Television New Zealand last week reported 95.4 million OnDemand video streams in the six months ended Dec. 31, a 20 per cent increase from the same period a year earlier. Its average weekly OnDemand audience reach was 356,714, up 8 per cent.
Flick's 2018 survey of 5,000 New Zealanders found streaming services were replacing internet piracy and physical formats rather than the cinema experience.
Monthly viewers of online content rose from 51 per cent in 2015, to 84.5 per cent in 2018, but did little to slow regular cinema attendance. Sixty-eight per cent of those surveyed went to the cinema at least once per month in 2018, up from 60 per cent in 2015.
The New Zealand division of ASX-listed company Event Entertainment and Hospitality – which operates Event Cinemas – outperformed the market through the second half of 2019.
It said it lifted its box office take by 16.9 per cent, but didn't give an amount. Event attracted 2.7 million admissions, up 5.7 per cent from a year earlier, the company said last month in its first-half report.
"The movie business fluctuates yearly depending on the line up of film titles. However, the New Zealand market nationwide box office was up for a record first half," a spokesperson for Event Entertainment said.
The New Zealand division's revenue rose 15.7 per cent to A$49.1 million as the average admission price rose 10.3 per cent, which it said was driven by premium seating and pricing strategy. Its revenue figures had previously included virtual print fee income, which is a subsidy from distributors to pay for cinema equipment.
Earnings before interest, tax and depreciation was A$8.2 million, 22.3 per cent above the prior year and normalised profit was up 29.6 per cent at A$5.2 million – a record result for the New Zealand circuit.
A spokesperson for Event Entertainment said the growth in nationwide box office in the New Zealand market indicated there had not been a negative impact on cinemas from streaming services.
"Studies have shown that the most frequent movie goers consume the most streaming content. Therefore, they could be considered complimentary rather than competitive," the person said.
To compete with the wide array of online streaming options consumers now have in their homes, cinemas have been upgrading their offering with more luxurious seating, bigger screens and more advanced surround-sound systems.
"Entertainment strategy to 'invest in best' introducing innovative and world leading 'Cinema of the Future' concepts, whilst divesting under-performing assets, is on track and delivering good results," Event said.
The cinema operator launched premium options in the New Zealand market with the 'Vmax 3-seat' concept in Albany and Manukau, and premium seating upgrades at Queen Street and in two screens at Westgate.
"Initial results are positive with the refurbished auditoriums delivering higher occupancy and yields," the group said.
Last year, Event opened a new cinema in Tauranga which features a 24 metre wide by 10 metre high screen, Dolby surround sound, fully reclining chairs and double day beds, which allow viewers to "snuggle up" for the "ultimate movie watching experience."
The company is going to launch a new boutique cinema in Auckland's Newmarket this month, which will feature more premium options such as theatres with fewer than 30 seats and a waiter service.
- BusinessDesk
