TORONTO – With the Toronto International Film Festival just days away, the film industry’s future both here and abroad looks bright, according to new data from PwC.
Global consumer spending on filmed entertainment will grow at a 5.9% compound annual rate over the next five years, reaching US$114.8 billion in 2015 from $86.2 billion in 2010, the company predicts. Producers from emerging markets like China, Vietnam, Romania, Russia and India will see high compound annual growth rates ranging from 10% – 26%, between now and 2015. At the same time, markets in North and South America, Europe and the Middle East will see moderate to strong gains between 3% and 9%.
In Canada, film and TV production generated about $6.8 billion in GDP in the Canadian economy in 2010 and led to the employment of over 117,000 individuals on a full-time basis across the country. Ontario, British Columbia and Quebec have the highest share of total volume production in Canada at 39%, 27% and 25%, respectively. PwC says that North America will continue to be the biggest region for filmed entertainment, growing at 5.2% from US$39 billion in 2010 to over US$50 billion by 2015.
"Revenues for filmed entertainment will be fuelled by the youth market and a variety of options for consumers to access movies”, said Michael Paterson, partner in PwC’s Entertainment & Media practice, in a statement. “Watching movies online and via mobile devices will supplement box office spending on filmed entertainment. Expect to see higher quality film experiences for consumers as the industry looks for new ways to stay competitive by differentiating the way we access movies and enhancing the movie going experience."
Worldwide box office spending is expected to increase from US$33 billion in 2010 to US$48.7 billion by 2015, an 8.1% compound annual interest gain, supported by the growth in 3-D film screens. The increase in the number of 3-D screens will raise average prices which consumers will pay, keeping movie admissions steady.
In 2010 in Canada, there were 350 3-D screens and the average price of a single movie ticket rose 5.5% over 2009, the first gain of more than 5% since 2000.
"While consumers may become more selective in choosing to see a 3-D film over the next few years, we believe 3-D and other innovations will have a long-term positive impact on admissions because these enhancements help to distinguish the theatrical experience from the home video and online experiences of watching a movie," added Paterson.
Click here for more details on spending in the filmed entertainment market.
