Motion picture theatres, 2016

Released: 2017-11-27

The motion picture and video exhibition industry generated $1.8 billion in operating revenue in 2016, up 7.1% from 2014. Of that total, $232.9 million was from e-commerce sales.

Ontario accounted for the largest share of operating revenues at 41.4%, followed by Quebec (16.4%), British Columbia (15.2%) and Alberta (15.2%). Ontario posted the largest dollar gain since 2014, up $63.3 million to $730.5 million. Quebec remained fairly steady, edging up $1.0 million, while British Columbia (+$34.0 million) and Alberta (+$11.2 million) both posted increases. The increase in revenue relates to the higher number of blockbuster movies during 2016 compared to 2014.

Operating expenses totalled $1.5 billion in 2016, up 5.2% or $74.7 million from 2014. By dollar amount, the largest provincial increase occurred in Ontario, up $43.6 million to $636.6 million. By percentage, the largest increase was in British Columbia (+11.1%). Other notable movements included Alberta (+$11.3 million) and Quebec (-$4.4 million).

Salaries, wages, commissions and benefits totalled $245.2 million in 2016, up 5.1% from 2014 and representing 16.3% of total reported operating expenses. These increases coincided with several provinces legislating increases to the minimum wage, most notably Alberta, where an 8.6% increase in salaries, wages, commissions and benefits coincided with a two dollar per hour increase in the minimum wage since 2014.

Operating profit margins increased from 12.9% in 2014, to 14.5% in 2016. Excluding Quebec, profit margins in all provinces and territories were in the double digits. Profit margins have historically been lower in Quebec compared to other provinces due to the uniqueness of the Quebec market, where there is a greater number of independent theatres.

Nationally, total admission receipts (box office sales) increased 3.8%, while the total number of paid admissions was up 0.7% and the number of screens increased 2.0%. Total sales of goods and services in 2016 were $1.6 billion, up 7.5% or $112.3 million compared to 2014. The largest contributor to that increase was sales of food and beverages (48.1%), signifying an 11.2% or $54.0 million increase in sales of food and beverages compared to 2014. Despite the fact that the number of people attending movies and generating revenue for movie theatres has changed little since 2014, those who are attending and purchasing tickets are now spending more money at theatres.

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