A new study from PricewaterhouseCoopers projects that movie ticket sales will experience a 20 percent increase over a five-year period ending in 2016.
However, the study also anticipates that continuing revenue decreases in the home entertainment sector will impact the North American film business.
According to the Los Angeles Times, PwC “predicts an acceleration over the next five years of trends with which Hollywood has recently been grappling. Those include growing digital revenue that can’t keep pace with falling DVD sales and rentals, and faster growth of movie-related revenue in Latin America and Asia than in the rest of the world.”
The study expects an average annual increase in box office of 3.7 percent, while the home video market will likely see a drop from $22 billion in revenue last year to $21.1 billion in 2016.
“Revenue from discs is expected to plunge from $15.8 billion last year to $10.2 billion in 2016, and a 77 percent jump in digital sales and rentals over the same span won’t be enough to make up the difference,” notes the article.
Blu-ray disc growth has not been as robust as originally anticipated, and in terms of the digital economy consumer interest is trending toward rentals rather than purchases. “Consumers are indicating they like the rental model, and the [profit] margins are very different under that scenario,” said Matt Lieberman, director of entertainment media and communications practice for PwC.
A new study from PricewaterhouseCoopers projects that movie ticket sales will experience a 20 percent increase over a five-year period ending in 2016.
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