The future’s bright, the future’s… online.
It’s news that won’t come as a surprise to many, but it has been reported that movie streaming and downloads are set to replace box office sales as the biggest contributor to film revenue by 2017.
According to a study by PricewaterhouseCoopers, revenue from on demand streaming services, such as Netflix and Amazon will eclipse that of DVD’s and Blu-Rays for the first time in 2016, followed by cinema the following year.
The study also predicted that by 2018, revenue from these streaming services could reach $17 billion, which is double the $8.5 billion it generates today.
PwC’s Chairman Cindy McKenzie also predicted a 16% rise in box office revenue though, suggesting that the public will still leave the house to go to the cinema for the right film. She then went on to add that the cheap and relatively simple distribution of digital media is definitely a financial bonus.
“The amount of money that you’re making per transaction may not be the same, but it is cheaper to distribute things digitally.”
The study comes on the back of Netflix announcing a massive 24% increase in its revenue for the first quarter of 2014, and I can’t say I’m surprised. Personally speaking, from my small little English seaside town, we now only go to the cinema to watch films which we really cannot wait to see – such as Maleficent and Frozen. It costs nearly £40 for our family of five. It is not a cheap option for an afternoon out. The rest of the time we wait until it’s available on Box Office or Netflix – simply because if we buy the DVD the likelihood is we will only watch it the once. Frozen is – of course – the exception to this rule. In the end it works out considerably cheaper to ‘rent’ the movie online – a bit like when we used to have those places… what were they called? Where you could borrow a video for a few pounds, watch it and then return it? Ah yes, video stores.
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