Study: HD, Electronic Delivery to Up Global U.S. Film Revenue to $42B by 201023 Jan, 2007 By: Erik Gruenwedel
Despite flat-lining DVD sales, the burgeoning high-def disc market and electronic sellthrough are projected to help increase worldwide U.S. studio movie revenue from $35 billion last year to $42 billion in 2010, according to a report by Adams Media Research.
The report also predicts 52.4% of the studios' global revenue will originate from the United States in 2010, compared to 49.9% in 2006 — due largely to quicker uptake of high-def packaged media and electronic sellthrough domestically.
“The current hand-wringing about the future of the film business will prove as shortsighted as was writing off the prospects for future growth when cassette sales went flat in the mid-1990s,” said Tom Adams, president of AMR.
Adams said last year's theatrical box office revival pushed U.S. studio revenue up 3.3%.
“When consumers get new ways to consume movies, they consume more movies,” Adams said.
The report, “Film Entertainment Worldwide: The Impact of New Technologies,” studies global film revenue of major U.S. studios from 1996 through 2010.