The European Audiovisual Observatory (EAO) has presented new statistical research showing an increase in the market share of European films while cinema attendance decreases across the EU. The UK industry has grown strongly in 2007, proving to be a significant part in the market share increase of European film.

The three key messages delivered by the research are:

1. Cinema attendance in the 27 member states of the EU fell 1.3% to 919 million admissions in 2007.

2. European films earned a market share of 28.8% in 2007, slightly up on the already strong level of 2006.

3. In 2007, 921 feature films were produced in the EU, 10 more than in 2006.

Cinema attendance in the EU showed significantly different results across the various territories. Among the five major markets, the UK and Italy stood out. Italian cinema attendance grew by 13% on 2006 figures. In the UK attendance rose by 3.7% to 162 million tickets sold. These results ran against the overall results of a drop in cinema attendance by 1..3%. Despite the drop, audience interest proved to be growing in more recent EU member states. This trend was demonstrated by the Czech Republic, where cinema attendance grew by 11.4% largely thanks to strong local films, and Lithuania where cinema attendance grew by 34%. Attendance outside of Europe also proved to be mixed.

European film stood strong in its market share of total admissions. An average market share of 25% from 2003 to 2005 was improved upon in 2006 when national films in France and Germany proved phenomenally successful at home and abroad. In 2007, UK and Italian films werte largely responsible for maintaining European market share at a higher level of 28.8%.

The UK increased its national market share alongside overall cinema attendance. UK films succeeding with UK audiences increased a domestic market shareholding from 19% to 28%. Local productions like Hot Fuzz, The Last King of Scotland, and Mr. Bean's Holiday not only proved strong draws at home but also across Europe. In fact, Mr. Bean's Holiday was the most successful European film in 2007 having sold over 15.2 million tickets Europe-wide. UK films, excluding those considered as inward investments, accounted for 6.7% of admissions in the EU, up from 2.9% last year. A UK film, benefitting from inward US investment, Harry Potter and the Order of the Phoenix topped the European charts, selling about 38.4 million tickets in 2007.

The growth in production of European feature films is explained by the inclusion of two new EU member states, Bulgaria and Romania, as well as a recognised rise in the number of exclusively national productions - increasing from 543 in 2003 to 711 in 2007. The level of international co-productions, with a majority European partner, remains stable.

Production increased in France, Spain and Italy while there were strong declines in Hungary and Sweden where a return to more normal levels of production occurred after a particularly exceptional 2006.