SOUTH AFRICA S BOX OFFICE REPORT (January June 2014)

SOUTH AFRICA S BOX OFFICE REPORT (January June 2014) 2 nd Floor, 87 Central Street, Houghton, 2198, South Africa Private Bag X04, Northlands, 2116, South Africa Tel: +27 11 483 0880 Fax: +27 11 483 0881 Email: info@nfvf.co.za Website: www.nfvf.co.za Councillors Ms Mmabatho Ramagoshi (Chairperson); Mr George Leolo (Deputy Chair); Advocate Roshal Dehal; Ms Lorraine Ramathesele; Mr Phillip Molefe; Mr Mfundi Vundla; Ms Desiree Markgraaf; Mr Thabiso Masudubele; Ms Pamela Mashiane; Mr Lesile Mkhabela; Mr Sandile Swana; Mr Brenden Meyer; Mr Aboobaker Moosa; Chief Executive Officer: Zamantungwa Mkosi

1. South Africa s Box Office The first half of 2014 has been quite competitive with animation versus live-action films (some titles available in 3D) enjoying booming popularity at the box office. Thus, South African films had to compete with the likes of Amazing Spider-Men, Rio 2, X-Men: Days of Future Past etc. However, the first six months of 2014 have seen a distinct improvement in gross box office for local productions from the previous six months of 2013. The total box office for local productions showed a notable increase of 43% climbing to R33 million, up from R23 million. This goes to show that even though consumers are faced with high ticket prices, as well as rising petrol costs and food prices they are still able to leave provision for entertainment and go out with their families to watch movies. 2. Overview: Box Office A total of 111 films were released at box office from 3 January to 28 June 2014. A large share of the 111 titles were distributed by Ster Kinekor (47), and Times Media (39). The highest grossing release was Amazing Spider Man 2 which earned R21.8 million, followed by Rio 2 (R21.1 million), and X-Men: Days of Future Past with box office takings of R16.9 million. 12 local films were released in the first half of 2014, an increase of 20% from 10 titles released last year (2013). The remaining 99 films were all foreign films, thus it is not surprising to note that foreign films dominate the box office and are usually well received by the audience. On average 2 South African (SA) titles were released from January to June. As expected a summer peak can be observed in March (with 3 titles) and April (with 4 titles) which suddenly drops in winter with fewer releases in the month of May (1 title) and June (none). However, it should be noted that we do not a full winter 1 period as the data ends in June 1 South African winter period is from May to July. 2

Figure 1: Number of SA films released at box office by months 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Number of SA films released by Month, Jan - Jun 2014 4 3 2 2 1 0 January February March April May June 2014 - SA As depicted in Figure 2 below, February had the highest earnings with almost R13 million recorded for that month, a 65% higher than February 2013. The very high figure in February month was due to the popularity of Pad Na Jou Hart which earned more than R11 million on its own and The Perfect Wave which only took R1.1 million. Even though there were quite few more titles released in April they did not generate much revenue as expected. The two films that earned more than a million were Konfetti (R2.5 million) and inumber Number (R1.8 million) in that month. 3

Millions National Film and Video Foundation Figure 2: SA Gross Box Office SA Gross Box Office by Month, Jan - Jun 2014 R 15 R 10 R 5 R 0 JANUARY FEBRUARY MARCH APRIL MAY JUNE 2014 - SA South Africa has experienced quite a significant growth when observing only the revenues generated by local productions that were on circuit in the first half of 2014 compared to the first half of 2013. On aggregate, approximately R33 million was generated compared to R23 million taking in June 2013, an increase of 43 percent. Foreign gross on the other hand has dropped by 10% (from R385 million to 348 million) and the overall gross box office fell by 6% (from R408 million to R382 million). This is shown in figure 3 below: 4

