Note, I have not purchased the full report and I am only basing this on the insights they published. But even those short insights are revealing.
- Growth around the world will boost filmed entertainment revenue. Global total filmed entertainment revenue will rise at a 4.1% CAGR (Compounded Annual Growth Rate) to 2019, reaching US$104.62bn. Particularly strong growth will be seen in China (14.5% CAGR) and in Latin America thanks to a 6.1% CAGR in Brazil and 11.5% CAGR in Argentina, but even global leader the US, with 33.0% of the total market in 2014, will see above-average growth of 4.6% CAGR.
- The Film Strategy tip: In the next 5 years try to shoot a co-production in Latin America, China or Nigeria OR cast your film with well-known actors from Latin America, China or Nigeria. An international cast in a co-production can be a two-fer; 1) you might be able to get the actors at a good rate for the prestige of working on a US production and 2) with the possibility of production incentives and the expected growth, your film stands a decent chance of making money for you and your investors.
- The Film Strategy tip: The good news is that a small film can go global. The bad news, if you can call it that, is that it will most likely be a genre film like horror or action with minimal dialogue to make it easy for audiences across different languages. On the other hand, again, consider co-productions again. A small film in the US might go nowhere beyond the film festival circuit. However, a small film co-produced in, say Colombia, might not only generate box office it could also gain a following as a "foreign film." I don't know why but movie audiences tend to more easily accept complexity in a film if it is "foreign" instead if it is domestic.
- The Film Strategy tip: As China continues to grow, it will continue to not only compete with Hollywood but also buy up Hollywood. Will this mean less piracy as China's studios tie up their finances with Hollywood? Does this mean branded entertainment that is globally recognizable like Marvel's comic books and Star Wars will continue to dominate the box office? Will this mean China's intellectual property will be ripe for use and development in the US the way Haim Saban took old Japanese stock footage and made the Mighty Morphin Power Rangers? Essentially all I have are questions but it means that if you're in the film industry you will read more about what China is doing and what China's audiences watch.
- The Film Strategy tip: You can not depend on DVD sales anymore. The physical disc is being relegated to use for the art video market (as a way to keep track of authorized artwork versions) and use as part of a merchandising package for well-known brands (think of a Star Wars set with the discs in a box shaped like Darth Vader's helmet).
- This is borne out by a Bloomberg report too. According to BloombergBusiness: "Online Video Revenue to Pass DVDs This Year, Theaters in 2017"
Spending on movie downloads and video streaming subscriptions in the U.S. will surpass purchases and rentals of DVDs for the first time this year, according to a report Tuesday from Pricewaterhouse Coopers LLP.
Electronic home-video revenue will climb 13 percent to $9.5 billion this year, while physical sales drop to $7.8 billion, the consulting firm said. By 2017, the electronic revenue will reach $12 billion, at which point it will exceed the U.S. film box office, according to the report.
The accounting firm’s annual outlook for media and entertainment shows that while overall spending will continue to climb, technological shifts in the way content is delivered are creating winners and losers.
Music streaming, for example, will overtake the still relatively new business of digital purchases of songs by 2018. Digital revenue will account for 45 percent of all spending on books by that date.
Global media and entertainment revenue is predicted to rise at a 5.1 percent annual rate through 2019, reaching $2.23 trillion, the company said.
- The Film Strategy tip: Pay attention to your contracts. What is your take of the internet streaming, home video OTT and VOD pie? Plan your movie to have a web and mobile presence from the beginning so that you can capitalize on that later during distribution.
- The Film Strategy tip: Not only can you shoot a film with your phone (see Tangerine) but you can market and distribute your film using the phones and tablets. Study the market and pay attention to ways that filmmakers and others are using connected devices to get eyes on their works and build revenue.