· The current situation in the UK regarding BREXIT means that in the future, restrictions on UK film policy tax will be removed, increasing flexibility within the industry (Stephen Follows, 2017). · Due to the BREXIT, UK inflation has risen to 3.1% prices have risen thus, consumers are spending less on ‘luxury’ goods and services such as a leisure trip to the cinema and saving it for more necessity goods (BBC News, 2017). · The recent devaluing of the pound means that it is more expensive for cinema distributors to buy new content for their cinemas (Stephen Follows, 2017).
· BREXIT will lead to no financial funding from the EU’S main funding federation for the film industry. This lack of funding will impact the production of films, and therefore distribution of films, seriously impacting cinemas in the UK (Barraclough and Barraclough, 2016). · The decline in the value of the pound means that cinema distributors will have to pay more for the acquisition of foreign films (Barraclough and Barraclough, 2016). · Cineworld have proposed an agreed acquisition of an America film operator; Regal Entertainment Group for an estimated $3.6 billion in order to continue expanding their company. Cineworld made took this takeover as an opportunity to grow their company outside of the UK with recent declines in consumer spending as a result of the UK leaving the EU (The Economic Times, 2017). · ‘Generational Shift’ – the cinema industry is becoming less popular amongst the younger generation due to the fact that it is more of an inconvenience.
However, despite the loss of youths visiting the cinema, cinemas have seen a surge in the amount of 55+ going to watch the latest films at their nearest cinema. (BBC News, 2017). · The UK cinema audience fell by 16% in August 2017 (BBC News, 2017).
· Due to the summer 2017 decline in cinema admissions, film distributors in the UK are considering to extend the screening time of newly released films, which currently stands at 12 weeks. · Considerations are also taking place with regards to being able to make these new film releases available to customers as a ‘home-viewing’ scheme which will incur premium prices; enabling customer to watch the films on the same day that they are released. · With increasing amount of new technology such as higher frame rates (HFR), high dynamic range (HDR) and 4K, UK cinemas are becoming more pressurised into investing in these as well as educating themselves of how they operate.
However, once these have been implemented successfully, there will be a greater choice for consumers (Screen, 2017). · With increasing amounts of film theft, the UK Cinema Association has ensured that the UK cinema industry is the most secured industry with a long line of prosecutions now being placed under the Fraud Act 2006 (UK Cinema Association, 2017). · As of late 2016/early 2017, the UK’s Film Distributor’s Association (FDA) commenced a new programme dealing with anti-piracy, called the ‘Film Content Protection Agency’. This new unit concentrates on avoiding illegally obtaining copies during screenings (Screen, 2017). · Cineworld has a developed a new scheme where customers can purchase ‘e-tickets’ via their website in order to reduce the amount of printing, this reducing the company’s carbon footprint (Cineworldplc, 2017).