The report titled “Saudi Arabia Leisure and Entertainment Market Outlook to 2025-Movie
Theatre Market by Revenue (Ticket Admissions, Food, and Beverage Sales,
Advertisements and Sponsorships), Amusement Park Industry (Ticket Admissions,
Food and Beverage, Merchandise, Games, and Others) and Alternate Entertainment
Avenues (VR Gaming, Bowling Alley and Trampoline Parks)” provides a comprehensive analysis of the status of
leisure and the entertainment industry in KSA. The report covers various
aspects including the market potential, market segmentation and customer
preferences in each segment. The report concludes with market projections for
the future of the industry including forecasted industry size by revenue with a
recommended market penetration strategy for a new entrant.
Saudi
Arabia Movie Theater Market Overview and Size
Saudi
Arabia movie theater market had begun taking shape after a 35-year hiatus. The
Saudi government, in a bid to increase entertainment opportunities in Saudi
Arabia, allowed screening of movies in 2018. AMC Cinemas was the first
international movie theater chain to operate in Saudi Arabia with the KAFD
screen that accommodates 490 patrons. As of December 2019, more than 9 movie
theaters are operational across Saudi Arabia, with a maximum in Riyadh.
Market Segmentation by
Revenue Source (Ticket Sales, Food and Beverages, and Advertisements and Sponsorship)
Ticket
sales were observed to the dominant revenue source for
movie theaters, in line with trends observed in emerging movie theater markets.
The standard screen was observed to dominate the type of tickets and screens
preferred by moviegoers due to their low cost and high availability. Similar to
more developed movie markets, the majority of the demand for ticket sales was
through the online medium.
Food
and Beverages sales were second-highest for movie theater
operators. Movie theater companies were observed to have earned a higher margin
on F&B related costs. Currently, third-party vendors operating in movie
theaters are rare and all offerings belong to the theater company. The average
spending by Saudis on F&B in movie theaters were in the range of SAR 40-60.
Advertisements
and Sponsorship included revenue from the
exhibition of ads from distributors. Sponsorship revenue was included as most
of the theaters operating in Saudi Arabia was new and therefore had greater
sponsorship activity to increase footfall in theaters.
As
of 2019, the movie theater the industry is concentrated between 4 players, with
VOX Cinemas operating 7 out 9 theaters as of 2019. The Saudi Authority for a
movie, General Entertainment Authority has given movie theater licenses to 7
operators as of January 2020. Currently, 4 cinema chains are operational in
Saudi Arabia, namely Dubai based VOX and the USA based AMC, Saudi based MUVI
Cinemas and Middle Eastern-based Empire Cinemas. Currently, VOX holds the market
leadership position with more than 7 operational theaters across KSA, followed
by AMC and MUVI with 2 locations each. Companies compete on the basis of ticket
prices, type of screen formats, F&B packages and discounts among others.
Future
Outlook
For
the period 2019-20205, the movie theater industry in Saudi Arabia is forecasted
to grow at a CAGR of 15% as more movie theater chains enter the market. As
movie theaters face footfall challenges, discounts, movie passes can be
expected on tickets as well as higher margins on F&B sales. For nationals
with higher spending capacity, premium movies viewing formats such as 4D, IMAX
and other luxurious offerings such as fine dining and private viewing will help
movie theater operators to gain higher revenue from fewer admissions.
The
amusement park industry in Saudi Arabia is fragmented with various types of
amusement parks in operation including theme parks, water parks, entertainment
parks in malls, snow-based parks among others. The market grew at a
single-digit CAGR. The Al Hokair group and Al Futtaim group are the leading
businesses in the amusement park establishments, with Al Shallal Theme Park, Al
Hokair Land, and Jungle Theme park. The growth in tourists and their entry with
tourist visas and the government’s push for an entertainment-based economy has
driven the market in the review period.
Ticket
Sales and Admissions in 2019 for
amusement parks include sales of walk-in tickets, online, and groups and
parties. This the segment was observed to have accounted for the highest share
of amusement park revenues, as the average ticket price includes an entry fee
to be paid irrespective of rides.
Food
and Beverages revenues include sales from stalls and restaurants as
well as catering services offered inside the premises. Catering services are
offered to groups such as schools, corporate, ladies’ nights among others. This
segment accounted for the second-highest share of overall amusement park
revenues in 2019.