Millions National Film and Video Foundation Figure 3: Gross Box Office R 450 R 400 R 350 R 300 R 250 R 200 R 150 R 100 R 50 Gross Box Office, Year-on-Year Comparison R 0 SA FOREIGN TOTAL June '13 June '14 Times Media (TM) (previously Nu Metro) had the highest market share of gross box office having distributed 39 titles which generated 46% of the revenues, followed by Ster Kinekor (SK) claiming 36% of the market share with 47 titles distributed, United International Picture (UIP) accounted for 13% for the 13 title distributed. It is also important to note that, Of the 12 SA films released, Indigenous Film Distributors (IFD) distributed 5, while SK distributed 4, TM 2 and UIP 1. 5

Figure 4: Market Share by Distributor Market Share by Distributor 13% 5% 1% Crystal Brook 36% Indigenous Ster Kinekor 46% Times Media UIP The overall gross box office generated in the first six months of 2014 form January until June is estimated to be above R 382 million. In the same vein local productions amounted to R33 million taking 9%, an improvement from 5% attracted last year in the same period. Foreign productions took 91% of the market share. 6

Figure 5: Market Share Table 1 below shows the top local productions ranked on highest earning film at box office. The highest grossing local release was Pad Na Jou Hart which grossed over R11 million. Ek Joke Net 2, the pranksters were back for round two and this time performed quite disappointing compared to 2011 release of the first instalment of the comedy film. The film took R695k, 38% down from R1.2 million release in 2011. The least performing local films were The Forgotten Kingdom, the first film produced in and about Lesotho in Sesotho language did not do well at box office with only R232k. Elelwani, the first Tshivenda language film to be made in SA also earned itself R290k at box office. 7

Table 1: South African films released between Jan June 2014 South African films released, Jan - Jun 2014 Movie Title Genre Langauge Gross Box Office PAD NA JOU HART Adventure/Romance Afrikaans R 11 597 209 FAAN SE TREIN Drama Afrikaans R 7 158 787 VROU SOEK BOER Romance Afrikaans R 5 458 669 KONFETTI Comedy/Drama Afrikaans/English R 2 558 221 INUMBER NUMBER* Action/Crime/Drama Zulu/Soth/English R 1 894 755 AGENT 2000 Adventure Afrikaans R 1 206 764 THE PERFECT WAVE Drama/Romance English R 1 175 776 DIE WINDPOMP Romance Afrikaans R 715 964 EK JOKE NET 2 Comedy Afrikaans R 695 897 FOUR CORNERS Crime Afrikaans/English R 383 615 ELELWANI Drama Venda R 290 897 THE FORGOTTEN KINGDOM Drama Southern Sotho R 232 352 Source: Ster Kinekor Box Office Gross = Cumulative gross up to 27 June 2014 Films with an asterisk (*) were still being exhibited on 27 June 2014 It is always anticipated that the opening weekend has a much higher inflation than the following weekends which will then determine the success or failure of the film. This leads to two plausible theories: 1) There s much more press about opening-weekend results than other weekends, therefore distributors have more reason to inflate the first weekend than following weekends, or 2) The first weekend is inherently the least predictable, and in cases of uncertainty, distributors always choose to go with optimistic numbers. As evident in Table 2 below, it is also clear that there is great variation in films released with higher prints and those with lower prints. Indicating that more opportunities for such films would translate to more revenues if the film attracted more audience. Pad na Jou Hart released at 57 prints made R3.1 million on its opening and is the highest earning SA film to date. Faan se Trein released at 44 prints made R1.4 million on its opening and is the second highest film. Elelwani and The Forgotten Kingdom both films were shown at maximum of just under 10 screens on their release (compared to other films on the list being played at more than 20 screens) did not perform well on their opening week. See Table 2 below: 8

