PDF PDF

WWW.IBISWORLD.
COM Movie & Video Production in the USDecember 2015 1
Its a wrap: Studios will produce more

blockbusters to mitigate rising production costs
IBISWorld Industry Report 51211a

Movie & Video
Production in the US
December 2015 Nick Petrillo
2 About this Industry 17 International Trade 33 Technology & Systems

2 Industry Definition 18 Business Locations 33 Revenue Volatility
2 Main Activities 34 Regulation & Policy
2 Similar Industries 20 Competitive Landscape 35 Industry Assistance
3 Additional Resources 20 Market Share Concentration
20 Key Success Factors 36 Key Statistics
4 Industry at a Glance 20 Cost Structure Benchmarks 36 Industry Data
22 Basis of Competition 36 Annual Change
5 Industry Performance 23 Barriers to Entry 36 Key Ratios
5 Executive Summary 24 Industry Globalization
5 Key External Drivers 37 Jargon & Glossary
7 Current Performance 25 Major Companies
9 Industry Outlook 25 21st Century Fox
11 Industry Life Cycle 26 The Walt Disney Company
27 NBCUniversal Media LLC
13 Products & Markets 28 Viacom Inc.
13 Supply Chains 29 Time Warner Inc.
13 Products & Services
15 Demand Determinants 32 Operating Conditions
15 Major Markets 32 Capital Intensity
www.ibisworld.com | 1-800-330-3772 | info @ibisworld.com

WWW.IBISWORLD.COM Movie & Video Production in the USDecember 2015 2
About this Industry
Industry Definition Operators in this industry produce and manufacturers, as well as products, such as
distribute motion pictures and videos. It television shows and made-for-television
excludes third-party distributors and disc movies, aimed specifically toward television.
Main Activities The primary activities of this industry are

Creating a timeline of production for film and video and ensuring that timelines are met
Seeking financing for film and video productions
Producing film and video programming
Publicizing film and video productions
Distributing film and video (if the company is also involved in all of the above)
The major products and services in this industry are

Action and adventure films
Comedy films
Drama films
Thriller/suspense films
Other films
Similar Industries 33461 Recordable Media Manufacturing in the US

This industry mass duplicates movies and videos.
51212 Movie & Video Distribution in the US

This industry distributes discs containing movies and television shows to retailers.
51213 Movie Theaters in the US

This industry provides a private venue for the general public to view movies.
51219 Video Postproduction Services in the US

This industry offers video post-processing services.
71151 Performers & Creative Artists in the US

This industry consists of independent artists, writers and performers.
About this Industry
Additional Resources For additional information on this industry

www.mpaa.org
Motion Picture Association of America
www.movingimagesource.us
Moving Image Source
www.screendaily.com
Screen Daily
www.hollywoodreporter.com
The Hollywood Reporter
www.variety.com
Variety Magazine
IBISWorld writes over 700 US

industry reports, which are updated
up to four times a year. To see all
reports, go towww.ibisworld.com
WWW.IBISWORLD.COM Movie & Video Production in the US December 2015 4
Industry at a Glance
Movie & Video Production in 2015
Key Statistics Revenue Annual Growth 10-15 Annual Growth 15-20

Snapshot
$34.1bn 0.7% 0.1%
Profit Wages Businesses
$5.0bn $5.3bn 6,527

Revenue vs. employment growth Total advertising expenditure
Market Share
21st Century Fox 17.9% 15 12
The Walt Disney 10 6

Company 17.2% 5
0
% change
% change
NBCUniversal Media 0
LLC 13.5% -6
-5
Viacom Inc. 6
.3% -10 -12
Time Warner Inc. 6

.1% -15 -18
Year 07 09 11 13 15 17 19 21 Year 08 10 12 14 16 18 20
Revenue Employment
SOURCE: WWW.IBISWORLD.COM
p. 25
Products and services segmentation (2015)
Key External Drivers 8.0%

Other films
Technological change
for Television Networks 8.7%
and Providers Thriller/suspense films
Total advertising
expenditure 39.4%
Demand from
movie theaters
16.8%
Per capita disposable Drama films
income
Trade-weighted index
p. 5 27.1%
Comedy films
SOURCE:
WWW.IBISWORLD.COM
Industry Structure Life Cycle Stage Decline Regulation Level Medium

Revenue Volatility Medium Technology Change High
Capital Intensity Medium Barriers to Entry Medium
Industry Assistance High Industry Globalization High
Concentration Level Medium Competition Level High
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 36
Industry Performance
Executive Summary | Key External Drivers | Current Performance
Industry Outlook | Life Cycle Stage
Executive Over the past five years, operators in the low-cost rental and video streaming
Summary Movie and Video Production industry services, such as Redbox and Netflix,
have engaged in some consolidation as a have provided new opportunities for the
result of media cross-ownership. industry, they have failed to produce the
However, declines in feature film same massive margins that traditional
production have led to inconsistent and 3D films often command. Many
industry performance. Movie producers movie producers have contended with
have struggled with decreased ticket sales the high shooting and editing costs
because of increased at-home content associated with blockbuster films simply
viewership. According to the Motion because these films generate the highest
Picture Association of America (MPAA), box office sales. Tentpole films, which are
the total number of movie theater tickets high-budget films that garner box office
sold in 2014 was 1.27 billion, revenue needed to support a production
representing a 6.0% decline from 2013. companys less profitable other projects,
have come to dominate popular cinema.
Both industry profit and industry
Online
sales will play a growing role in the revenue are anticipated to remain stable
over the latter half of the five-year period
industrys success to 2015, industry revenue projected to
increase by a slim 0.2% over 2015. This
As a result, industry revenue is estimated increase is in response to continually
to grow at a modest annualized rate of high production costs, low DVD and
0.7% to $34.1 billion in 2015. Due to the physical media sales and escalating
overall decline in theater attendance, competition from at-home television
industry operators have dedicated the streaming services. Over the next five
vast majority of their production budgets years, online sales will play a growing
to action films, sequels, 3D blockbusters role in the industrys success as
and series reboots that often perform consumers continue transitioning to
well, instead of dramatic films, digital media. Producers are expected to
independent projects and comedies. embrace online distribution over the
According to IHS Screen Digest, the period, although reductions in box office
industry also depends on after-release sales are anticipated to result in only
DVD sales, which peaked in 2004 and 0.1% annualized revenue growth to $34.2
have steadily declined since. While billion in industry revenue by 2020.
Key External Drivers Technological change for Television distribution costs. New technological
Networks and Providers developments are expected to increase
Technology is quickly altering all facets of over the next year, presenting a potential
the Movie and Video Production opportunity for the industry.
industry. Advances in video equipment
and storage are allowing production Total advertising expenditure
companies to make increasingly Movie production companies depend on
sophisticated productions, even on very product placements in movies and
low budgets. In addition, IMAX and 3D in-theater advertisements of other
movies have stimulated box office industries products to boost their
demand over the past five years. Digital production budgets. Greater aggregate
technology is also cutting production and expenditure on advertising demonstrates
Key External Drivers that a higher number of companies are revenue because consumers have more
continued likely willing to work with production money to spend on items that are made
companies to present their products in using the industrys production services,
films. Total advertising expenditure is including DVDs, Blu-rays and digital
expected to increase in 2015. downloads. Per capita disposable income
is expected to increase over 2015, thereby
Demand from movie theaters potentially increasing industry revenue.
Fewer box office receipts and lower
consumer demand for feature films Trade-weighted index
negatively affect this industry. Operators The trade-weighted index measures the
in the Movie and Video Production strength of the US dollar relative to the
industry can maximize box office revenue currencies of major trading partners.
by timing movies with holiday weekends Changes in the value of the US dollar
or the summer months, when consumers affect the relative cost of making
typically have the leisure time to visit movies in the United States and
movie theaters. The Movie Theaters overseas. If the US dollar appreciates,
industry is anticipated to grow in 2015. which trends alongside arising trade-
weighted index, some producers will
Per capita disposable income move to international locations to take
The industrys revenue depends on the advantage of relatively lower
amount of money consumers have production costs. The trade-weighted
available to spend on discretionary index is expected to increase sharply in
purchases. Growth in disposable income 2015, representing a potential threat to
typically has a positive effect on industry the industry.
Total advertising expenditure Demand from movie theaters
12 8
6 6
4
0
% change
% change
2
-6
0
-12 -2
-18 -4
Year 08 10 12 14 16 18 20 Year 08 10 12 14 16 18 20
Current Over the past five years, operators in the

Movie and Video Production industry Industry revenue
Performance grappled with mounting film production
6
costs and dwindling theater attendance.
Many movie producers increasingly 3
invested in high-cost special effects in
recent years, shifting the focus toward 0
% change
generating high ticket sales rather than
increasing the number of dramas and -3
comedies, which bring in comparatively

-6
small revenue. The 3D movie trend that
occurred early in the five years to 2015 -9
represented a significant turning point Year 07 09 11 13 15 17 19 21
for production studios, while the
continued emphasis on special effects has SOURCE: WWW.IBISWORLD.COM
added to the operational costs of movie

producers. For example, 3D films rely on 0.7% crawl to reach $34.1 billion. This
computer-generated imagery (CGI) includes a projected 0.2% revenue
effects, which typically have higher costs increase in 2015, which can be attributed
related to the computer power and to movie producers contending with high
storage space required to provide filmmaking costs, coupled with an
detailed images. According to the Motion increasingly fragmented audience that
Picture Association of America (MPAA), prefers other leisure activities, such as
a quarter of consumers attended a 3D watching television programs. The
movie in 2014, which has added to the average industry profit margin is
industrys overall operational costs. expected to remain mostly stable,
During the five years to 2015, industry increasing slightly from 14.6% of industry
revenue is anticipated to improve at a revenue to a projected 14.8% in 2015.
Inundation of 3D While the industry has benefited from the Furthermore, the growing costs
films production of more films over the past associated with these large productions
five years, mounting film-related costs have led many major producers to reduce
have constrained the industrys ability to or eliminate budget allocations toward
produce as many films as in previous small-scale films not expected to generate
years. For example, according to the significant box office revenue.
MPAA, 708 films were released in 2014 Additionally, operators in the industry
(latest data available), representing a have implemented new technologies and
24.0% decline in overall released motion moved toward alternative revenue
pictures from a decade ago. This decline streams to support industry growth.
in the number of films released can be Moderately successful movie sequels and
partly attributed to 3D film releases, revamps of older movies in high-
which reached a record high of 47 in definition have stimulated industry
2014. Typically, 3D films are costly to revenue. While these films often earn low
produce, due to expensive camera revenue, they do not require casting an
equipment, months of audio and visual entirely new set of actors and are often
editing and the wage costs of highly shot in a series to save time and money.
skilled video and sound editors. For example, filming of The Hobbit, a
Inundation of 3D three-part prequel to the Lord of the generate sales volume. According to the
films continued Rings trilogy, was completed in mid- MPAA, in the United States and Canada,
2012, but the second and third sequels 1.27 billion movie tickets were sold in
were not released in theaters until 2014, a 6.0% decline from the year
December 2013 and 2014. Over the past before. While a slight rise in the average
five years, film producers have struggled ticket price in the 10 years to 2014 has
with many time-strapped consumers buoyed industry revenue, the Movie and
participating in other leisure activities, Video Production industry has still
such as viewing television programs. This exhibited inconsistent performance due
trend, coupled with the decline in movie to high production costs, low after-
ticket sales, has made it arduous for release DVD sales and increasing
producers to attract moviegoers and competition from online entertainment.
Technology and the Poor domestic movie theater ticket sales

