European cinema in 2006

With kind permission from the 'The European Audiovisual Observatory, Council of Europe, Strasbourg', we reproduce a summary of the European cinema's performance in 2006, which unfortunately does not say a single word about the phenomenal success of Indian cinema in the UK- India-EU Film Initiative.
EU Cinema: A report card in 2006
- 926 million cinema tickets were sold in the European Union in 2006, a 3.6% increase in relation to 2005
- European films earned a 28% share of admissions, compared to 25% in 2005
- A total of 862 films were produced, up 47 films from the previous year
- European Union film production figures show a steady upward trend
Countries contributing to overall growth included Germany, Italy and Spain. With 174 new features released during the year, Germany registered the highest production level on record.
Entirely national fiction and documentary features were the principle areas of growth, with co-production numbers remaining stable in relation to 2005.
Factors contributing to the increase included a higher than usual number of very low budget features obtaining theatrical release.
After a lean period in 2005, Italian film production showed renewed vitality in 2006. A total of 117 films were produced, a figure identical to that of 2003, though inferior to the record level of 138 films registered in 2004.
Upward momentum was also evident in Spain, where a total of 150 films, the highest level of the last twenty-five years, were produced. Again an increase in the number of entirely national films was the principle growth factor. Increased public funding as well as higher levels of investment in production by broadcasters underpinned the upswing.
Other countries showing increased production activity in 2006 included Austria (+10 films) and Hungary (+10 films) while provisional figures for Poland also indicate a rise in the number of new national films completed.
In the United Kingdom the number of films produced remained stable in relation to 2005.
Two notable exceptions to the trend were Denmark (-12 films) and France (-23 films). Both countries had registered exceptionally high production volume in 2005 and the decrease in 2006 represents a return to more normal levels of activity.
In line with the decrease in the number of films produced, the value of investment in French production in 2006 fell by 7.4% to EUR 865 million. There was a significant drop in the number of very low budget (less than EUR 1 million) and mid-range (EUR 2 to 7 million) films made. The overall value of production activity in the United Kingdom rose sharply to GBP 842.4 million, reversing the dip observed in 2005 (GBP 577 million). The rise was principally accounted for by the increased value of incoming productions, contributing GBP 569.6 million to the overall total (GBP 308.7 million in 2005).
Europeans return to the cinemas in 2006
Total admissions in the European Union reached 926 million, a 3.6% rise on the lacklustre 2005 total of 894 million. The admissions lost between 2004 and 2005 were not, however, entirely recovered in 2006; the result is still around 80 million admissions short of the high-points registered in 2002 and 2004.Despite the overall rise in attendance, signals from the major EU markets were somewhat mixed. While France (+7.6%) and Germany (+7.4%) showed clear signs of recovery, Italy, less affected than other European markets by the downturn in 2005, showed only a minimal increase in 2006 (+1.6%).
In contrast both Spain (-4.7%) and the United Kingdom (-4.9%) saw admissions fall for the second consecutive year, though in both cases rising ticket prices helped to cushion the impact on box office returns.
Outside of these five large markets, the trend was generally positive and a number of countries almost entirely compensated for the admissions lost in 2005. This was the case in
Poland, where 2005 had brought a heavy fall in attendance. In 2006 an additional 8.4 million tickets were sold, bringing the annual total to 32 million admissions, just 1.4 million short of the exceptional 2004 figure. In Ireland (+8.9%), the 17.9 million tickets sold represent the highest annual attendance on recent record. 3.4 million admissions were registered in Slovakia, a 54.3% increase on 2005 and the best total since 1998.
Impressive performances were also registered in the three Baltic markets. Admissions almost doubled in Lithuania, whilst in Estonia (+40.2%) and Latvia (+22.7%) attendance was the best of the decade, with new multiplexes and an improved economic climate no doubt contributing factors.
Recovery was evident also in Austria (+9.9%), the Czech Republic (+21.4%), Finland (+10.6%), The Netherlands (+9.0%) and Slovenia (+10.8%), though in none of these countries did the 2006 total surpass that of 2004. More modest increases were signalled in Belgium (+7.7%), Denmark (+3.4%), Luxembourg (+7.2%), Portugal (+3.9%) and Sweden (+4.7%). Among the smaller and mid-sized EU markets, only Hungary registered a small drop in cinema attendance in 2006 (-3.8%).
