Entertainment Spending Topped $100 Billion Worldwide for 1st Time, MPA Study Shows
Motion Picture Association’s annual THEME Report showed 14% annual growth in the global streaming market
Jeremy Fuster | March 11, 2020 @ 11:00 AM
Last Updated: March 11, 2020 @ 11:07 AM
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The Motion Picture Association’s annual THEME Report released Wednesday shows that the global entertainment market topped $100 billion in 2019 — the first time ever — thanks to surges in overseas box office revenue and streaming service subscriptions that pushed theatrical and home markets to a combined $101 billion.
The THEME report analyzes both theatrical markets and changes in home entertainment, as well as surveys of audience demographics for both sides of the industry. This year’s study expanded to include new data on streaming habits in the U.S. on mobile devices.
The home/mobile entertainment market expanded globally 14% year-over-year to $58.8 billion, with the U.S. portion of that total increasing 8% to $25.2 billion. This was largely driven by increases in subscriptions to online streaming services, which were up 28% globally and rose to 863 million subscriptions. This surge is expected to continue in 2020 as new services like Disney+ and HBO Max continue to enter the market. Physical media, meanwhile, continues to decline as global sales of Blu-Ray discs and DVDs last year totaled $10.1 billion, down 22% from 2018’s $12.4 billion total.
On the theatrical side, the domestic box office took a slight year-over-year drop at $11.4 billion; but overseas box office topped $30 billion for the first time, pushing global totals to a record $42.2 billion. That’s thanks in large part to a surge in Asian markets, which rose 4% to $17.8 billion. That’s a 22% increase from the $14.6 billion total grossed in Asia in 2015. China accounted for $9.3 billion in global grosses in 2019 while Japan contributed $2.4 billion and Korea passed the U.K. to become the third highest overseas market with $1.6 billion.
In the U.S., the MPA found that more than three-quarters of the population, or 268 million people, went to the cinema at least once in 2019, which is slightly up from 2018 levels. The typical moviegoer bought 4.6 tickets per year in 2019, with the 12-17 and 18-24 age groups registering above that average with 4.9 and 4.7 tickets per person respectively.
With the comparable lack of major global event films like “Avengers: Endgame” and “The Lion King” on the 2020 slate, box office totals for this year had been expected to take a cyclical drop. However, global 2020 totals are now expected to drop much more severely as the spread of the coronavirus has forced nationwide closings of movie theaters in major international markets like China, Korea, Italy and Japan. This has especially damaged the Chinese box office as lockdowns to contain the virus have effectively erased the profits that would have been earned during the critical Lunar New Year holiday season. Overall, the coronavirus is expected to cost the global industry up to $5 billion in lost revenue.
10 Top-Grossing Movies of All Time, Adjusted for Inflation (Photos)
"Avengers: Endgame" became the highest-grossing film of all time on July 21, when Disney announced that the movie had pulled in $2.79 billion at the global box office. But the title of the highest-grossing film is a deceptive one -- it doesn't take into account the changing prices of movie theater tickets or the general effect of economic inflation. CNBC enlisted Comscore, a media analytics company, to calculate the top 10 highest-grossing films in the U.S. when ticket price changes and inflation are taken into account.
Because of the wide variations in inflation rates between currencies, Comscore analysts focused only on ticket sales in the United States, where "Endgame" made $854 million according to BoxOfficeMojo. They found the average ticket price for the year a film was released and divided that into the film's domestic gross to find the estimated number of tickets the film sold, then multiplied the estimated number of tickets by the average price of a ticket in 2019 ($9.01, according to CNBC). Comscore also included any times that the film was re-released in the adjusted domestic gross.
At an $854 million domestic gross, "Endgame" did not even crack the top 10 when adjusted for inflation.
Here are the top domestic earners:
10. "Snow White and the Seven Dwarfs" (1939)
Estimated admissions: 109,000,000
Non-adjusted domestic gross: $184,925,486
Estimated domestic adjusted gross: $982,090,000
Disney’s first animated feature has been rereleased at least three times since its debut in 1937 according to CNBC, selling around 109 million tickets in total. “Snow White” made more in its 1983, 1987 and 1993 releases than it did in its initial run, and when all of those are adjusted for today’s ticket price, the movie would have made just under $1 billion in the U.S.
RKO Radio Pictures
9. "The Exorcist" (1973)
Estimated admissions: 116,532,505
Non-adjusted domestic gross: $232,906,145
Estimated domestic adjusted gross: $1,049,957,870
Audiences may have fainted, vomited and cried in the theater when “The Exorcist” debuted in 1973, but that didn’t stop them from buying tickets. William Friedkin’s groundbreaking horror film made the bulk of its money during its initial release, according to CNBC, and was brought to theaters again in 2000 and 2010 with extended scenes. All told, the movie sold an estimated 116.5 million tickets, which equates to around $1.04 billion.
Warner Bros.
