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U.S.

Entertainment Industry: 2003 MPA Market Statistics

MPA Worldwide Market Research

U.S. Entertainment Industry: 2003 MPA Market Statistics

Table of Contents

Box Office ... 3-6


Admissions .... 7-10
High Grossing Films ... 11
Films Released ........ 12-14
Ratings ....... 15-16
Theatrical ....... 17-26

Employment ........ 27-28


Home Video ............ 29-36

Television Statistics. 37-39


Cable Statistics. 40-46

Technology ............ 47-56

VCR Statistics .. 29-30


DVD Statistics .. 30-36

Television ............... 37-46

Negative Costs . 17-19


Marketing Costs 20-22
Screens .. 23-24
Theaters . 25-26

PC Statistics .... 47-49


Internet Statistics .... 50-56

Media Consumption ........ 57-60

MPA Worldwide Market Research

U.S. Entertainment Industry: 2003 MPA Market Statistics

Box Office
After a record breaking year in 2002, US box office continued the momentum grossing $9.49 billion in 2003. This years box office was boosted by a strong slate of
films released during the summer months.

Box Office Trends


10.0
9.5

9.5

Billions USD

9.0
8.4

0.3%
13.2%

8.0

7.7
7.5

9.8%
7.0

2.9%

Summer Box Office: $3.97


billion; +11% compared to
2002 summer box office.

6.0

Source: MPAA

1999

MPA Worldwide Market Research

2000

2001

2002

2003

U.S. Entertainment Industry: 2003 MPA Market Statistics

Box Office
Box Office Growth

Source: MPAA

Box Office has increased


over $6 billion in the past
20 years.

MPA Worldwide Market Research

Year
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983

Box Office
Gross
(USD MM)
$9,488.5
9,519.6
8,412.5
7,660.7
7,448.0
6,949.0
6,365.9
5,911.5
5,493.5
5,396.2
5,154.2
4,871.0
4,803.2
5,021.8
5,033.4
4,458.4
4,252.9
3,778.0
3,749.4
4,030.6
3,766.0

% Change
Prev. Period 2003 vs.
-0.3%
13.2
-0.3%
9.8
13.2%
2.9
23.9
7.2
27.4
9.2
36.5
7.7
49.1
7.6
60.5
1.8
72.7
4.7
75.8
5.8
84.1
1.4
94.8
(4.4)
97.5
(0.2)
88.9
12.9
88.5
4.8
112.8
12.6
123.1
0.8
151.2
(7.0)
153.1
7.0
135.4
152.0

U.S. Entertainment Industry: 2003 MPA Market Statistics

Box Office
7 films grossed over $50 million on their opening weekend, with The Matrix Reloaded
claiming the top spot (opening at $92 million).

2003 High Grossing Opening Weekend


Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Title
The Matrix Reloaded
Bruce Almighty
X2: X-Men United
Lord of the Rings: Return King
Finding Nemo
The Hulk
2 Fast 2 Furious
The Matrix Revolutions
Scary Movie 3
Pirates of the Caribbean
Bad Boys 2
Daredevil
Terminator 3: Rise of the Machines
Anger Management
Dr. Seuss' The Cat in the Hat
Charlie's Angels: Full Throttle
S.W.A.T.
Freddy vs. Jason
American Wedding
Spy Kids 3D: Game Over

Distributor
Warner Bros.
Universal
Fox
New Line
Buena Vista
Universal
Universal
Warner Bros.
Miramax
Buena Vista
Sony
Fox
Warner Bros.
Sony
Universal
Sony
Sony
New Line
Universal
Miramax

Release Date
May 15th
May 23rd
May 2nd
December 17th
May 30th
June 20th
June 6th
November 5th
October 24th
July 9th
July 18th
February 14th
July 2nd
April 11th
November 21st
June 27th
August 8th
August 15th
August 1st
July 25th

Box Office
(USD MM)
$91.8
85.7
85.6
72.6
70.3
62.1
50.5
48.5
48.1
46.6
46.5
45.0
44.0
42.2
38.3
37.6
37.1
36.4
33.4
33.4

Source: Variety
MPA Worldwide Market Research

U.S. Entertainment Industry: 2003 MPA Market Statistics

Box Office
Fourth quarter pulled in the highest grosses again in 2003 totaling $2.6 billion, fourth
quarter represents 28% of 2003 total box office.

Quarterly Box Office


Quarter
Q1
Q2
Q3
Q4
Year

USD in millions
2002
2003
$1,991.9 $1,887.8
2,490.8
2,353.4
2,334.1
2,618.6
2,702.8
2,628.8
$9,519.6 $9,488.5

4th Qtr 2002 Box Office Hits

% Change
-5.2%
-5.5
12.2
-2.7
-0.3%
4th Qtr 2003 Box Office Hits

Box Office*
Rank Title
(USD in MM)
1
Harry Potter: Chamber of Secrets
$247.4
2
Lord of the Rings: Two Towers
236.0
3
Die Another Day
150.8
4
The Santa Clause 2
137.5
5
The Ring
127.0
Top 5 Total:
$898.7

Box Office*
Rank Title
(USD in MM)
1
Lord of the Rings: Return of the King
$290.4
2
Elf
170.8
3
The Matrix Revolutions
138.3
4
Scary Movie 3
109.6
5
Dr. Seuss' The Cat in the Hat
99.4
Top 5 Total:
$808.5

Source: MPAA
MPA Worldwide Market Research

*Box Office = total year, not 4th qtr. receipts

U.S. Entertainment Industry: 2003 MPA Market Statistics

Admissions
Admissions Trends
1.8

US Admissions decreased slightly


( 4.0%) in the wake of 2002's
strong slate of blockbusters, but
remained the 2 nd highest
admissions of all time -- almost 87
million tickets ahead of 2001.

