The Motion Picture Association in its 2021 Theatrical and Home Entertainment Market Environment (THEME) report said the combined global theatrical and home / mobile entertainment market generated $99.7 billion in 2021. That’s up from just $80.5 billion in 2020, and eclipses the $98.1 billion in revenue from 2019 / pre-pandemic levels. It’s the breakdown of revenue, however, that is especially interesting.
Last year, a full 72 percent of the aforementioned $99.7 billion in revenue - or $71.9 billion - was generated by digital delivery. Before the pandemic in 2019, digital markets generated just $45.5 billion. Theatrical revenue dipped accordingly, from $42.3 billion in 2019 to $21.3 billion last year. In 2020 during the height of the pandemic, the theatrical market turned out just $11.8 billion in revenue as many theaters were forced to temporarily close over local Covid-19 guidelines. The shift to digital content consumption is in line with similar trends we’ve seen as it relates to consumer spending in subscription-based apps over the last couple of years and is largely a byproduct of the pandemic. Faced with shutdowns and stay-at-home orders, content creators and distributors had to find new ways to reach audiences, and digital delivery was the answer. Image credit cottonbro
