When the words 'PriceWaterhouseCoopers' and 'movies' are uttered in the same sentence, it usually means someone is talking about the Oscars. But last week, the financial services company released its predictions for how film and entertainment consumption will change worldwide over the next four years.
Of course, this is the uncertain art of prediction, but it's still intriguing to see where the wonks think the world will go--film-wise, at least--in the next few years. Here are the six big take-aways, followed by graphs for all you visual learners:
- Revenue from film and entertainment sources will will grow from $88.3 billion last year to some $110.1 billion in 2018, hitting the $100 billion mark in 2017. As PwC points out, emerging markets (especially China) will be a major driver of growth, but existing markets like the U.S. and the U.K. will continue to be significant and increasing sources of revenue.
- Home entertainment--not surprisingly!--will increasingly come from digital rather than physical sources. Streaming and VOD services will grow by 2018 to fully overtake physical home entertainment like DVDs and Blu-Rays.
- Streaming services will grow the fastest of any sector of the entertainment industry, rising from $6.6 billion worldwide in 2013 to $22.7 billion in 2018.
- Thankfully, going to the movies will remain popular! PwC projects that global box office revenue will not only continue to make more money than physical home video, it will also grow over the next four years.
- China, according to PwC, will provide both "a challenge and an opportunity." PwC expects China to surpass Japan as the third-largest market for film (behind the U.S. and U.K.) in 2018, with total revenue reaching $7 billion by that year.
- Hollywood will remain king, for the time being, but distribution is changing. By 2018, with new platforms become more popular, "traditional distribution models will be disrupted," writes PwC.
Alright, so none of these developments are exactly breaking news. But it does put some fascinating numbers on trends that we've been following for years. China's becoming more and more important, and home entertainment is clearly a huge part of the future of the entertainment industry. As the great songwriter said, 'the times they are a-changin.'
Take a look at the full charts, after the jump.