Abstract
The online movie market is a welcome area of growth for the Hollywood Studios. This report analyses the current state of the online market in Western Europe and the USA and provides five year forecasts of transactions, consumer spending and Studio revenues on a country-by-country basis. The report examines the effect that the emerging online movie sector will have on physical media sales, including the impact of digital on traditional release windows. Online business models, pricing and Studio margins are also reviewed. Individual chapters are dedicated to each of the major Hollywood Studios, providing in-depth coverage of their digital strategies and the opportunities and challenges they each face.
Key findings:
- The online movie market will be worth over $1bn in 2011 in the US and Western Europe combined
- Transactional business models will dominate, with download-to-own services generating the majority of revenues in 2011
- As with digital music, online movie services need to be closely integrated with a device to be successful
- A key obstacle to overcome is the delivery of online movie content to the television
- As service providers seek to attract Studio content to their platforms, Studio margins have risen
- Each Studio is adopting a unique digital strategy by supporting different platforms and release windows, resulting in a fragmented market
In the report:
- Forecasts of online movie transactions, consumer spending and trade revenues to 2011
- Analysis of the effect of digital movies on physical media markets
- Broadband connectivity rates in Western Europe and the USA
- Review of release windowing and online business models
- Movie pricing and Studio margins
- Market sizes for TV-connected broadband capable devices and portable video players
- Device strategies as a basis for a successful online service
- Background of the Hollywood Studio corporate structure
- Analysis of each of the major Studios and their online strategies, including business models, viable digital library sizes and the platforms and devices supported by each Studio
Table of Contents
Summary
- Market Forecasts
- Methodology and assumptions
The changing landscape of home entertainment
- Physical Market Trends
- DVD: a future of decline
- The impact of HD
- The Growth of Broadband: a new distribution channel
- Movie downloads: how big and how long?
- The evolving value chain: windows and business models
- Collapsing the windows
- Pricing and margins
- Average consumer price DTO DVD table
- Deals and Catalogue availability
Services and platforms
- Primary Screen vs. Secondary Screen
- Getting movies to the TV
- Streaming platforms: making advertising work?
- The issue of DRM
The Hollywood Studios explained Paramount Pictures
- Strategic Overview
- Catalogue Size
- Business models
- Retail
- Rental
- Platforms and devices
Sony Pictures Entertainment (SPE)
- Strategic Overview
- Catalogue Size
- Business Models
- Retail
- Rental
- Platforms and devices
Twentieth Century Fox
- Strategic Overview
- Catalogue size
- Business models
- Retail
- Rental
- Platforms and devices
Universal Pictures
- Strategic Overview
- Catalogue sizes
- Business models
- Retail
- Rental
- Platforms and devices
The Walt Disney Studios
- Strategic Overview
- Catalogue Size
- Business models
- Retail
- Rental
- Platforms and devices
Warner Bros
- Strategic Overview
- Catalogue size
- Business models
- Retail
- Rental
- Platforms and devices
MGM
- Strategic Overview
Lionsgate
- Strategic Overview
Tables and Charts
Executive summary
- Annual transaction table
- Annual sales of online movies (m)
- Annual Digital Consumer Spend
- Annual sales of online movies (m)
- Annual Studio revenues from online movies
- Sudio revenues from online movies ($m)
The changing landscape of home entertainment
- Consumer spending on home entertainment in the US ($m)
- Average consumer DVD price USA ($)
- Total Annual DVD Movie Consumer Spend
- Annual HD DVD and Blu-ray Retail Movie Consumer Spend
- World: Number of residential broadband connections by region
- World: Number of residential broadband connections
- Average advertised download speed in Western Europe
- Average European consumer Broadband price
- Time taken to download a DVD- quality movie (1GB)
- Months between windows (months after theatrical)
- Months after theatrical release
- Gross Studio-level movie revenues per new release transaction 2006
- Studio deals with service providers
- Typical consumer prices on digital platforms
- Cumulative worldwide iPod sales (m)
Services and platforms
- Browser-based versus device platforms
- Direct and indirect connections
- Installed TV-connected broadband capable devices (m)
- Portable video player installed base (m)
- US DRM services
The Hollywood Studios explained
- Studio Structure Diagram
- Studio Benchmarking
Paramount Pictures
- Paramount - library availability for digital
- Paramount - supported digital distribution services - July 2007
- Joost: Paramount titles (available June 2007)
Sony Pictures Entertainment (SPE)
- SPE - library availability for digital
- SPE - supported digital distribution services - July 2007
Twentieth Century Fox
- Fox - library availability for digital
- Fox - supported digital distribution services - July 2007
Universal Pictures
- Universal - library availability for digital
- Universal - supported digitaldistribution services - July 2007
The Walt Disney Studios
- The Walt Disney Studios - library availability for digital
- Disney - supported digital distribution services - July 2007
Warner Bros
- Warner Bros - library availability for digital
- Warner Bros - supported digital distribution services - July 2007
MGM
- MGM - supported digital distribution services - July 2007
- MGM - library availability for digital
Lionsgate
- Lionsgate - supported digital distribution services - July 2007
