December 17, 2018
It’s an over-the-top world, now with the box office living in it.
New projections from London-based research firm Ampere Analysis contend global revenue ($46 billion) from over-the-top video platforms such as Netflix and Amazon Prime Video will supplant the worldwide box office ($40 billion) in 2019.
With Netflix and Prime Video already driving SVOD revenue past the domestic box office in 2017, the trend is expected to repeat in the United Kingdom this year and in China in 2019.
Surprisingly, Ampere found that SVOD subscribers remain frequent moviegoers, with subscribers attending theatrical screenings twice as often as non-subscribers. The ratio increased by a factor of three in Japan – despite SVOD services costing about half as much as a theatrical ticket.
“Our analysis of consumers in 15 markets reveals that although there are differences in the cost of cinema attendance by country, there’s clearly an appetite for content amongst some consumers, whether that be on the big screen, or a smaller one,” senior analyst Toby Holleran said in a statement. “The key for cinema is to understand that while SVOD subscribers are more avid cinema goers, this may not always be the case. Therefore, the shared experience of watching a film on the big screen must remain an enticing — and realistically priced.”