MANHASSET, NY -- Strong increases in emerging markets is contributing to the rise of global consumer spending on movies from $61.4 billion in 2010 to $68.9 billion in 2015, while online piracy remains the biggest barrier worldwide to creating a viable digital movie business.
Pirates cannot replicate the experience of “going to the movies,” and IHS research shows that consumers in developing markets are choosing this way of watching films more frequently and in increasing numbers. Accessibility of movies in developing markets has increased dramatically: in China alone, IHS research shows an average of eight new movie screens built each day through 2011.
IHS in its video market research report claims that “the expansion in global movie spending is being driven almost entirely by consumers in the growing economies of Asia-Pacific, Latin America, and Central and Eastern Europe.”
Richard Cooper, senior analyst for video at market research firm IHS, said in a statement. “This is occurring despite the fact that the three regions combined accounted for only about one-third of total global movie spending in 2011. The remaining two-thirds of the spending were generated by consumers in the mature markets of North America and Western Europe—where growth has stalled.”
Digital purchase and digital rental accounted for just 2 percent of movie spending in North America in 2011 and slightly less in Western Europe. Outside North America the online environment is highly fragmented; linguistic and cultural barriers mean most providers serve only a fraction of the number of consumers that an equivalent North American provider can reach, reducing the funds available to invest in content.
Online delivery in Japan also remains small. Devices from market leaders Apple and Xbox are still limited and the available content mix is comparatively poor.
In North America video rental remains one of the most popular ways to view movies, with last year marking the end of eight successive years of North American rental spending decline, thanks largely to the widespread introduction by operators like Redbox and NCR of low-cost video rental kiosks.
Piracy is never going to end. We should reconsider what piracy is. Why does the copyright of a movie or song lasts for a very long time?
Service like Netflix have been operating for some time now. I wonder how to they fight piracy.
Anyways, is goog to hear movies are getting better and better.
You hit the nail on the head (s)! It's all about good entertaining and non-pandering content, and a matter of good technology making the content available anywhere, anytime. Obtaining a digital copy of a bad movie is as disappointing as going to see mediocre flick in the theater only to exit less $100 for paying for family and friends. We need 3-D that works on any screen in the home, office, and in the car--w/o the extra burden of wearing glasses. There must an outfit that is working on this somewhere. Where are you?
The only digital funk the movie theatres, and the movie industry is in the one with 100's of millions of dollars. The only thing the digital downloads have done is make it more obvious to us people who actually pay to get in the theatres what movies are worth seeing, and what movies are garbage. When an early copy of XMen was available through the torrents the movie director went on line and told the scene community that it was unfinished, and the scene community should not judge that release except as a preview. XMen made over 300 million dollars. Go read the articles !!!! Downloads do not hurt GOOD Movie revenues. Downloads do SAVE ME MONEY, because i can judge whether i want to spend money based on a pretty good representation of the actual movie, rather a trailer where in some cases there is more action than the actual movie.
Empty movie theaters litter the landscape. Why? Because widescreen TV delivers an equivalent viewing angle in a more comfortable viewing environment (home), at lower cost (rental or even purchase for more than one person), with a greater selection, and without the drive. The only benefit a movie theater offers is earlier access to the content. I have no problem waiting.
"Digital purchase and digital rental accounted for just 2 percent of movie spending in North America in 2011 and slightly less in Western Europe."
This is a startling statistic, considering the amount of internet bandwidth that is consumed by video streaming.
"while online piracy remains the biggest barrier worldwide to creating a viable digital movie business"
No, realistic pricing and head-in-the-sand attitudes by content providers remain the barrier to creating such a business.
The pirates continue to demonstrate that people ARE prepared to pay for content PROVIDED they get value for money. Alas the content providers don't understand this.