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.
More on the IHS report can be read here.