January 24, 2007

Worldwide Major Studio Film Revenue to Reach $42 Billion By 2010, According Adams Media Research

DVD growth is slowing, but hi-definition discs and Internet distribution are set to drive new increases in worldwide film entertainment revenue over the next several years. Worldwide U.S. major studio feature film revenue will climb at a compound annual growth rate of 4.3%, from $35 billion to nearly $42 billion between 2006 and 2010, according to Adams Media Research's Film Entertainment Worldwide: The Impact of New Technologies.

"The current hand-wringing about the future of the film business will prove as short-sighted as was writing off the prospects for future industry growth when cassette sales went flat in the mid-1990s," said AMR president Tom Adams. "Already, in 2006, a worldwide box-office revival drove an estimated 3.3% gain in overall U.S. studio revenue. Furthermore, when consumers get new ways to consume movies, they consume more movies and in 2006 two very cool new delivery technologies were deployed: high-definition discs and Internet downloads."

AMR's conclusions in Film Entertainment Worldwide are based on an industry first: a quantification of total worldwide film revenue to U.S. major studios 1996-2010, accomplished with AMR's research partners at Screen Digest in London.

"This exclusive database shows that international markets have grown tremendously in importance to studios in the DVD era," Adams said. "But by 2010, a greater percentage of studio revenue will come from the U.S. -- 52.4% compared with 49.9% in 2006 -- as U.S. consumers lead the charge into hi-def and Internet movie consumption."

About Film Entertainment Worldwide

AMR's Film Entertainment Worldwide: The Impact of New Technologies includes historical, current and future revenue estimates (1996-2010) for all film entertainment revenue streams, including theatrical, packaged media sell-through and rental, cable/DBS/telco and Internet VOD, pay TV, and free TV. The report analyzes recent initiatives and their impact on sequential window revenue in each pipeline, and the factors driving studio film revenue, including hardware penetration, per-household consumption, subscription counts and pricing, with detailed data on the U.S. and the top 10 international movie markets.

Film Entertainment Worldwide is available for purchase via the company's web site at www.adamsmediaresearch.com. Journalists working on related stories may contact Mike Gallardo ([email protected]) for quotes, additional data points, and charts and tables.

About Adams Media Research

AMR compiles and analyzes financial and U.S. market data on film entertainment and related media markets, and analyzes new digital media technologies and their likely impact on the industry. Its international research partner Screen Digest has tracked the development of the world's media markets for more than 30 years.