NEW YORK--(BUSINESS WIRE)--Link to Fitch Ratings' Report: An Exclusive Preview (Fitch -- 2015 U.S.
Movie Exhibitor Industry Report)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=866741
The 2015 film slate will support industrywide box-office revenue levels above 2014 ($10.4 billion, down 5.2%), with low to mid-single-digit growth in attendance and a slightly increased average ticket price, according to Fitch Ratings. The large U.S. exhibitors continue to ramp up investment in premium offerings and seating, which we believe should somewhat offset the long-term challenges.
Fitch's 2015 expectations incorporate attendance, average ticket price and concessions.
Attendance is expected to experience low- to mid-single-digit growth given a strong film slate throughout the year, and average ticket prices are expected to display low single-digit growth. Concessions are expected to show low single-digit increases driven by increased per-capita spending, though offset by attendance declines.
The longer term secular risks of shortening exhibition windows and increased indirect competition from video on demand (VOD) and other "over the top" (OTT) services will continue to contribute to gradual attendance declines. These risks weigh heavily on exhibitors' issuer default ratings and are reflected in the 'B' category ratings. These risks are balanced by Fitch's belief that movie exhibitions will continue to be a key promotion window for the movie studios' biggest and most profitable releases.
In the special report, "An Exclusive Preview (Fitch's 2015 U.S. Movie Exhibitor Industry Report)," Fitch maintains its cautious view on the longer term prospects for the industry, which we have held over the past several years.
The report also provides updated organization charts and portfolio summaries for AMC Entertainment Inc. (B+/Stable), Cinemark Holdings, Inc., Regal Entertainment Inc. (B+/Stable) and National CineMedia Inc.
Additional information is available on www.fitchratings.com.
The above article originally appeared as a post on the Fitch Wire credit market commentary page. The original article, which may include hyperlinks to companies and current ratings, can be accessed at www.fitchratings.com. All opinions expressed are those of Fitch Ratings.
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