Drama Comedy Animation Action/Adventure Action Horror Comedy/Drama Romance Crime Comedy/Romance Action/Sci-fi Drama/Romance Sci-fi/Action Action/Comedy Action/Crime Action/Drama Biography Sci-fi Thriller Adventure/Romance Action/Thriller Crime/Drama Action/Crime/Dramaa Action/Fantasy Adventure Fantasy Documentary Comedy/Sports Crime/Thriller Comedy/Musical Drama/Thriller Action/Horror Romance/Thriller National Film and Video Foundation Table 2: South African Films by Number of Prints at Release South African films by Number of Prints at Release Movie Title Prints at Release Gross at Release Gross to Date PAD NA JOU HART 57 R 3 149 843 R 11 597 209 VROU SOEK BOER 48 R 1 248 572 R 5 458 669 AGENT 2000 44 R 410 450 R 1 206 764 FAAN SE TREIN 44 R 1 405 604 R 7 158 787 THE PERFECT WAVE 37 R 343 702 R 1 175 776 INUMBER NUMBER* 35 R 365 416 R 1 894 755 KONFETTI 34 R 818 522 R 2 558 221 DIE WINDPOMP 33 R 272 396 R 715 964 EK JOKE NET 2 31 R 431 337 R 695 897 FOUR CORNERS 21 R 166 585 R 383 615 THE FORGOTTEN KINGDOM 10 R 83 487 R 232 352 ELELWANI 6 R 68 248 R 290 897 Source: Ster Kinekor Box Office Gross = Cumulative gross up to 27 June 2014 Films with an asterisk (*) were still being exhibited on 27 June 2014 Drama was the widely released genre between January and June with 25 titles, followed by Comedy with 11 title released this period, and Animation with 8 titles under this genre. Figure 6: Number of Films released by Genre 30 Number of films by genre 25 20 15 10 5 0 9

Drama Comedy Animation Action/Adventure Action Horror Comedy/Drama Romance Crime Comedy/Romance Action/Sci-fi Drama/Romance Sci-fi/Action Action/Comedy Action/Crime Action/Drama Biography Sci-fi Thriller Adventure/Romance Action/Thriller Crime/Drama Action/Crime/Dramaa Action/Fantasy Adventure Fantasy Documentary Comedy/Sports Crime/Thriller Comedy/Musical Drama/Thriller Action/Horror Romance/Thriller National Film and Video Foundation In terms of earnings by genre, Animation was the highest grossing genre with R72 million. Titles that contributed to this upsurge was RIO 2 which generated over R21 million on its own, as well as The Lego Movie and Mr. Peabody & Sherman both earned more than R9 million each. In second place was the Action/Adventure grossing R70 million; and Drama took the third place with R59 million. Observing at the same period last year (June 2013) Action, Animation and Action/Adventure were the top grossing genres. These are the top three genres that seem to be mostly enjoyed by the audience at the moment and have earned fairly well at box office. Figure 7: Gross Box Office by Genre R 80 000 000 R 70 000 000 R 60 000 000 R 50 000 000 R 40 000 000 R 30 000 000 R 20 000 000 R 10 000 000 R 0 Gross Box Office by genre 3. Conclusion There have not been major highlights or any new trends that have emerged during this period. It is therefore important for filmmakers to continue striving towards the production of more local content and try to reach more audience. The basic principle still stands; making the right content available at the right price on the right platform and that will encourage or attract a larger audience. It is important to take into account the new platforms of accessing films which filmmakers should also exploit to distribute their films. 10

