Cinema admissions in Latin America grew by 7% last year thanks to the influence of multiplex building, according to figures from UK consultants Dodona Research.

Dodona's data shows that audiences grew from 272 million to 290 million in the seven major Latin countries. It forecasts that Audiences will growth another 25% over the next five years.

The report shows the popularity of local films to be growing, especially in Mexico and Argentina, noting that the production sector is responding by increasing its output.

But the growth may be impacted by the arrival of multiplexes, which is changing the nature of cinema-going from cheap, mass entertainment into a pricier, middle-class pursuit. This reliance on the small middle class means that attendance levels will continue to lag the US and Europe.

The report concludes that Latin America's economic difficulties, plus the financial problems of the Australian and US chains that have expanded into the region, suggest consolidation is on the way.

"There are four foreign investors with 70-100 screens in the regions and in at least two cases it is hard to see them staying the course," said the report's author Karsten-Peter Grummitt.