STREAMING SERVICES HAVE EXCEEDED ONE BILLION GLOBAL SUBSCRIPTIONS FOR THE FIRST TIME

The Motion Picture Association’s released its annual THEME report released, which revealed that online video services have exceeded one billion global subscriptions for the first time. The global box office market for all films around the world was $12 billion in 2020. The U.S./Canada box office market contributed $2.2 billion. “Streaming experienced another huge boom, with new entrants into the market and more than one billion subscriptions worldwide for the first time," said Charles Rivkin, Chairman, and CEO of the Motion Picture Association. "We kept audiences connected and entertained wherever they were and whenever they desired. Theatrical and home entertainment remain two essential parts of this dynamic and iconic industry, and I am confident that movie theaters will experience a great comeback in the months ahead.”

The figure represents a 26% year-over-year growth. In its totality, the global home/mobile entertainment market reached $68.8 billion in global revenue, marking a 23 percent increase over 2019. In the United States, subscriptions reached 308.6 million, representing a 32% growth from 2019, and the home/mobile market increased 21 percent, reaching $30 billion. During the pandemic period of 2020, 55 percent of U.S. adults reported that their viewing of movies or shows/series through an online subscription service increased, while 46% reported that their viewing via pay-TV increased.

More than 85% of children and more than 55 percent of adults watch movies or shows/series on mobile devices. Daily viewers of movies or shows/series on mobile devices skew more heavily towards the 18-24 and 25-39-year-old age groups, as well as the Hispanic/Latino and African-American/Black ethnicity groups. While the box office in some major markets like China, which grossed $3 billion last year, has found a way to rapidly recover, it is expected that it will take at least the duration of 2021 for the domestic box office to return to normal levels, provided that another COVID-19 outbreak does not cause widespread closures again.

The box office crash led to a dip in overall revenue for the entertainment industry, but the surge in streaming and other home platforms lessened the damage. The MPA reports that combined revenue from theatrical, home, and mobile entertainment markets for 2020 dropped 18% to $80.8 billion. Of that amount, $68.8 billion, or 85%, came from home and mobile markets. In 2019, home and mobile revenue reached $58.8 billion and comprised 65% of the $90 billion earned last year. The THEME Report found in a survey that 55% of U.S. adults said that their viewing of movies and shows through streaming services increased during the pandemic, along with 46% saying their viewing through pay-TV increased as well.