The Company With The Magic Formula For Tempting Back Cinemagoers

Few sectors have rebounded from the pandemic as slowly as cinema. When the curtain came down on theaters in 2020 film fans turned to streaming platforms and didn’t look back. By the time theater doors swung back open it took more than the wave of a wand to get customers streaming through their turnstiles again. One operator is using every trick in its spell book to do just that.

The scale of the hurdle that theaters are up against was laid bare in a report on Thursday from movie industry specialists Gower Street Analytics which revealed that this year’s global box office is expected to be 10% down on last year at $30.5 billion. It is more than 25% lower than the tally in each of the three pre-pandemic years which have yet to be surpassed since theaters re-opened after lockdown.

The closest they have come to challenging the pre-pandemic totals was in 2023 when the ‘Barbenheimer’ phenomenon, combined with the punching power of The Super Mario Bros. Movie, pushed the global box office to $33.9 billion. However, even that was $7 billion down on the total for 2017 which was the lowest of the three pre-pandemic years.

Remarkably, Gower Street doesn’t expect next year’s worldwide box office to exceed the 2023 total despite the calendar being stacked with hotly-anticipated movies including Avatar: Fire and Ash, The Fantastic Four: First Steps, Mission: Impossible – The Final Reckoning and Superman. It raises the question of what it would take to propel theater revenue back to its pre-pandemic highs. One market already knows the answer to that.

In the midst of the pandemic a report from Omdia, a consultancy firm owned by research giants Informa, revealed that the Middle East was the world’s fastest-growing cinema market over the four years to 2021. It didn’t stop there as last month Omdia forecast that this year the region will generate $900 million of revenue, a 21.1% increase on 2019. What’s more, it added that this growth is set to continue with its annual revenue expected to hit $1.5 billion by 2029.

The Middle East isn’t just bucking the global trend in terms of box office revenue but also screen growth.

The decline in worldwide traffic to theaters has put chains in jeopardy and in July 2022, Europe’s biggest privately-owned exhibitor, Vue, was taken over by its lenders. Two months later the the American arm of Cineworld, the world’s second-largest theater chain, went into Chapter 11 bankruptcy protection and although it has since emerged from this, its operation in the United Kingdom is still struggling. Five of its theaters closed in October and a further four are set to follow suit.

Even boutique chains haven’t been immune. Last month private equity giant Fortress rescued U.K. arthouse cinema chain Curzon by buying it for an undisclosed sum from real estate magnate Charles Cohen who had owned it since 2019. Fortress reportedly lent Cohen millions of dollars but sued him earlier this year for default and then became the only bidder for Curzon at a foreclosure auction. It is a different story in the Middle East.

According to Maria Rua Aguete, Omdia’s senior research director of media and entertainment, the increase in the number of cinema screens in the Middle East is outperforming the rest of the world, with around 1,000 added since 2019. By the end of this year the region is expected to have nearly 2,500 screens and there are a number of driving forces behind this blockbuster growth.

Temperatures in the Middle East soar north of 100 in summer during the day and night whilst winter temperatures can rise into the 90s. As a result, indoor entertainment has proliferated and theaters in the region are usually in a prime position.

They tend to be located inside malls which are more like entertainment destinations than shopping centers as they are often home to theme parks, museums, galleries and sports facilities.

With so much entertainment on hand it’s possible to spend a day in many of the malls which avoids needing to step outside into the heat. A visit to the cinema in the evening is a natural way to end the day so it has become a crucial part of local culture, especially as pubs, bars and nightclubs are not as common as they are in the west due to alcohol restrictions.

As malls are so integral to society in the Middle East, countries had to introduce specific strict measures to prevent the spread of Covid-19. This paid off and malls in major Middle Eastern cities were bustling again within a year of the start of the pandemic. In turn, theaters in the region had less down time than elsewhere which helped them to weather the storm. That’s not all.

One of the biggest markets in the Middle East went into the pandemic with even more wind in its sails than its neighbors. In 2018, Saudi Arabia lifted its 35-year ban on cinema and it hit the ground running as the first film shown was Black Panther, at the time the latest instalment in Disney’s Marvel Cinematic Universe. It kicked off a surge in growth of Saudi Arabian cinema which wasn’t slowed down by the pandemic.

According to Omdia, by the end of this year Saudi Arabia is expected to have a total of 803 screens, more than the 734 in the United Arab Emirates, home to Dubai and Abu Dhabi. Moreover, Saudi Arabia is the only country in the world where its box office has more than doubled since the pandemic. Takings this year had hit $199.9 million by November 22, up from $97.5 million in 2019 according to Comscore. In contrast, the domestic box office in the United States has crashed by 29% to $8.1 billion over the same time.

