Filmed entertainment

The filmed entertainment sector will continue to grow globally at a CAGR of 3.6%—generating revenues of more than US$106bn by 2017 up from US$88.6bn in 2012—but several major challenges for an industry in transition lie behind that upward curve. The digitisation of content and the subsequent opening up of new distribution channels create further opportunities for content providers to sell their content to consumers, especially in the home.

China will become the fastest-growing filmed entertainment market in the world, expanding by a CAGR of 14.7% from 2012 to 2017, followed in the Asia Pacific region by Thailand (10.5%) and India (9.9%). Other markets with double-digit CAGR are Venezuela, Russia, and Argentina. The larger traditional markets in North America and Europe are comparatively stagnant, with 1 to 3% growth in general.

Global consumer spending on filmed entertainment split by category (US$ mn) 2012-2017

Global filmed entertainment revenues overall will continue to grow, generating revenues of more than US$106bn by 2017. Within that, revenues from the worldwide physical-home-video market in the forms of sales and rentals of DVDs and Blu-ray will be worth less than box office for the first time in 2014.


The annual value of North America’s electronic home video market — both pay-TV and over-the-top streaming services — will surpass regional box office for the first time in 2017. North America’s electronic home video market will be worth $14.78 billion in 2017 compared to box office of $13.50 billion.
North America box office and electronic home video spending (US$ mn) 2008-2017
Despite China overtaking Japan in 2012 to become the world’s second-largest theatrical market, Asia Pacific will continue to provide the greatest opportunities for growth in filmed entertainment over the next five years. Most countries in Asia Pacific and Latin America are still relatively underscreened when it comes to cinemas.
Filmed entertainment revenues split by region (US$ mn) 2012-2017
Over-the-top (OTT) services that deliver video over the Internet will continue to grow rapidly, generating revenues of US$17.4bn in 2017, up from US$5.2bn in 2012, a CAGR of 27%. Subscription and rental models, rather than ownership models, will continue to be the dominant consumer preference.
Global over-the-top (OTT) revenues (US$ mn) and as a % of the total segment 2008-2017
 

How we define this segment

This segment consists of both out-of-home and in-home metrics. Out-of-home covers consumer expenditure at the box office for theatrical motion pictures and advertising spend at the cinema including on-screen advertisements before the movie. Concession sales of beverages and refreshments in the theatre are not included.

In-home includes both electronic and physical home video of films, TV programming and other content. Physical is split between rentals and sell-through and covers consumer spending. Rentals consider spending on rentals of videos at video stores and other retail outlets along with DVD-by-mail services. The purchase of physical-home-video products is included in the sell-through split, with all spend considered including retail and online.

The electronic-home-video sub-segment considers spending on over-the-top (OTT)/streaming services (such as Netflix) whose filmed-entertainment content is accessed via a broadband or wireless Internet connection and is viewable on a PC, TV or other device that bypasses TV-subscription providers.

Video-on-demand (VOD) and pay-per-view (PPV) through a TV-subscription provider are also counted in this section. It should be noted that VOD and PPV through a TV-subscription provider is also considered within the TV subscriptions segment. These figures are removed at total level to avoid double counting.

What data is included in the online Outlook?

Forecasts for advertising and consumer spend in the filmed entertainment segment across 50 countries cover (where available):

  • Box office spending (US$ m)
  • Admissions (m)
  • Average admission price (US$)
  • Electronic home video spending – over-the-top / streaming (US$ m)
  • Electronic home video spending – through TV subscription (US$ m)
  • Total electronic home video spending (US$ m) (total = OTT / streaming + through TV subscription)
  • Physical home video spending - rentals (US$ m)
  • Physical home video spending – sell through (US$ m)
  • Total physical home video spending (US$ m) (total = rentals + sell through)
  • Total home video spending (US$ m) (total = rentals + sell through + OTT / streaming + through TV subscription)
  • Cinema advertising (US$ m)
  • Total out-of-home (US$ m) (total = box office + cinema advertising)
  • Total filmed entertainment (US$ m) (total = out-of-home + home video)
 
 
 
 

 
 

Regions/countries covered

North America

EMEA

 

Asia Pacific

Latin America

Canada
United States

Western Europe
Austria
Belgium
Denmark
Finland
France
Germany
Greece
Ireland
Italy
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
United Kingdom

Central and Eastern Europe
Czech Republic
Hungary
Poland
Romania
Russia
Turkey

Middle East/Africa
Israel
Middle East/North Africa †
South Africa

Australia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Pakistan
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam

Argentina
Brazil
Chile
Colombia
Mexico
Venezuela

 †Comprises Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Syria, and the United Arab Emirates