Motion Picture Association (MPA) released the 2020 Global Film Industry Report (2020 THEME Report), which shows the impact of Covid-19 on the film, TV and streaming services.
Box office revenue plunges due to Covid-19
According to the report, the total value of the global theater and home/mobile entertainment market in 2020 is USD 80 billion, decreased by 18% from USD 88 billion in 2019.
Even though box office earnings plunged, improved home/mobile revenues helped to offset some of the decline.
Last year, global box office revenue reached USD 12 billion, which is about 28% of last year’s revenue, USD 42.3 billion. Among them, box office revenue in North America (US, Canada) is USD 2.2 billion, down 80% from USD 11.4 billion in 2019. The Asia-Pacific region saw a 66% decrease in theater revenue, from USD 17.8 billion last year to USD 6 billion this year. In particular, China's box office revenue, which has the largest market share in the Asia-Pacific region, fell 68%. And, with a 75% drop in Korea, a 77% drop in India, and a 44% drop in Japan, box office revenue has suffered a fatal blow.
Dramatic increase of OTT market In contrast, the market size of home/mobile entertainment, including the OTT and DVD, has expanded dramatically.
According to the report, global home/mobile entertainment revenue increased by 23% year over year to USD 68.8 billion from last year. The biggest improvement in the film industry last year was home/mobile entertainment, especially OTT market. In particular, the OTT market, led by Netflix, grew by more than 30% from 2019, thanks to Walt Disney Company's Disney Plus, Warner Media's HBO Max and Apple Studio's Apple TV Plus started their own service.
Charles Rivkin, CEO of MPA said in a commentary that “It’s the first time in history that there have been more than a billion subscribers to streaming services. Major Hollywood studios have launched their own OTT platform. Covid-19 has accelerated changes that were already taking place across the industry.”