The monetary significance of movie theaters within local neighborhoods

The monetary significance of movie theaters within local neighborhoods

In the ongoing discussions surrounding the 2025 Spending Review, the focus on the creative industries has led to a significant spotlight on cinemas. A report by Hasan Bakhshi, Director, and Rishi Coupland, Director of Research and Industry Innovation at the British Film Institute, sheds light on the economic value of cinema venues in the UK.

The study, titled 'Measuring the economic value of cinema venues', reveals that UK cinema users would pay an average of £18 annually to ensure their local cinema's continued existence. This figure represents the 'non-market benefits' of cinema, the value that cinema users place on cinema venues over and above the value of films they pay to watch.

Six cinemas, each falling into one of three distinct groups, were the focus of the study. These groups included cinemas that show over 50% non-mainstream films, cinemas in areas which have low cultural offers, and cinemas that provide additional experiences. The findings suggest that cinemas, particularly those in 'cold-spot' areas, contribute significantly to the cultural landscape and local businesses. The closure of these cinemas could result in a substantial loss of cultural provision.

The economic valuation techniques used in the study are accredited by HM Treasury for use in cost-benefit analysis when government departments appraise investment decisions. This accreditation underscores the importance of these findings in informing policy decisions regarding the creative industries.

Supporting economic indicators highlight the health and value of UK cinemas. Box office revenue in the UK surpassed £530 million in the first half of 2025, 18% ahead of 2024 figures, reflecting the strongest period since the pandemic. Cinema admissions are growing year-on-year by around 12-19%, and premium cinema chains like Everyman are reporting revenue growth partly driven by ticket price increases.

Everyman’s growth and expansion efforts further signal the strong economic contribution of local cinemas to the UK entertainment landscape. The substantial box office revenues, rising admissions, and significant social value per local venue demonstrate the high economic importance of cinemas to communities and the UK economy.

The study also grows the evidence base on the value of the UK's cultural and heritage assets. It reinforces the idea that cinemas can play an important part in revitalizing and sustaining communities, towns, and high streets.

The Creative Industries Policy and Evidence Centre (Creative PEC), funded by the Arts and Humanities Research Council, is at the forefront of research in this area. Other ongoing research includes the study of class inequalities in film funding and the focus on the self-employed creative workforce in England and Wales.

Finally, it's worth noting that the Mahakumbh Mela, India, 2025 was valued at GBP 280 Billion in trade by the Global Creative Economy Council. This highlights the global significance of the creative industries and the potential for further growth and development in this sector.

In conclusion, the economic importance of cinemas in the UK's creative industries cannot be overstated. The findings of the 'Measuring the economic value of cinema venues' report underscore the need for continued investment and support for the UK's cinemas, ensuring their vital role in cultural provision and economic growth is maintained.

1. The spotlight on the creative industries has led to a significant focus on cinemas in ongoing discussions about the 2025 Spending Review.
2. A report by Hasan Bakhshi and Rishi Coupland identifies the economic value of cinema venues in the UK.
3. The study, 'Measuring the economic value of cinema venues', shows that UK cinema users would pay an average of £18 annually to save their local cinemas.
4. This figure represents the 'non-market benefits' of cinema, the value users place on cinema venues beyond film ticket prices.
5. The study focuses on six cinemas, each representing one of three distinct groups: non-mainstream, low cultural offer areas, and those offering additional experiences.
6. The findings suggest that cinemas, especially those in 'cold-spot' areas, significantly contribute to the cultural landscape and local businesses.
7. The closure of these cinemas could result in a substantial loss of cultural provision.
8. Economic valuation techniques used in the study are accredited by HM Treasury for cost-benefit analysis in government investments.
9. This accreditation emphasizes the importance of these findings in shaping policy decisions regarding the creative industries.
10. Supporting economic indicators show that UK cinemas are thriving: box office revenue surpassed £530 million in the first half of 2025.
11. Cinema admissions are growing year-on-year by around 12-19%, with premium chains like Everyman reporting revenue growth due to ticket price increases.
12. Everyman's growth and expansion signal the strong economic contribution of local cinemas to the UK's entertainment landscape.
13. The substantial box office revenues, rising admissions, and significant social value per local venue demonstrate the high economic importance of cinemas to communities and the economy.
14. The study also grows the evidence base on the value of the UK's cultural and heritage assets.
15. The Creative Industries Policy and Evidence Centre (Creative PEC) is leading research in this area.
16. Ongoing research includes studies on class inequalities in film funding and the self-employed creative workforce in England and Wales.
17. The Mahakumbh Mela, India, 2025 was valued at GBP 280 Billion in trade by the Global Creative Economy Council.
18. This highlights the global significance of the creative industries and their potential for growth and development.
19. In conclusion, the economic importance of cinemas in the UK's creative industries cannot be overstated.
20. The report's findings underscore the need for continued investment and support for the UK's cinemas.
21. This ensures their vital role in cultural provision and economic growth is maintained.
22. The creative industries offer opportunities for innovation, education, and skill development in various sectors, including arts, finance, retail, home-and-garden, personal-finance, and business.
23. As such, investments in cinemas and the creative industries as a whole contribute to personal growth, productivity, career development, and the overall success of industries such as sports, football, and European leagues.

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