global marketplace have facilitated the movement toward Many film production
investment in films for global audiences.
In particular, movie producers have
companies have formed
relied on international audiences to joint ventures to remain
lessen their potential losses from competitive
lackluster domestic box office sales.
Producers license their projects to foreign
partners mostly throughout Asia, Europe amusement parks. Some of these
and South America, and these amusement parks, such as Universal
international partners represent a Studios, make agreements with different
significant portion of the industrys total production studios to create themed rides
customer base. Many film production based on the studios popular releases.
companies have formed joint ventures or DVD sales have typically stimulated
made acquisitions to remain competitive. industry revenue, particularly during
During the five years to 2015, the number periods of lackluster blockbuster sales
of industry enterprises is expected to volumes. While fewer consumers have
decline at an annualized rate of 0.8% to rented movies through brick-and-mortar
6,527, as movie producers have rental stores and movie kiosks, this trend
consolidated to maintain the resources has been offset by a rise in digital movie
necessary to attract top-notch talent and sales, such as subscription streaming. In
provide DVD distribution. Over the same particular, Blu-ray discs and digital
period, the number of employees movie collection formats such as
declined at an estimated annualized rate UltraViolet have facilitated movie sales
of 2.6% to 63,228 individuals, as many over the period. However, according to
studios have streamlined production in data from the Digital Entertainment
response to mounting operational costs. Group, total US home entertainment-
Additionally, many film companies have related spending on physical media has
expanded to include new revenue not generated significant sales growth
streams, such as owning theaters and over the past five years.
Industry Over the next five years, movie and video

producers will likely place greater emphasis
report, home videos, including pay-
television and online streaming services,
Outlook on distributing content to at-home will exceed movie ticket sales in 2017,
entertainment channels rather than the thereby changing the industry landscape
box office. New distribution channels, and potentially the industrys profit
particularly online content providers, will margins along the way. Industry revenue is
provide new opportunities for the industry; forecast to increase at a slim annualized
however, this will come at the expense of 0.1% to $34.2 billion by 2020, which
movie theater ticket sales, which includes 1.4% growth in 2016. Profit is
historically generate very high profit expected to stagnate at an estimated 14.8%
margins for producers. While streaming of industry revenue. Additionally, while
online content represents a very promising industry consolidation will likely
outlet for production companies, constrain studio costs and enable the
subscription-pricing plans currently hover industrys largest producers to enjoy
between $10.00 and $15.00 a month for economies of scale during shooting and
unlimited access to content. According to editing, many film producers will still
data from PricewaterhouseCoopers 2015 wrestle with high film costs, particularly for
Global Entertainment and Media Outlook 3D film equipment.
The internet and Over the next five years, the internet will
industry structure play an integral role in driving sales volumes Producerswill likely
for films. In particular, many film producers
will likely form partnerships or agreements
distribute more content to
with film distributors to develop innovative online channels rather than
high-volume distribution. For example, the box office
mobile applications, online ticket
purchasing and prerelease sneak peeks are
important tools to generate public release, thereby enabling more film
excitement for films and make the process producers to create projects that appeal to a
of buying movie tickets as simple as consumer market less inclined to attend
possible. Furthermore, augmented reality movies at the theater. Owners of movie
company Blippar has developed an image- theaters may implement price variances for
recognition and tracking application that movie tickets based on the type of film, such
enables smartphone and Google Glass users as whether the movie is a recent blockbuster
to view videos, webpages and other media. or no longer the latest release. As a result,
As a result, many film producers will this trend will benefit movie and video
become reliant on billboard producers, as more consumers will be
advertisements, which may display a film encouraged to see a major movie in-person
trailer to Google Glass wearers, to drive long after the opening weekend has passed.
movie ticket sales volumes. This strategy may also encourage consumers
The industry will likely follow the trend to view low-budget films or films that
that continues to shape the distribution received negative critical reviews.
methods of television broadcasting Production companies could potentially
companies. Operators will possibly release a recover at least a portion of the losses
wide variety of films that consumers can incurred as a result of poor box office
access from their mobile devices, tablets and performance by charging consumers
computers only weeks after the theatrical discounted ticket prices.
State budgetary The restructuring of statewide budgets

often present problems for video A
lack of state aid may raise
changes hamper
growth production companies, since budget production costs, thereby
outlays may cut into state subsidy
programs that typically provide cutting into industry profit
incentives for producers to film in
particular states. According to a 2015 result, the industrys tax breaks suffer
study by the Tax Foundation, the state of most when states search to reduce
Massachusetts budgeted an estimated budgets or redirect spending.
$90.0 million in tax credits over 2015. Such budget cuts affect producers
However, the states introduced fiscal decisions on where to film, and sudden
2016 budget intends to eliminate the tax changes in producers tax breaks may
credit in order to extend additional tax disrupt production schedules. Programs
breaks for low-income families. Generally that benefit filmmakers are most likely to
speaking, statewide film subsidies and be cut in states that want to allot more
tax breaks are more expendable during tax breaks to low-income families. In the
the state budgetary planning process five years to 2020, a lack of state aid may
than programs that support low-income raise production costs for operators,
earners and other public services. As a thereby cutting into industry profit.
Industry landscape In response to high operational costs distribution models may be an

related to movie production, coupled with increasingly important area of revenue
low revenue from DVD sales, industry growth for production companies.
operators will likely consolidate. As a Moreover, employment is expected to
result, the number of industry enterprises slightly improve in the next five years.
is anticipated to decline at an annualized The 2012 merger of the two actor unions,
rate of 0.4% to 6,393 during the five years Screen Actors Guild and the American
to 2020. Over the period, large production Federation of Television and Radio
studios that have the leverage to secure Artists, has created one of the largest
funding, as well as the ability to offset labor unions in the country and may
losses from poor movie ticket sales by preserve both average industry wages
producing diverse film portfolios, are and employment in spite of the industrys
more likely to maintain consistently high increasing emphasis on capital during
revenue. Furthermore, many studios will most editing and postproduction
increasingly attract international movie processes. The total number of industry
audiences to offset low domestic box-office employees is anticipated to grow at an
sales. Foreign markets that have not yet annualized 0.5% to 64,868 over the five
embraced subscription-based years to 2020.
Life Cycle Stage The industry is exhibiting a decline
in industry value added
The industry is operating in a fully saturated
market that is currently consolidating
Low movie ticket sales volumes, coupled with
low DVD sales, have hampered revenue
20 Maturity Quality Growth

% Growth in share of economy
Key Features of a Decline Industry

Company High growth in economic
consolidation; importance; weaker companies Revenue grows slower than economy
level of economic close down; developed Falling company numbers; large firms dominate
importance stable technology and markets Little technology & process change
Declining per capita consumption of good
15 Stable & clearly segmented products & brands
10
Quantity Growth
Many new companies;
minor growth in economic
importance; substantial
5 technology change
Promotional Products
0 Movie Theaters Market Research
Movie & Video Production
-5 Decline
Shrinking economic
Movie & Video Distribution
importance
Recordable Media Manufacturing

-10
-10 -5 0 5 10 15 20
% Growth in number of establishments
SOURCE: WWW.IBISWORLD.COM.AU
Industry Life Cycle The Movie and Video Production industry revenue to become increasingly volatile as
is currently in the declining stage of its life film producers have relied on the success
cycle. During the 10 years to 2020, of a few films to support their growth.
This industry industry value added, which measures the Movie studios generally specialize in
is D
eclining industrys contribution to the overall the production of a certain movie genre,
economy, is forecast to decline at an such as animated or horror, with a few
annualized rate of 0.3%. Comparatively, differentiated industry products and
US GDP is expected to grow at an average brands. Also, the number of movie
annual rate of 2.2% during the ten-year theater admissions has remained steady
period. During this time, movie producers over the past decade, according to the
struggled with mounting production costs, Motion Picture Association of America
coupled with low DVD and physical media (MPAA), which has caused movie
sales volumes, which have failed to offset producers to contend with stagnant
lackluster movie ticket sales. Many movie sales volumes and higher costs to
and video producers have also produce films. In particular, the
consolidated to cut operational costs. proliferation of 3D films has
Nevertheless, other leisure activities, significantly added to the industrys
particularly television programs, have operational costs. Many states, in
constrained movie ticket sales volumes response to state budgetary issues, may
over the period. The proliferation of cut their tax incentives for film
tentpole films, which are big releases that producers to create films in their state,
are required to support movie producers which will further exacerbate the
bottom lines, have caused industry industrys current struggles.
Products & Markets

Supply Chain | Products & Services | Demand Determinants
Major Markets | International Trade | Business Locations
Supply Chain KEY BUYING INDUSTRIES

51212 Movie & Video Distribution in the US
Movie distributors have long-term contracts with movie production companies.
51213 Movie Theaters in the US
Movie theaters rely on producers and distributors to provide feature films to audiences
nationwide.
51219 Video Postproduction Services in the US
Movie postproduction companies typically perform fine-tuning and editing for various audio,
visual and graphics components of films.
KEY SELLING INDUSTRIES

