No matter how many screens we add up, the charm of the cinema screens is still not slowing down. Driven by the growing audience, increased number of screens, and disruptive technology film industry continues to expand the world over.
A recent research by Research and Markets 1 indicates that the global movie and entertainment industry is expected to reach an estimated US $139 billion in 2017 with a CAGR of 4.2% over the next five years.
While as per the estimates by the Motion Picture Association of America (MPAA) total worldwide box office rose merely by 1% in 2016 valued at $38.6 billion in ticket sales. North America (USA & Canada) largely dominate box office accounting to $11.4 billion in ticket sales growing by 2% since 2015 as an individual territory. International markets made up 71% of the global box office in 2016 valuing $27.2 billion, compared with 63% a decade ago 2.
Though bets placed on China’s growth did not meet predictions, yet cinema market is still touted to grow at a staggering 11.6% CAGR from US$6.2 billion in 2016 to US$10.7 billion by 2021 3. Domestic films still command 58.33% of the total box office collection in the country where the release of foreign films meets a restricted number. 2016 saw over 92 foreign films released in China, the highest in country’s history. An average 26 new screens a day were added for the theatre-going audiences in 2016, making it a total of 41,179 movie screens, the most in the world 4.
Still holding the spot for top film producing country, India’s box office market valued at US$1.9 billion in 2016. Overall Indian film industry is projected to grow at CAGR of 7.7% over the next five years. The year 2017 would show higher growth results with the worldwide release of Bahubali 2: The Conclusion (2017) and Dangal’s (2016) release in Asian markets. Dangal has become the highest grossing Indian film ever collecting over US$290 million worldwide. Overseas theatrical release from India witnessed 14% growth year-on-year a reflection of cinema produce and export is being appreciated in the global market. Collections from the theatrical release of Dangal in China alone is close to US$191.03 million 5.
Piracy is one of the biggest threat for filmmakers globally coupled with management of talent. Filmmakers are adopting innovative marketing by premiering of movies on OTT, Pay-TV platforms and incorporating digital storage for content security techniques. Technology along with stories will continue to be the key forces to drive the audience to watch films.