8. "Doctor Zhivago" (1965)
Estimated admissions: 124,612,132
Non-adjusted domestic gross: $112,150,919
Estimated domestic adjusted gross: $1,122,755,309
“Doctor Zhivago” earned $112.1 million during its 1965 theatrical run, selling around 124.6 million tickets. The romantic drama, based on a 1957 novel by Boris Pasternak, picked up five Academy Awards, and would have brought in around $1.12 billion at today’s ticket prices.
MGM
7. "Jaws" (1975)
Estimated admissions: 128,078,818
Non-adjusted domestic gross: $260,000,000
Estimated domestic adjusted gross: $1,153,990,148
Often referred to as the first summer blockbuster, Steven Spielberg’s “Jaws” debuted in 1975, selling around 128 million tickets and ruining an untold number of beach vacations. That’s equivalent to $1.15 billion at today’s ticket prices.
Universal Pictures
6. "The Ten Commandments" (1956)
Estimated admissions: 131,000,000
Non-adjusted domestic gross: $65,500,000
Estimated domestic adjusted gross: $1,180,310,000
Cecil B. DeMille’s biblical epic sold an estimated 131 million tickets during its 1956 run, earning $65.5 million. When adjusted for inflation, the Charlton Heston and Yul Brynner vehicle would have earned $1.18 billion at the box office, even with its 3-hour-and-40-minute runtime.
Paramount Pictures
5. "Titanic" (1997)
Estimated admissions: 143,501,591
Non-adjusted domestic gross: $658,672,302
Estimated domestic adjusted gross: $1,292,949,334
Even without adjustments for inflation, James Cameron’s high-seas romance sits just below “Avengers: Infinity War” as the sixth highest-grossing film at the domestic box office and just under “Avatar” as the third highest-grossing film globally. The film has been in theaters three times -- an initial run, a 3D rerelease and a 20th anniversary rerelease -- selling about 143.5 million tickets in total. By today's ticket prices, the movie would have earned around $1.29 billion.
Paramount Pictures
4. "E.T. the Extra-Terrestrial" (1982)
Estimated admissions: 147,950,537
Non-adjusted domestic gross: $434,974,579
Estimated domestic adjusted gross: $1,333,034,339
Steven Spielberg’s sci-fi adventure has brought in $434.9 million since it was first released in 1982. It sold about 147.9 million tickets over the course of three releases, with two rereleases in 1985 and 2002, which equates to around $1.33 billion using today’s average ticket price. The movie’s effect on Reese’s Pieces sales remains in dispute, though.
Universal Pictures
3. "The Sound of Music" (1965)
Estimated admissions: 157,218,258
Non-adjusted domestic gross: $159,509,250
Estimated domestic adjusted gross: $1,416,536,505
The hiiills are alive...with the sound of 157 million tickets…
This musical was released twice in theaters, first in 1965 and again in 2018, selling the majority of its tickets in the initial run and making $158.8 million in the U.S. Adjusted for today’s ticket prices, that’s $1.41 billion.
Twentieth Century Fox
2. "Star Wars" (1977)
Estimated admissions: 178,119,595
Non-adjusted domestic gross: $460,998,007
Estimated domestic adjusted gross: $1,604,857,551
The original “Star Wars” (“Star Wars: Episode IV - A New Hope” for the sticklers in the audience) has been rereleased in theaters at least twice since it first wowed audiences in 1977, earning $460.9 million in the United States. It sold an estimated 178.1 million tickets, which comes out around $1.6 billion in modern box office terms.
Twentieth Century Fox
1. "Gone with the Wind" (1939)
Estimated admissions: 201,068,305
Non-adjusted domestic gross: $203,078,988
Estimated domestic adjusted gross: $1,811,625,428
1939’s Civil War-era romance has been rereleased at least seven times since its premiere, according to Comscore, selling around 201 million tickets, which equates to about $1.81 billion in modern ticket prices. That leaves Clark Gable and Vivien Leigh’s Southern drama a theoretical billion dollars ahead of the latest Marvel flick’s domestic gross.
MGM
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When box office numbers are adjusted for ticket price inflation, “Gone With The Wind” easily tops “Avengers: Endgame”
"Avengers: Endgame" became the highest-grossing film of all time on July 21, when Disney announced that the movie had pulled in $2.79 billion at the global box office. But the title of the highest-grossing film is a deceptive one -- it doesn't take into account the changing prices of movie theater tickets or the general effect of economic inflation. CNBC enlisted Comscore, a media analytics company, to calculate the top 10 highest-grossing films in the U.S. when ticket price changes and inflation are taken into account.
Because of the wide variations in inflation rates between currencies, Comscore analysts focused only on ticket sales in the United States, where "Endgame" made $854 million according to BoxOfficeMojo. They found the average ticket price for the year a film was released and divided that into the film's domestic gross to find the estimated number of tickets the film sold, then multiplied the estimated number of tickets by the average price of a ticket in 2019 ($9.01, according to CNBC). Comscore also included any times that the film was re-released in the adjusted domestic gross.
At an $854 million domestic gross, "Endgame" did not even crack the top 10 when adjusted for inflation.
RKO Radio Pictures