1.64
1.57

1.6
1.49

Billions

1.47
1.42

10.2%

1.4
4.7%

-3.0%

1.2

-4.0%

1.0
1999
Source: MPAA

2000

2001

2002

2003

Note: Based on NATO average ticket price

MPA Worldwide Market Research

U.S. Entertainment Industry: 2003 MPA Market Statistics

Admissions
Admissions Growth

In the past decade, admissions have


increased nearly 27% ( 330 million) .

Note: 1989 to present based on NATO average ticket price

Source: MPAA
MPA Worldwide Market Research

Year
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983

Admissions
1,574.0
1,639.3
1,487.3
1,420.8
1,465.2
1,480.7
1,387.7
1,338.6
1,262.6
1,291.7
1,244.0
1,173.2
1,140.6
1,188.6
1,262.8
1,084.8
1,088.5
1,017.2
1,056.1
1,199.1
1,196.9

% Change
Prev. Period
2003 vs.
-4.0%
10.2%
(4.0)
4.7
5.8
(3.0)
10.8
(1.0)
7.4
6.7
6.3
3.7
13.4
6.0
17.6
(2.3)
24.7
3.8
21.9
6.0
26.5
2.9
34.2
(4.0)
38.0
(5.9)
32.4
16.4
24.6
(0.3)
45.1
7.0
44.6
(3.7)
54.7
(11.9)
49.0
0.2
31.3
-31.5
8

U.S. Entertainment Industry: 2003 MPA Market Statistics

Admissions
For the past seven years, each U.S. resident attended an average of at least 5 movies
per year.

Admissions Trends Per Capita


5.7

5.8

Admissions

5.6

5.4
5.3

5.4
5.2
5.2

5.0

5.0
4.8

4.8

4.8
4.6

4.5
4.4

4.4
19
80

19
85

19
90

19
93

19
96

20
00

20
01

20
02

20
03

Source: MPAA
MPA Worldwide Market Research

U.S. Entertainment Industry: 2003 MPA Market Statistics

Admissions

Average Annual Admission Price

Year
2003
2002
2001
2000
1999
1995
1992
1990
1985
1980

Avg. Annual
% Change
Admission
2003 vs.
Price (USD) Prev. Period
$6.03
3.8%
5.81
2.7
3.8%
5.66
4.9
6.6%
5.39
6.1
11.8
5.08
16.8
18.6
4.35
4.8
38.5
4.15
(1.7)
45.2
4.23
19.0
42.7
3.55
31.9
69.8
2.69
-124.0

% Change
CPI
1.9
2.4
1.6
3.4
2.7
1.7
2.9
3.3
2.5
2.7

Note: NATO average ticket price based on NSNB survey and reflects average price paid for all admissions to movie theaters,
inclusive of first run, subsequent runs, senior citizens, children, and all special pricing.

Source: MPAA
MPA Worldwide Market Research

10

U.S. Entertainment Industry: 2003 MPA Market Statistics

Film Rental
Titles grossing >$50 Million

Number of High Grossing Features:


Film Rentals
23

25
19
20
15

16
13

10
5

16

2001

2002

2003

0
1999

2000

50 mil +

100 mil +

* Amount represents 2003 box office figures only.


Source: MPAA
MPA Worldwide Market Research

Elf
Chicago*
Terminator 3: Rise Of The Machines
Bad Boys 2
The Matrix Revolutions
Anger Management
The Hulk
2 Fast 2 Furious
Seabiscuit
S.W.A.T.
Freaky Friday
Daddy Day Care
Charlie's Angels: Full Throttle
Dr. Seuss' The Cat In The Hat
Lord of the Rings: Two Towers*
Total
% of Total Box Office

Total Box Office


$170.8
$161.4
$150.4
$138.4
$138.3
$133.8
$132.1
$127.1
$120.2
$116.6
$110.2
$104.2
$100.8
$99.4
$80.7
$1,987.0
21%

Titles grossing >$100 Million


Total Box Office
$339.7
Finding Nemo
$305.4
Pirates of the Caribbean
The Matrix Reloaded
$281.5
Bruce Almighty
242.6
X2
214.9
Total
$1,674.6
% of Total Box Office
18%

11

U.S. Entertainment Industry: 2003 MPA Market Statistics

Films Released
Number of Theatrical Films Produced, Rated, & Released

Year
2003
2002
2001
2000
1999
1998
1997
1996

Produced
593
543
611
683
758
686
767
735

Rated
940
786
739
762
677
661
673
713

Released
473
467
482
478
461
509
510
471

Note: Films rated may be higher than films produced for a given year because films may be rated or rerated
months or even years after production.
Source: MPAA
MPA Worldwide Market Research

12

U.S. Entertainment Industry: 2003 MPA Market Statistics

Films Released

Films Released in the US


600
500
400

470

461

442

475
458

482

462

466

473
449

459

389

300
200
100

81
19

20

17

17

14

0
1985

1999
Total

2000

2001

New Releases

2002

2003

Reissued

Source: MPAA
MPA Worldwide Market Research

13

U.S. Entertainment Industry: 2003 MPA Market Statistics

Films Released
Average Box Office of New Releases
The total number of films released in
2003 increased 1.5%. MPAA new
releases grossed an average of $41.6
million- an increase of 27%over the
prior year.