Annexure Movie Title Date of Release Prints at Release Distributor Country of Origin Genre Gross Box Office (ZAR) SECRET LIFE OF WALTER MITTY 03-Jan 60 Times Media USA Comedy R 3 830 588 EMPIRE STATE 03-Jan 36 Ster Kinekor USA Crime/Drama R 2 056 269 CARRIE 03-Jan 31 Ster Kinekor USA Horror R 1 284 732 JUSTIN BIEBER'S BELIEVE 03-Jan 27 Ster Kinekor USA Documentary R 591 604 GODDESS 03-Jan 16 Times Media AUS Comedy/Musical R 256 011 WOLF OF WALL STREET 10-Jan 70 Crystal Brook USA Drama R 12 057 290 DON JON 10-Jan 34 Ster Kinekor USA Comedy R 1 260 276 JACK RYAN : SHADOW RECRUIT 17-Jan 82 UIP USA Action/Crime R 4 988 190 DELIVERY MAN 17-Jan 46 Times Media USA Comedy R 4 427 284 12 YEARS A SLAVE 17-Jan 29 Times Media UK/USA Drama R 2 978 677 PARADISE 17-Jan 12 Ster Kinekor USA Drama R 120 240 FAAN SE TREIN 24-Jan 44 Ster Kinekor SA Drama R 7 158 787 THE BOOK THIEF 24-Jan 30 Times Media US/GER Drama R 2 463 796 PARANORMAL ACTIVITY: THE MARKED ONES 24-Jan 22 UIP USA Horror R 983 155 GRUDGE MATCH 24-Jan 62 Times Media USA Sports/Comedy R 488 204 CLOUDY WITH A CHANCE OF MEATBALLS 2 (incl 3D) 31-Jan 104 Ster Kinekor USA Animation R 8 250 068 FIRE WITH FIRE 31-Jan 37 Ster Kinekor USA Action R 1 342 386 ELELWANI 31-Jan 6 Indigenous SA Drama R 290 897 ROBOCOP 07-Jan 58 Ster Kinekor USA Action/Sci-fi R 4 969 139 THE BEST MAN HOLIDAY 07-Feb 56 UIP USA Comedy/Drama R 6 687 830 LABOR DAY 07-Feb 30 UIP USA Drama R 636 720 ROMEO AND JULIET 07-Feb 12 Times Media UK/ITALY/SWIT Z Romance R 192 155 PAD NA JOU HART 14-Feb 57 Ster Kinekor SA Adventure/Romance R 11 597 209 VAMPIRE ACADEMY 14-Feb 63 Ster Kinekor USA Action/Fantasy R 1 849 599 MONUMENTS MEN 14-Feb 32 Times Media USA Action/Drama R 2 391 684 ANCHORMAN 2: THE LEGEND CONTINUES 14-Feb 40 UIP USA Comedy R 1 930 399 HER 14-Feb 10 Ster Kinekor USA Drama/Romance R 316 370 THE NUT JOB (incl 3D) 21-Feb 86 Ster Kinekor USA Animation R 6 621 115 RIDE ALONG 21-Feb 50 UIP USA Action/Comedy R 4 566 161 POMPEII ( incl 3D) 21-Feb 60 Times Media USA/GER/CAN Action/Adventure R 2 943 421 SAVING MR BANKS 21-Feb 31 Ster Kinekor USA Drama R 919 247 A WINTER'S TALE 28-Feb 31 Times Media USA Fantasy R 986 868 FROZEN GROUND 28-Feb 30 Ster Kinekor USA Crime R 1 301 889 THE PERFECT WAVE 28-Feb 37 Indigenous SA Drama/Romance R 1 175 776 DALLAS BUYERS CLUB 28-Feb 27 Crystal Brook USA Drama R 1 452 721 AMERICAN HUSTLE 28-Feb 32 Ster Kinekor USA Drama R 2 841 428 THREE HUNDRED : RISE OF AN EMPIRE 07-Mar 88 Times Media USA Action R 10 672 957 VROU SOEK BOER 07-Mar 48 Times Media SA Romance R 5 458 669 TO DO LIST 07-Mar 24 Ster Kinekor USA Comedy R 185 011 THE GRANDMASTER 07-Mar 4 UIP China Action R 81 422 LEGO (incl 3D) 14-Mar 86 Times Media USA Animation R 9 942 802 ABOUT LAST NIGHT 14-Mar 49 Ster Kinekor USA Comedy/Romance R 4 573 909 I, FRANKENSTEIN (incl 3D) 14-Mar 33 Times Media AUS/USA Action/Sci-fi R 1 195 236 AUGUST : OSAGE COUNTY 14-Mar 26 Ster Kinekor USA Drama R 1 455 321 NEED FOR SPEED (incl 3D) 20-Mar 77 Times Media USA/UK/IRE/PHI LIP Action R 13 881 947 MR. PEABODY & SHERMAN (incl 3D) 20-Mar 97 Times Media USA Animation R 9 325 411 THE GRAND BUDAPEST HOTEL 20-Mar 9 Times Media USA/GER Comedy R 2 637 858 THE SPECTACULAR NOW 21-Mar 7 Ster Kinekor USA Comedy/Drama R 71 241 SINGLE MOM'S CLUB 21-Mar 57 Ster Kinekor USA Comedy/Drama R 3 338 929 REASONABLE DOUBT 21-Mar 26 Crystal Brook GER/CAN/USA Crime R 992 377 CAPTAIN AMERICAN : THE WINTER SOLDIER 28-Mar 157 Ster Kinekor USA Action/Adventure R 14 589 470 11