54189 Promotional Products in the US
High-budget films are often given large promotional budgets and are promoted months
before the theatrical and home video release dates.
54191 Market Research in the US
Movie producers conduct market research to estimate the commercial viability of movies and
determine appropriate distribution channels.
71141 Celebrity & Sports Agents in the US
Movie producers must go through talent agencies to negotiate contracts for actors and
actresses selected for particular roles.
71151 Performers & Creative Artists in the US
Movie producers sign actors and actresses to filming contracts prior to initial production.
Products & Services Products and services segmentation (2015)
8.0%
Other films
8.7%
Thriller/suspense films
39.4%
16.8%
Drama films
27.1%
Total $34.1bn Comedy films
Action and adventure films returns on investment. Action and

Over the past five years, major motion adventure movies have come to dominate
picture genres have generally the industrys releases for this exact
consolidated to a few select genres that reason, and many of these movies are
studios have determined to be the most intended to be major summer or holiday
statistically likely to generate significant blockbusters. Adventure films, which are
Products & Markets
Products & Services often filmed on a specific exotic location popularity during the past five years, to
continued and based in a particular era, have risen account for an estimated 5.0% of revenue
in popularity to account for an estimated in 2015. IBISWorld groups them in with
21.7% of industry revenue in 2015. Action the broader comedy category, which
movies have also steadily increased in makes up 27.1% of industry revenue. In
popularity, making up about 17.8% of the five years to 2020, comedies are
revenue in 2015. Action movies anticipated to rebound due to their broad
commonly place characters into a series audience appeal. In 2015, top grossing
of challenges that focus on physical feats, comedy films consisted of Spy,
extended fights and frenetic chases rather Trainwreck and Get Hard.
than focusing on character development.
As a result, these films demand large Drama films
budgets in order to provide realistic sets, Dramas are mostly dialogue-driven
massive pyrotechnics displays, premium depictions of human stories and are
filming technology and A-list talent to therefore not bogged down by excessive
drive audiences to theaters. special effects costs. This genre became
Altogether, action and adventure less popular during the past five years,
movies became more popular during the comprising an estimated 16.8% of
past five years with well-known franchise industry revenue in 2015. The top
releases like Avengers: Age of Ultron and grossing movies in this genre in 2015
Transformers: Age of Extinction include War Room, Black Mass and
generating significant revenue. In 2015, The Imitation Game (released
notable action and adventure films Star Christmas 2014).
Wars: The Force Awakens and Jurassic
World were among the highest-grossing Thriller and suspense films
films of all-time. The action and Thriller and suspense movies, which deal
adventure movie segment is expected to with themes of insecurity or uncertainty,
continue dominating the box office have increased in popularity during the
during the next five years as more films past five years. Propelled by successful
in this genre become animated and, movies like Spectre and Spotlight, this
therefore, more profitable to produce. genres share of industry revenue has
The production of animated films has grown to comprise an estimated 8.7% of
steadily risen due to production revenue in 2015. Over the next five years,
technologies increasing in quality and this genre is expected to continue to gain
decreasing in price. Animated action and popularity, thus allowing this market
adventure movies of 2015 include segment to comprise a larger share of
Minions and Inside Out. industry revenue.
Comedy films Other

In 2015, fewer comedy movies are likely Other genres include horror, musical and
to be released as compared with previous documentary films. Over the past five
years. The genres relatively poor years, this segment declined in
performance in theaters and heavy popularity to account for an estimated
reliance on big-name actors has made 8.0% in 2015. In particular, other genres
comedy films costly for movie producers share of revenue have declined due to
to create. In many cases, they generate the growing prevalence of adventure,
relatively modest returns at the box thriller and suspense films. Nevertheless,
office. As a share of revenue, romantic some films in other genres have fared
comedies have also decreased in well, namely Goosebumps, Insidious
Products & Markets
Products & Services Chapter 3 and Poltergeist, which operators, if successful, can generate
continued accounted for some of the segments top substantial revenue within the other
grossing films in 2015. Industry category by appealing to a market niche.
Demand Consumer income and film reception Technology and funding

Determinants Consumers continue to watch filmed Consumers must often pay a higher
content at a steady rate, but there is a price to see a film in 3D or attend a
general transition away from box office movie theater that is in a convenient
ticket sales toward at-home viewership of location. Likewise, people are willing to
movies. This trend has ultimately impacted pay more for movies that are produced
industry profitability and revenue. Generally using the most advanced filming and
speaking, movies are a relatively low-cost special effects techniques, as evidenced
form of entertainment for consumers, by consumers increasing purchases of
especially in comparison with live sporting premium high-definition televisions. As
events, musicals and other industry a result, the industry has co-sponsored
substitutes. Additionally, the appeal of a spending on digital technology in
movie determines whether moviegoers will theaters, as well as the research and
spend money on that particular film, as development efforts behind new formats
opposed to other film or substitute like 4K screen resolution and 60 frames
recreational activities. Thus, demand for per second (FPS) filming. Purchases of
films is determined by the perceived high-quality movies through online,
entertainment value of a movie. For subscription-based content providers
example, consumers rely on movie reviews, are anticipated to reshape industry
ratings and word-of-mouth to determine revenue as consumers transition their
which movies they view in theaters or movie viewing from theaters to their
purchase to watch at home. Consumers are own homes. The availability of financing
more likely to pay for movies that achieve for film productions can greatly
some sort of critical or social buzz. In some influence the industry. Funding is driven
cases, consumers may also be compelled to by perceived demand for a certain
watch a movie in a theater that boasts movie. Increasing interest rates over the
enhancements to the viewing experience, next five years, combined with an
including IMAX, 3D, in-seat dining options anticipated increase in consumer
and other member perks. spending, will boost industry financing.
Major Markets The Movie and Video Production majority of the domestic market for
industry produces many types of media, industry movie and video productions
and these works are ultimately comes from downstream entities that are
distributed to the public through the licensed to exhibit, broadcast or rent
various licensed downstream distributors feature films. These establishments
who are granted access to air these films mainly include movie theaters, video
to the public. rental stores and online distributors of
feature films. The domestic market has
Domestic market declined over the past five years in
The domestic market represents 56.2% of comparison to revenue generated from
the industrys customer base. The vast foreign markets.
Products & Markets
Major Markets Major market segmentation (2015)

continued
43.8%
International distributors of feature
films, short films and others
56.2%
Domestic distributors of feature
films, short films and others
Total $34.1bn SOURCE: WWW.IBISWORLD.COM
A very small portion of the domestic licensed to distribute feature films. The
market is exclusively licensed to exhibit, industry also grants permission to small
broadcast and rent short films. These numbers of video rental stores, online
establishments are typically the same as distributors and public entities to exhibit
those licensed to distribute feature films, and rent audiovisual works. Because the
but they represent only a slim portion of foreign market represents such a huge
the industrys customer base as a result of source of industry revenue, changes in
the minimal numbers of short films public taste can have a serious impact on
produced in a given year. Additionally, the types of productions the industry
some establishments are licensed to chooses to pursue. For example, domestic
exhibit, broadcast and rent other gross box office sales for the 2013 sci-fi
audiovisual works. These are disparate film Pacific Rim were $101.8 million, far
establishments that range across all lower than its $190.0 million production
industries, and the works they distribute budget. However, the film was designed
typically include miscellaneous for wide international release and
audiovisual productions such as exercise generated $309.2 million in foreign box
videos, travel videos, training videos, office revenue, more than 75.0% of the
public service announcements and other films total revenue. The industry has
instructional videos. increased its distribution to include many
foreign countries, particularly China,
Foreign market Japan, South Korea and Mexico.
International establishments are also Unlike the domestic market, there are
licensed to distribute the industrys many international regions that do not
movie and video productions to foreign wish to simply distribute dubbed versions
audiences. Many feature films depend of popular movies and videos. Since
heavily on revenue generated from subtitled and dubbed productions
markets outside of the United States, generally do not receive the same degree
thus the foreign market represents a of popularity among foreign audiences,
significant 43.8% of the industrys client the industry will occasionally license
base. Much like the domestic market, the rights to international production
vast majority of the industrys foreign companies that wish to use the concepts,
client base consists of establishments likenesses and storylines of domestic
Products & Markets
Major Markets audiovisual works. For many foreign Although this represents a minimal
continued films, these projects will typically have a portion of the industrys total client base,
completely new cast, but the adapted film foreign film adaptations represent a key
will contain many of the exact plotlines, money-generating activity for industry
scripts and concepts of the original piece. production companies.
International Trade The Movie and Video Production productions, provided that the recipient
industry uses its discretion when of the materials is given express consent
granting foreign production companies, by the MPAA to do so. Since many of the
distributors and broadcasters the right to productions that are created in this
use and disseminate their productions. industry are works of art and intangible
Additionally, domestic audiovisual goods that cannot be physically
production companies must often pay for exchanged or quantified, international
the rights to distribute works created by trade in the industry is not documented
foreign producers. Digital works of art by the US International Trade
are protected as intellectual copyright Commission. Any revenue generated
through various trade associations such from the distribution of movie and video
as the Motion Picture Association of productions to foreign entities is
America (MPAA). Domestic producers considered part of the industrys
will allow foreign companies to use their overall revenue.
Products & Markets
Business Locations 2015
West
AK
0.1 New
England
ME
Great Mid- 0.2
Lakes Atlantic 1 2
NY 3
WA MT ND 14.3
5 4
1.6 0.0 MN
Rocky
0.3 1.4
WI
OR Mountains SD
0.1
Plains 0.8 MI
1.4
PA
1.8
6
7
1.0 ID IA OH 9 8
0.2 WY 1.3
0.1
NE
0.4
IL IN WV VA
3.1 0.9 1.3
West NV
0.2 0.1
KY
UT MO
0.5 NC
0.8
1.1 CO KS 0.9 1.5
1.7 0.3 TN
SC
Southeast
1.1
CA 0.4
38.4
OK AR GA
0.6 0.2 AL 2.4
AZ MS 0.4
1.0 NM
0.4 Southwest 0.1
TX LA
0.6 FL
3.4 5.7
West
HI
0.4 Additional States (as marked on map) Establishments (%)
1 VT 2 NH 3 MA 4 RI Less than 3%
0.2 0.2 1.8 0.2 3% to less than 10%
10% to less than 20%
5 CT 6 NJ 7 DE 8 MD 9 DC
20% or more
0.9 2.0 0.2 1.3 0.6
Products & Markets
Business Locations The Movie and Video Production industry

