Global spending on film viewing across VOD, discs and cinema poised for new growth
Michelle Clancy | 22-01-2013
The box office and home entertainment sectors are seeing a global resurgence: worldwide consumer spending on movies across formats increased by $1.3 billion in 2012, following tepid growth a year earlier, new research has revealed.
IHS Screen Digest found that growth for consumer spending on movies worldwide is recovering after declines across 2008 and 2009, with spending forecast to continue to rise by 2% to 3% every year from 2013 to 2016. Worldwide consumer spending on films in 2012 reached $62.4 billion, up from $61.1 billion in 2011 and $60.1 billion in 2010. Last year's rate of increase amounted to 2.1%, demonstrably better than the 0.9% growth experienced in 2011.
"Consumers were tracked on their movie spending and consumption across 37 countries in five different global regions via four delivery platforms," said Tania Loeffler, analyst for video at IHS Screen Digest. "These platforms include theatres, the purchase and rental of physical discs on DVD and Blu-ray, pay-TV video-on-demand (VOD), and digital retail buys and rentals."
North Americans remained by far the biggest spenders on movies, averaging about $80 per capita per year, and accounting for 41% of worldwide movie spending in 2012. As in Western Europe, spending on physical media encompassing DVDs and Blu-ray discs alike are pulling down the North America total for movie spending, even as consumers in the region increase their spending on movies consumed on digital platforms and in cinemas.
However, new growth in 2012 was mainly generated by the Asia-Pacific region, which commanded a 25% share of worldwide movie spending, the third-largest after North America and Western Europe. With new cinema construction in markets such as China driving increased movie transactions, coupled with the popularity of higher-priced premium content, the amount of money that Asia-Pacific consumers spend on going to the cinema is rising rapidly. That amount last year equated to $10 billion, up 12% from 2011.
In fact, Asia-Pacific is poised to overtake Western Europe as the second largest region for consumer spending on movies by 2016. An important consideration is that a significantly higher proportion of locally produced movie content is consumed in Asia-Pacific, especially in countries such as India and China. Western Europe currently owns a 26% share.
Consumer spending on movies increased significantly in other regions — by 17% in Central and Eastern Europe, and by 7% in Latin America. Ultimately, however, these markets still remain very small, with only an 8% combined share of worldwide spending in 2012.