Turkey's dynamic growth
Outside of the European Union, Turkey was the country showing the most dynamic growth. With a total of 34.8 million tickets sold, cinema attendance reached its highest level since the early 1980s, fuelled by a string of very successful local productions and an increase in screen numbers.Admissions also rose, though more modestly, in the Russian Federation, with box office returns rising by an impressive 30.4% to reach USD 411.8 million. While Switzerland and Norway also registered positive growth, two countries joining the European Union in January 2007 both saw a negative trend. Admissions dipped for the second successive year in Bulgaria (-2.3%) and continued their downward slide in Romania with a small 1.9% drop.
Improved market share for European films
A number of the countries reporting strong growth in admissions in 2006 also registered good performances by domestic films. As a result the overall market share for European films in the European Union reached 27.6%. This is an increase in relation to 2005 when 24.9% of tickets were sold for European films, and better than the 25.2% registered in 2004.French and German triumph
Principle contributors to the overall success of European films were French and German productions. French films accounted for 11.1% of total European Union admissions in 2006, reflecting the excellent results for national production on the domestic market.Very strong performances by a number of comedies at the beginning of 2006 helped boost the share of French production within France to an estimated 45%, the highest domestic market share registered since the mid 1980s. Domestic productions also contributed to the revival of the German market, where three local titles figured among the Top 10 films for 2006 and national market share reached 25.8%, the best score since analysis began in 1991. As a result admissions to German films accounted for 5.1% of total EU admissions, compared to 3.2% in 2005.
Improved national market share was also reported in the Czech Republic, in Estonia, in Hungary, Italy, Latvia, Poland and Slovenia, while Denmark, Lithuania, Spain and Sweden recorded a drop. In the case of Denmark, where the market share for national films reached 24.8% in 2006, the decrease is in relation to an exceptional share achieved in 2005 (32%) and the 2006 result remains superior to that recorded in 2004 (23.7%).
United Kingdom initiative films also had a less successful year in 2006, accounting for 2.8% of European Union admissions, though many of the films included in the “EUR inc/US” category (films produced in Europe with US investment, see figure below) are shot in the United Kingdom and are generally perceived by audiences as being British.
Films that created history
Outside of the European Union one country stands out in terms of the performance of domestic production. With national films in the first four places of the annual Top 20, domestic market share in Turkey climbed to an impressive 51.8%, easily the best performance in Europe. War drama Kurtlar vadisi – Irak (Valley of the Wolves) was the most popular film of the year, ahead of a trio of local comedies (sequel Hababam sinifi 3,5, Hokkabaz and Sinav). A local sequel also dominated the annual ranking in the Russian Federation. Fantasy Dnevnoy Dozor (Day Watch), sequel to the already immensely successful Nocnoj Dozor (Night Watch), became the highest grossing film ever following its 1st January release.Two sequels top the European charts in 2006
The second outing for the Pirates of the Caribbean was the most popular film overall in Europe in 2006, just ahead of another sequel, computer animation Ice Age: The Meltdown.Six other sequels or series found places in a chart generally less dominated by fantasy or science fiction than in 2005. On the contrary the 2006 line-up is notable for the diversity of genres and themes represented, ranging from the antics of Borat to the more sophisticated comedy of The Devil Wears Prada and from a faithful adaptation of a bestselling novel in The Da Vinci Code to a freer reworking of an earlier Hong Kong film in The Departed.
In 2005 no entirely European film managed to claim a place in the overall Top 20 chart. No less than three such titles appeared in the 2006 ranking; Les Bronzés 3 : amis pour la vie in 10th place with 11.2 million admissions, Perfume: The Story of a Murderer at 13th position with a total of 9.7 million tickets sold, and Volver in 19th place with 7.8 million admissions.
French and German production dominated the Top 20 chart of European films in 2006 with two notable exceptions. The first of these, Pedro Almodóvar’s Volver, was well received, particularly in France and Italy, and recorded 76% of its European admissions total outside Spain.
In contrast the second, controversial Turkish film Kurtlar vadisi – Irak at 5th place in the chart, earned the vast majority (91%) of its 4.7 million admissions on the national market.
Two United Kingdom titles, The Queen (at 13th place and still on release in a number of territories in 2007) and United 93 (at 15th place) also made an impression outside their home market, registering respectively 53% and 81% of their total ticket sales in continental Europe.
Finally, the most successful non-European, non-US title released in Europe during the year was Australian computer animation Happy Feet, at 18th place in the annual ranking for a total of 8.2 million tickets sold in 2006. Canadian-French horror co-production, Silent Hill, was the second most successful film in this category, with a total of 3.6 million admissions in Europe.
Source: 'The European Audiovisual Observatory, Council of Europe, Strasbourg',(http://www.obs.coe.int).