Distribution of establishments vs. population
is concentrated in regions that have
developed significant studio and
50
production facilities. Close proximity to
these resources greatly benefits industry 40
establishments by providing specialization,
cooperation and easy access to local movie 30
and video production talent. The industry
%
is largely located in California, which 20
accounts for 38.4% of total domestic film

10
production. In 2009, California lawmakers
implemented the California Film and 0
Television Tax Credit Program, aiming to
West
Great Lakes
Mid-Atlantic
New England
Plains
Rocky Mountains
Southeast
Southwest
ensure that the state remains a hub for film
production through various tax benefits. In
general, the films made in Hollywood
dominate the domestic and international Establishments
film market. New York, particularly the Population
New York City metropolitan area, also has SOURCE: WWW.IBISWORLD.COM
a robust concentration of industry film

producers. New York holds 14.3% of location throughout the country. These
industry establishments, despite only on-site shoots contribute to most of the
have 6.2% of the countrys population. industrys scattered employment in other
Florida closely follows with 5.7% of states and are, therefore, subject to
industry establishments. fluctuation. Changes in state tax
Although filming is often done in incentives often stimulate various shifts
studio, many movies are filmed on in on-location productions by state.
Competitive Landscape
Market Share Concentration | Key Success Factors | Cost Structure Benchmarks
Basis of Competition | Barriers to Entry | Industry Globalization
Market Share The industry is becoming increasingly losses from less successful productions
Concentration concentrated, and the top four major or small-scale independent projects,
players make up an estimated 54.7% of giving large studios with a diversified
industry revenue. Due to the intense movie portfolio an advantage over
Level
industry consolidation and media smaller, specialized production studios
Concentration in this cross-ownership that has occurred over that lack the resources to produce and
industry is M
edium the past 20 years, many of the industrys release a variety of movie genres each
most prominent film studios have been year. Additionally, large players can
acquired and absorbed into the expand their market share by producing
operations of the countrys largest films with a variety of genres, styles and
broadcasting and Internet servicing levels of investment, and produce both
providing companies. branded and franchise films. Many of
Larger corporations are more these players simply acquire smaller
successful in this industry since they are production companies and provide
able to mitigate the risks involved in these enterprises with the necessary
movie production. For example, revenue budgets to produce projects on a limited
from popular movies often balances out release schedule.
Key Success Factors Effective cost controls Ability to manage external

Operators must effectively manage their (outsourcing) contracts
finances to ensure that costs do not go Operators must be able to manage
IBISWorld identifies over allocated project budgets. subcontractors in the film production
250 Key Success process, including those hired for all
Factors for a Access to multiskilled and pre- and postproduction duties.
business. The most flexible workforce
Operators need to have access to skilled Ability to quickly adopt new technology
important for this
labor, which includes directors, Operators use of digital and animated
industry are: producers, artists, composers, technology can improve the production
screenwriters, actors and technical staff. process and lower overall production costs.
Cost Structure Purchases The cost of equipment typically fluctuates,

Benchmarks Over the past five years, purchase costs spiking with the advent of new technologies
have declined as a share of revenue due and decreasing as these technologies
to the affordability of high-quality digital become increasingly affordable. As the
video equipment. However, expenditures current innovative and expensive technology
required for 3D production equipment becomes standard, equipment costs are
have generally remained high. expected to decrease over the next few years.
Additionally, the demand for movies in Various on-site amenities, such as per
different formats and aspect ratios has diems, craft services and makeup can
increased the amount of equipment represent a significant portion of the
necessary to produce a movie. Purchases industrys filming costs. Another major
is expected to account for about 52.1% of purchase for studios is the script or rights
revenue in the current year. for a movie, which can fluctuate drastically
Nondepreciable equipment purchases are depending on the projected returns that the
a significant expense for industry operators. film is expected to generate.
Cost Structure Profit anticipated rise in wages, will likely keep

Benchmarks Industry profit has remained mostly industry profit stagnant during the
consistent over the past five years, five-year period to 2020.
continued
although increases in costs have limited
the industrys largest companies from Wages
significantly expanding their profit Wages are expected to constitute 15.5% of
margins. In 2015, profit, measured as industry revenue in 2015 and are
earnings before interest and taxes, is allocated toward salaries for producers,
expected to comprise 14.8% of revenue. cinematographers, talent, directors,
However, digital media has generated production managers, composers and
higher industry revenue as movie visual effects artists, among other
production companies determine how to employees. IBISWorld estimates that the
generate sales volumes from alternative average annual salary for a movie
revenue streams, such as advertising production employee is roughly $83,644.
income related to online streaming. An This high salary is partly a reflection of
instant digital distribution network from employee unionization; with the threat of
production companies to theaters is organizing a costly work stoppage,
currently being implemented, which will employees who hold large membership
greatly cut distribution costs by numbers within the industry can
removing shipments of physical tape negotiate higher salaries. Labor
reels and reducing duplication costs. organizations like the Screen Actors
The costs of these technological Guild and Writers Guild of America are
developments, coupled with the increasingly able to negotiate higher
Sector vs. Industry Costs
Average Costs of
all Industries in Industry Costs
sector (2015) (2015)
100 n Profit
16.3 14.8 n Wages
n Purchases
80 n Depreciation
15.5 n Marketing
21.3 n Rent & Utilities
n Other
Percentage of revenue
60
24.3
52.1
40
7.6
4.6
20
4.5
3.4
21.4 8.2
3.7
0 2.3
Cost Structure wages because halting film production facilities in areas that have high foot
Benchmarks due to labor disputes is costly for the traffic for filming. On-site production
Movie and Video Production industry. permits vary in price, but in-studio
continued
production costs are typically substantial,
Marketing with many producers competing for
Box office sales from a big first-weekend limited production space. Production
audience can ultimately produce over often also involves the rent of expensive
one-third of the gross income of that trailers for the cast and some equipment.
movie. Studies have shown that This segment of the cost structure is
consumers today are far more interested expected to remain stable over the five
in reading critical reviews than ever years to 2020.
before, and many consumers consult
reviews online before heading to the Other
theater. Additionally, increased publicity Other miscellaneous costs will vary
for a movie improves the revenue that depending on the type of project and its
comes in from distribution contracts anticipated budget. Transportation costs
made with broadcasters and on-demand can include expensive cars rented to
services shortly before or after a movies show on-screen or the limousine rides
initial release to theaters. Advertisers are that talent may take to a marketing event.
willing to pay a premium to feature Depreciation is anticipated to account for
advertisements shown alongside a film an estimated 3.4% of industry revenue,
with a large audience. In 2015, marketing although this can be significantly higher
is expected to account for an estimated for major production companies that own
8.2% of industry revenue. and operate their own filming equipment
Advertising has been a necessary and editing software. Typical
expenditure for high-budget movies in depreciation costs remain low because
order to recoup production expenses, and most movie production does not involve
it has helped commercially viable smaller extensive capital expenditures on
movies turn a large profit. Advertising equipment, provided that these materials
ranges from online trailers, television are rented.
commercials, magazine ads, billboards Other costs included in most
and radio spots. productions include office supplies,
auditing, legal fees and a large degree of
Rent & utilities subcontracting. For instance, many
Rent and utilities is expected to make up movie production companies subcontract
about 3.7% of industry revenue in 2015 the duplication of movies onto recordable
because movie producers often rent large media (see IBISWorld report 33461).
Basis of Competition Internal Competition Funding is essential for a production

Within the industry, operators vie for to attract talented actors and directors,
actors, directors, studio facilities and both of which are crucial barometers for
Level & Trend scripts to construct their project. Once a films potential success. Competition for
ompetition
C in these components are assembled, the funding can be both internal and external
this industry is producer is responsible for determining to the industry, as major investors will
Highand the trend the marketing and distribution tactics. often consider entertainment products
Movie producers also compete with other unrelated to the industry. Within the
is I ncreasing
producers who concurrently release films. industry, funding by large production
Basis of Competition companies is highly desired. Key External Competition

continued determinants of a producers ability to Competition external to this industry
attract funding are connections to major includes all alternative leisure
donating studios, a well-written or activities. Consumers must choose
commercially viable script, interest of between watching video content or
major talent and a long track record of full-length features and doing other
previous financial success. activities in their spare time, and these
Operators increasingly compete for activities do not necessarily require the
funding via slate financing, which occurs purchase of any goods. Movie
when a hedge fund manager or private producers compete with these other
equity firm purchases a portion of the markets in terms of advertising and
revenue generated from the companys popular appeal. They also try to keep
next several films. Slate financing mitigates the costs of their end product relatively
the studios risks by sharing profit gains or low and depend on mass distribution
losses with potential investors. Poor via a variety of methods. Also, the
economic conditions often intensify industry faces the increasing prevalence
competition for slate financing, benefiting of movie piracy, which cuts into
large industry players while hampering industry revenue. According to the US
small players access to funding. Large Congressional International Anti-Piracy
industry players typically have large Caucus, piracy costs all US movie
distribution networks and a diversified film production companies about $25.0
portfolio that lowers investment risk. billion annually in lost sales.
Barriers to Entry The size and reputation of a particular

