Film & Video
Description
Companies in this industry comprise of establishments primarily engaged in production and/or distribution of motion pictures, videos, television programs, commercials or the postproduction and related services. Major US companies include Disney, NBCUniversal (owned by Comcast), Paramount, and Warner Bros Discovery. Major companies outside the US include Bertelsmann and ProSiebenSat1 Media (both based in Germany) and Vivendi (France).
Total global spending on entertainment and media (E&M), including film, television, internet, radio, publishing, and video games, rose to 5% in about $3 trillion in 2023 and is expected to have a compound annual growth rate (CAGR) of about 4% between 2023 and 2027, reaching about $3.4 billion, according to PwC. The largest market throughout the forecast period will continue to be the US.
The US film and video industry includes about 22,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $90 billion.
Movie theaters and the production and distribution of motion pictures and television programs are included in the industry and are also discussed in separate profiles. Radio and television broadcasting and cable and other television networks, which are not included in the industry, are covered separately.
COMPETITIVE LANDSCAPE
Demand is driven by consumer spending and leisure time. The profitability of individual companies depends on creativity, marketing, and distribution. Large companies have advantages in financing, wide distribution networks, and marketing expertise. Small companies can compete successfully by focusing on special topics, niche audiences, or non-mainstream TV channels. The US industry is concentrated: the top 50 companies account for about 70% of revenue.
The film and video industry competes with other forms of leisure activity, including sports, hobbies, concerts, amusement parks, and video games.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services include licensing of audiovisual works (about 40% of industry revenue), audiovisual performances production (about 10%), and admission to film exhibitions (about 10%). Other services and products include sales of intellectual property, meals snacks, and support services for production.
The major movie studios, generally part of larger media companies, produce about 75% of total feature film output in a given year. They include Disney, Warner Bros., Universal, 20th Century Fox, and Sony Pictures. An independent company may produce one movie per year; larger studios may produce more than 20.
The major studios also act as distributors, and have established relationships and efficient access to hundreds of movie theaters, cable channels, and foreign markets. Movies can cost hundreds of millions of dollars to produce, and ancillary media for the home entertainment market (DVD, TV, and digital) are often more profitable than theatrical release. Major studios share revenue with exhibitors. On average, the studio collects about 50% of the box office gross in the US. Independent production companies may contract with the major studios for distribution services, which include a range of sophisticated marketing activities.
Exhibitors earn revenue through ticket sales, food and beverage sales, on-screen advertisements, facility and concession rental during nonpeak hours, and amusement machines. The concept of the release window calls for a delay in time after a movie is shown in the theater before its release on DVD and Blu-ray. The release window continues to shrink. Product is next released to pay-TV and video-on-demand services and ultimately broadcast networks (where content is edited for TV). Internet video services such as Netflix are increasingly acquiring the first-run rights to major studio product, gaining access to popular movies during the period once normally reserved for pay-TV channels.
Total global spending on entertainment and media (E&M), including film, television, internet, radio, publishing, and video games, rose to 5% in about $3 trillion in 2023 and is expected to have a compound annual growth rate (CAGR) of about 4% between 2023 and 2027, reaching about $3.4 billion, according to PwC. The largest market throughout the forecast period will continue to be the US.
The US film and video industry includes about 22,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $90 billion.
Movie theaters and the production and distribution of motion pictures and television programs are included in the industry and are also discussed in separate profiles. Radio and television broadcasting and cable and other television networks, which are not included in the industry, are covered separately.
COMPETITIVE LANDSCAPE
Demand is driven by consumer spending and leisure time. The profitability of individual companies depends on creativity, marketing, and distribution. Large companies have advantages in financing, wide distribution networks, and marketing expertise. Small companies can compete successfully by focusing on special topics, niche audiences, or non-mainstream TV channels. The US industry is concentrated: the top 50 companies account for about 70% of revenue.
The film and video industry competes with other forms of leisure activity, including sports, hobbies, concerts, amusement parks, and video games.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services include licensing of audiovisual works (about 40% of industry revenue), audiovisual performances production (about 10%), and admission to film exhibitions (about 10%). Other services and products include sales of intellectual property, meals snacks, and support services for production.
The major movie studios, generally part of larger media companies, produce about 75% of total feature film output in a given year. They include Disney, Warner Bros., Universal, 20th Century Fox, and Sony Pictures. An independent company may produce one movie per year; larger studios may produce more than 20.
The major studios also act as distributors, and have established relationships and efficient access to hundreds of movie theaters, cable channels, and foreign markets. Movies can cost hundreds of millions of dollars to produce, and ancillary media for the home entertainment market (DVD, TV, and digital) are often more profitable than theatrical release. Major studios share revenue with exhibitors. On average, the studio collects about 50% of the box office gross in the US. Independent production companies may contract with the major studios for distribution services, which include a range of sophisticated marketing activities.
Exhibitors earn revenue through ticket sales, food and beverage sales, on-screen advertisements, facility and concession rental during nonpeak hours, and amusement machines. The concept of the release window calls for a delay in time after a movie is shown in the theater before its release on DVD and Blu-ray. The release window continues to shrink. Product is next released to pay-TV and video-on-demand services and ultimately broadcast networks (where content is edited for TV). Internet video services such as Netflix are increasingly acquiring the first-run rights to major studio product, gaining access to popular movies during the period once normally reserved for pay-TV channels.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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