For the first time ever, revenues from global premium streaming platforms are set to soar past worldwide box-office revenues in 2020 -- and will maintain that revenue lead for the next five years.
Worldwide premium streaming video revenues are forecast to reach near $50 billion this year, according to PwC (PricewaterhouseCoopers) -- with global theatrical box office revenues sinking to $15 billion -- down 65% from 2019 levels -- due to COVID-19 pandemic disruptions closing many theaters worldwide for months.
Global theatrical box-office revenues a year ago pulled in $42.5 billion, according to Comscore. Worldwide streaming was around $37 billion in 2019, according to PwC.
In 2021, PwC estimates that streaming platform revenues will grow to $55 billion, with global theatrical seeing a small recovery -- up to $20 billion.
The movie business is projected to rise to around $30 billion per year in 2022, 2023 and 2024.
While COVID-19 pandemic issues continue to hit all consumer and advertising businesses, PwC says consumer revenue from global entertainment and media will fare better in 2020 -- falling 5.6% compared to a much deeper 13.4% decline for global advertising.
PwC authors write:
"It is likely that the mass personalisation of content experiences at relatively low cost and the resulting explosive growth in choice have altered the balance, perhaps permanently, between consumer spending and advertising."
It adds: "Companies find they can deliver immense choice at a price point that makes sense for both supplier and customer, while building powerful direct relationships—all without relying excessively on fickle or intrusive ads."