Year
2003
2002
2001
2000
1999

All New
Releases
$20.7
21.2
18.2
16.7
16.9

MPAA New
Releases
$41.6
32.8
34.8
30.0
27.5

Feature Films Released in the US

Year
2003
2002
2001
2000
1999
1985

New Films
All Other
Total New
MPAA Distributors Releases
194
265
459
220
229
449
188
274
462
191
267
458
213
229
442
212
158
370

Reissued Films
All Other
Total
MPAA Distributors Reissues
4
10
14
5
12
17
8
13
21
6
11
17
5
14
19
22
19
41

Source: MPAA
MPA Worldwide Market Research

14

U.S. Entertainment Industry: 2003 MPA Market Statistics

Ratings
Percent of films by Rating
1968 to 2003

NC-17/X
2%

G
7%

R
58%

Top Grossing Films by Rating 1968 to 2003


Title
Finding Nemo
The Lion King
Monsters, Inc.
Toy Story 2
Aladdin

Distributor
Buena Vista
Buena Vista
Buena Vista
Buena Vista
Buena Vista

Box Office
(USD MMl)
339.7
312.9
255.9
245.9
217.4

1
2
3
4
5

Star Wars
E.T.
Star Wars: Phantom Menace
Harry Potter: Sorcerer's Stone
Star Wars: Attack of the Clones

Fox
Universal
Fox
Warner Bros.
Fox

461.0
435.0
431.1
317.6
310.7

PG
PG
PG
PG
PG

May-77
Jun-82
May-99
Nov-01
May-02

1
2
3
4
5

Titanic
Spider-Man
Jurassic Park
Lord of the Rings:Two Towers
Forrest Gump

Paramount
Sony
Universal
New Line
Paramount

600.8
403.7
357.1
341.7
329.7

PG-13
PG-13
PG-13
PG-13
PG-13

Dec-97
May-02
Jun-93
Dec-02
Jun-94

1
2
3
4
5

The Matrix Reloaded


Beverly Hills Cop
The Exorcist
Saving Private Ryan
Terminator 2

Warner Bros.
Paramount
Warner Bros.
Dreamworks
TriStar

281.5
234.8
232.7
216.2
204.8

R
R
R
R
R

May-03
Dec-84
Dec-73
Jul-98
Jul-91

Rank
1
2
3
4
5

PG
22%

PG-13
11%

Rating
G
G
G
G
G

Release
Date
May-03
Jun-94
Dec-04
Nov-99
Nov-92

Source: MPAA
MPA Worldwide Market Research

15

U.S. Entertainment Industry: 2003 MPA Market Statistics

Ratings
PG-13 films represent 60%of the top 20 films in 2003. PG and PG-13 films account for
75% of 2003s top 20 films.

2003 Top 20 Grossing Films


Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

Title
Finding Nemo
Pirates of the Caribbean
Lord of the Rings: Return of the King
The Matrix Reloaded
Bruce Almighty
X2: X-Men
Elf
Chicago*
Terminator 3: Rise of the Machines
Bad Boys II
The Matrix Revolutions
Anger Management
Bringing Down the House
The Hulk
2 Fast 2 Furious
Seabiscuit
S.W.A.T
Spy Kids 3-D: Game Over
Freaky Friday

20 Scary Movie 3

Source: MPAA

Distributor
Buena Vista
Buena Vista
New Line
Warner Bros.
Universal
Fox
New Line
Miramax
Warner Bros.
Sony
Warner Bros.
Sony
Buena Vista
Universal
Universal
Universal
Sony
Miramax
Buena Vista
Paramount

Box Office
(USD MM)
$339.7
305.4
290.4
281.5
242.6
214.9
170.8
161.4
150.4
138.4
138.3
133.8
132.6
132.1
127.1
120.2
116.6
111.7
110.2
109.6

Rating
G
PG-13
PG-13
R
PG-13
PG-13
PG
PG-13
R
R
R
PG-13
PG-13
PG-13
PG-13
PG-13
PG-13
PG
PG
PG-13

2003 Top 20 Films by Rating


R
20%

G
5%

PG
15%

12
PG-13
60%

Year
2003
2002
2001
2000

Top 20 Grossing
G
PG
PG-13
5%
15%
60%
5%
30%
65%
10%
20%
55%
5%
15%
60%

R
20%
0%
15%
20%

*Films released prior to 2003, box office reflects 2003 gross only

MPA Worldwide Market Research

16

U.S. Entertainment Industry: 2003 MPA Market Statistics

United States

Theatrical Costs

MPAA Member Company Average Theatrical Costs


15.1%

102.9
89.4

100

82.1
76.0

78.7
39.0

80
30.6
27.3
24.5

60

31.0

44.0

40

14.1

17.1
20
5.2

51.5

54.8

1999

2000

58.8

63.8

47.7

29.9

11.9

The 28% increase


in Member
Company
marketing costs
can be attributed
to the significant
increase in the
cost of advertising
on television,
which represents
39% of total
advertising costs
for new releases.

0
1983

1993

Negative Costs

2001

2002

2003

Marketing Costs

Source: MPAA
MPA Worldwide Market Research

17

U.S. Entertainment Industry: 2003 MPA Market Statistics

Theatrical
MPAA Member Subsidiary / Affiliate Average Theatrical Costs
61.6
60

45.2

50

14.7

41.0

40

11.2

31.6
9.5

24.9

30

10.1

20
10

46.9

6.5

18.4

31.5

34.0

2001

2002

21.5

0
1999

Source: MPAA
MPA Worldwide Market Research

2000

Negative Costs

2003

Marketing Costs

18

U.S. Entertainment Industry: 2003 MPA Market Statistics

Theatrical
MPAA Average Negative Costs *
(includes production costs, studio overhead and
capitalized interest)

Year
2003
2002
2001
2000
1999
1993
1983

Average Negative
Cost Per Feature
(USD in MM)

$63.8
58.8
47.7
54.8
51.5
29.9
11.9

% Change
Prev. Period 2003 vs.
8.6%
23.3
8.6%
(13.0)
33.9
6.5
16.5
97.7
24.0
3.5
113.5
0.8
436.3

* Due to changes in financial reporting regulations in


year 2000, abandoned project costs are no longer
included in studio overhead, and as such are no
longer a part total Negative Costs.

MPAA Subsidiary/Affiliate Average


Negative Costs *
(includes production costs, studio overhead and
capitalized interest)

Year
2003
2002
2001
2000
1999

Average Negative
Cost Per Feature
(USD in MM)

$46.9
34.0
31.5
21.5
18.4

% Change
Prev. Period 2003 vs.
37.7%
8.0
37.7%
46.6
48.7
16.9
118.0
154.9

* Subsidiaries include studio classics divisions


such as Sony Pictures Classics, Fox Searchlight,
New Line, Miramax, etc.