Barriers to Entry checklist
production company weighs heavily on
the continued success of established Competition High
Level & Trend major players, and both provide a Concentration Medium
arriers to Entry
B significant advantage in acquiring Life Cycle Stage Decline
Capital Intensity Medium
in this industry desirable resources such as A-list actors
or project financing. Large market Technology Change High
are M ediumand Regulation & Policy Medium
players often have an advantage in
Increasing Industry Assistance High
securing big-name actors and financing
based solely on name recognition. Also, SOURCE: WWW.IBISWORLD.COM
large operators are also able to incur
hefty marketing campaigns when affect the entire production process. For
advertising a film. Greater size also example, agreements linking movie
allows these companies to hire production and distribution often
specialized managers and teams of facilitate movie funding by improving the
editors, speeding up and improving the ability of major producers to obtain
quality of the production process. capital from distributors and major
Vertical integration also gives large theater chains during the planning and
companies a competitive advantage pre-production phases. Acquiring
against smaller studios that aspire to funding from these distributors is nearly
enter the industry. The long-term impossible for independent movie
agreements that movie producers have producers who have not acquired at least
with distributors, such as multifilm some level of popular appeal or industry
distribution and financing deals, can credibility. As a result, many independent
Barriers to Entry producers have difficulty distributing of this equipment. Additionally, advanced
continued their films to a mainstream audience. movie cameras are being constantly
However, movie production at the updated with new features that make it
lower end of this industry does not easier to film a professional quality
necessarily require formal training, movie. It is possible to make an
although some requisite level of independent film, provided that the
production skills, industry knowledge necessary funding is available and the
and filmmaking equipment are all producers are comfortable working with
necessarily tools to enter the industry. lesser-known talent. High industry
The costs of equipment used in assistance from state and federal
production can be offset or minimized by governments cover some industry costs,
the use of lease and hire arrangements facilitating the start-up of small movie
with specialist hire firms that carry stocks production companies.
Industry Companies in the Movie and Video film premieres in the United States and
Globalization Production industry have been courted by adding special footage to films for
national governments for decades. audiences in key markets. Additionally,
However, the incentives for producers to industry operators may add extra
Level & Trend create their works offshore or to shoot in subplots, scenes and characters to
lobalization
G in the United States change constantly. attract global audiences. As production
this industry is Foreign ownership in this industry is costs increase, industry operators need
Highand the trend common; for example, key industry player to appeal to international markets to
Sony Pictures Entertainment is owned by cover costs and retain profit, especially
is I ncreasing Tokyo-based Sony Corporation. Also, because the global market can offset
operators are conducting joint ventures losses from poor domestic box office
with international companies to attract ticket sales.
global audiences. For example, 2013s Industry operators are deriving larger
Iron Man 3 was produced by Walt Disney portions of industry-relevant revenue
Studios, Marvel Studios and the Beijing- from the distribution of DVDs and online
based company DMG Entertainment. media content, which requires strong
According to the MPAA, about 70.0% international demand to bolster sales.
of studios annual box office revenue is For example, Sony Pictures
derived from international markets. Entertainment, a subsidiary of Sony
Industry operators are increasingly Corporation, distributes motion pictures
catering to global markets by releasing and other forms of entertainment to
movies to global audiences before the about 159 countries.
Major Companies
21st Century Fox | The Walt Disney Company | NBCUniversal Media LLC
Viacom Inc. | Time Warner Inc. | Other Companies
Major players Viacom Inc. 6.3%

(Market share) The Walt Disney Company 17.2%
39.0%
Other
NBCUniversal Media LLC 13.5%

21st Century Fox 17.9%
Time Warner Inc. 6.1% SOURCE: WWW.IBISWORLD.COM
Player Performance Formerly operating under the News produces and acquires motion pictures.
Corporation (News Corp) corporate Fox Searchlight Pictures and Twentieth
umbrella, 21st Century Fox is a global Century Fox Animation produce and
21st Century Fox media and entertainment company that acquire specialized motion pictures and
Market share: 17.9% operates in the following business animated motion pictures. The company
Industry Brand Names segments: cable network programming, also has a 33.0% equity interest in Hulu,
Fox Filmed Entertainment television, filmed entertainment and an online video service that provides
Twentieth Century Fox direct broadcast. In June 2013, News video content from Fox. The companys
Film Corp separated into two independent holdings in Hulu are intended to
Twentieth Century Fox publicly traded companies: 21st Century maintain a competitive edge and generate
Fox 2000 Fox, which operates in cable, broadcast, revenue growth from consumers that
film and pay-television, and News Corp, view movies from their laptops or tablets.
which controls the companys former The companys agreement with
businesses, including newspapers, DreamWorks Animation SKG Inc. allows
information services, marketing services, 21st Century Fox to distribute animated
real estate services, digital education, motion pictures. Its motion picture
sports programming and pay-television distribution strategy conducts prerelease
distribution in Australia. marketing for feature films by marketing
The company produces and distributes three to six months before a films release
motion pictures through its Twentieth date. In 2013, an agreement made with
Century Fox Film brand, Twentieth Metro-Goldwyn-Mayer Studios Inc.
Century Fox and Fox 2000, which (MGM) will allow 21st Century Fox to
21st Century Fox (US movie and video production segment) - financial
performance*
Revenue Net Income
Year** ($ million) (% change) ($ million) (% change)
2010-11 4,232.5 -7.7 748.2 -0.9
2011-12 3,874.0 -8.5 520.5 -30.4
2012-13 4,430.6 14.4 686.9 32.0
2013-14 4,976.6 12.3 753.2 9.7
2014-15 5,419.2 8.9 760.3 0.9
2015-16 6,099.7 12.6 925.4 21.7
*Estimates; **Year-end June

SOURCE: ANNUAL REPORT AND IBISWORLD
Major Companies
Player Performance distribute 583 MGM films and television to grow at an annualized 7.6% to $6.1
continued programs per year. Also, through billion. In fiscal 2012, the companys
agreements with Lions Gate Entertainment separation of its publishing, media and
Corp. (Lionsgate) and Anchor Bay entertainment businesses into two
Entertainment (Anchor Bay), the company distinct publicly traded companies has
releases about 1,604 Lionsgate and 683 enabled 21st Century Fox to focus on
Anchor Bay home entertainment and its film entertainment business
television programs per year. segment. As a result, industry-relevant
operating income skyrocketed 32.0%
Financial performance during the fiscal year, enabling 21st
In the five years to fiscal 2015, Century Fox to explicitly invest in
industry-relevant revenue is expected film entertainment.
Player Performance Founded in 1923, the Walt Disney total, Disney has distributed six films and
Company is an international family provided financing of $154.0 million for
entertainment and media enterprise that DreamWorks. In 2012, amendments to
The Walt Disney operates in the following business the agreement limited Disneys
Company segments: media networks, parks and distribution to the United States, Canada,
Market share: 17.2% resorts, studios and entertainment, Latin America, Australia and most of Asia.
consumer products and interactive In 2010, Disney significantly
Industry Brand Names
media. Industry-relevant revenue is restructured its movie production
Walt Disney Pictures
derived from its studio entertainment operations by selling Miramax to
Touchstone Pictures
business segment, which produces and Filmyard Holdings for about $663.0
Pixar
acquires motion pictures, direct-to-video million to refocus the Disney brand
Miramax
content, musical recordings and live away from independent movies. Also in
Lifetime
stage plays. 2012, Disney acquired Lucasfilm Ltd.
Hollywood Pictures
Disney currently holds an agreement LLC, the studio that created and had
Image Movers Digital
with DreamWorks studio to distribute live retained the rights to the popular Star
Marvel
action motion pictures under the Wars franchise. This contributed to
companys Touchstone Pictures brand. In Disneys focus on highly recognizable
The Walt Disney Company (US movie and video production segment) -
financial performance*
Revenue Operating Income
2009-10 5,292.3 6.3 914.6 24.9
2010-11 5,613.8 6.1 960.1 5.0
2011-12 5,308.0 -5.4 1,251.0 30.3
2012-13 4,768.3 -10.2 1,135.3 -9.2
2013-14 5,781.5 21.2 1,540.3 35.7
2014-15 5,859.4 1.3 1,639.6 6.4
*Estimates; **Year-end September

SOURCE: IBISWORLD
Major Companies
Player Performance and family-friendly entertainment competition with other studios on

continued franchises. Disney also holds Marvel in opening weekends.
its company portfolio. Marvels 2012
theatrical release of The Avengers set a Financial performance
box-office record in its first weekend, In the five years to fiscal 2015, industry-
earning more than $200.0 million in relevant revenue is anticipated to
ticket sales. Star Wars: The Force increase at an annualized rate of 2.1% to
Awakens has since surpassed this record $5.9 billion. In fiscal 2015, industry-
with an estimated $238.0 million in relevant revenue increased an estimated
ticket sales during its opening weekend 1.3%. The company has dominated the
in December 2015. industry over the past several years, with
Through its management of Pixar and major blockbusters Captain America:
its funding and distribution agreement The Winter Soldier, Maleficent, Frozen,
with DreamWorks films, Disney has Big Hero 6 and Into the Woods
control over and knowledge of release generating massive ticket sales over the
dates far in advance. This control gives year. Anticipated releases of films
the company the ability to strategically Zootopia and Finding Dory will likely
release films to maximize demand and lead to greater revenue growth over the
viewership, while avoiding direct next year.
Player Performance NBCUniversal Inc. (NBCU) is a global In February 2013, previous co-owner
media and entertainment company that General Electric had its 49.0% of NBCU
develops, produces and markets stake bought out by Comcast for $16.7
NBCUniversal entertainment, news and information. billion. In 2011, the company acquired
Media LLC Owned by Comcast Corporation, NBCU is The Blackstone Groups 50.0% interest in
Market share: 13.5% headquartered in New York City and was Universal Orlando, which owns two
founded in 2004 as a combination of the theme parks, Universal Studios and
Industry Brand Names
National Broadcasting Company Inc. Islands of Adventure, as well as an
Universal Pictures
(NBC), created in 1926, and Universal entertainment complex, Universal
Focus Features
Studios Inc. (Universal), created in 1909). CityWalk. While unrelated to industry-
NBCUniversal (US movie and video production segment) - financial

performance*
Year ($ million) (% change) ($ million) (% change)
2010 3,544.0 12.6 545.4 18.0
2011 3,601.0 1.6 670.8 23.0
2012 4,200.9 16.7 724.6 8.0
2013 4,043.3 -3.8 809.0 11.7
2014 4,121.6 1.9 905.8 12.0
2015 4,584.9 11.2 1,035.7 14.3
*Estimates
SOURCE: IBISWORLD
Major Companies
Player Performance relevant revenue, the acquisition allows networks (such as HBO), digital
continued the company to develop a revenue base distributors and pay-per-view services.
for sales from movie character licensing
and merchandise. Financial performance
NBCUs industry-relevant revenue is In the five years to 2015, industry-relevant
derived from its filmed entertainment revenue is expected to grow at an annualized
business segment, which produces, rate of 5.3% to $4.6 billion. In 2012, revenue
acquires, markets and distributes live- increased an estimated 16.7% due to
action and animated film through NBCUs merger with Comcast Corporation,
Universal Pictures, Focus Features and which has allowed the company to benefit
Illumination Entertainment. Industry- from Comcasts production facilities. Strong
relevant revenue is generated from the box office performances of Jurassic World
distribution of films in movie theaters, and Minions contributed to the industrys
the sale of films for home entertainment impressive growth over 2015. Moreover,
and licensing films. The company licenses industry-relevant revenue is projected to
films to cable, broadcast and premium grow an additional 11.2% in 2015.
Player Performance Viacom Inc. is a global entertainment Paramount Pictures, the countrys oldest
company that reaches about 700.0 film studio; Paramount Vantage;
million global subscribers through the Paramount Classics; Insurge Pictures;
Viacom Inc. following business segments: television, MTV Films; and Nickelodeon Movies
Market share: 6.3% motion picture and online and mobile brands. Also, industry-relevant
Industry Brand Names platforms. Established in 2005, the operations include the companys home
Paramount Pictures company was originally part of CBS entertainment business segment, which
DreamWorks Corporations media business segment distributes DVDs produced by
Nickelodeon until the companies split in 2006 to Paramount and other Viacom brands,
MTV Films separate television and radio operations and third-party distributions, such as
from other segments. DreamWorks.
Industry-relevant revenue is derived In 2010, Paramount and Marvel
from filmed entertainment content from partnered to allow Paramount to
Viacom Inc. (US movie and video production segment) - financial

performance*
2009-10 2,809.4 3.5 464.9 -25.4
2010-11 3,097.8 10.3 770.6 65.8
2011-12 2,718.6 -12.2 763.7 -0.9
2012-13 3,151.4 15.9 876.4 14.8
2013-14 2,770.7 -12.1 820.6 -6.4
2014-15 2,129.3 -23.1 499.4 -39.1
*Estimates, **Fiscal year ending September 30

