Everyman bounces back from Covid after blockbusters boost
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Hollywood blockbusters help luxury movie theater chain Everyman bounce back from Covid
Everyman’s boss says video streaming is friend rather than foe as luxury cinema bounces back.
The company said revenue rose 62 per cent to £79.7 million last year, thanks to blockbusters such as Top Gun: Maverick helping it recover from the Covid-19 pandemic.
Chief executive Alex Scrimgeour said despite the “bumpy” ride for the film industry, the relationship between cinemas and streaming giants was healthy.
Hot ticket: Luxury cinema chain Everyman said revenues rose 62% last year to £79.7 million, thanks to blockbusters like Top Gun: Maverick (pictured) helping it recover from the pandemic
It was feared that studios would release movies directly to streaming services in the wake of the pandemic, hitting movie theaters.
But many movies are released in theaters first and later put on streaming services, giving both sides a piece of the pie.
“I don’t see it as competition,” Scabbly told the Mail, adding that investment in streaming has been a help rather than a hindrance to British cinema.
Amazon has invested £1 billion in UK TV and films since 2018, and the likes of Netflix continue to shoot shows in UK studios like Pinewood and Shepperton.
Blockbuster hits, often financed or created by these streaming titans, account for more than half of box office revenues, according to data from the British Film Institute. This was more than 35 percent before the pandemic.
Scrimgeour said the key for cinemas was a strong lineup of movies – something that looks set to come into full force in 2023 with the release of delayed blockbusters, including the latest Indiana Jones, Mission Impossible and Spiderman films.
But media analyst at Enders Analysis Jamie MacEwan said there’s more to Everyman’s success than just putting out high-quality movies.
“Everyman was well placed to capitalize on consumer demand for louder and bigger experiences post-pandemic,” he said.
While Everyman increased its average ticket price by 2.6 per cent to £11.29 for the year, MacEwan said this remains an “affordable luxury” despite cost-of-living concerns, with some perhaps trading the West End for a luxury cinema seat.
The company also increased food and drink prices by 3 per cent, bringing the average spend per customer on refreshments to £9.34.
This cost containment has enabled Everyman to open two locations this year in Edinburgh and Egham in Surrey, bringing the total number of locations to 38. “The industry is finally on its way back,” said Schobbejak.