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Global Movie Production & Distribution

Global movie production market: $98.9 billion industry by 2018

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2014-02-19 22:39:02 - Global Movie Production & Distribution - a new market research report on

The global movie production market and movie 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. 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. Revenue is forecast to rise during the next five years at a 2.0% annualized rate to $98.9 billion. 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.

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Mike King
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