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U.S.

Entertainment Industry: 2002 MPA Market Statistics

MPA Worldwide Market Research

U.S. Entertainment Industry: 2002 MPA Market Statistics

Table of Contents

Box Office ... 3-6


Admissions .... 7-10
High Grossing Films ... 11
Films Released ........ 12-14
Ratings ....... 15-16
Theatrical ....... 17-26

Employment ........ 27-28


Home Video ............ 29-36

Television Statistics. 37-39


Cable Statistics. 40-46

Technology ............ 47-56

VCR Statistics .. 29-30


DVD Statistics .. 30-36

Television ............... 37-46

Negative Costs . 17-19


Marketing Costs 20-22
Screens .. 23-24
Theaters . 25-26

PC Statistics .... 47-49


Internet Statistics .... 50-56

Media Consumption ........ 57-60

MPA Worldwide Market Research

U.S. Entertainment Industry: 2002 MPA Market Statistics

Box Office
US box office in 2002 reached an incredible $9.5 billion -- showing a hearty increase of
13%. Although alternative entertainment options (such as DVD and Pay-Per-View)
have caught the consumers attention, going to the theater remains a US past time.

Box Office Trends


10.0

9.5

9.0
Billions $

8.4
13.2%

8.0

7.0

7.7

7.5

9.8%

7.0
2.9%
7.2%

6.0
Source: MPAA

1998

MPA Worldwide Market Research

1999

2000

2001

2002
3

U.S. Entertainment Industry: 2002 MPA Market Statistics

Box Office
Box Office Growth
Box Office was up 13.2%
from 2001 , the highest
year-to-year increase in
20 years.

In a 15 year period, box


office continued to grow more than doubling
grosses from 1987.

Source: MPAA

Box Office has increased


over $6 billion since 1982.

MPA Worldwide Market Research

Box Office
% Change
Gross
Year (USD in MM) Prev. Period 2002 vs.
2002
$9,519.6
13.2%
8,412.5
9.8
2001
13.2%
7,660.7
2.9
24.3
2000
7,448.0
7.2
27.8
1999
6,949.0
9.2
37.0
1998
6,365.9
7.7
49.5
1997
5,911.5
7.6
61.0
1996
5,493.5
1.8
73.3
1995
5,396.2
4.7
76.4
1994
5,154.2
5.8
84.7
1993
4,871.0
1.4
95.4
1992
4,803.2
(4.4)
98.2
1991
5,021.8
(0.2)
89.6
1990
5,033.4
12.9
89.1
1989
4,458.4
4.8
113.5
1988
4,252.9
12.6
123.8
1987
3,778.0
0.8
152.0
1986
3,749.4
(7.0)
153.9
1985
4,030.6
7.0
136.2
1984
3,766.0
9.1
152.8
1983
3,452.7
175.7
1982

U.S. Entertainment Industry: 2002 MPA Market Statistics

Box Office
Spider-Man, the #1 blockbuster for 2002 also ranked #1 for opening weekend grosses at
$115 million. An additional 7 films grossed over $50 million in their first weekend.

2002 High Grossing Opening Weekend


Rank

Source: Variety

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Distributor
Spider-Man
Sony
Harry Potter; Chamber of Secrets Warner Bros.
Star Wars II: Attack of the Clones Fox
Austin Powers: Goldmember
New Line
Lord of the Rings: Two Towers
New Line
Signs
Buena Vista
Scooby Doo
Warner Bros.
Men in Black 2
Sony
8 Mile
Universal
Die Another Day
MGM
Ice Age
Fox
XXX
Sony
Mr. Deeds
Sony
Red Dragon
Universal
The Scorpion King
Universal
Minority Report
Fox
Sweet Home Alabama
Buena Vista
Lilo & Stitch
Buena Vista
Blade 2
New Line
The Sum of All Fears
Paramount

MPA Worldwide Market Research

Title

Release Date
May 3rd
November 11th
May 16th
July 26th
December 18th
August 2nd
June 14th
July 3rd
November 8th
November 22nd
March 15th
August 9th
June 28th
October 4th
April 19th
June 21st
September 27th
June 21st
March 22nd
May 31st

Box Office
($US mil)
$114.80
88.4
80.0
73.1
60.2
60.1
54.2
52.1
51.2
47.1
46.3
44.5
37.2
36.5
36.1
35.7
35.6
35.3
32.5
31.2

U.S. Entertainment Industry: 2002 MPA Market Statistics

Box Office
4th quarter proved to be the strongest once again in 2002 - at $2.7 billion, the 4th
quarter represents 28% of the total 2002 box office.

