Movies

US audiences to pay for more online movies in 2012 than for physical videos

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/movie-images/2014/01/03/91.jpg?itok=1S_6aFiK

MUMBAI: Americans will pay to consume more movies online this year than they will on physical video formats, marking the first year that legal, Internet-delivered movies will outstrip those of DVDs and Blu-ray discs combined.

The legal, paid consumption of movies online in the United States will reach 3.4 billion views or transactions in 2012, approximately 1.0 billion units higher than the 2.4 billion for physical video for this year, according to the IHS Screen Digest Broadband Media Market Insight report from information and analytics provider IHS. As recently as last year, physical video had claimed a commanding share of the market with 2.6 billion views or transactions, compared to 1.4 billion for online.

This year’s online video consumption via the open Internet represents annual growth of 135 per cent from 2011. Online video transactions and videos are also set to continue increasing in the years to come, while physical video sales are expected to decline or stagnate in comparison.

IHS senior principal analyst, broadband, digital media Dan Cryan said, “The year 2012 will be the final nail to the coffin on the old idea that consumers won’t accept premium content distribution over the Internet. In fact, the growth in online consumption is part of a broader trend that has seen the total number of movies consumed from services that are traditionally considered ‘home entertainment’ grow by 40 percent between 2007 and 2011, even as the number of movies viewed on physical formats has declined.”

The physical segment consists of retail sales and rentals of VHS, DVD and Blu-ray discs (BD). The online portion is consists of electronic sell-through (EST), Internet video on demand (iVOD) and subscription video on demand (SVOD).

Key to the surge in consumption of online video has been the rise of all-you-can-eat subscription services such as Netflix and Amazon Prime, which offer customers unlimited on-demand movies for a flat monthly or annual fee. The result is that subscriptions in 2011 accounted for 94 per cent of all paid online movie consumption in the United States, compared to just 1.3 per cent of units consumed that were bought on an ownership basis via electronic sell-through.

Although it is declining, physical video this year will still command more viewing time from Americans, who will spend an estimated 4.3 billion hours on DVDs and Blu-ray discs, compared to 3.2 billion hours for movies online.

And although online will account for the majority of transactions this year, it is set to attract a far lower share of revenue in 2012, at $1.7 billion, measured against $11.1 billion derived from physical formats. This is because consumers will pay an average of 51 cents for every movie consumed online, compared to $4.72 for physical video. The pattern will likely remain unchanged even by 2016, with online accounting for 17 percent of revenue, compared to 75 percent for physical video, and pay-TV video on demand taking the remaining 8 percent.

Netflix, while unquestionably the market leader, is not the only online SVOD game in town. Last year saw both Amazon and Hulu develop online streaming businesses at levels unheard of just a couple of years ago. For Amazon in particular, 2011 marked the transformation of Amazon Prime from a discounted shipping offer into a diverse entertainment proposition in its own right, allowing subscribers who paid the $79 per-year service access to a range of movies and TV shows.

The phenomenal growth of subscription movie consumption raises the prospect that as SVOD services become more widely adopted, they become an appreciable drain on the time that consumers would have used to watch movies in more lucrative ways, IHS believes. When this is combined with the possibility that consumers will always find something to watch, the still-nascent EST business could have its wings clipped before it can really take flight, even as consumption reaches previously unattainable highs.

"After more than 30 years of buying and renting movies on tapes and discs, this year marks the tipping point as U.S. consumers now are making a historic switch to Internet-based consumption, setting the stage for a worldwide migration of consumption from physical to online. We are looking at the beginning of the end of the age of movies on physical media like DVD and Blu-ray. But the transition is

likely to take time: almost nine years after the launch of the iTunes Store, CDs are still a vital part of the music business," Cryan said.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/16/Oddball_0.jpg?itok=BG9dmZ7E
Oddball Motion Pictures gets Rs 250 cr for film production

MUMBAI: Oddball Motion Pictures, founded by filmmaker Nitin Upadhyaya, announced its association with Chanda Group where the latter will be funding a seed capital of up to Rs 250 crore for the feature films and original digital video content that will be exclusively developed and produced by...

Movies Movies On Mutiple Platforms
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/15/rmy_0.jpg?itok=lL8qydAg
Cast & crew of 21 sarfarosh: saragarhi 1897 celebrate army day with the 7th Battalion of sikh regiment of the indian army

The cast & crew of 21 Sarfarosh: Saragarhi 1897 commemorated the Army day with the Soldiers of Sikh regiment of Indian army. Actors Mohit Raina & Mukul Dev personally took the soldiers of the Sikh regiment on the tour of the set in Aamgaon where the epic battle of Saragarhi is currently...

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/27/manav.jpg?itok=AdsRwhZX
Watch the world television premier of "Nirahua Hindustani"on 30th december at 1 PM only on Dabangg

SABGROUP’S foremost regional channel – Dabangg is geared for the World Television Premier of the highest revenue grossing Bhojpuri Blockbuster of all times, ‘Nirahua Hindustani’. The telecast will air on the 30th December,2017 at 1pm, followed by the repeat at 8pm.

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/26/Parikshit-Dar3.jpg?itok=9KjDQiNB
BookMyShow reveals how India entertained itself in 2017

As the year comes to a close, BookMyShow looks back at what entertained India this year, from movies to plays, sports, events and music. In 2017, millions of Indians reached out to BookMyShow to meet their entertainment demands basis which the platform is delighted to present #Bestof2017*.

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/22/irfaan.jpg?itok=mWT-Q4_W
Catch Bollywood Actor Irrfan Khan this Week on Off Centre

MUMBAI: This week on Off Centre, Anuradha Sengupta talks to one of the finest Bollywood actors in the industry, Irrfan Khan. From being noticed and welcomed as a romantic lead after 22 years in business to his latest release and love, sex, romance in today’s time, he expresses his views and...

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/15/secret-superstar.jpg?itok=6yxH51NX
Zee Studios International's Secret Superstar hits it big in Taiwan

Zee Studios International has collected $700,681 from its release of Aamir Khan-starrer Secret Superstar in Taiwan, making the movie the widest Bollywood film in the country. The film, which also features Zaira Wasim, lit up the box office in India. The distribution company began the next phase of...

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/08/zee-studio.jpg?itok=1xtV1Jhc
Zee Studio to premiere the post-apocalyptic horror drama - MAGGIE!

Zee Studio, the hollywood movie destination, brings the Indian television premiere of Maggie. Starring multi-award winner Arnold Schwarzenegger and Academy Award-nominee, Abigail Breslin, this post-apocalyptic drama premieres on 10 December 2017, Sunday at 12 noon and 9 pm.

Movies Hollywood
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/01/sanjay.jpg?itok=sJJUMOP8
Demonetisation, decline in govt ads impact UFO Q2 numbers

BENGALURU: Indian digital cinema distribution network and in-cinema advertising platform UFO Moviez Ltd (UFO) reported a 12.8 percent year-on-year (y-o-y) decline in consolidated operating revenue for the quarter ended 30 September 2017 (Q2 FY 2017-18) as compared with the corresponding year ago...

Movies Movies On Mutiple Platforms
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/25/Madhavan_0.jpg?itok=AcPIL5R4
The modern day economics of film financing

Only 2 per cent of the total movies released in 2016 in the US were computer graphic (CG) animation, yet they grossed more than 21 per cent of the US box office collection. Strong animation brands have longer shelf-life and generate revenue for years.

Movies International

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories