We project that global spending on filmed entertainment will rise at a 3.1 percent compound annual rate over the five-year forecast period, reaching $99.7 billion in 2016.
Moderating price growth, new multiplexes, and growth in 3-D screens will stimulate the box office market, although the incremental impact of 3-D is diminishing. A shortening home video window and experiments in modifying the current windowing structure—e.g. premium VOD and day-and-date digital releases—will benefit electronic video spending. Emerging over-the-top/streaming services and growth in digital cable and telephone company TV subscription services that promote video-on-demand will also boost digital distribution, along with the availability of content on tablets and other devices as well as Internet-connected TVs. However, piracy will continue to hold down spending, particularly in Asia Pacific and Latin America as well as a number of countries in EMEA.
Global home video spending is shifting from physical to digital, with digital spending nearly doubling during the next five years, while physical spending will fall by nearly 20 percent.
The filmed entertainment market consists of out-of-home and in-home components. Out-of-home includes consumer spending at the box office for theatrical motion pictures and cinema advertising, which consists of on-screen ads prior to the movie. In-home consists of physical and electronic home video of films, TV programming and other content. Physical includes spending on rentals of videos at video stores and other retail outlets along with DVD-by mail services (the physical rental market) and the purchase of physical home video products (the physical sell-through market).
Electronic home video consists of spending through TV subscription providers on video-on-demand and pay-per-view. It also includes over-the-top/streaming services where filmed entertainment content is accessed via a broadband or wireless Internet connection and can be viewed on a PC, a TV, a tablet or any other device, and which bypasses TV subscription providers. The figures do not include music videos (which are counted in the “Recorded music” segment). It also does not include movies or other content licensed to pay TV or other television content providers. Concession sales of beverages and refreshments in cinema theatres are not included.
Forecasts for advertising and consumer/end-user spending in the filmed entertainment segment across 48 countries cover (where available):
|North America||EMEA||Asia Pacific||Latin America|
|Central and Eastern Europe
Middle East/North Africa †
|†Comprises Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Syria, and the United Arab Emirates|