Merchandise
Sales in 2019 accounted for the third-highest of
amusement park revenues in 2019. All amusement parks sold souvenirs, clothes,
toys and other accessories at shops and stalls inside the premises.
Games and
arcades revenues from Amusement parks had specific gaming arcades for families,
children and women which include traditional arcade games as well as new games
that included VR and bowling.
Other revenue
sources include royalty from third party food vendors if any, parking charges,
and sponsorship revenues for events that are conducted in the amusement park
such as water shows, magic shows, and other exhibitions.
The
nature of competition is fragmented in terms of amusement parks. The region has
various amusement parks, family entertainment centers, water parks, and
theme-based parks. Al-Shallal theme park is the oldest operating theme park in
Saudi Arabia and holds the highest market share in terms of revenue as well as
admissions as of 2019. Other parks include Al Hokair Land and Atallah Happy
Land which have the next highest revenues.
The
nature of competition in terms of holding companies is moderately concentrated
as Majid Al Futtaim and Al Hokair group are market leaders with annual revenues
from entertainment and family-oriented destinations exceeding SAR 1 Billion for
2019. Fakieh Group is another holding company, which owns Al-Shallal theme
park.
Alternate
entertainment avenues have been identified in Saudi Arabia based on their
attractiveness for investors as well as customers. These avenues are identified
according to the Vision 2030, which expects Saudi nationals to engage
themselves in leisure, entertainment and specifically recreation with an
interest in physical activity.
Virtual
Reality gaming is extremely new in Saudi Arabia and has major
applications to business enterprises than in gaming and leisure. Currently,
Vogel and Off the Grind (OTG) provide VR solutions for businesses while OTG
also provides gaming solutions, Zero Latency is Saudi Arabia's first free-roam
VR gaming arcade. The payback period for investment in a lease based operating
model was observed to be highest.
Bowling
Alleys are common in Saudi Arabia as the sport has a long
history in the kingdom. The Universal Bowling Center in Riyadh operates
according to International Bowling Standards and conducts various tournaments
for professionals as well as leisure seekers.
Trampoline
Parks are somewhat common in the kingdom with international
operators such as Skyzone and Bounce having operations in Jeddah, Riyadh and Al
Khobar. With the purpose of exercise and recreation, trampoline parks attract
schools, corporate, females only among others with an aim to improve lifestyle
and fitness, as well as entertainment.
Key Segments Covered:
-
Movie Theater Market
Ticket Admissions
Food and Beverages
Advertisements and
Sponsorships
Amusement Park Market
Ticket Admissions
Food and Beverages
Merchandise
Games
Others (Parking, Royalty and
Sponsorships)
Alternate
Entertainment Investment
VR Gaming Center
Bowling Alley
Trampoline Parks
Key Target Audience
Movie Theater Companies
Film Distribution Companies
Screen Format Companies
(IMAX, 4D, 4DX)
Government Entities
Amusement Park Operators and
Chains
Real Estate Developers
Mall Operators and Groups
Time Period Captured in the Report:
Historical Period – 2014-2019
Forecast Period – 2019-2025
Companies Covered in
Report:
AMC Theaters
VOX Cinemas
MUVI Cinemas
Al Hokair Group
Al Shallal Theme Park
Off the Grind
Emirates Bowling Alley
BOUNCE Trampoline Park, Jeddah
Key Topics
Covered in the Report: -
Movie Theater Market Current
Scenario and Future Outlook
Investment Analysis for
Setting up Movie Theater
Customer Preference Survey
for Movie Theaters
Investment and Regulatory
Scenario in Movie Theater Industry
Case Study Analysis of
Successful Movie Theaters in Middle East
Amusement Park Market Current
Scenario and Future Outlook
Investment Analysis for
Setting up Amusement Park
Customer
Preference Survey for Amusement Parks
Investment
and Regulatory Scenario in Amusement Park Industry
Case Study
Analysis of Successful Amusement Parks in Saudi Arabia
Alternate
Entertainment Avenues for Investment in Saudi Arabia
Investment
Analysis of Alternate Entertainment Avenues
Customer
Preference Survey for Alternate Entertainment
For More Information on the
research report, refer to below link: -
Related Reports by Ken Research: -
No comments:
Post a Comment