animated movies (41%).
- 25-34 year olds showed the strongest preference for non-animated over animated movies (+8%) followed by 55-65 year olds (+7%).
Because animation is popular amongst younger viewers, it can be argued that the popularity of animation will grow in the future - although on average, animation is actually slightly behind typical film releases.
Is Streaming Different for Animation?
On average, respondents were more likely to pay for animated films to watch at home compared with non-animated. They were less likely to wait until an animated film was offered for free on a streaming service compared with non-animated films. However, overall more people would wait until films were available on streaming for free than people who would rent films.
- Rent / buy at home: Non-animated =14% vs animated = 19%
- Wait until offered for free: Non-animated = 29% vs animated = 24%
This suggests that consumers have better willingness to pay for animated films than non-animated ones because they will pay at home. But it does indicate that a significant portion of the audience has become accustomed to watching animations in particular at home, and this will likely reduce viewership at cinemas.
Nearly one quarter of people will also wait until animations are offered for free on streaming. However, this is actually lower than other types of films, suggesting that lost cinema goer-ship for animation is less likely to be replaced with free viewership.
Younger demographics are also more likely to pay for animations than their older counterparts;
- 25-34 year olds were the second least likely group to rent/buy non-animated films at home, but the second most likely to rent/buy animated films at home. 25-34 years olds had the largest increase between genres (+13%) meaning the format buck their typical consumption behaviours.
- Younger demographics are the most likely to rent/buy a new release film at home.
- 18-24 year olds are 10% less likely to wait until a new release is made available for free than the average for animated films, whereas they have a higher than average rate of waiting for other film releases.
Streaming patterns do vary between animated films and non-animated films.
Why do People Prefer Watching Animation at the Cinema?
Across all respondents who said they prefer to watch animation at the cinema;
- It's a great day out with friends & family (63%)
- With a large screen and high-quality sound, it's a more immersive viewing experience (61%)
- Animated films look better on a big screen (57%)
- It's more fun to watch with a large audience (52%)
Motivators that are linked to social experience and spectacle are strong motivators for viewing animated films at cinemas. Whereas repetitive, habitual or 'information-seeking' driven viewing behaviours are weaker influences, e.g. watching movies as soon as they release (46%), discovering new films whilst at the cinema (39%) and having a cinema membership (39%).
Therefore, family orientated animations are likely to perform well in cinemas despite being available on streaming platforms. Films that are nostalgic are also likely to perform well, as friendship groups may have common recollection and therefore want a shared experience.
25-34 year olds are the most strongly motivated by all reasons given, indicating that millennials highly value the cinema experience.
Why Do People Prefer Watching Animation at Home?
Across all respondents who said they prefer to watch at home;
- I prefer watching movies from the comfort of my own home (61%)
- It's cheaper than going to the cinema (59%)
- Streaming services offer better accessibility e.g. pause / resume (57%)
The top three responses suggest that watching from home is a more comfortable and flexible viewing experience, as well as being cheaper. In comparison, viewing at the cinema is not viewed as convenient and is viewed as less value for money.
51% of people said they don't go to the cinema because they already have a subscription, showing that streaming cannibalises cinema viewership. However, even amongst those who choose to view on streaming services, 49% didn't cite having a subscription as a reason to not go to the cinema. Therefore, streaming services do not replace the cinema experience, even amongst those who prefer to view at home.
Prioritising non-animated films over animated films for cinema viewership was the second least selected answer. Although 41% of respondents did say the reason they don't watch animated movies is that they prioritise non-animated films at the cinema, meaning that animation is even less of a cinema draw amongst people who generally already prefer streaming.
For younger demographics, the adaptability and comfort of at-home viewing is a strong motivator, even when compared to older demographics.
There is less discrepancy between different age demographics deciding to watch films at home because it's a cheaper experience - indicating that the price of cinema goer-ship is a detractor universally.
25-34 year olds are significantly more interested in the social experience of watching films at home than all other age groups. 72% agreed that they opt for streaming because they can watch with friends and family more easily - compared with the (remaining) average of 41%.
Whilst younger demographics on the whole prefer to watch animated films over non-animated films at the cinema, the sub-set who prefer not to watch animated-films at the cinema strongly prioritise watching non-animated movies at the cinema. This goes some way towards explaining why younger demographics will more happily pay to watch animated at home. This also indicates that younger audiences are more polarised about watching animation at cinemas or at home compared to other age groups.
Are you interested in streaming? Check out our Mental Availability for streaming platforms...
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