SOURCE: IBISWORLD
Major Companies
Player Performance distribute Marvels feature films entertainment products to Sweden,

continued worldwide. This agreement expired in Denmark, Norway and Finland, further
2012. Paramount paid Marvel $115.0 expanding the companys outreach to
million to obtain distribution rights for international markets.
The Avengers and Iron Man 3, which
added to the companys distribution Financial performance
rights for Marvel films like Thor, In the five years to fiscal 2015,
Captain America: The First Avenger industry-relevant revenue is anticipated
and the first two Iron Man films. In to fall at an annualized 5.4% to $2.1
2011, the company and CBS extended billion, although much of this growth is
their previous agreement, which allows the result of a 23.1% decline in
Paramount to distribute CBSs content industry-relevant revenue in 2015.
on DVDs. In 2012, Paramounts Company growth has been inconsistent
agreement with Warner Bros. Home over the past five years; the production
Entertainment Group granted the of fewer films hampered home
company exclusive rights to US entertainment video distribution, partly
distribution of DVDs, with access to due to third-party distribution
more than 600 titles from the agreements generating less revenue. In
Paramount film library. In 2013, fiscal 2015, operating income is
Paramount and Twentieth Century Fox estimated to fall by a sharp 39.1% due
announced their plans to launch a joint to lower revenue across the companys
venture to distribute home distribution windows.
Player Performance Time Warner Inc. is a global media and nonentertainment assets and changed its
entertainment company that operates in name to Warner Communications Inc.
film, television and publishing through Industry-relevant revenue is derived
Time Warner Inc. its Turner, Home Box Office, Warner from the film entertainment business
Market share: 6.1% Bros. and Time Inc. segments. The segment, which is composed of feature
Industry Brand Names company was formed in 1971 when films, home videos, production and
Warner Bros Kinney National spun off its distribution. Warner Bros. produces
Warner Home Video
New Line Cinema
Imprint Entertainment Time Warner Inc. (US movie and video production segment) - financial
Castle Rock
Entertainment
performance*
Year ($ million) (% change) ($ million) (% change)
2010 1,962.0 0.9 713.1 -4.8
2011 1,943.6 -0.9 679.1 -4.8
2012 2,030.7 4.5 797.4 17.4
2013 2,005.8 -1.2 784.4 -1.6
2014 1,866.5 -6.9 614.1 -21.7
2015 2,092.1 12.1 668.0 8.8
*Estimates
SOURCE: IBISWORLD
Major Companies
Player Performance feature films under its subsidiaries division of Warner Bros., Warner Home
continued Warner Bros. Pictures and New Line Video, distributes DVDs and provides a
Cinema. Warner Bros. film strategy strong in-house distribution network. An
focuses on producing feature films in a agreement through 2015 allows Warner
mix of genres, while also aiming to build Bros. to distribute DVDs from Paramount
franchises and create blockbuster films. Pictures film library, which consists of
In the past decade, the company has more than 600 catalog titles.
produced many of the industrys highest
grossing movies, including The Lord of the Financial performance
Rings trilogy, the Harry Potter series and In the five years to 2015, industry-relevant
The Dark Knight. Additionally, Warner revenue is forecast to grow at an
Bros. has cofinancing agreements with annualized rate of 1.3% to $2.1 billion.
Village Roadshow Pictures through 2017. Propelled by American Sniper, San
These agreements are pivotal for production Andreas and Mad Max: Fury Road,
because Village Roadshow Pictures absorbs revenue increased by 12.1% in 2015 and is
half of all production costs. anticipated to increase going forward. In
Distribution agreements between recent years, production costs have
Warner Bros. and Alcon Entertainment increased due to the trend of producing
(Alcon) through 2015 allow the company more event films, such as franchise films,
to distribute Alcons feature films. A which typically include higher talent costs.
Other Companies Sony Pictures Entertainment industry-relevant revenue is expected to

Estimated market share: 4.6% reach $1.6 billion. In December 2014, it
Sony Pictures Entertainment (SPE) is a was revealed that the internal systems of
subsidiary of Sony Entertainment Inc., Sony Pictures had been compromised by a
which is owned by Tokyo-based Sony group of hackers that had gathered
Corporation. In 1991, the company was confidential data and internal
established as the entertainment division correspondence from more than 47,000
of Sony Corporation. The global company current and former company employees.
operates in the following business The breach revealed many of the
segments: motion picture production, companys difficulties in securing revenue-
distribution, television production and generating blockbuster films, and it also
networks, while developing new led to the cancelation of the intended
entertainment products, services and Christmas release of The Interview
technologies. SPE produces motion following threats made by the hackers.
pictures through Columbia TriStar
Motion Picture Group and includes the Lions Gate Entertainment Corporation
following picture production Estimated market share: 3.8%
organizations: Columbia Pictures, TriStar Lions Gate Entertainment (Lionsgate)
Pictures, Screen Gems, Sony Pictures was founded in Canada in 1997 when an
Classics and the International Motion investment banker, Frank Giustra,
Picture Production Group. Sony Pictures purchased a few small production
Digital Production operates Sony Pictures facilities. It is now traded on the New
Imageworks, a digital production studio, York Stock Exchange as LGF and is
and Sony Pictures Animation, which headquartered in Santa Monica, CA.
produces computer graphics for films. Lionsgate purchased Mandate Pictures in
During the five years to fiscal 2015, 2007 for $128.8 million and acquired
Major Companies
Other Companies Summit Entertainment LLC for $412.5 expected to total $1.3 billion. Over the
continued million in 2012. The acquisition added past five years, the company has
experienced managers to the companys benefited from the success of its Twilight
growing production team. The companys franchise films and the recent box office
2015 US movie production revenue is success of The Hunger Games series.
Operating Conditions
Capital Intensity | Technology & Systems | Revenue Volatility
Regulation & Policy | Industry Assistance
Capital Intensity The Movie and Video Production

industry exhibits a moderate level of Capital intensity
Capital units per labor unit
capital intensity, due to the significant
Level
costs associated with production gear, 0.5
The levelof capital location shooting equipment and
intensity is M
edium professional movie editing software. 0.4
However, movie producers often rent 0.3

shooting equipment for a fraction of its
cost, which has helped limit the massive 0.2
capital expenditures that would 0.1

otherwise be necessary to produce major
films. In 2015, for every dollar spent on 0.0
Economy Information Movie & Video
labor, movie producers incur an Production
estimated $0.22 in capital expenditures. Dotted line shows a high level of capital intensity
Over the past five years, capital intensity SOURCE: WWW.IBISWORLD.COM
has remained fairly constant.

The industry still relies on highly skilled employees are necessary to plan, shoot,
workers and artists in all facets of the edit and distribute projects. Additionally,
production process, and talented the strong presence of labor unions in this
Tools of the Trade: Growth Strategies for Success
New Age Economy Investment Economy

Recreation, Personal Services, Information, Communications,
Health and Education. Firms Mining, Finance and Real
benefit from personal wealth so Estate. To increase revenue
stable macroeconomic conditions firms need superior debt
are imperative. Brand awareness management, a stable
and niche labor skills are key to macroeconomic environment
product differentiation. and a sound investment plan.
Capital Intensive
Labor Intensive
Promotional Movie Theaters

Products Movie & Video Production
Traditional Service Economy Market Research Old Economy
Wholesale and Retail. Reliant
Recordable Media Manufacturing Agriculture and Manufacturing.
on labor rather than capital to Traded goods can be produced
Movie & Video Distribution
sell goods. Functions cannot using cheap labor abroad.
be outsourced therefore firms To expand firms must merge
must use new technology or acquire others to exploit
or improve staff training to economies of scale, or specialize
increase revenue growth. in niche, high-value products.
Change in Share of the Economy SOURCE: WWW.IBISWORLD.COM