Source: MPAA
MPA Worldwide Market Research

19

U.S. Entertainment Industry: 2003 MPA Market Statistics

Theatrical
MPAA Member Company Average
Marketing Costs of New Feature Films

MPAA Member Subsidiary*/ Affiliate


Average Marketing Costs of New
Feature Films

All amounts USD in millions


Year
2003
2002
2001
2000
1999
1993
1983

Print
$4.21
3.31
3.73
3.30
3.13
1.94
1.02

Advertising Total P&A


$34.84
$39.05
27.31
30.62
27.28
31.01
24.00
27.30
21.40
24.53
12.13
14.07
4.18
5.20

27.5%

Year
2003
2002
2001
2000
1999

All amounts USD in millions


Print
Advertising Total P&A
$1.87
$12.80
$14.67
1.42
9.76
11.18
1.21
8.29
9.50
0.75
8.96
9.71
0.78
5.74
6.52

* Subsidiaries include studio classics divisions


such as Sony Pictures Classics, Fox
Searchlight, New Line, Fine Line, Miramax, etc.

Source: MPAA
MPA Worldwide Market Research

20

U.S. Entertainment Industry: 2003 MPA Market Statistics

Theatrical
MPAA Member Company Distribution of Advertising Costs by Media
% of Total
Year Total $ Newspaper Network Spot TV
2003 $34.84
13.9%
23.2%
15.7%
2002 27.31
13.5
23.0
17.6
2001 27.28
13.1
25.4
16.9
2000 24.00
15.6
23.8
18.3
1999 21.40
17.6
23.5
19.8

Other Media includes:


Cable TV/Network TV
Network Radio
Spot Radio
Magazines
Billboards
Other Non-Media includes:
Production/Creative Services
Exhibitor Services
Promotion & Publicity
Market Research

Source: MPAA
MPA Worldwide Market Research

Internet/
Online
1.3%
0.9
1.3
0.7
0.5

Trailers
4.4%
4.5
5.1
6.4
7.8

Other
Media
21.9%
21.4
20.2
18.8
15.4

Other NonMedia
20%

Other
Non-Media
19.5%
19.1
17.9
16.3
15.5

Newspaper
14%

Other
Media
22%

Network
23%
Trailers
Spot TV
4% Internet/
16%
Online
1%

21

U.S. Entertainment Industry: 2003 MPA Market Statistics

Theatrical
MPAA Member Company Subsidiary* / Affiliate
Distribution of Advertising Costs by Media
% of Total
Year Total $ Newspaper
2003 $12.80
18.6%
2002 9.76
22.0
2001 8.29
18.6
2000 8.96
20.5
1999 5.74
23.8
Other Media includes:
Cable TV/Network TV
Network Radio
Spot Radio
Magazines
Billboards
Other Non-Media includes:
Production/Creative Services
Exhibitor Services
Promotion & Publicity
Market Research

Source: MPAA
MPA Worldwide Market Research

Network
20.9%
25.7
42.8
36.4
35.4

Spot TV
7.3%
5.6
3.2
6.1
6.8

Internet/
Online
1.6%
0.9
0.4
0.5
0.3

Trailers
4.7%
6.1
5.2
5.5
4.1

Other
Media
28.0%
21.1
9.9
13.8
10.5

Other NonMedia
19%

Other
Non-Media
19.0%
18.6
19.9
17.3
19.1

Newspaper
19%

Network
21%

Other
Media
27%
Trailers
5%

Internet/
Online
1%

Spot TV
7%

* Subsidiaries include studio classics divisions such as Sony Pictures


Classics, Fox Searchlight, New Line, Fine Line, Miramax, etc.

22

U.S. Entertainment Industry: 2003 MPA Market Statistics

Theatrical
Total Number of Screens

Total
Screens

% Change
2003 vs.

Indoor
Screens

% Change
2003 vs.

Drive-In
Screens

% Change
2003 vs.

35,786

35,499

647

2002

35,280

1.4%

34,630

2.5%

650

-0.5%

2001
2000

36,764

(2.7)

36,110

(1.7)

654

(1.1)

37,396

(4.3)

36,679

(3.2)

717

(9.8)

1995

37,185
27,805

(3.8)
28.7

36,448
26,958

(2.6)
31.7

737
847

(12.2)
(23.6)

1990

23,689

51.1

22,774

55.9

915

(29.3)

1985

21,147

69.2

18,327

93.7

2,820

(77.1)

1980

17,590

103.4

14,029

153.0

3,561

(81.8)

Year
2003

1999

Source: MPAA
MPA Worldwide Market Research

23

U.S. Entertainment Industry: 2003 MPA Market Statistics

Theatrical
Worldwide Digital Cinema Screens

200

38%

171

160
124

176%

120

45%
80

158%
45
31

40
12
0
1999

2000

2001

2002

2003

Source: Screen Digest


MPA Worldwide Market Research

24

U.S. Entertainment Industry: 2003 MPA Market Statistics

Theatrical
Average Screens per Indoor Theater
6.4

6.3

6.2

Total Number of Theaters

6.1

6.0
5.8
5.6

5.5

5.4

5.3
5.2

5.2
1999

2000

2001

2002

2003

Total
% Change Indoor % Change Drive-In % Change
Year Theaters 2003 vs. Theaters 2003 vs. Theaters 2003 vs.

