the uk film market asa whole · the total filmed entertainment market in the uk in 2016 was worth...
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B F I R E S E A R C H A N D S T A T I S T I C S P U B L I S H E D O C T O B E R 2 0 1 7
THE UK FILM MARKET AS
A WHOLE
The UK is the fourth largest film market in the world, generating revenues in excess of £4.1 billion. In 2016, cinema-going remained the most significant component of the film value chain, with gross receipts of over £1.2 billion.
FACTS IN FOCUS The total filmed entertainment market in the UK in 2016 was worth an estimated £4.1 billion,
the same as in 2015.
Revenues across digital video, pay TV and terrestrial TV were up compared with 2015, with digital video increasing by 29%.
Gross revenues for UK film were an estimated £1,142 million, up from £1,095 million in 2015.
Overall film revenues in the UK increased year on year in eight of the 10 years between 2007 and 2016.
In 2016, the UK had the fourth largest filmed entertainment market in the world after the USA, China and Japan, but is expected to be overtaken by India in the next four years1.
THE UK FILM MARKET AS
A WHOLEImage: The Hateful Eight courtesy of Entertainment Film Distributors.
1PwC, Global Entertainment and Media Outlook 2017-2021, www.pwc.com/outlook
THE UK FILM MARKET AS A WHOLE
BFI STATISTICAL YEARBOOK 2017
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THE UK FILMED ENTERTAINMENT MARKET AS A WHOLE
In 2016, theatrical revenues were the most significant component of the film value chain in the UK. As Table 1 shows, the box office (£1,228 million) accounted for 30% of the total market value in 2016, the same share as in 2015 (£1,236 million). Revenues from digital video, pay TV and terrestrial TV were up on 2015, while those from theatrical, physical video rental and retail and multi-channel TV were down. Digital video revenues recorded the largest increase, with a rise in value from £498 million to £644 million, an increase in market share from 12% to 16%.
Gross revenues for UK films in 2016 were estimated to be £1,142 million, with the share for British films highest in the theatrical market (37%), followed by physical video rental and retail (both with 33%) and terrestrial TV (30%).
Table 1 UK filmed entertainment market, 2015 and 2016
2015 2016
Total gross value
(£ million)
Attributable to UK films
(£ million)
UK film as % of
total gross
Total gross value
(£ million)
Attributable to UK films
(£ million)
UK film as % of
total gross
Theatrical 1,236 580 45 1,228 453 37
Physical video rental 62 16 25 48 16 33
Physical video retail 712 178 25 589 197 33
Digital video 498 88 18 644 153 24
Pay TV 795 63 8 924 170 18
Terrestrial TV 225 61 27 232 69 30
Other multi-channel TV 616 109 18 461 84 18
Total 4,144 1,095 26 4,126 1,142 28
Source: comScore, BASE, Official Charts Company, Attentional, ONS, IHS, BFI RSU analysis Notes: ‘Theatrical’ is the total gross UK theatrical revenues (including VAT) in the calendar years 2015 and 2016 for all films exhibited in the UK. See Box office chapter. ‘Physical video rental’ is the estimated revenue from physical video rental (DVD, Blu-ray, etc) from the number of transactions in the calendar years 2015 and 2016. 2015 figures have been revised since publication of the 2016 Yearbook. ‘Physical video retail’ is the total revenue from physical video retail transactions in the calendar years 2015 and 2016. See Film on physical video chapter. The television values are retail equivalent values calculated from the dataset of films shown on UK television. Values are estimated by multiplying the film share of the total channel time by the total revenue applicable to that channel (licence fee, subscription or advertising revenue). Television values cover terrestrial, pay TV and other multi-channel TV. See Film on UK television chapter. Digital video revenues are derived from IHS estimates of the combined size of the television and online on-demand markets. UK share is based on an estimate derived from knowledge of UK film share in the TV and video markets. Figures for 2015 have been revised since publication of the 2016 Yearbook. The above values are gross values and include distributor and exhibitor margins, VAT, prints and advertising costs, DVD/video retail margins, broadcaster and multi-channel TV operator margins in addition to net returns to the film production sector and film investors. The revenues shown here are revenues earned by film in the UK market, whether UK or foreign films. The table does not include export revenues for the UK film industry. See UK film economy chapter for UK film export revenues.
