Global digital transformation programme

When a UK cinema client was considering international expansion by acquiring a European chain, we were hired to conduct a strategic review of the business. 

We worked closely with the client’s CEO and senior management team to understand their considerations, and evaluated a set of strategic opportunities for the business which included pricing and further site roll-out. The client hired us because of our long-standing relationship with them, our deep sector knowledge, and our unique ability to put together an international team of M&A strategists with local expertise. 

Our work helped inform the client about the company’s competitive positioning and its markets. While the project was led from the UK, we brought in people from several teams located in the company’s local markets, which was extremely valuable to the client as it helped us to really understand market and customer dynamics at a local and regional level. We researched historical trends in admissions and pricing, and analysed how a myriad of factors could explain year-on-year volatility as well as longer-term trends. For example, in order to take a view on typical admission numbers, we had to normalise the effects of the film slate, global sports events, and the weather, among other factors. 

Based on this work, we built a model to project which films would drive admissions for the upcoming years and how strong we expected the performance of the local cinema industry to be. This was invaluable in helping the client come to a decision about the company’s future potential for growth. 

We also analysed other trends such as the local film production and the impact of piracy and online streaming, which enabled us to further refine our understanding of local dynamics and to highlight any differences between these markets and the UK to the client. 

In addition to this, we looked at the various pricing strategies employed in cinema chains across Europe, to develop a plan that could help drive value in the region, for example by introducing regional pricing and VIP seating. The client highly valued our advice, which gave them both the qualitative insights and the rigorous supporting data they needed to make the best decision possible for their business.