By 2030, Saudi Arabia is forecast to have box office revenues in excess of $1 billion putting it in the top 20 of global cinema markets. One operator which has been there from the start is VOX Cinemas. Not only is VOX the Middle East’s biggest theater chain with more than 600 screens, it is also the highest-grossing exhibitor in the region. Last year its admissions increased 6% to 20 million thanks to hard work and a magic formula.

VOX is owned by Dubai-based Majid Al Futtaim which operates local retail franchises including LEGO, upscale US clothing retailer Abercrombie & Fitch and Crate & Barrel, a high-end furniture retailer from Northbrook, Illinois. However, that is just the start.

Majid Al Futtaim also runs many of the malls which are home to its shops and theaters. Indeed, with 29 sites under its control, Majid Al Futtaim is the region’s biggest mall manager though, as has been reported, it has more in common with entertainment giants like Disney and Universal than a retail operator.

Its mall in Riyadh, the capital of Saudi Arabia, is home to one of only two outlets worldwide of Dreamscape, the cutting-edge virtual reality operator which was part-financed by Warner Bros., Fox, IMAX and Steven Spielberg‎. Inside many of its other malls are lavish snow parks and Magic Planet entertainment complexes containing the latest arcade games, midway games, VR games, climbing walls, large-scale simulators and carousels for kids. Like Disney, it also develops master-planned residential communities and owns Sheraton, Westin and Aloft hotels, some of which have movie-themed rooms. There is good reason for this.

Movie studios don’t tend to promote and distribute their own movies in the Middle East as they do in the U.S. Instead, studios rely on local companies including Majid Al Futtaim which is the regional distributor of the Universal and Warner Bros. movies it shows in its theaters and those of its competitors. This gives it even more of an incentive to ensure that film fans watch them on the big screen and creativity is the key to its success.

A spellbinding drone show recently promoted the premiere of Wicked, one of Universal’s biggest releases of the year. Wicked is a prequel to 1939 classic movie the Wizard of Oz and is an adaptation of the Broadway musical it is named after. The movie stars British actress Cynthia Erivo as the Wicked Witch of the West who meets Ariana Grande’s Good Witch Glinda at university in the land of Oz. Together they travel to the Emerald City where they meet the wizard, played by Jeff Goldblum.

Local specialist Dronex Show flew 500 drones which formed shapes from the movie in the skies around Dubai’s Burj Khalifa, the world’s tallest tower. The drones made pointy witches’ hats appear to float in mid air and formed shapes of the two protagonists as well as the extravagant mask that the wizard hides behind. Even the Emerald City appeared to shimmer and hover in the sky but that’s not all. The shapes were synchronized to the catchy tunes from the movie as well as the fountains that dance in the lagoon at the foot of the Burj Khalifa. The tower itself even got in on the action as it showed scenes from the movie on an LED screen embedded in its soaring structure.

“This stunning spectacle not only matches the global scale of the campaign but also gives it that perfect local touch. Couldn’t be prouder of how it all came together,” said Farah Boukersi, Majid Al Futtaim’s Universal Pictures marketing manager in a post on Linkedin. “What an incredible marketing moment for what has easily been my favorite campaign to lead.”

Boukersi is a highly talented marketer who has spent a decade in film which began in London where she worked in international licensee marketing for Warner Bros. followed by 20th Century Fox.

For most movie distributors, a trailer on the world’s tallest tower alongside a drone show in the sky around it would be enough of a dream ticket. Not Majid Al Futtaim. Boukersi was also the brainchild behind a Wicked-themed afternoon tea pop-up in the lavish lobby of the VOX flagship theater at Mall of the Emirates. No stone was left unturned.

Leading to the pop-up was an artificial yellow brick road, just like the one leading to the Emerald City on the silver screen in Wicked. Some of the tables and chairs in the pop-up were pink whilst the others were green reflecting the preferred colors of the movie’s protagonists. Pink and green fresh flowers adorned the area whilst some staff wore pink aprons and the others wore green. Even the food fit the theme.

The afternoon tea dishes included green pea and ricotta tart as well as pink smoked salmon and cream cheese followed by pink and green macaroons. They were all served in a hollowed out version of The Grimmerie, the ancient spell book at the heart of Wicked. The drinks were also in character as Glinda’s Sparkling Pink Potion was a concoction as sweet as the witch herself, whilst the Bubbling Green Smoothie was a nod to Elphaba’s vibrant spirit. The wizard wasn’t forgotten as the Emerald Elixir brought a little mystery to the table.