THE UK FILM MARKET AS A WHOLE
BFI STATISTICAL YEARBOOK 2017
4
THE EVOLUTION OF UK FILM REVENUES, 2007-2016
Aggregate film revenues increased every year between 2007 and 2015, with the exception of 2014, and fell again slightly in 2016. Over the 10-year period, increased theatrical, television and digital video revenues have compensated for a decline in the value of the physical video rental and retail markets. In 2016, overall revenues were £4.13 billion, down slightly from £4.14 billion in 2015, but still the second highest total of the period.
Figure 1 Gross film revenues, all platforms, 2007-2016
The revenues shown in Figure 1 are the actual figures; if adjusted for inflation (Figure 2), the data show that, with the exception of 2014, revenues have plateaued over the period.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2016201520142013201220112010200920082007
£ million
Theatrical 821 850 944 988 1,040 1,099 1,083 1,058 1,236 1,228
Physical video rental 295 284 285 278 262 221 146 87 62 48
Physical video retail 1,440 1,454 1,311 1,267 1,165 968 940 861 712 589
Digital video 75 101 119 130 149 234 338 445 498 644
Film on television 994 1,067 1,108 1,173 1,398 1,491 1,557 1,374 1,636 1,617
Total 3,625 3,756 3,767 3,836 4,014 4,014 4,063 3,825 4,144 4,126
Source: comScore, BASE, Official Charts Company, Attentional, ONS, IHS, BFI RSU analysis Notes: ‘Film on television’ covers terrestrial, pay TV and other multi-channel TV. On-demand television-based services are included within the digital video total. 2014 and 2015 figures for digital video have been revised since publication of the 2016 Yearbook. Figures may not sum to totals due to rounding.
THE UK FILM MARKET AS A WHOLE
BFI STATISTICAL YEARBOOK 2017
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Figure 2 Gross inflation-adjusted film revenues, all platforms, 2007-2016 (expressed in 2016 pounds)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2016201520142013201220112010200920082007
2016 £ million
Theatrical 955 962 1,052 1,084 1,119 1,164 1,126 1,082 1,257 1,228
Physical video rental 343 321 317 305 282 235 152 89 63 48
Physical video retail 1,675 1,645 1,461 1,391 1,253 1,026 977 881 724 589
Digital video 88 114 133 142 161 248 351 456 506 644
Film on television 1,157 1,207 1,235 1,287 1,504 1,580 1,618 1,405 1,665 1,617
Total 4,218 4,249 4,198 4,210 4,319 4,253 4,225 3,913 4,216 4,126
Source: comScore, BASE, Official Charts Company, Attentional, ONS, IHS, BFI RSU analysis Notes: Actual revenues deflated by the UK GDP deflator, which can be found https://www.gov.uk/government/statistics/gdp-deflators-at-market-pricesand-money-gdp-march-2017-quarterly-national-accounts-march-2017. ‘Film on television’ covers terrestrial, pay TV and other multi-channel TV. On-demand television-based services are included in the digital video total. Figures may not sum to totals due to rounding.
THE UK FILM MARKET IN THE GLOBAL CONTEXT
According to PricewaterhouseCoopers’ Global Entertainment and Media Outlook 2017-2021, in 2016 the UK had the fourth largest filmed entertainment market in the world after the USA, China and Japan. The USA accounted for 31% of the world market, with China accounting for 11% and Japan for 9%. The UK accounted for 6% of the market. The next largest countries in terms of market share were Germany (4.2%), France (3.8%) and India (3.0%).