Source: MPAA

2003

6,066

5,658

408

2002

6,050

0.3%

5,635

0.4%

415

-1.7%

2001

7,070

(14.2)

6,596

(14.2)

474

(13.9)

2000

7,421

(18.3)

6,909

(18.1)

512

(20.3)

1999

7,551

(19.7)

7,031

(19.5)

520

(21.5)

1995

7,744

(21.7)

7,151

(20.9)

593

(31.2)

MPA Worldwide Market Research

25

U.S. Entertainment Industry: 2003 MPA Market Statistics

Theatrical
Theaters by Number of Screens

Type

2002

2003

%
Change

Single Screen

1,682

1,684

0.1%

Miniplex
(2 to 7 screens)

2,457

2,419

(1.5)

Multiplex
(8 to 15 screens)

1,437

1,473

2.5

474

490

3.4

Megaplex
(16 or more screens)

Megaplex
8%

Single
Screen
28%

Multiplex
24%

Miniplex
40%

Total Number of Theaters: 6,066


Source: MPAA
MPA Worldwide Market Research

26

U.S. Entertainment Industry: 2003 MPA Market Statistics

Employment
US Motion Picture Industry Employment Areas*
(000s)
% Change
Year
2003(p)
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993

Production &
Theaters and
Services
Video Tape Rental
183.5
137.7
191.7
138.4
180.9
133.2
182.1
136.9
182.5
133.2
172.0
135.0
159.6
131.2
149.8
122.2
135.2
117.1
114.2
111.9
102.8
109.1

Source: Bureau of Labor Statistics


MPA Worldwide Market Research

Other
29.5
30.6
32.6
32.6
32.9
31.7
32.2
33.9
31.4
27.1
23.5

Total
350.6
360.7
346.7
351.6
348.6
338.7
323.0
305.9
283.7
253.2
235.4

Yearly 2003 vs.


-2.8%
-4.0
-2.8%
(1.4)
1.1
0.9
(0.3)
2.9
0.6
4.9
3.5
5.6
8.5
7.8
14.6
12.0
23.6
7.6
38.5
-48.9

*All figures have been updated to represent Bureau of Labor Statistics


NAICS reclassification.
(p) preliminary estimate

27

U.S. Entertainment Industry: 2003 MPA Market Statistics

Employment
Motion Picture Industry Employment Areas
Production & Services
183

200

Theaters & Video Rental


182

181

192

Other
184

Thousands

150
109
100

50

139

137

33

33

1999

2000

138

138

33

31

30

2001

2002

2003

133

103

24

0
1993

Source: Bureau of Labor Statistics


MPA Worldwide Market Research

*All figures have been updated to represent Bureau of Labor Statistics


NAICS reclassification.

28

U.S. Entertainment Industry: 2003 MPA Market Statistics

Home Video

VCR Penetration in US TV Households

Year
2003
2002
2001
2000
1999
1995
1990
1985
1980

TV
VCR
% Change VCR HHs
Households Households
Prev. Period
2003 vs.
(MM)
(MM)
108.4
98.4
0.8%
106.7
97.6
1.5
0.8%
105.5
96.2
9.2
1.5
102.2
88.1
2.7
10.8
100.8
85.8
2.0
13.8
95.4
75.8
4.1
28.8
93.1
65.4
49.3
86.1
23.5
315.4
78.0
1.9
5,038.4

VCR Penetration
Rate
(% TV HHs)
90.8%
91.5
91.2
86.2
85.1
79.5
70.2
27.3
2.4

Source: Nielsen Media Research


MPA Worldwide Market Research

29

U.S. Entertainment Industry: 2003 MPA Market Statistics

Home Video
Sales of Home Entertainment to US Dealers*
Units in MM

VHS

Year
2003
2002
2001
2000
1999
1998

% of Change
Rental Sell -Through
Total
Cassettes Cassettes Cassettes Prev. Year 2003 vs.
53.2
240.4
293.6
-39.0%
73.6
407.5
481.1
(23.1)
-39.0%
86.2
539.6
625.8
(5.8)
(53.1)
99.4
565.0
664.4
2.7
(55.8)
86.2
561.0
647.2
(5.3)
(54.6)
57.0
626.4
683.4
(57.0)

Units in MM

DVD

Year
2003
2002
2001
2000
1999
1998

Rental
DVDs
110.9
79.3
37.1
13.9
8.6
1.6

Source: Adams Media Research


MPA Worldwide Market Research

Sell -Through
DVDs
985.3
650.6
350.0
174.4
91.3
32.7

Total
DVDs
1,096.2
729.9
387.1
188.3
99.9
34.3

% of Change
Prev. Year 2003 vs.
50.2%
88.6
50.2%
105.6
183.2
88.5
482.2
191.3
997.3
3095.9

*Historical figures have been updated by source

30

U.S. Entertainment Industry: 2003 MPA Market Statistics

Home Video

DVD Penetration in US TV Households

Year
2003
2002
2001
2000
1999
1998

TV
DVD
DVD Penetration
Households Households
Rate
(MM)
(MM)
(% TV HHs)
108.4
46.7
43.1%
106.7
38.8
36.4
105.2
24.8
23.6
102.2
13.0
12.7
100.8
4.6
4.6
99.4
1.2
1.2

% Change
DVD
Households
Prev. Period 2003 vs.
(MM)
20.3%
46.7
38.8
56.5
20.3%
90.8
24.8
88.3
182.6
13.0
259.2
283.3
4.6
915.0
1.2
3790.8

Source: Nielsen Media Research, Adams Media Research


MPA Worldwide Market Research

31

U.S. Entertainment Industry: 2003 MPA Market Statistics

Home Video

DVD Statistics

1999

2002

2003

4,100

Installed Consumer Base (in thousands)

4,800 14,700 31,400 56,500 90,187

Average DVD Player Price (in USD)

$275

Titles Available on DVD

2001

DVD Players Shipped to Dealers (in thousands)

DVD Software Units Shipped to Dealers 1 (in MM)