It’s the same kind of attention to detail that the leading Hollywood studios incorporate in their pop-up experiences such as the maze which promoted season three of The Witcher last year and the Stranger Things mobile store that features versions of its sets. The Wicked café too had a backdrop which resembled the movie set as a screen showing the wizard’s mask was partly concealed by a curtain which looked like one from the film.

The purpose of the pop-up wasn’t just to promote the movie but also its partnerships as there were stands of licensed merchandise, jewelry and even a pink and green official womenswear pajamas line.

“To celebrate the release of Wicked at VOX Cinemas, we completely transformed the Theatre Café at Mall of the Emirates into an immersive Wicked World experience. This magical transformation included a special afternoon tea featuring film-themed menu items, an interactive Oz activation, and a glitter glam station where moviegoers could sparkle up before catching the film,” explained Boukersi. She added that over in Saudi Arabia, VOX promoted Wicked by building a yellow brick road surrounded by an arched tunnel formed from LED screens showing settings from the movie.

“The goal was simple yet powerful: to engage audiences in a way that felt personal, emotional, and exciting – ultimately encouraging them to experience the cinematic spectacle at VOX Cinemas,” said Boukersi. “Let’s keep pushing the boundaries of creativity and continue to redefine what memorable creative marketing can do for the entertainment industry.” It wasn’t just talk.

VOX even thinks outside the box when promoting movies that it doesn’t distribute. This week it partnered on perhaps the most immersive movie premiere ever when it arranged a screening of Mufasa, Disney’s live action prequel to the Lion King, in Sharjah Safari – the largest safari of its kind outside Africa.

The movie played on an outdoor cinema screen in an artificially aged amphitheatre nestled in a reservation in the desert, complete with a sprawling savanna. Her Excellency Hana Saif Al Suwaidi, Chairperson of the Environment and Protected Areas Authority in Sharjah, said “this special event reflects Sharjah Safari’s vision to enhance visitors’ experiences by introducing innovative activities that cater to all age groups, creating an extraordinary combination of entertainment and nature. The premiere of the animated film Mufasa offers a unique open-air cinema experience that is both unconventional and exciting.”

She added, “this initiative underscores Sharjah’s commitment to supporting eco-tourism and cultural tourism. Sharjah Safari is not just a tourist attraction but a strategic project showcasing Sharjah’s role as a global hub for preserving African wildlife. It achieves this by offering remarkable activities and experiences that connect visitors with nature and conservation efforts.”

The event was arranged by Sharjah Safari, Walt Disney, VOX Cinemas, and Italia Film – the exclusive distributor of Disney films in the Middle East. It was carefully chosen as the movie raises awareness about the conservation of wildlife and the global threat of animal extinction, including lions.

Following the premiere, public screenings in the amphitheatre will run from December 23 to 31. Tickets start at just $11.43 (AED42) and can be upgraded to a guided safari tour where lions can be observed in their natural habitat. It has been so popular that it sold out within hours of going on sale causing VOX to add another screening time for the duration of the run.

Given this emphasis on creativity it is no coincidence that Majid Al Futtaim’s entertainment division is run by Ignace Lahoud, one of the theme park industry’s most skilled and seasoned operators. Lahoud made his mark as chief financial officer of Disneyland Paris before Disney bought the business. Keeping its wheels turning without Disney’s riches as one of the toughest jobs in the business but Lahoud made it look like child’s play.

He is surrounded by supremely-skilled marketers including Niamh Queeney, a corporate communications lead with 15 years of experience representing global and regional brands, and Ashleigh Potts, Majid Al Futtaim Entertainment’s vice president of sales and marketing, who has led marketing and communications for Warner Bros. Pictures, Universal Pictures and PepsiCo-owned SodaStream

Their creative thinking tells Majid Al Futtaim’s story in a way that sets it apart from its competitors. Perhaps the clearest example of this inventiveness came last year when the exhibitor joined forces with Warner Bros. Pictures and Samsung’s regional division in a first-of-its-kind experiment to promote horror flick The Nun II.

A total of 72 cinemagoers wore cutting-edge Samsung Galaxy Watch6 and Galaxy Watch6 Classics to measure their heart rates during the latest instalment in The Conjuring Universe. The watches showed that their heart rates rose 60% on average to 117 beats per minute. Cleverly, the announcement about the results pointed out that the new design of the watches enabled their heart rate data to even be seen in a dimly lit cinema so it promoted the partner’s product as well as the movie. That’s just the kind of creative thinking that it takes to fill theaters and create fairytale partnerships.