THE UK FILM MARKET AS A WHOLE
BFI STATISTICAL YEARBOOK 2017
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Table 2 Filmed entertainment revenues by country/region, 2016
Country/region US$ million %
USA 21,199 31.4
China 7,122 10.5
Japan 5,812 8.6
UK 3,908 5.8
Germany 2,853 4.2
France 2,582 3.8
Other Western Europe 2,380 3.5
India 2,038 3.0
Canada 1,873 2.8
Other Asia Pacific 1,769 2.6
Australia 1,752 2.6
South Korea 1,481 2.2
Brazil 1,446 2.1
Italy 1,423 2.1
Other Central & Eastern Europe 1,412 2.1
Mexico 1,156 1.7
Taiwan 1,130 1.7
Middle East & Africa 1,085 1.6
Russia 883 1.3
Other Latin America 882 1.3
Spain 793 1.2
Malaysia 659 1.0
Switzerland 503 0.7
Hong Kong 478 0.7
Netherlands 474 0.7
Total 67,595 100.0
Source: PwC, Global Entertainment and Media Outlook 2017-2021, www.pwc.com/outlook Notes: Information contained in this table was taken from the Cinema segment and the Physical Video and Through TV subscription sections of the Traditional TV and Home Video segment of the PwC Global Entertainment and Media Outlook, 2017-2021, www.pwc.com/outlook, however, some calculations and categorisation of regions have been created by the BFI RSU. The breakdown of sectors by segments in the current Global Entertainment and Media Outlook differ from those used in previous years; filmed entertainment revenues are now calculated differently. ‘Cinema’ consists of two out-of-home components: consumer spending at the box office for theatrical motion pictures and advertising spend at the cinema, including on-screen advertisements before the movie... ‘Traditional TV and Home Video’ comprises consumer spending on basic and premium TV subscriptions; consumer spending on public licence fees where applicable; physical home video revenue; and on-demand video services via a TV subscription provider. This revenue is digital and non-digital. Only revenue from physical home video and revenue from on-demand video services via a TV subscription are used from this segment. ‘Physical home video’ covers films, TV programming and other premium video content. Revenue comprises sell-through and rental of physical home video. ‘Through-TV-subscription’ comprises revenue from both video on demand (VOD) and pay per view (PPV) services provided by a TV provider – including cable, satellite and telco providers – as part of a TV subscription package, or as an enhancement to that core package. Other Western Europe comprises Austria, Belgium, Denmark, Finland, Greece, Republic of Ireland, Norway, Portugal and Sweden. Other Asia Pacific comprises Indonesia, New Zealand, Pakistan, Philippines, Singapore, Thailand and Vietnam. Other Central & Eastern Europe comprises Czechia, Hungary, Israel, Poland, Romania and Turkey. Middle East & Africa comprises Algeria, Bahrain, Egypt, Jordan, Kenya, Kuwait, Lebanon, Morocco, Nigeria, Oman, Qatar, Saudi Arabia, South Africa and the United Arab Emirates. Other Latin America comprises Argentina, Chile, Colombia, Peru and Venezuela. Figures/percentages may not sum to totals due to rounding.
THE UK FILM MARKET AS A WHOLE
BFI STATISTICAL YEARBOOK 2017
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According to PwC forecasts, the USA, China and Japan will remain the world’s top three markets for filmed entertainment over the next four years (although the USA will lose significant share to China). However, India will overtake the UK, France and Germany to become the fourth largest market (Table 3).
Table 3 Filmed entertainment revenues by country/region, forecast for 2021
Country/region US$ million %
USA 17,860 25.6
China 12,000 17.2
Japan 5,172 7.4
India 3,317 4.7
UK 3,164 4.5
France 2,326 3.3
Germany 2,321 3.3
Other Western Europe 2,300 3.3
Other Asia Pacific 2,030 2.9
Australia 1,775 2.5
Canada 1,759 2.5
Brazil 1,732 2.5
South Korea 1,702 2.4
Italy 1,584 2.3
Other Central & Eastern Europe 1,539 2.2
Mexico 1,278 1.8
Middle East & Africa 1,225 1.8
Russia 1,141 1.6
Other Latin America 1,135 1.6
Taiwan 1,042 1.5
Spain 909 1.3
Malaysia 661 0.9
Switzerland 484 0.7
Netherlands 463 0.7
Hong Kong 451 0.6
Total 69,853 100.0
Source: PwC, Global Entertainment and Media Outlook 2017-2021, www.pwc.com/outlook Notes: Information contained in this table was taken from the Cinema segment and the Physical Video and Through TV subscription sections of the Traditional TV and Home Video segment of the PwC Global Entertainment and Media Outlook, 2017-2021, www.pwc.com/outlook, however, some calculations and categorisation of regions have been created by the BFI RSU. The breakdown of sectors by segments in the current Global Entertainment and Media Outlook differ from those used in previous years; filmed entertainment revenues are now calculated differently. Figures/percentages may not sum to totals due to rounding. See notes to Table 2.
Research & Statistics Unit21 Stephen Street, London W1T 1LN
bfi.org.uk/statistics