2000

98
5,000

8,499 12,706 17,090 21,674

$204
182

$153
364

$140
685

$122
1,023

8,500 13,000 20,000 29,000

Includes Sell-Through and Rental DVD


Titles available on DVD include movies and music videos

Source: CEA, Digital Entertainment Group


MPA Worldwide Market Research

32

U.S. Entertainment Industry: 2003 MPA Market Statistics

Home Video
DVD Player Shipments
to Retailers

Month

2002

2003

Change

January

542,698

797,058

46.9%

February

736,118

743,488

1.0

March

1,404,026

1,613,649

14.9

April

1,095,930

1,272,337

16.1

May

950,412

1,332,897

40.2

June

1,632,032

2,100,432

28.7

July

966,129

999,508

3.5

August

884,288

1,436,878

62.5

September

2,299,864

2,496,497

8.5

October

1,704,148

2,491,871

46.2

November

2,544,130

3,682,691

44.8

December

2,330,048

3,027,083

29.9

Total

17,089,823

21,994,389

28.7%

Source: Consumer Electronics Association


MPA Worldwide Market Research

33

U.S. Entertainment Industry: 2003 MPA Market Statistics

Home Video

DVD Player Sales to US Consumers

Year
2003
2002
2001
2000
1999
1998

DVD Players
(000s)
33,700
25,100
16,700
9,900
3,550
950

Yearly
Change
34.3%
50.3
68.7
178.9
273.7
--

2003
Versus
-34.3%
101.8
240.4
849.3
3447.4

DVD Titles Available


Titles
Available
29,000
20,000
13,000
8,500
5,000
1,500

Yearly
Change
45.0%
53.8
52.9
70.0
233.3
--

2003
Versus
-45.0%
123.1
241.2
480.0
1833.3

Source: DVD Report/Phillips Business Information, Digital Entertainment Group


MPA Worldwide Market Research

34

U.S. Entertainment Industry: 2003 MPA Market Statistics

Home Video

US Average Price per DVD Title


30
$25.53

25

20

$22.63
$20.52

5,000 Titles
Available

$20.82

$20.15

8,500 Titles
Available
13,000 Titles
Available

15

20,000 Titles
Available

29,000 Titles
Available

10
1999

2000

2001

2002

2003

Source: Digital Entertainment Group


MPA Worldwide Market Research

35

U.S. Entertainment Industry: 2003 MPA Market Statistics

Home Video
US HH Growth: Internet vs. Broadband vs. DVD
70

62.2
55.4

60
50.9

Millions

50

46.7
42.8
38.8

40
24.8

30
20

21.7
15.9

13.0

10.9

10
5.4
0
2000

2001
Internet HHs

2002
Broadband HHs

Source: IDC, Nielsen Media Research, Adams Media Research


MPA Worldwide Market Research

2003
DVD HHs

Note: Revised 2000-2002 Internet &


Broadband Household figures reflect
change in source.

36

U.S. Entertainment Industry: 2003 MPA Market Statistics

Television

Television Households

Year
2003
2002
2001
2000
1999
1995
1990
1985

Total
Households
(MM)
110.3
109.3
108.2
104.7
103.9
98.9
93.3
92.8

TV Households TV Penetration Rate


(MM)
(% Total HHs)
108.4
98.3%
106.7
97.6
105.5
97.5
102.2
97.6
100.8
97.0
95.4
96.5
93.1
99.8
86.1
92.8

Source: Nielsen Media Research, Census Bureau


MPA Worldwide Market Research

37

U.S. Entertainment Industry: 2003 MPA Market Statistics

Television
Factory Sales of Digital TV Sets and Displays
3.9 mil
Units

$7,000

6,149

$6,000
2.5 mil
Units

$5,000

4,281

$4,000
$3,000

1.425 mil
Units

648,000
Units

2,433

2,200

$2,000
$1,000
$0

121,000
Units

2,615
1,835

1,689
1,441

1,426

295
1999

2000

2001

Average Unit Price

2002

2003

Dollars in Millions

Source: Consumer Electronics Association


MPA Worldwide Market Research

38

U.S. Entertainment Industry: 2003 MPA Market Statistics

Television
Television Advertising Expenditures

30

29.3

28.4

28.5
27.1
24.0

Billions USD

25
11.8

12.1

12.6

11.9

20

9.4

15
16.7
14.6

15.2

16.3

16.7

2002

2003

10
1999

2000

2001

Broadcast Advertising

Cable Network Advertising

Source: PriceWaterhouseCoopers
MPA Worldwide Market Research

39

U.S. Entertainment Industry: 2003 MPA Market Statistics

Television
Number of Cable and Satellite Channels
300

283

Launch of
Digital Cable

250

227

267
250
235

202
200

168
155

Launch of
150
Digital
Satellite

130

113
91

100
60

72

78

50
03
20
02
20
01
20
00
20
99
19
98
19
97
19
96
19
95
19
94
19
93
19
92
19
91
19
90
19

372% increase in cable and satellite channels since 1990


25% increase in cable since 1999
Source: Screen Digest
MPA Worldwide Market Research

40

U.S. Entertainment Industry: 2003 MPA Market Statistics

Television

Basic Cable Households *

Year
2003
2002
2001
2000
1999
1995
1990
1985
1980

TV
Households
(MM)
108.4
106.7
105.5
102.2
100.8
95.4
93.1
86.1
78.0

Basic Cable
Households
(MM)
73.9
72.2
73.2
69.5
68.6
62.7
54.9
39.8
17.6

% Change Basic Cable HHs


Prev. Year
2.2%
(1.3)
5.3
1.3
2.4
5.0
-

2003 vs.
2.2%
0.9
6.3
7.7
17.8
34.5
85.6
319.7

Basic Cable
Penetration Rate
(% TV HHs)
68.1%
67.7
69.4
68.0
68.1
65.7
59.0
46.2
22.6

* Refers to wired cable households with basic cable

Source: Nielsen Media Research


MPA Worldwide Market Research

41

U.S. Entertainment Industry: 2003 MPA Market Statistics

Television
According to the FCC, as of July,
2002, the average subscriber paid
45
$14 /month for basic cable and
$37.07/month for expanded basic
cable.

