Studios spell income D-V-D
DVD sales fuel worldwide surge in all-media revenue
May 3, 2005
Worldwide revenue from the filmed entertainment output of the major Hollywood studios -- including sales to theaters, home video, television and pay TV -- hit a record $44.8 billion last year, an all-media revenue increase of 9% from 2003's $41.2 billion, according to an executive summary submitted to MPAA companies.
The home video sector again fueled the surge, coming through with a worldwide hike of 10% -- from $18.9 billion in 2003 to $21 billion last year -- with DVD sales displaying dramatic rises of 46% internationally and 14% in the U.S.
But worldwide theatrical revenue dipped 1% despite a 9% rise in foreign theatrical earnings that moved the international market ahead of domestic with a 52% share of last year's theatrical take of $7.4 billion.
Worldwide television and pay TV showed growth, with television up 10% to $12.6 billion in 2004 and pay TV enjoying a 20% upturn in the U.S and 17% abroad, which brought worldwide revenue to $4 billion, hailed by the report as a 38% increase over the past five years.
Currency exchange rates again figured prominently in bringing the U.S. film industry to new heights. The report -- compiled by the MPA, the foreign arm of the MPAA -- observes that all-media yields in the 25 leading overseas markets went up 18% last year, but if 2003 currency rates were used, the gain from these territories would have come only to 8%.
The U.S. was the runaway provider of all-media revenue with $25.5 billion.
The top 10 foreign buyers of content from the major Hollywood studios as listed by the MPA are the U.K. ($3.9 billion), Japan ($2.1 billion), France ($1.9 billion), Germany ($1.8 billion), Canada ($1.6 billion), Spain ($1.2 billion), Australia ($1 billion), Italy ($967.8 million), Brazil ($403.3 million) and Mexico ($386 million).
North America, the report notes, represents 60% of worldwide all-media income, with both countries -- familiarly known as the domestic market -- adding $1 billion in all-media revenue last year, up 4% from the previous year. Europe showed the largest regional growth with $2 billion, or 18%, for a total of $12.3 billion in 2004.
The home video statistics continued to shine brightly despite the decline of VHS, which dropped 55% in North America from 2003. It was more than compensated by DVD activity, which increased 6% ($383 million) in 2004 in North America, fueled by a 3% growth in the U.S. and 9% in Canada. A five-year high of $6.1 billion in home video was achieved in Europe, which represented a 24% boost from 2003 and a 137% ($3.5 billion) increase from 2000, according to the MPA.
A breakdown of theatrical earnings showed France with the strongest growth in Europe, a 21% ($51 million) jump from 2003. The Asia-Pacific region, which accounts for 26% of international theatrical revenue, added $84 million last year, while Latin America's theatrical revenue went up 16% ($50 million) from the previous year.
The report notes that theatrical revenue from the Middle East/African region went up 53% ($38 million) over a five-year period, with South Africa and Turkey accounting for two-thirds of the region's theatrical take, with respective gains of 16% and 42%.
The home video sector again fueled the surge, coming through with a worldwide hike of 10% -- from $18.9 billion in 2003 to $21 billion last year -- with DVD sales displaying dramatic rises of 46% internationally and 14% in the U.S.
But worldwide theatrical revenue dipped 1% despite a 9% rise in foreign theatrical earnings that moved the international market ahead of domestic with a 52% share of last year's theatrical take of $7.4 billion.
Worldwide television and pay TV showed growth, with television up 10% to $12.6 billion in 2004 and pay TV enjoying a 20% upturn in the U.S and 17% abroad, which brought worldwide revenue to $4 billion, hailed by the report as a 38% increase over the past five years.
Currency exchange rates again figured prominently in bringing the U.S. film industry to new heights. The report -- compiled by the MPA, the foreign arm of the MPAA -- observes that all-media yields in the 25 leading overseas markets went up 18% last year, but if 2003 currency rates were used, the gain from these territories would have come only to 8%.
The U.S. was the runaway provider of all-media revenue with $25.5 billion.
The top 10 foreign buyers of content from the major Hollywood studios as listed by the MPA are the U.K. ($3.9 billion), Japan ($2.1 billion), France ($1.9 billion), Germany ($1.8 billion), Canada ($1.6 billion), Spain ($1.2 billion), Australia ($1 billion), Italy ($967.8 million), Brazil ($403.3 million) and Mexico ($386 million).
North America, the report notes, represents 60% of worldwide all-media income, with both countries -- familiarly known as the domestic market -- adding $1 billion in all-media revenue last year, up 4% from the previous year. Europe showed the largest regional growth with $2 billion, or 18%, for a total of $12.3 billion in 2004.
The home video statistics continued to shine brightly despite the decline of VHS, which dropped 55% in North America from 2003. It was more than compensated by DVD activity, which increased 6% ($383 million) in 2004 in North America, fueled by a 3% growth in the U.S. and 9% in Canada. A five-year high of $6.1 billion in home video was achieved in Europe, which represented a 24% boost from 2003 and a 137% ($3.5 billion) increase from 2000, according to the MPA.
A breakdown of theatrical earnings showed France with the strongest growth in Europe, a 21% ($51 million) jump from 2003. The Asia-Pacific region, which accounts for 26% of international theatrical revenue, added $84 million last year, while Latin America's theatrical revenue went up 16% ($50 million) from the previous year.
The report notes that theatrical revenue from the Middle East/African region went up 53% ($38 million) over a five-year period, with South Africa and Turkey accounting for two-thirds of the region's theatrical take, with respective gains of 16% and 42%.
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