You will be redirected back to your article in seconds

Movie spending to rise 3.1%: PwC report

Global B.O. to rise 6.3% a year by 2016

Global filmed entertainment spending is seen rising 3.1% a year over four years from $85 billion in 2011 to $98 billion in 2016, according to PwC’s latest Global Entertainment and Media Outlook released Tuesday.

Latin America and Asia Pacific will be the fastest growing regions, North America the slowest.

The global box office will show a 6.3% annual increase by 2016 to $47 billion from $35 billion last year.

In North America, the box office will rise to $13.4 billion in 2016, PwC predicted, from $11.2 billion last year, repping annual growth of 3.7% and aided by moderating growth of ticket prices.

North American physical sell through and rental will both dip by, respectively, 7.9% and 9.5% a year. But electronic spending through video providers will rise 3.3% annually to $3.6 billion in 2016. And spending on over-the-top and streaming services will surge by nearly 20% from $3.1 billion to $7.4 billion in 2016, overtaking money spent through TV subscription providers.

The total electronic home video market will jump to $10.9 billion in 2016 from $6.2 billion in 2011. But the declines in physical spending mean overall home video spending will dip 0.8% a year to $21 billion.

Globally, all entertainment and media spending is expected to rise from $1.6 trillion in 2011 to $2.1 trillion by 2016, growing at a compound annual growth rate of 5.7%.

Growth in digital will continue to significantly outpace growth in non-digital spending during the next five years. Globally, digital spending is expected to account for 67% of all growth in spending during the next five years. In the U.S., it will account for 31% of all entertainment and media spend in 2016, up from 21.7% in 2011.

“Change in consumer behavior is pervasive and accelerating,” said Ken Sharkey, head of PwC’s U.S. entertainment, media and communications practice. “The past uncertainty triggered by the digital migration has given way to a sharper focus of companies on executing their digital strategies. While experimentation will continue, the way forward is becoming clearer as companies focus on identifying, choosing and executing the right business models, organizational structures and developing the skill sets to understand consumer behaviors,” he said.

A bright note for recorded music, which PwC projects will rebound with steady expansion projected — rising at 5.5% a year to $19.8 billion in 2016 from $15.2 billion in 2011. Digital distribution of recorded music is expected to overtake physical distribution this year and will rise by 11.7% a year to $5.5 billion in 2016 from $3.1 billion in 2011.