The Movie and Video Production industry has grappled with stark declines over the past five years as the COVID-19 pandemic and industry strikes rattled movie production. Producers have benefited from a steady demand for entertainment but have been hindered by the expansion of online streaming options. Since overall box office sales have fallen, the industry's business model has shifted to prioritize blockbusters and rely on foreign distribution. As a result, film studios prioritize reliable intellectual properties and diversify their distribution strategies to include digital platforms. Overall, revenue for the Movie and Video Production industry has fallen at a CAGR of 1.6% to $36.2 billion through the end of 2024, with revenue rising 2.6% in 2024 as the industry recovers.
Trends and Insights
- Studios are playing it safe with blockbusters.
- To offset risks, they are betting on franchises and sequels over original content. These tried-and-true properties guarantee a fan base and higher returns. TV licensing keeps movies alive and profitable.
- Television licensing provides a stable income stream for movie producers years after a film's theatrical release. Networks pay to air these movies, continually introducing them to new audiences and boosting ad revenue. California remains a film production hub thanks to easy access to talent and infrastructure.
- The state's mild climate and diverse scenery make it a versatile location, keeping Hollywood at the forefront of the industry. Media conglomerates continue to grow through mergers.
- These companies leverage their diversified portfolios to stay competitive, but this market power concentration might stifle competition and affect consumer costs.
Industry Overview
Industry revenue has declined at a CAGR of 1.6 % over the past five years, to reach an estimated $36.2bn in 2024.Trends and Insights
Producers turn to risk-averse blockbusters Sluggish box office sales have made film studios more risk-averse, a trend that has gradually unfolded over the past decade. This stems in part from other technologies competing for audiences' time. High-quality TV content, binge-watching culture and engaging social media platforms divert attention and time from movies due to convenience, cost-effectiveness and immediate entertainment, impacting traditional cinematic experiences.Industry outlook (2024-2029)
Market size is projected to grow over the next five years.Trends and Insights
- Widespread strikes exert influence over the future of production
- In May 2023, the Writers Guild of America (WGA) went on strike, seeking an increase in residuals payments from streaming media as well as protections against still nascent artificial intelligence (AI) technologies. They were joined by the Screen Actors Guild and American Federation of Television and Radio Artists (SAG-AFTRA) in July 2023.
Table of Contents
ABOUT THIS INDUSTRY
INDUSTRY PERFORMANCE
PRODUCTS & MARKETS
COMPETITIVE LANDSCAPE
OPERATING CONDITIONS
KEY STATISTICS
Methodology
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