Cinema - Saudi Arabia

Saudi Arabia

Highlights

In Saudi Arabia, revenue in the Cinema market is projected to reach US$572.00m in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 5.17%, leading to a projected market volume of US$735.90m by 2029.
The number of viewers in Saudi Arabia's Cinema market is anticipated to amount to 7.0m users by 2029.
User penetration is forecasted to be 15.1% in 2024 and is expected to increase to 17.5% by 2029.
The average revenue per viewer in this market is expected to reach US$101.00.
In a global context, the majority of revenue will be generated the United States, with a total of US$20.98bn in 2024.
Saudi Arabia's cinema market is experiencing a cultural renaissance, driven by increasing local productions and a growing appetite for diverse storytelling among audiences.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Cinema market in Saudi Arabia has experienced significant growth and development in recent years.

Customer preferences: The growing popularity of cinema in Saudi Arabia can be attributed to changing customer preferences. Saudi Arabian audiences are increasingly interested in watching international films, especially those from Hollywood. This shift in preference is driven by a desire for entertainment and cultural exposure. Additionally, the younger population in Saudi Arabia has shown a strong inclination towards cinema, with a preference for action and adventure films.

Trends in the market: One of the key trends in the Saudi Arabian cinema market is the opening of new cinema theaters across the country. This trend has been facilitated by the government's decision to lift the ban on cinemas in 2018. As a result, several international cinema chains have entered the Saudi Arabian market, bringing with them state-of-the-art facilities and a wide range of film offerings. This has led to an increase in the number of cinema-goers and a boost in ticket sales. Another trend in the market is the rise of luxury cinema experiences. Saudi Arabian audiences are increasingly seeking premium cinema experiences that offer comfortable seating, gourmet food and beverages, and high-quality audiovisual technology. Luxury cinema theaters have gained popularity among affluent customers who are willing to pay a premium for an enhanced movie-watching experience.

Local special circumstances: Saudi Arabia has a unique cultural and social environment that has influenced the development of the cinema market. The lifting of the ban on cinemas was part of the government's efforts to diversify the economy and promote entertainment options within the country. This decision has been well-received by the Saudi Arabian population, who now have access to a wider range of entertainment options.

Underlying macroeconomic factors: The growth of the cinema market in Saudi Arabia is also supported by positive macroeconomic factors. The country has a young and growing population, with a high disposable income. This demographic profile provides a strong customer base for the cinema industry. Additionally, the government has implemented economic reforms to attract foreign investment and promote tourism, which has further contributed to the growth of the cinema market. In conclusion, the Cinema market in Saudi Arabia has experienced significant growth and development due to changing customer preferences, the opening of new cinema theaters, the rise of luxury cinema experiences, unique local circumstances, and positive macroeconomic factors. This growth trend is expected to continue in the coming years as the cinema market in Saudi Arabia becomes more established and diversified.

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.