MPA paints much brighter picture
All-media revenue from pics jumps 8% to $42.6 bil in '06After a disappointing 2005, the major studios have received official confirmation from the MPA that their worldwide all-media revenue from filmed entertainment — comprising money from home video, television, theatrical and pay TV — expanded by 8% in 2006 to reach $42.6 billion (HR 6/15).
The confidential MPA report sent to industry executives discloses that all-media sales in the U.S. grew 10%, while the international market (top 25 markets) showed a 5% advance. Of the $42.6 billion, the U.S. contributed $24.3 billion and international $18.3 billion.
In 2005, all-media revenue tumbled 8.2% from $42.9 billion in 2004, with the U.S. segment off 10% and international down 5.8%.
More good news for executive eyes indicated "positive growth" for all segments of the business last year, with revenue from worldwide theatrical exposure showing the biggest year-over-year hike at 21%.
The annual revenue summary covers the top 25 international markets, ranging from the U.K. at No. 1 to Ireland at No. 25. These markets, which comprise 39% of all worldwide all-media revenue, grew 4% in 2006, according to the MPA. Canada, covered as a foreign market by the MPA as opposed to studio positioning as domestic, showed the biggest international growth in terms of dollars in 2006 by adding $341 million, a jump of 23%.
Advancing at a sizzling pace since getting out of the communist yoke, Russia moved up two spots to become the 13th-ranked purchaser of U.S. filmed entertainment, showing a 50% hike year-over-year. All-media revenue from Russia amounted to $88.7 million in 2002, climbing to $124.3 million in 2003, $160.4 million in 2004, $196.6 million in 2005 and $295.7 million last year.
Theatrical revenue in Europe in 2006 matched 2004's record year of $2.1 billion, with significant gains in three smaller markets — Italy (up 25%), Russia (67%) and Sweden (38%). The Asia Pacific region, Latin America and the Middle East and Africa also enjoyed double-digit growth.
As part of the all-media mix, home video again recorded the biggest market share but continued to show signs of slippage as it fell three percentage points to 45%.