Newsletter-21

118 NEWSLETTER 2016 General Information on the Operation of the Cinema Sector Production Market It can be observed that the Competition Authority evaluates the activities of the cinema sector under three main fields; namely, produc- tion, distribution and projection. Within this context, the production (making) market is considered as the phase in which an idea turns into a movie and becomes appropriate for screening in movie theatres. One of the main findings in the report is that the number of both domestic and foreign movies being released in the last ten years is regularly increasing. The Authority also ascertains that aside from such increase in the number of movies, filmmaker undertakings are comprised of small-scale businesses operating in a discordant manner, and such undertakings achieve almost half of the total number of film-goers of the six production companies attracting the most number of viewers. It is pointed out in the Report that 70% of the actors operating in the production market are able to produce a film; however, less than 1% of these actors are able to produce more than 10 films. Thus, these six undertakings have more significant market power as compared to 352 other undertakings operating in the market. Distribution Market The Competition Authority also assesses the distribution market. The Competition Authority has determined that 46 undertakings en- tered into the market in the last 10 years; however, these undertakings were only able to operate in the market for a very limited period of time. The most significant determination of the Competition Authority is that the distribution market is highly concentrated, and the percent- age of total turnover of the first three undertakings with the highest market shares constitutes 75% of the total market share. The MARS Group entered into market in 2014, and has obtained a significant market share, and has become the undertaking with the second highest market share. Projection Market The Report determined that both the number of audience, and the total turnover of the undertakings, increased. Accordingly, the number