GERMANY MARKET REPORT GERMANY
Population 81.5m Under 15 10.9m Aged 15-64 53.8m Urban population 74 percent Major cities Berlin (3.4m), Hamburg (1.8m), Munich (1.3m), Cologne (1m) GDP per capita $35,700 Business climate Europe’s largest economy returned to growth in 2010 after sharp contraction in 2009. There is a large base of affluent consumers and a skilled workforce. Unemployment remains an issue, especially in the former East Germany.
The story of Germany’s amusements industry over the last half- decade is the resurgence of the AWP.
The number of installed AWPs declined between 1995 and
2005 from 245,000 to 183,000. But a new gaming ordinance then came into effect, prohibiting the so-called fun games that paid out tokens and which it was feared could be used for illegal gambling.
About 80,000 of these had to be removed, freeing up space
for more AWPs. This greatly revitalised the AWP market and by the end of 2010 their number was back up to 235,750.
Growth has largely been in amusement arcades, with the number of AWPs in bars and restaurants remaining static, although new locations including airports, railway stations, and roadside service areas form a growing if still small market, to
some extent compensating for the sluggishness of the bar/restaurant sector.
Each arcade can have up to 12 AWPs, provided there is at least
12 square metres of space per machine. In restaurants and bars, three are permitted. These maximum allowances were increased slightly in the gaming ordinance that came into effect in 2006.
On average, arcades have 11 machines. The trend in arcades is
toward larger premises, often as part of compexes that include bars, cafes, cinemas and the like. This has helped them gain public acceptance, sometimes at the expense of smaller venues.
The number of different AWP games has grown rapidly in
recent years, and this has helped to open up new markets such as female consumers – who constituted 19.9 percent of AWP players in 2010, against 10.3 percent in 2007.
Leasing of both hardware and software are becoming more common.
Market size Amusements manufacturers, distributors and operators
together reached a turnover of ¤5.14bn in 2010, up by 5.8 percent on the previous year. The manufacturers fared particularly well with 7.5 percent year-on-year growth, thanks in part to legal requirements for the conversion of AWPs to conform with a new technical directive. These conversions alone cost operators around ¤20m.
Yet operators still took the lion’s share of revenue, of course.
Manufacturers accounted for ¤570m and distributors for ¤520m, while operators brought in ¤4.05bn from consumers’ pockets. The vast bulk of that – ¤3.94bn – was derived from AWPs, with ¤60m coming from amusements without prizes and sport-games machines, as well as a further ¤50m from Internet terminals.
8 SEPTEMBER 2011
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