AGENT 2000 28-Mar 44 Ster Kinekor SA Adventure R 1 206 764 PHILOMENA 28-Mar 22 Times Media UK/USA/FRA Drama R 1 624 587 FOUR CORNERS 28-Mar 21 Indigenous SA Crime R 383 615 MUPPETS MOST WANTED 28-Mar 19 Ster Kinekor USA Comedy R 252 639 NOAH (incl 3D) 04-Apr 124 UIP USA Drama R 13 617 735 DIVERGENT 04-Apr 50 Times Media USA Action/Adventure R 2 495 462 OUT OF THE FURNACE 04-Apr 25 Crystal Brook USA/UK Thriller R 295 298 HOURS 04-Apr 10 Ster Kinekor USA Drama/Thriller R 175 738 RIO 2 (incl 3D)* 11-Apr 95 Times Media USA Animation R 21 180 353 NON- STOP 11-Apr 69 Times Media UK/USA/FRA Action/Thriller R 6 752 985 THAT AWKWARD MOMENT 11-Apr 44 Ster Kinekor USA Comedy/Romance R 3 822 536 THE FORGOTTEN KINGDOM 11-Apr 10 Indigenous SA Drama R 232 352 ALL IS LOST 11-Apr 14 UIP USA Drama R 262 748 THE LEGEND OF HERCULES 17-Apr 52 Crystal Brook USA Action/Adventure R 2 536 137 SON OF GOD 17-Apr 51 Times Media USA Drama R 2 164 265 KONFETTI 18-Apr 34 UIP SA Comedy/Drama R 2 558 221 ONE CHANCE 17-Apr 25 Ster Kinekor UK/USA Biography R 721 217 DEVIL'S DUE 17-Apr 17 Times Media USA Horror R 246 641 AMAZING SPIDER-MAN 2 : RISE OF ELECTRO (incl 3D) 25-Apr 202 Ster Kinekor USA Action/Adventure R 21 829 778 INUMBER NUMBER* 25-Apr 35 Indigenous SA Action/Crime/Drama R 1 894 755 ENDLESS LOVE 25-Apr 28 UIP USA Romance R 1 095 664 DIE WINDPOMP 25-Apr 33 Times Media SA Romance R 715 964 FRUITVALE STATION 25-Apr 14 Ster Kinekor USA Drama R 87 776 THE OTHER WOMAN* 01-May 67 Times Media USA Comedy/Romance R 15 728 212 TINKERBELL & THE PIRATE FAIRY (incl 3D) 01-May 53 Ster Kinekor USA Animation R 4 882 178 EK JOKE NET 2 01-May 31 Ster Kinekor SA Comedy R 695 897 THE COLONY 01-May 10 Ster Kinekor CAN Action/Horror R 89 699 AIN'T THEM BODIES SAINTS 01-May 11 Ster Kinekor USA Dram/Romance R 63 555 THREE DAYS TO KILL 01-May 51 Times Media USA/FRA/GREEC E/RUSSIA Action/Drama R 2 540 242 HEAVEN IS FOR REAL* 09-May 23 Ster Kinekor USA Drama R 2 798 957 LONE SURVIVOR 09-May 37 Times Media USA Action R 1 024 170 TOKAREV 09-May 32 Crystal Brook USA/FRA Action/Crime R 823 123 A HAUNTED HOUSE 2 09-May 23 Ster Kinekor USA Horror R 598 746 DEVIL'S KNOT 09-May 21 Ster Kinekor USA Crime/Thriller R 288 157 GODZILLA (incl 3D) 16-May 102 Times Media USA/JAPAN Sci-fi/Action R 6 676 323 FILTH 16-May 10 Ster Kinekor UK Crime R 160 149 X-MEN: DAYS OF FUTURE PAST (incl 3D)* 23-May 102 Times Media USA/UK Action/Adventure R 16 945 499 LEGENDS OF OZ: DOROTHY'S RETURN (incl 3D)* 23-May 83 Ster Kinekor USA/INDIA Animation R 3 277 678 WALK OF SHAME 23-May 28 