Pay Cable Households *

Year
2003
2002
2001
2000
1999
1995
1990
1985

TV
Households
(in MM)
108.4
106.7
105.5
102.2
100.8
95.4
93.1
86.1

Pay Cable
Households
(in MM)
40.0
34.4
34.1
33.7
31.7
30.4
27.0
22.8

% Change Pay Cable HHs


Prev. Year
16.1%
0.9
1.2
6.3
-

2003 vs.
16.1%
17.2
18.5
26.0
31.4
48.0
75.2

Pay Cable
Penetration Rate
(% TV HHs)
36.9%
32.2
32.3
33.0
31.4
31.9
29.0
26.5

* Refers to wired cable households subscribing to premium channels.

Source: Nielsen Media Research, FCC


MPA Worldwide Market Research

42

U.S. Entertainment Industry: 2003 MPA Market Statistics

Television

US Addressable Cable Households *

Year
2003
2002
2001
2000
1999
1995
1990
1985

** 2003 figure is preliminary

% Change
Addressable
Households
Prev. Period 2003 vs.
(in MM)**
36.0
2.0%
35.3
10.3
2.0%
32.0
(14.7)
12.5
37.5
6.5
(4.0)
35.2
6.0
2.3
28.7
8.3
25.4
22.0
63.6
9.0
300.0

*Cable homes which have set-top boxes (usually for pay-per-view purposes)
that can be tracked to an exact location in the home.

Source: Kagan Media Money


MPA Worldwide Market Research

43

U.S. Entertainment Industry: 2003 MPA Market Statistics

Television
US Digital Cable Subscribers
15.0%

24.5

25
21.3
20

16.9

15

10

1998: Digital cable


launched in the US

10

4.1

5
1.6
0
*Preliminary

1998

1999

2000

2001

2002

2003*

Source: Adams Media Research


MPA Worldwide Market Research

44

U.S. Entertainment Industry: 2003 MPA Market Statistics

Television

Satellite Households

Year
2003
2002
2001
2000
1999
1998
1997
1996
1995

Satellite
Households
(MM)
19.4
17.6
12.9
9.6
8.6
8.3
6.4
4.4
3.3

% Change
Prev. Period 2003 vs.
10.2%
36.4
10.2%
34.4
50.4
11.6
102.1
3.6
125.6
29.7
133.8
45.5
203.2
33.3
341.0
488.0

Source: Nielsen Media Research


MPA Worldwide Market Research

45

U.S. Entertainment Industry: 2003 MPA Market Statistics

Television
According to Adams Media
Research, the average VOD
price was $395.

VOD

Year
2003
2002
2001
2000
1999

TV Households
(in MM)
108.4
106.7
105.5
102.2
100.8

VOD Households
(in MM)*
9.5
6.0
2.5
0.4
0.0

VOD Penetration
Rate (% TV HHs)
8.8%
5.6
2.4
0.4
0.0

VOD Consumer
Spending (MM)*
$167.8
101.8
28.6
9.8
0.8

* 2003 figure is preliminary


VOD = Video on Demand; An advanced pay-per-view programming
service which enables viewers to order and watch movies on demand
and to pause, rewind or fast-forward them.

Source: Nielsen Media Research, Adams Media Research


MPA Worldwide Market Research

46

U.S. Entertainment Industry: 2003 MPA Market Statistics

Technology

PC Households

Year

PC Households
(in MM)

% Change
2003 vs.

PC Penetration Rate
(% of Total US HHs)

2003*
2002
2001
2000
1999
1995
1990

67.1
62.2
57.4
55.1
51.5
33.6
21.9

7.9%
16.9
21.8
30.3
99.7
206.4

60.8%
56.9
53.0
52.6
49.6
34.0
23.5

*Preliminary
Source: US Census Bureau, IDC
MPA Worldwide Market Research

Note: 2000-2003 PC Household figures reflect change in source.

47

U.S. Entertainment Industry: 2003 MPA Market Statistics

Technology
US PC Households
70.0

60.8%
Penetration

67.1
56.9%
Penetration

Millions

65.0

53.0%
Penetration

60.0
52.6%
Penetration

55.0

49.6%
Penetration

62.2

57.4

55.1

51.5
50.0
1999

2000

2001

2002

2003*

*Preliminary
Source: IDC
MPA Worldwide Market Research

Note: 2000-2003 PC Household figures reflect change in source.

48

U.S. Entertainment Industry: 2003 MPA Market Statistics

Technology
PC shipments in the US are estimated to increase by 5% in 2003. A 6% increase is
expected for worldwide PC shipments.

PC Shipments (Units in MM)


Worldwide
Consumer
Commercial
TOTAL

2000
52.6
87.5
140.1

2001
47.5
87.0
134.6

2002
48.7
87.8
136.5

2003*
51.9
93.5
145.2

2004e
57.3
102.8
160.1

PC Shipments (Units in MM)


US
Consumer
Commercial
TOTAL

2000
19.3
32.7
52.0

2001
15.5
30.5
46.1

2002
16.9
30.7
47.5

2003*
18.7
31.4
50.0

2004e
21.2
34.2
55.4

*Preliminary
Source: e-Marketer, IDC
MPA Worldwide Market Research

49

U.S. Entertainment Industry: 2003 MPA Market Statistics

Technology

Number of Households with Internet Access

Internet
Year Households (in MM)
2003*
62.2
55.4
2002
50.9
2001
42.8
2000
36.3
1999
9.4
1995
1.6
1990

% Change
2003 vs.
21.1%
31.8
56.8
84.8
613.8
4093.8

% of PC HHs
92.7%
89.1
88.7
77.7
70.5
28.0
7.3

% of Total
US HHs
56.4%
50.7
47.0
40.9
34.9
9.5
1.7

*Preliminary
Source: MPAA, US Census Bureau, IDC
MPA Worldwide Market Research

Note: 2000-2003 Internet Household figures reflect change in source.

