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London, Tuesday 7 March 2006 (Publication Date)
New Fda Yearbook Published: UK Distributors’ P&A Investment In 2005 Exceeds £300m

Film Distributors’ Association (FDA), the trade body for UK theatrical distributors, today publishes its 2006 Yearbook, describing the distribution sector’s investment in and impact on UK cinema in 2005. The 64-page publication contains a market review and a mix of comment from across the industry on generic topics affecting film distribution.

In his foreword, Creative Industries Minister, James Purnell MP, recognises the essential role of theatrical film distributors :

“A variety of British-based titles such as Charlie and the Chocolate Factory, The Hitchhiker’s Guide to the Galaxy, Nanny McPhee, Pride & Prejudice and a fourth Harry Potter chapter helped the UK cinema market in 2005 to retain its position as the third most valuable in the world. But content creation is only half the equation – effective distribution and marketing is [also] vital. Distribution is a linchpin of the industry – driving cinema admissions and stimulating the important ancillary platforms and related leisure sectors.”

British content gave the industry a substantial shot in the arm all through last year. Out of total box-office receipts of £840.3m, one-third came from local product. This was a key factor in the UK’s buoyant performance when many major markets around the world suffered significant declines.

FDA President, Frank Pierce, states in his Yearbook article:

“At a time when entertainment is ever more customised and individual, only the cinema displays film as a public event – the ‘show’ part of the ‘business’. A hot movie remains the ultimate must have, must see, must know about content. Whatever the delivery technology, the true driver of demand will always remain local customer interest and desire for the content itself.”

UK distributors’ prints & advertising (P&A) investment to launch and sustain their releases topped £300m in 2005. This included a record media advertising spend of £165.8m, of which three-quarters was allocated to TV spots and outdoor poster panels. 30% of the year’s box-office was generated in the last 13 weeks, during which period distributors’ advertising spend was £45.7m. As the audience – and not just the core audience – passes more and more time online, so more and more distributor advertising followed them there.

Competition for opening dates, available screens, trailer time, editorial/review space and – most importantly – cinemagoers’ attention was fierce and relentless. A total of 467 films received a UK theatrical release in 2005, an average of nine per week. The average UKper capita cinemagoing frequency was 2.8 visits in the year, suggesting that, however congested it is, the market retains some capacity for growth.

Contrary to some reports, many ‘tent pole’ films performed well in the UK in 2005, and not just titles of British origin. Nine blockbusters grossed more than £20m (compared with seven in 2004), while the year’s top 20 releases yielded 55% of box-office takings (48% in 2004). It is in the so-called ‘middle ground’ that it is increasingly tough to maintain a viable theatrical life.

The importance of London is again made clear. Europe’s largest city accounts for 13% of the UK population but 27% of UK cinema ticket sales. In the West End alone, admissions topped 10 million in 2005, while many of the capital’s 49 premieres expanded into major public events with crowd attractions and displays.

But as ever, blockbusters are only part of the story. Half of the films released in the UK in 2005 went out on fewer than 50 prints each: the specialised sector is highly competitive too. 2005 will go down in UK cinema history as the last all-analogue year (excluding digital pilots and early installations).

As the new Yearbook was published, Mark Batey, FDA Chief Executive, said:

“The more choice that’s on offer to the public, the more pivotal become the roles of distribution and marketing in differentiating one release from the next and connecting individual films with their audiences. Even in today’s environment, which is changing at the speed of light, the entire film business cycle turns on this one fundamental truth. I’m very grateful to everyone who contributed to our new Yearbook, which we hope makes a highly compelling read!”

Further information

Mark Batey , Chief Executive, FDA
Tel: 020 7437 4383
Email: mbatey@fda.uk.net

Notes to editors

• Film Distributors’ Association was originally formed in 1915. Films released by its member companies in 2005 accounted for approximately 97% of UK cinemagoing.
• Copies of the FDA Yearbook are available free of charge, subject to availability, from the FDA office in London or via the website, www.launchingfilms.com.

Box-office data used in the FDA Yearbook is supplied by Nielsen EDI.