Global moviegoers spent $40.6 billion on theater tickets in 2017, up 13% year over year. North American (United States and Canada) box office sales fell 2% to $11.1 billion and international sales rose 18% to $29.5 billion. On the basis of number of tickets sold, U.S. sales were down 6%.
The big news, however, is that more money is being spent globally on in-home entertainment than on going out to the movies, and the lion’s share of that spending is going to digital options like streaming.
Global spending on in-home entertainment rose by 11% to $47.8 billion, including $13.7 billion in digital sales in the United States, up 20% year over year and $18.5 billion internationally, up 41% year over year.
The data were reported by the Motion Picture Association of America (MPAA) in its 2017 THEME (Theatrical and Home Entertainment Market Environment) report.
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The primary growth driver for theater ticket sales in the Asia/Pacific region was China, where box office sales rose 21% year over year in 2017 to $7.9 billion. Including China, four of the top five movie markets are all included in the Asia/Pacific region: Japan ranked second with $2 billion in ticket sales and three countries — India, the United Kingdom and South Korea — tied for third with $1.6 billion in box office receipts.
Digital sales include electronic sell-through (EST), video-on-demand (VOD) and subscription streaming by paid subscribers.
Spending on physical products for in-home entertainment (DVDs) fell 15% in the United States and 16% internationally to $6.83 billion and $8.85 billion, respectively. Digital sales overtook physical sales in 2016.
As a percentage of global theatrical and home entertainment consumer spending, theatrical sales accounted for 46% of all sales, digital home entertainment accounted for 36% and physical home entertainment accounted for 18%.
Globally subscriptions to online video services rose by 33% to 446.8 million. Cable TV subscriptions dipped for the second consecutive year, although cable continues to be the revenue leader with $108 billion last year.
The full MPAA report is available at the group’s website.
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