Capital Intensity industry drives up the cost of labor even disrupt production through strikes, which
continued further by requiring high wages for many often causes industry operators to foot
of its unionized members. Labor unions large production bills or suspend
can leverage higher wages by negotiation production until labor negotiations have
or, in some cases, by threatening to been completed.
Technology & Systems New technology is rapidly transforming the movie industry, and movies and
the Movie and Video Production industry. trailers are also produced in new formats
Level Advances in video equipment and storage in order to meet various screen
are allowing for movies with increasingly specifications. Direct digital sales have
The level
of high display resolution to be produced, become an enormously popular method
Technology even with a low budget. Video cameras of providing media to consumers without
Change is H
igh have more automatic settings, decreasing the exchange of any physical items.
the need to re-shoot scenes. Also, digital Additionally, digital animation has
production and editing software has cut quickly become a popular format. Movies
costs and time in postproduction. As created exclusively with the use of
cinemas adapt to digital distribution computer animated graphics cut costs by
methods rather than traditional tape reels, eliminating expensive set pieces and hiring
the distribution process will also be less voice-over actors who are capable of
costly for producers. completing work in a matter of days
Producers are also revamping the instead of weeks. Some forms of animated
process of distributing movies to films, particularly action films that combine
consumers. Many studios, retailers and live action with animation and other 3D
electronics manufacturers, for example, elements, can still increase the total budget
are selling UltraViolet (UV) copies of of principal photography. Despite the
films, which allow consumers to access associated expense that is partially passed
purchased movies via various devices, on to viewers, 3D movies are extremely
such as televisions, computers, tablets popular. Not only are theaters showing 3D
and smartphones. Although all other films, but home entertainment systems are
major studios are onboard with UV, also now sold with 3D capabilities.
major company Disney has developed Various forms of 4D technology that uses
Keychest, which is a similar service. These tilting seats, scents, strobe lights, fogs and
cloud-based services allow consumers to other physical effects have become
watch a movie on their computer, increasingly popular as industry
television, handheld or any other device operators find new ways to reel in
that can connect to the internet. Tablet moviegoers who have gradually flocked
computing devices have revolutionized toward at-home streaming.
Revenue Volatility The Movie and Video Production Americans in recent years have
industry has a moderate level of revenue supported the industry through new
volatility. While the industry may be habits of attending movie theaters and
Level
inherently vulnerable to revenue watching films at home. As a result,
The level of volatility due to its reliance on the industry revenue suffers from declining
Volatility is M
edium consumers who routinely visit movie cinema viewership, but consumers have
theaters and purchase DVDs, many continued to bolster revenue through
Revenue Volatility low-cost options such as online streaming Thanksgiving, Christmas and New Years
continued services. Movie financing will continue to Eve. Therefore, revenue typically spikes in
be heavily dependent on business the early months of summer and again in
sentiment and interest rates, which has the final months of the year. Average
made industry revenue slightly industry revenue volatility, defined as the
susceptible to fluctuations in line with average absolute change in revenue over
economic cycles. the five years to 2015, is estimated to
Seasonal changes also play a large role reach 3.5%. The industry experienced its
in the volatility of this industry. Many largest year of growth in 2012, when
films are released at key points in the year, revenue increased 3.8%. Conversely, its
starting with the summer holidays and biggest decline occurred in 2011 with a
carrying into the winter holiday periods of projected 3.5% reduction in revenue.
A higher level of revenue Volatility vs Growth

volatility implies greater
industry risk. Volatility can 1000 Hazardous Rollercoaster
negatively affect long-term
Revenue volatility* (%)
strategic decisions, such as 100

the time frame for capital
investment.
10
When a firm makes poor Movie & Video Production
investment decisions it
may face underutilized 1
capacity if demand
suddenly falls, or capacity 0.1 Stagnant Blue Chip
constraints if it rises 30 10 10 30 50 70
quickly. Five year annualized revenue growth (%)
* Axis is in logarithmic scale
Regulation & Policy Screen actors, directors, Pictures Editors Guild and Producers
cinematographers and the industrys Guild of America, among others.
movie production employees are Nevertheless, unionization increases
Level & Trend heavily unionized. Until early 2012, production costs. Firstly, union
he level of
T there were two unions for actors, membership requires additional
Regulation is Screen Actors Guild (SAG) and the bureaucracy, which translates into added
Mediumand the American Federation of Television and expenses for fulfilling union
Radio Artists (AFTRA). These unions requirements, limiting daily workloads,
trend is I ncreasing
merged in March 2012 to create SAG- extending project deadlines and filling in
AFTRA, thus strengthening their the necessary paperwork to confirm that
combined bargaining power with production was completed in accordance
studios and increasing average industry with the requirements of all involved
wages. The Writers Guild of America unions. Unions set higher minimum
represents writers in motion pictures, wages than federal regulations mandate
television, cable, digital media and for production employees. Negotiations
broadcast news. Other guilds include between unions can also become
Directors Guild of America, Motion extremely costly; the threat of a potential
Regulation & Policy strike may lead to across-the-board production company also must carry
continued increases in wages or, in the event of a appropriate insurance in order to cover
stalemate during negotiations, costly any necessary court costs needed to
legal fees. protect its own work.
Exclusive rights granted to creators of Another way that this industry conducts
art and culture help preserve the self-regulation is through age-specific
revenue-generating capabilities of these movie ratings. The Motion Picture
works and various derivative copies of Association of America (MPAA) conducts
their work. Copyright laws not only the ratings. Ratings are an inexpensive
protect movie producers from unlicensed way for the industry to help parents
distribution of their content but also are monitor the content that their children
enforced to ensure that industry watch and decrease the potential costs of
operators receive proper authorization lawsuits. Ratings also help broadcasters
and pay royalties for any copyrighted abide by Federal Communications
material used in their projects. The Commission regulations.
Industry Assistance The US government and various state Idaho, Indiana, Iowa, Kansas, Missouri
government bodies often pass tax and Wisconsin have either prematurely
provisions to encourage domestic movie ended their production incentive
Level & Trend and video production. Tax write-offs programs or have simply allowed these
he level of Industry
T may be included to reduce tax payments programs to lapse without renewal.
Assistance is H
igh on production expenditure or allow for States continue to introduce and pass
and the trend is some flexibility in various revenue incentive measures for the industry,
accounting methods. In recent years, the although many governments now require
Decreasing
code has widely expanded to provide various audits and careful documentation
substantial write-offs, grants, tax rebates on behalf of the film producer in order
and sales tax exemptions for for refunds and grants to be issued.
independent producers of films that are In addition to a high degree of
shot either on a very low budget or in a government programs benefiting movie
designated location. producers, the industry is also heavily
According to a 2014 report by the unionized. The Motion Picture
National Conference of State Association of America (MPAA)
Legislatures, there are currently 39 states represents all six major Hollywood
that offer some form of video production studios and is one of the most powerful
incentives. Tax incentives and credit lobby groups in the country. The MPAA
initiatives appeared throughout many has historically served to issue film
states amid the recession in order to content guidelines and administer its
encourage major films to attract attention MPAA film rating system, but in recent
to states and cities that had suffered years it has become an increasingly vocal
economic hardship. Over the past five advocate for strengthening the US
years, however, states including Arizona, governments anti-piracy laws.
Key Statistics
Industry Data Industry Per capita dis-
Revenue Value Added Establish- Wages Domestic posable income
($m) ($m) ments Enterprises Employment Exports Imports ($m) Demand ($)
2006 35,337.3 12,469.1 7,921 7,708 60,136 -- -- 6,002.3 N/A 35,461
2007 35,289.0 12,258.1 7,855 7,658 68,150 -- -- 5,482.6 N/A 35,870
2008 34,768.9 11,851.5 7,314 6,537 72,152 -- -- 5,801.7 N/A 36,082
2009 31,869.5 12,561.5 7,059 6,807 73,527 -- -- 6,283.2 N/A 35,620
2010 32,908.6 12,199.2 7,036 6,805 72,025 -- -- 6,111.1 N/A 35,684
2011 31,756.1 10,581.1 7,105 6,789 61,895 -- -- 5,119.1 N/A 36,299
2012 32,954.7 11,340.8 6,768 6,485 60,867 -- -- 5,079.4 N/A 37,163
2013 33,871.2 11,316.6 6,850 6,566 62,334 -- -- 5,219.8 N/A 36,369
2014 34,006.4 12,422.8 6,796 6,503 62,755 -- -- 5,254.2 N/A 37,084
2015 34,065.6 11,478.3 6,814 6,527 63,228 -- -- 5,288.6 N/A 38,042
2016 34,547.6 11,843.5 6,793 6,492 64,116 -- -- 5,370.5 N/A 39,069
2017 33,755.4 11,727.6 6,745 6,461 63,478 -- -- 5,290.8 N/A 40,048
2018 34,166.2 11,737.6 6,726 6,429 64,266 -- -- 5,362.7 N/A 41,070
2019 34,372.1 11,878.3 6,751 6,458 64,815 -- -- 5,409.0 N/A 41,968
2020 34,216.7 11,854.9 6,692 6,393 64,868 -- -- 5,405.2 N/A 42,981
Sector Rank 16/38 16/38 14/38 9/38 19/38 N/A N/A 19/38 N/A N/A
Economy Rank 309/1373 253/1373 490/1373 432/1373 519/1373 N/A N/A 328/1373 N/A N/A
Annual Change Industry Establish- Domestic Per capita dis-

Revenue Value Added ments Enterprises Employment Exports Imports Wages Demand posable income
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
2007 -0.1 -1.7 -0.8 -0.6 13.3 N/A N/A -8.7 N/A 1.2
2008 -1.5 -3.3 -6.9 -14.6 5.9 N/A N/A 5.8 N/A 0.6
2009 -8.3 6.0 -3.5 4.1 1.9 N/A N/A 8.3 N/A -1.3
2010 3.3 -2.9 -0.3 0.0 -2.0 N/A N/A -2.7 N/A 0.2
2011 -3.5 -13.3 1.0 -0.2 -14.1 N/A N/A -16.2 N/A 1.7
2012 3.8 7.2 -4.7 -4.5 -1.7 N/A N/A -0.8 N/A 2.4
2013 2.8 -0.2 1.2 1.2 2.4 N/A N/A 2.8 N/A -2.1
2014 0.4 9.8 -0.8 -1.0 0.7 N/A N/A 0.7 N/A 2.0
2015 0.2 -7.6 0.3 0.4 0.8 N/A N/A 0.7 N/A 2.6
2016 1.4 3.2 -0.3 -0.5 1.4 N/A N/A 1.5 N/A 2.7
2017 -2.3 -1.0 -0.7 -0.5 -1.0 N/A N/A -1.5 N/A 2.5
2018 1.2 0.1 -0.3 -0.5 1.2 N/A N/A 1.4 N/A 2.6
2019 0.6 1.2 0.4 0.5 0.9 N/A N/A 0.9 N/A 2.2
2020 -0.5 -0.2 -0.9 -1.0 0.1 N/A N/A -0.1 N/A 2.4
Sector Rank 28/38 34/38 21/38 18/38 22/38 N/A N/A 24/38 N/A N/A
Economy Rank 1082/1373 1086/1373 883/1373 803/1373 878/1373 N/A N/A 872/1373 N/A N/A
Key Ratios Imports/ Exports/ Revenue per Share of the

