Germany is one of the top three markets for AMC, with over 80 theatres in the country. With German cinema attendance consistently reaching 1.4 million people each month, the market is a fairly good market to be in. One would think, however, that being one of the top three market in AMC would mean a relatively high audience share and revenue share – however, this is not always the case. According to Weltmedia AG’s 2008 market report, AMC claimed a 5% market share, with revenue share of 33% and a market share of 29% in 2006.
The market is dominated by one major exhibitor. In 2007, German cinema revenue reached €1,357.4 million. While the large companies are consolidating and facing downward pressure on their revenues (so that in 2008, they only reached 29% of total cinema revenues), smaller independent theaters and independent film producers are flourishing in the German market – as evidenced by the €1,931.9 million revenue of German film distributors (vs. the €1,744.8 million revenue of movie distributors from the US in 2008). The market’s last major consolidator, Odeon, went bankrupt in 2009.
What is AMC at in the German Market?
Amc seems to be continuing on its path in Germany. Having had success with B-Movies in the German market (so far acquiring the German rights for The Bourne Supremacy in 2005, and The Bourne Identity in 2002), acquiring and producing new films from independent directors such as Christoph Schütt and Johannes Lampe, and some major independent German producers.
Conversely, some traditional U.S. producers see the German market as weak. In August 2009, DirecTV Germany and Warner Bros. Studios Germany said they will not distribute films from a major Hollywood studio (according to an article in the German daily, Welt). During the 2008 market research for AMC Entertainment, a market study by the U.S. consulting firm AT Kearney found that the German market is “lagging behind” other European markets in terms of film market share. In September 2009, the German film producers association remarked that Germany is still lacking “market penetration and sales.”
It’s clear that as the European film market evolves, and distributors of European films become less loyal to US distributors, there will be more market opportunities for international distributors such as AMC. If that’s the case, I’m sure AMC at the German Market will flourish, although for now, it appears that AMC is more than happy to continue on its path.