50

U.S. Entertainment Industry: 2003 MPA Market Statistics

Technology
US Internet Households
56.4%
Penetration

65.0
50.7%
Penetration

55.0
Millions

47.0%
Penetration

62.2

55.4
50.9

40.9%
Penetration

45.0
34.9%
Penetration

42.8

36.3
35.0
1999

2000

2001

2002

2003*

*Preliminary

Penetration is calculated as a percentage of total US households

Source: IDC

Note: 2000-2003 Internet Household figures reflect change in source.

MPA Worldwide Market Research

51

U.S. Entertainment Industry: 2003 MPA Market Statistics

Technology

Number of Households with Broadband Internet Access

Year
2003*
2002
2001
2000

Broadband
Households
(in MM)
21.7
15.9
10.9
5.4

% Change
2003 vs.
322.0%
515.6
1142.6

% of Internet
HHs
34.9%
28.7
21.4
12.6

% of Total
US HHs
19.7%
14.5
10.1
5.2

*Preliminary
Source: US Census Bureau, IDC
MPA Worldwide Market Research

52

U.S. Entertainment Industry: 2003 MPA Market Statistics

Technology
Number of Households with Broadband Internet Access

25.0

19.7%
Penetration

21.7

Millions

20.0
14.5%
Penetration

15.9

15.0
10.1%
Penetration

10.0

10.9
5.2%
Penetration

5.4

5.0
2000

2001

2002

2003*

*Preliminary
Source: IDC
MPA Worldwide Market Research

Penetration is calculated as a percentage of total US households

53

U.S. Entertainment Industry: 2003 MPA Market Statistics

Technology
Number of US Mobile Internet Users

60%

25.0

24.0

Millions

20.0
200%

15.0

15.0

7%

10.0
5.4

5.0

2000

2001

5.0
0.0
*Preliminary

2002

2003*

Source: IDC
MPA Worldwide Market Research

54

U.S. Entertainment Industry: 2003 MPA Market Statistics

Media Consumption
Media Consumption based on Hours per Person
1999

2000

2001

720
867
80
55
13

774
865
107
57
12

844
828
136
60
13

2002 2003p

% Change
02-03
99-03

914
786
154
58
14

3.8%
-0.6
9.7
15.5
-7.1

31.8%
-8.4
111.3
21.8
0.0

Filmed Entertainment
Cable & Satellite TV
Broadcast TV
Consumer Internet
Home Video1
Box Office
Interactive TV 2

949
778
169
67
13

1
2
1,736 1,817

2
2
2
1,883 1,928 1,978

0.0
2.6%

100.0
13.9%

Subtotal

939
945
281
258
183
180
134
135
119
109
53
59
1,709 1,686

953
994 1,013
229
201
188
177
176
173
128
125
123
106
109
110
60
67
75
1,653 1,672 1,682

1.9%
-4.2
-1.1
-1.7
-1.8
11.9
0.6%

7.9%
-19.4
-5.4
-6.4
-10.8
41.5
-1.6%

Total

3,445 3,503

3,536 3,600 3,660

1.7%

6.2%

Subtotal
Other Entertainment
Radio
Recorded Music
Daily Newspapers
Consumer Magazines
Consumer Books
Video Games

Source: Veronis Suhler Stevenson


MPA Worldwide Market Research

Includes playback of prerecorded VHS cassettes and DVDs only


2

Video-on-Demand only

55

U.S. Entertainment Industry: 2003 MPA Market Statistics

Media Consumption
Media Consumption based on Hours per Person per Year
2,500
2,123

2,125

2,086

2,081

2,087

2,000

1,500
1,378

1,450

1,519

1,573

2002

2003p

1,322

It is estimated in 2003 that


the average person will
spend most of their time
(57%) with media that is
supported by advertising.
Hours spent using
consumer Internet is
expected to show the
largest five year growth
(111%) among all media
categories.

1,000
1999

2000

2001

Media Supported by Advertising *


Media Supported Predominately by Consumer Purchases **

* Broadcast television, radio, daily newspapers, consumer magazines


** Cable & satellite television, box office, home video, interactive television, recorded music, video games, consumer Internet,
consumer books

Source: Veronis Suhler Stevenson


MPA Worldwide Market Research

56

U.S. Entertainment Industry: 2003 MPA Market Statistics

Media Consumption
Consumer Spending per Person per Year
(USD)
$235.52

$222.20
$202.73
$177.67

$187.93
$126.86
$108.40

$113.88

$95.17

$100.72

$40.55

$49.64

$68.70

$87.34

$86.13

$84.45

$87.89

$90.07

$60.63

$61.02

$65.24

$73.62

$79.02

$61.67

$65.13

$62.80

$60.57

$58.81

$52.63

$52.48

$52.84

$53.35

$53.22

$47.98

$47.70

$46.96

$42.01

$46.43

1999

2000

2001

2002

Consumer Magazines
Consumer Books

Newspapers
Consumer Internet

$97.76

$84.73

Recorded Music
Home Video

2003p
Other*
TV**

* Other includes: Box Office, Video Games & Interactive TV


** TV includes: Cable & Satellite TV (Basic & Premium services)

Source: Veronis Suhler Stevenson


MPA Worldwide Market Research

57

U.S. Entertainment Industry: 2003 MPA Market Statistics

Media Consumption
Consumer Spending per Person per Year
(USD)
$800

$600
$485.66

$463.68

$522.20

$561.28

$600.44

$400
$200
$100.18

$100.61

$99.80

$95.36

$99.65

$0
1999

2000

2001

2002

2003p

Media Supported by Advertising*


Media Supported Predominately by Consumer Purchases**
* Daily newspapers, consumer magazines
** Cable & satellite television, box office, home video, interactive television, recorded music,
video games, consumer Internet, consumer books

Source: Veronis Suhler Stevenson


MPA Worldwide Market Research

58

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