The film industry has changed. But except for some great classic films, the industry itself is changing for the better. The demand for filmed entertainment is projected to grow at an accelerated rate over at least the next 5 years. PricewaterhouseCoopers’ (PwC) film industry statistics, provided in their annual Global Entertainment and Media Outlook, offer a consistent, comprehensive online source of global analysis for consumer/end-user and advertising spending.
The 2011-2015 PwC Entertainment and Media Outlook projects the following:
- Filmed Entertainment will grow from $36.8 billion in 2011 to $45.7 billion in 2015.
- Video-on-demand (VOD) spending will pass pay-per-view in 2011 and reach $4.7 billion in 2015, a 9.8% compound annual increase from $2.9 billion in 2010.
- From 2011-2015, aggregate Entertainment and Media global spending will rise to $1.9 trillion in 2015, a 5.7% compound annual advance driven by economic growth.
These substantial projected increases in filmed entertainment revenues are the result of the growth of the Internet, and the creation of numerous avenues through which filmed entertainment and other media can be distributed to a wider audience than has ever been possible before.
In the PwC statistics, the filmed entertainment market consists of consumer spending at the box office for theatrical motion pictures, plus spending on rentals of videos at video stores and other retail outlets (the in-store rental market) and the purchase of home video products in retail outlets and through online stores (the sell-through market).
It also includes online film rental subscription services, such as those in which physical DVDs are delivered via overnight mail, and streaming services whereby films are downloaded via a broadband Internet connection. The figures, however, do not include video-on-demand, pay-per-view, or movie distribution by cable, satellite, or telephone companies.
Nor do they include “ancillary” revenues earned by cinemas, such as cinema advertising and sales of beverages and refreshments. As far as the filmed entertainment global market is concerned, PwC expects overall positive growth, with revenues expected to increase at a 4.8% compounded annual growth rate (CAGR), reaching $108 billion in 2014.
These projections highlight a growing need for media and entertainment companies in the ‘new’ digital age to create content that can be made available on multiple platforms, driven by digital products and services. This rapid technological change that we’re seeing around us every day is creating new, unprecedented opportunities for filmmakers who understand and can adapt from the old, traditional film industry models to the new, digital age model that affects everything from production to distribution to marketing.
As a result, the time and the opportunity for continued and substantial long-term growth has never been better for independent film production. Free at last to reach audiences directly, independent filmmakers can now take control of their distribution and reap the rewards. In essence, it enables them to have unprecedented access to audiences, to maintain overall control of their distribution, and to receive a significantly larger share of revenues.