Cinema

Global entertainment and media Outlook 2016-2020

Cinema industry

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PwC's Matt Lieberman, Technology, Infocomm, Media and Entertainment Marketing Leader, discusses how the cinema industry is being impacted by new distribution models, emerging technologies and evolving home video entertainment services

China challenges the US for global box office leadership 

This article explores the momentous shift in the global cinema market’s balance of economic power – reflecting a dynamic, multi-shifting landscape where globalisation and localisation coexist and interact.

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China’s rapid build-out of screens will see it surpass the US as the world’s biggest box office market

China will overtake the US in 2017 in box office revenue, powered by an estimated 15 new screens being opened every day. While Hollywood-made content will continue to dominate global markets, the US studios look to tap into the Chinese market, which remains predominantly local partly because of China’s quota systems. Meanwhile China will continue to invest in US production and exhibition, bringing benefits for both parties.

The ongoing rise of electronic home video is intensifying the pressure on release windows

In the US, total electronic home video revenue exceeded box office revenue for the first time in 2015. And at a global level, electronic home video will continue to narrow the gap on box office throughout the forecast period. This underlines how the rise of Internet streaming companies like Netflix and Amazon Prime is putting growing pressure on traditional “theatrical windows” – the 16- to 17-week period of exclusivity that cinemas demand before films filter through to ancillary platforms. Hollywood studios’ responses include focusing on “tentpole” movies: huge-budget, big-screen offerings that demands to be seen in cinemas.

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Pauline Orchard
Global entertainment and media marketing leader
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Global TICE Public Relations
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