nScreenMedia OTT multiscreen media analysis

nScreenNoise – Hollywood fails to act as movie industry declines

nScreenMedia Video Podcast

2017 was a terrible year for the movie business in the US. Theater revenue was down, as was revenue from disc sales and rentals. What is the industry doing about it? Turns out, not that much!

Chapter 1: Bad year for movie theater ticket sales (0:20)

Marquee movies like Wonder Woman and Stars Wars did very well in 2017. New data from DEG suggests it was a terrible year for pretty much everyone else. Box office revenue in the US fell 11%, to $10.5 billion, in 2017. However, the movie revenue picture is worse than that.

Chapter 2: DVD and Blu-ray disc sales plummet (1:10)

In Q4 2017, disc sales 22% of the same quarter in the previous year. Online sales did not make up for the shortfall. Digital sales showed no increase over 2016 performance. People simply aren’t giving the gift of movies during the holidays anymore.

Chapter 3: Rental revenue slumped too (2:10)

Overall, video rentals were down 19%. There were big drops in every distribution medium:

  • Kiosks rental revenue was down 18% year-over-year
  • Store rentals down 22%
  • Subscription disc revenue down 17%
  • Digital rentals were down 19%.

People aren’t renting nearly as many movies as they did before.

Chapter 4: Is PVOD the answer (3:00)

One thing the industry has been debating is premium VOD. Allowing consumers to watch movies in the home much earlier than they currently can could help restore some of that lost revenue. AMC, the biggest movie theater chain in the world, wants to be a PVOD provider. Unfortunately, it looks like this wasn’t of interest to the studios. AMC reports there has been no progress in talks.

Without PVOD, the movie industry has no response to falling theater attendance and home viewing.

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(2) Comments

  1. Colin,
    As usual some great articles and white papers.
    On this one dont you thing the growing and largely unfettered cross border piracy and “Black Box” STBs are another major contributing factor?
    It seems to be a rarely discussed issue (here included), let alone anyone at a legal or regulatory level doing anything about it, but we read about GOT being the most pirated drama series and these Kodi boxes making all forms of movie and drama series available free on-line, that viewership through traditional channels must be waning and if not corrected we will see the knock on effects of investors no longer putting money into hundred million dollar movie production if it is to be found free, on-line, in HD the very next day?!

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