Greater output from emerging economies is expected to continue through the next five years
Los Angeles, CA (PRWEB) October 25, 2012
The Global Movie Production and Distribution industry creates and disseminates motion pictures to audiences across the world, so it relies directly on discretionary spending. The industry suffered when disposable income dipped and stayed low due to the Great Recession, especially in developed regions. About 39.0% of industry revenue is generated from North American audiences, while another 23.5% of revenue comes from Europe. Consequently, revenue is estimated to decline at a five-year annualized rate of 0.5% to $86.7 billion. However, the disposable income levels of consumers from rapidly developing, newly industrialized nations like Brazil, Russia, India and China (BRIC) are rising quickly and expected to support industry revenue expansion of 1.4% in 2012, according to industry analyst Agata Kaczanowska.
A world audience that can increasingly afford to pay for movie content and new communication technologies that have diminished distribution costs are supporting industry profit expansion by boosting demand. Technology change is also supporting new revenue streams for movie producers and distributors who rely on paid and ad-supported viewership across a variety of exhibition methods, from traditional cinema to video streaming on mobile devices. As a result, Global Movie Production and Distribution industry profit is estimated to increase, Kaczanowska says.
In the next five years, more audiences in BRIC and in emerging nations are anticipated to consume movie content on a regular basis. Disposable income is expected to rebound from Great Recession lows, and newly-developed revenue streams will be better understood by the industry. Revenue is forecast to rise during the next five years. Major firms, which are mainly headquartered in the United States, are expected to increasingly invest in developing markets in order to capitalize on audience growth in these countries. The production and distribution of movies is dominated by six US production studios: Fox, Time Warner, Sony, Universal, Paramount and Disney. There are few entities outside the United States that have similar production capabilities in terms of infrastructure, production financing, marketing and distribution reach. Nonetheless, industries in other regions, particularly Northern Asia and India, are anticipated to expand rapidly during the next five years. For more information, visit IBISWorld’s Global Movie Production & Distribution industry report page.
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IBISWorld industry Report Key Topics
This industry comprises establishments that primarily produce and distribute motion pictures. Distributors work with theatrical and home media entertainment products, including digital and physical versions. Movie producers also hold movie libraries that receive revenue from cable and network TV; however, companies that primarily broadcast and produce TV content are excluded from this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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