According to the PwC Entertainment and Media Outlook 2014-2018, revenue for filmed entertainment is increasingly coming from OTT services such as Netflix (from $3.3 billion to $10 billion in 2018) and transactional video services such as iTunes and Google Play: overall, the digital VOD is growing at a 24.8% CAGR and will reach $14 billion only in the US, offsetting the declines in physical media such as DVDs and BluRay discs from $12.2 billion to $8.7 billion.
Besides the fact that the US will keep its dominant position in the worldwide market with a total of $39.2 billion, the news is that the digital sector will be overtaking the box-office revenue by 2018, which is slightly growing at a 3.1% CAGR from $10.8 billion to $12.5 billion, mainly due to an average ticket price increase from $8.90 to $9.80.
The general trend observed in the research simply describes a natural shift due to technological advancements and changes in consumption habits, whereas the good news is that overall revenue for the industry is growing.
I guess I’m just continuing to do disruptive behavior. If you look at what’s happening in entertainment, particularly in terms of the way lots of emerging talents are finding ways to get their material out, and audiences who are finding all kinds of new platforms to discover content, it makes sense. It seems to me movies like this are quite often undervalued by the industry. They sort of slot them and say ‘it’s really just for a small audience’. I could have gone the traditional route and taken the film to a film festival, with a little hat in my hand, and sit in some restaurant and try to make a deal with Harvey Weinstein at midnight. I have never self-distributed before. It’s a massive amount to learn in a very quick period of time. It’s very exciting. It is kind of nice to be in control.
Now: In The Wings On A World Stage is a documentary about the ten-month world tour in which he played Richard III: although it is going to play theatrically, it will also be available for a download purchase at KevinSpacey.com.
The docu premiered at the Tribeca Film Festival last week, played one night at premium prices at L.A.’s Landmark Theaters, is available today in the US and will roll out in the UK in June and in the rest of the world over the next eight to ten months.
In some ways I wanted to make the film for people who don’t get theatre, who don’t understand it. I also wanted to make it for people who do love theatre. And do understand it. No matter how good an actor may be in a film they will never be any better. It’s frozen. In the theatre you might be better tomorrow night than you were tonight.
Going back to the great success of House of Cards, Kevin reminds that for the first time a show has been given an order of two seasons without shooting a pilot.
I think there’s something very interesting about what the Netflix model demonstrates, that perhaps we are learning what the music industry didn’t learn. Give people what they want in the form they want it in, at a reasonable price, and the chances are they will buy it and not steal it. Audiences have proved one thing: that they also want to be in control.