Global Movie Production and Distribution Industry Market Research Report from IBISWorld has Been Updated

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In the past five years, advancements in technology stimulated demand for movies, despite a dip in disposable income in established industry markets during the recession. For these reasons, industry research firm IBISWorld has updated a report on the Global Movie Production and Distribution industry to its growing report collection.

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Greater output from emerging economies is expected to continue through the next five years

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. However, the disposable income levels of consumers from rapidly developing, newly industrialized nations like Brazil, Russia, India and China (BRIC nations) are rising quickly and expected to support industry revenue expansion of 1.5% in 2013. Consequently, revenue is expected to grow at a five-year annualized rate of 0.2% to $89.5 billion. “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,” says IBISWorld industry analyst Agata Kaczanowska. 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, industry profit is estimated to increase from a low of 4.0% of revenue in 2009 to about 4.2% in 2013. Nonetheless, profit remains below the 2008 average margin of 4.3%.

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. 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. Six production studios in the United States dominate the production and distribution of movies: 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.

in the Global Movie Production and Distribution industry, the top four companies are estimated to account for about 28.4% of revenue. This indicates that the industry has a low industry concentration level, which is expected to continue through 2018. Small companies offset larger corporations, which are more successful in this industry because they are better able to mitigate the risks involved in movie production. According to Kaczanowska, revenue from popular movies often balances out losses from less successful productions, giving large studios with a diversified movie portfolio an advantage over smaller, specialized production studios that lack the resources to produce and release a wide variety of movies each year. However, newly developed technologies that cut production and distribution costs will helping mitigate the aforementioned risks to smaller studios in the future. As these costs continue to decrease, movies that have a relatively small marketing budget are increasingly accessible to the general public, leading to more, small movie-production companies. For more information, visit IBISWorld’s Global Movie Production and 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.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on nearly every US and Global industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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