Record sales for Dutch cinemas
The Dutch Association for Cinema Exhibitors (NVB) brings the news that a record number of movie tickets have been sold last year. For this year the expectations for ticket sales are even higher. However, things are looking a lot less rosy for the Dutch movie renters. Earlier this week the Entertainment Retail Group, owner of video stores Videoland, Movie MAX and Movies & More, announced its bankruptcy.
The Dutch cinema's box-offices sold 27 million tickets to moviegoers, which is the best result in three decades. For 2010, Ron Sterk, director of the Dutch Association for Cinema Exhibitors, expects an even better result. "If we look at the results so far, considering that there are still some very big titles coming out this year, like 'Harry Potter', 'Sint' and 'Dick Trom' (both Dutch), we expect a total of 28 million visits for 2010, calculates Sterk.
Yet, the movie rental sector in the Netherlands is not going very strong. According to Ruud Bakker of the now bankrupt Entertainment Retail Group, the bankruptcy of the video store chain was caused by a combination of factors, including a declining market, declining profitability, large investments in innovation without the targeted earnings growth, a slow pace of restructuring and sluggish economy. The recent bankruptcy of a major debtor accelerated the process.
According to the rental sector, the rental of movies in video shops showed a downward trend in the last seven years. Video-on-demand and (illegal) downloads take their share of the market and change the distribution chain more and more. The Movie MAX and Videoland stores say to have done much to prepare for a different future the last years, along with the Retail Entertainment Group, and will continue these developments in the future. For instance the expansion of digital products such as video on demand will be continued.
Source: AD.nl, EntertainmentBusiness.nl
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