IVA/Revenue Demand Revenue Employee Wages/Revenue Employees Average Wage Economy
(%) (%) (%) ($000) (%) per Est. ($) (%)
2006 35.29 N/A N/A 587.62 16.99 7.59 99,812.09 0.09
2007 34.74 N/A N/A 517.81 15.54 8.68 80,449.01 0.08
2008 34.09 N/A N/A 481.88 16.69 9.86 80,409.41 0.08
2009 39.42 N/A N/A 433.44 19.72 10.42 85,454.32 0.09
2010 37.07 N/A N/A 456.91 18.57 10.24 84,846.93 0.08
2011 33.32 N/A N/A 513.06 16.12 8.71 82,706.20 0.07
2012 34.41 N/A N/A 541.42 15.41 8.99 83,450.80 0.07
2013 33.41 N/A N/A 543.38 15.41 9.10 83,739.21 0.07
2014 36.53 N/A N/A 541.89 15.45 9.23 83,725.60 0.08
2015 33.69 N/A N/A 538.77 15.52 9.28 83,643.32 0.07
2016 34.28 N/A N/A 538.83 15.55 9.44 83,762.24 0.07
2017 34.74 N/A N/A 531.77 15.67 9.41 83,348.56 0.07
2018 34.35 N/A N/A 531.64 15.70 9.55 83,445.37 0.07
2019 34.56 N/A N/A 530.31 15.74 9.60 83,452.90 0.07
2020 34.65 N/A N/A 527.48 15.80 9.69 83,326.14 0.06
Sector Rank 27/38 N/A N/A 12/38 29/38 26/38 21/38 16/38
Economy Rank 619/1373 N/A N/A 321/1373 815/1373 798/1373 174/1373 253/1373
Figures are in inflation-adjusted 2015 dollars. Rank refers to 2015 data. SOURCE: WWW.IBISWORLD.COM
Jargon & Glossary
Industry Jargon BLU-RAYAn optical disc format designed to display ULTRAVIOLET (UV)A format that can involve a disc, or,
high-definition video and store large amounts of data. alternatively, a download, that enables users to collect
FEATURE FILMA full-length film or film longer than one and access audiovisual content.
hour. VERTICAL INTEGRATIONOwning different parts of
IN-HOUSEWhen production duties are performed the supply chain, either in the form of forward
within a movie studio instead of being contracted to integration (owning upstream suppliers) or backward
other companies. integration (owning downstream buyers).
OFFSHOREThe relocation of a companys business
process, such as manufacturing or accounting, from one
country to another, whether the work is outsourced or
stays within the company.
IBISWorld Glossary BARRIERS TO ENTRYHigh barriers to entry mean that IMPORTS Total value of industry goods and services
new companies struggle to enter an industry, while low brought in from foreign countries to be sold in the
barriers mean it is easy for new companies to enter an United States.
industry. INDUSTRY CONCENTRATIONAn indicator of the
CAPITAL INTENSITY Compares the amount of money dominance of the top four players in an industry.
spent on capital (plant, machinery and equipment) with Concentration is considered high if the top players
that spent on labor. IBISWorld uses the ratio of account for more than 70% of industry revenue.
depreciation to wages as a proxy for capital intensity. Medium is 40% to 70% of industry revenue. Low is less
High capital intensity is more than $0.333 of capital to than 40%.
$1 of labor; medium is $0.125 to $0.333 of capital to $1 INDUSTRY REVENUEThe total sales of industry goods
of labor; low is less than $0.125 of capital for every $1 of and services (exclusive of excise and sales tax); subsidies
labor. on production; all other operating income from outside
CONSTANT PRICESThe dollar figures in the Key the firm (such as commission income, repair and service
Statistics table, including forecasts, are adjusted for income, and rent, leasing and hiring income); and
inflation using the current year (i.e. year published) as capital work done by rental or lease. Receipts from
the base year. This removes the impact of changes in interest royalties, dividends and the sale of fixed
the purchasing power of the dollar, leaving only the tangible assets are excluded.
real growth or decline in industry metrics. The inflation INDUSTRY VALUE ADDED (IVA)The market value of
adjustments in IBISWorlds reports are made using the goods and services produced by the industry minus the
US Bureau of Economic Analysis implicit GDP price cost of goods and services used in production. IVA is
deflator. also described as the industrys contribution to GDP, or
DOMESTIC DEMANDSpending on industry goods and profit plus wages and depreciation.
services within the United States, regardless of their INTERNATIONAL TRADEThe level of international
country of origin. It is derived by adding imports to trade is determined by ratios of exports to revenue and
industry revenue, and then subtracting exports. imports to domestic demand. For exports/revenue: low is
EMPLOYMENTThe number of permanent, part-time, less than 5%, medium is 5% to 20%, and high is more
temporary and seasonal employees, working proprietors, than 20%. Imports/domestic demand: low is less than
partners, managers and executives within the industry. 5%, medium is 5% to 35%, and high is more than 35%.
ENTERPRISE A division that is separately managed LIFE CYCLEAll industries go through periods of growth,
and keeps management accounts. Each enterprise maturity and decline. IBISWorld determines an
consists of one or more establishments that are under industrys life cycle by considering its growth rate
common ownership or control. (measured by IVA) compared with GDP; the growth rate
ESTABLISHMENTThe smallest type of accounting unit of the number of establishments; the amount of change
within an enterprise, an establishment is a single the industrys products are undergoing; the rate of
physical location where business is conducted or where technological change; and the level of customer
services or industrial operations are performed. Multiple acceptance of industry products and services.
establishments under common control make up an NONEMPLOYING ESTABLISHMENT Businesses with
enterprise. no paid employment or payroll, also known as
EXPORTSTotal value of industry goods and services sold nonemployers. These are mostly set up by self-employed
by US companies to customers abroad. individuals.
Jargon & Glossary
IBISWorld Glossary PROFITIBISWorld uses earnings before interest and tax WAGESThe gross total wages and salaries of all
(EBIT) as an indicator of a companys profitability. It is employees in the industry. The cost of benefits is also
continued calculated as revenue minus expenses, excluding included in this figure.
interest and tax.
VOLATILITYThe level of volatility is determined by
averaging the absolute change in revenue in each of the
past five years. Volatility levels: very high is more than
20%; high volatility is 10% to 20%; moderate
volatility is 3% to 10%; and low volatility is less than
3%.
www.ibisworld.com | 1-800-330-3772 | info @ibisworld.com
At IBISWorld we know that industry intelligence

is more than assembling facts
It is combining data with analysis to answer the
questions that successful businesses ask
Identify high growth, emerging & shrinking markets
Arm yourself with the latest industry intelligence
Assess competitive threats from existing & new entrants
Benchmark your performance against the competition
Make speedy market-ready, profit-maximizing decisions
Who is IBISWorld?
We are strategists, analysts, researchers, and marketers. We provide
answers to information-hungry, time-poor businesses. Our goal is to
provide real world answers that matter to your business in our 700 US
industry reports. When tough strategic, budget, sales and marketing
decisions need to be made, our suite of Industry and Risk intelligence
products give you deeply-researched answers quickly.
IBISWorld Membership
IBISWorld offers tailored membership packages to meet your needs.
Disclaimer
This product has been supplied by IBISWorld Inc. (IBISWorld) solely for use of, or reliance upon, the data or information contained herein. Copyright in
by its authorized licenses strictly in accordance with their license agreements this publication is owned by IBISWorld Inc. The publication is sold on the
with IBISWorld. IBISWorld makes no representation to any other person basis that the purchaser agrees not to copy the material contained within it
with regard to the completeness or accuracy of the data or information for other than the purchasers own purposes. In the event that the purchaser
contained herein, and it accepts no responsibility and disclaims all liability uses or quotes from the material in this publication - in papers, reports, or
(save for liability which cannot be lawfully disclaimed) for loss or damage opinions prepared for any other person - it is agreed that it will be sourced to:
whatsoever suffered or incurred by any other person resulting from the use IBISWorld Inc.
Copyright 2015 IBISWorld Inc

PDF PDF

Hochgeladen von

Dokumentinformationen

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

PDF PDF

Hochgeladen von

Copyright:

Verfügbare Formate

WWW.IBISWORLD.

COM Movie & Video Production in the USDecember 2015 1

Its a wrap: Studios will produce more

IBISWorld Industry Report 51211a

2 About this Industry 17 International Trade 33 Technology & Systems

www.ibisworld.com | 1-800-330-3772 | info @ibisworld.com

About this Industry

Main Activities The primary activities of this industry are

The major products and services in this industry are

Similar Industries 33461 Recordable Media Manufacturing in the US

51212 Movie & Video Distribution in the US

51213 Movie Theaters in the US

51219 Video Postproduction Services in the US

71151 Performers & Creative Artists in the US

About this Industry

Additional Resources For additional information on this industry

IBISWorld writes over 700 US

Key Statistics Revenue Annual Growth 10-15 Annual Growth 15-20

$5.0bn $5.3bn 6,527

The Walt Disney 10 6

Time Warner Inc. 6

Key External Drivers 8.0%

Industry Structure Life Cycle Stage Decline Regulation Level Medium

Total advertising expenditure Demand from movie theaters

Current Over the past five years, operators in the

comedies, which bring in comparatively

added to the operational costs of movie

Technology and the Poor domestic movie theater ticket sales

Industry Over the next five years, movie and video

State budgetary The restructuring of statewide budgets

Industry landscape In response to high operational costs distribution models may be an

20 Maturity Quality Growth

Key Features of a Decline Industry

Movie & Video Production

Recordable Media Manufacturing

Products & Markets

Supply Chain KEY BUYING INDUSTRIES

KEY SELLING INDUSTRIES

Products & Services Products and services segmentation (2015)

Action and adventure films returns on investment. Action and

Products & Markets

Comedy films Other

Products & Markets

Demand Consumer income and film reception Technology and funding

Products & Markets

Major Markets Major market segmentation (2015)

Total $34.1bn SOURCE: WWW.IBISWORLD.COM

Products & Markets

Products & Markets

Business Locations 2015

Products & Markets

Business Locations The Movie and Video Production industry

accounts for 38.4% of total domestic film

a robust concentration of industry film

Key Success Factors Effective cost controls Ability to manage external

Cost Structure Purchases The cost of equipment typically fluctuates,

Cost Structure Profit anticipated rise in wages, will likely keep

Sector vs. Industry Costs

Basis of Competition Internal Competition Funding is essential for a production

Basis of Competition companies is highly desired. Key External Competition

Barriers to Entry The size and reputation of a particular

Major players Viacom Inc. 6.3%

NBCUniversal Media LLC 13.5%

COM Movie & Video Production in the USDecember 2015 1