Times Media USA Comedy R 977 165 GRACE OF MONACO 23-May 17 Times Media FRA/USA/BEL/IT ALY/SWITZ Drama R 425 982 UNDER THE SKIN 23-May 10 Ster Kinekor UK/USA/SWITZ Sci-fi R 153 070 A MILLION WAYS TO DIE IN THE WEST* 30-May 36 UIP USA Comedy R 2 782 555 TRANSCENDENCE (incl 3D) 30-May 31 Times Media UK/CHINA/USA Sci-fi R 671 934 I'M IN LOVE WITH A CHURCH GIRL* 30-May 26 Crystal Brook USA Drama R 983 877 RAILWAY MAN* 30-May 6 Times Media AUS/UK/SWITZ Drama R 497 153 MALEFICENT (incl 3D)* 06-Jun 113 Ster Kinekor USA/UK Action/Adventure R 9 257 954 HOLIDAY 06-Jun 14 Ster Kinekor INDIA Action R 549 010 THE QUIET ONES 06-Jun 20 Times Media USA/UK Horror R 312 849 INEVITABLE DEFEAT OF MISTER & PETE 06-Jun 16 Ster Kinekor USA Drama R 124 830 KILL YOUR DARLINGS 06-Jun 4 Ster Kinekor USA Drama R 51 912 EDGE OF TOMORROW (incl 3D)* 13-Jun 93 Times Media USA/AUS Sci-fi/Action R 5 980 136 THE FAULT IN OUR STARS* 13-Jun 39 Times Media USA Drama R 4 556 922 FADING GIGOLO* 13-Jun 34 Ster Kinekor USA Comedy R 863 455 HOW TO TRAIN YOUR DRAGON 2 (incl 3D)* 20-Jun 101 Times Media USA Animation R 8 850 046 22 JUMP STREET* 20-Jun 66 Ster Kinekor USA Action/Comedy R 7 187 555 HAUTE CUISINE* 20-Jun 4 Ster Kinekor FRANCE Biography R 184 907 IN SECRET* 20-Jun 5 Times Media USA Romance/Thriller R 31 689 TRANSFORMERS : AGE OF EXTINCTION (incl 3D)* 26-Jun 86 UIP USA Sci-fi/Action R 8 358 816 BELLE* 27-Jun 6 Times Media UK Drama R 98 862 LOCKE* 27-Jun 4 Ster Kinekor UK/USA Thriller R 68 013 12

Notes: 1. Gross box office data supplied by Ster-Kinekor 2. Country of Origin as supplied IMBD for the purpose of analysis 3. Genre Classification as supplied by Box Office Mojo and IMDB for the purpose of analysis National Film and Video Foundation Policy and Research Department Statistical Contact details This release was prepared by Economic Analyst: Zilungile Tunzi, and edited by Head of Policy and Research: Aifheli Makhwanya. Physical Address 2 nd Floor, 87 Central Street, Houghton, 2198, South Africa Postal Address Private Bag X04, Northlands, 2116, South Africa Tel: +27 11 483 0880 Fax: +27 11 483 0881 Email: info@nfvf.co.za Website: www.nfvf.co.za National Film and Video Foundation 2014 Disclaimer The National Film and Video Foundation has produced this box office analysis for the purposes of providing industry practitioners with performance of South African films at box office. This analysis is not presented as definitive advice to be relied upon, nor should it be printed or disseminated in other forms without NFVF s written consent. 13