By R.T. Watson
The number of subscriptions to online video streaming services worldwide reached 1.1 billion in 2020, according to data released by the Motion Picture Society on Thursday – a new milestone marked among pandemics. Covid-19 release that kept people locked up, seeking their entertainment. At home.
At the same time, global box office revenue fell more than $ 30 billion a year to $ 12 billion, as movie theaters closed in the U.S. and in other parts of the world, according to the society. The fall comes after box office revenue reached $ 42.3 billion higher than 2019, the MPA added. And China overtook the U.S. last year as the top country for box office revenue, he said.
The shift in consumer behavior and Hollywood last year spurred historic growth at companies such as Netflix Inc. and Walt Disney Co. streaming services. As people turned to the digital options available at home and on mobile devices, streaming subscriptions rose 26% from the previous year. In the U.S. alone, the number of streaming subscriptions rose 32% last year to a total of 308.6 million, the MPA said.
Even now, as film theaters in many parts of the world have reopened, the direct-to-consumer streaming model is the main growth strategy of the largest studios. in Hollywood and at competing Silicon Valley tech giants. The world’s largest streaming service, Netflix, has surpassed 200 million members worldwide. Disney boasts more than 100 million subscribers to its Disney +, not even two years old.
As box office revenue declined globally, gains in digital home entertainment revenue helped offset these losses, according to the MPA. Revenue from direct-to-consumer offerings, which include online streaming and rental, jumped to $ 61.8 billion last year, up from $ 47.2 billion in 2019, he said.
Reflecting the industry as a whole, the content of the Motion Picture Association’s annual report has evolved in recent years as revenues from digital, direct-to-consumer distribution are now growing. global revenue from box offices. In 2019, the MPA, which is considered the top contender for the largest film studios in Hollywood, welcomed Netflix to its ranks even though the company is not responsible for selling theater tickets as part of their business model.
With the number of subscribers and streaming services going up, Hollywood is churning out more content, especially title series, that will engage customers beyond major movies. In 2020, the number of scripted and unwritten series created by American production companies and distributed to online platforms totaled up to 537 shows in total, compared to 381 the previous year, he said. the MPA.
As new streaming services enter the U.S. market – Comcast Corp. and ViacomCBS Inc. has launched platforms – Amazon.com Inc. and HBO Max at AT&T Inc. follows in the footsteps of Disney and Netflix by ramping up efforts to boost their share of international markets.
Through last year’s extensive lockouts, some of the country’s largest film theater chains found it difficult to stay away as box office revenue in the U.S. and Canada fell to $ 2.2 billion in 2020, down from $ 11.4 billion in 2019, according to an MPA report.
In 2020, China overtook the U.S. for the first time as the world’s leading box office market, generating $ 3 billion in ticket sales, the report said.
U.S. theaters are reopening in major states like New York and California, but so far attendance has been slow as many Americans appear reluctant to return to public spaces inside masse.
As of Friday, AMC Entertainment Holdings Inc. has the world’s largest theater series. claims that 98% of its U.S. theaters will work. That is a major reversal after the pandemic almost forced the company to file for chapter 11 breach protection.
The biggest studios in Hollywood are hoping to make movies again in the summer. Blockers like Marvel’s Disney movie “Black Widow,” and the latest installment of Fast & Furious franchise, “F9” – curated by Comcast’s Universal Pictures – test the willingness of U.S. filmmakers go back to the complex. “Black Widow” is slated for May while “F9” is out in June.