Market Insights Advertising & Media Media

Cinema - Latvia

Latvia

Revenue in the Cinema market is projected to reach US$28.83m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.86%, resulting in a projected market volume of US$34.84m by 2029.
In the Cinema market, the number of viewers is expected to amount to 484.2k users by 2029.
User penetration will be 24.6% in 2024 and is expected to hit 28.2% by 2029.
The average revenue per viewer is expected to amount to US$64.68.
In global comparison, most revenue will be generated in the United States (US$20,980.00m in 2024).

Key regions: Europe, France, Asia, United Kingdom, Germany

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Analyst Opinion

The Cinema market in Latvia has been experiencing steady growth in recent years, driven by changing customer preferences and the influence of global trends.

Customer preferences: Latvian audiences have shown a growing interest in cinema, with a preference for a wide range of genres, from Hollywood blockbusters to independent films. This has led to an increase in the number of cinemas in the country, as well as a diversification of film offerings. Additionally, there has been a shift towards a more immersive cinema experience, with the rise of 3D and IMAX screenings.

Trends in the market: One of the key trends in the Latvian cinema market is the increasing popularity of local films. Latvian filmmakers have been gaining recognition both domestically and internationally, leading to a greater demand for homegrown content. This trend is also reflected in the government's support for the local film industry, which has resulted in the production of more high-quality Latvian films. Another trend in the market is the rise of online ticketing platforms. Latvian audiences have embraced the convenience of booking cinema tickets online, which has led to the growth of online ticketing platforms. This trend has not only made it easier for customers to purchase tickets, but it has also allowed cinemas to collect valuable data on customer preferences and behavior.

Local special circumstances: The Latvian cinema market is unique in that it is heavily influenced by the country's cultural heritage. Latvians have a strong appreciation for the arts, including film, and this is reflected in the popularity of film festivals and events. These cultural events not only showcase Latvian films but also attract international filmmakers and audiences, further boosting the local cinema industry.

Underlying macroeconomic factors: The growth of the Latvian cinema market can be attributed to several underlying macroeconomic factors. Firstly, the country's improving economic conditions have led to increased disposable income, allowing more people to afford cinema tickets. Secondly, Latvia's membership in the European Union has facilitated the distribution of foreign films in the country, providing audiences with a wider selection of movies. Lastly, the government's support for the film industry through funding and tax incentives has played a significant role in the growth of the cinema market. In conclusion, the Cinema market in Latvia is developing due to changing customer preferences, such as a growing interest in local films and a shift towards online ticketing platforms. The market is also influenced by local special circumstances, including a strong appreciation for the arts and the hosting of film festivals. Underlying macroeconomic factors, such as improving economic conditions and government support, have further contributed to the growth of the cinema market in Latvia.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Cinema market, which comprises revenues from box office, advertsing and concessions. The market includes both consumer and advertising spending. All monetary figures refer to consumer spending on tickets and concessions. This spending factors in discounts, margins, and taxes.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.