Quarterly Box Office


Quarter
Q1
Q2
Q3
Q4
Year

USD in millions
2001
2002
$1,811.7 $1,991.9
1,891.5
2,490.8
2,267.4
2,334.1
2,441.8
2,702.8
$8,412.5 $9,519.6

4th Qtr 2001 Box Office Hits


Rank
1
2
3
4
5

Title
Harry Potter: Sorcerer's Stone
Monsters, Inc.
Lord of the Rings: Fellowship
Ocean's Eleven
Training Day
Top 5 Total:

% Change
9.9%
31.7
2.9
10.7
13.2%
4th Qtr 2002 Box Office Hits

Box Office*
($US mil)
294.7
240.8
182.5
140.9
76.3
$935.2

Box Office*
Rank Title
($US mil)
Harry Potter: Chamber of Secrets
247.4
1
Lord
of
the
Rings:
Two
Towers
236.0
2
Die Another Day
150.8
3
The Santa Clause 2
137.5
4
The Ring
127.0
5
Top 5 Total:
$898.7

Source: MPAA
MPA Worldwide Market Research

*Box Office = total year, not 4th qtr. receipts

U.S. Entertainment Industry: 2002 MPA Market Statistics

Admissions
Admissions Trends
1.7
1.64

Billions

1.6
1.48

1.49

1.5

10.2%

1.47
1.42

1.4

-1.0%

4.7%
-3.0%

1.3
1998

1999

2000

2001

2002

Note: Based on NATO average ticket price

Source: MPAA
MPA Worldwide Market Research

U.S. Entertainment Industry: 2002 MPA Market Statistics

Admissions
Admissions Growth
In 2002 admissions grew 10.2%
over 2001 -- the highest increase
since 1957.

Over the past 20 years, admissions


have continued to rise even with
the emergence of home
entertainment, the internet and
other multimedia technologies.
Source: MPAA
MPA Worldwide Market Research

Year
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982

Admissions
1,639.3
1,487.3
1,420.8
1,465.2
1,480.7
1,387.7
1,338.6
1,262.6
1,291.7
1,244.0
1,173.2
1,140.6
1,188.6
1,262.8
1,084.8
1,088.5
1,017.2
1,056.1
1,199.1
1,196.9
1,056.1

% Change
Prev. Period
2002 vs.
10.2%
4.7
10.2%
(3.0)
15.4
(1.0)
11.9
6.7
10.7
3.7
18.1
6.0
22.5
(2.3)
29.8
3.8
26.9
6.0
31.8
2.9
39.7
(4.0)
43.7
(5.9)
37.9
16.4
29.8
(0.3)
51.1
7.0
50.6
(3.7)
61.2
(11.9)
55.2
0.2
36.7
13.3
37.0
55.2

Note: 1989 to present based on NATO average ticket price

U.S. Entertainment Industry: 2002 MPA Market Statistics

Admissions
Admissions per capita continued to rise in 2002, U.S. residents attended an average of
5.7 movies.

Admissions Trends Per Capita


5.8
5.7

Admissions

5.6
5.3

5.4
5.2

5.2
5.0
4.8
4.6

4.8

4.8
4.6

4.5
4.4

4.4

19

80

19

85

19

90

19

92

19

95

20

00

20

01

20

02

Source: MPAA
MPA Worldwide Market Research

U.S. Entertainment Industry: 2002 MPA Market Statistics

Admissions

Average Annual Admission Price

Year
2002
2001
2000
1999
1998
1995
1992
1990
1985
1980

Avg. Annual
% Change
Admission
2002 vs.
Price (USD) Prev. Period
$5.81
2.7%
5.66
4.9
2.7%
5.39
6.1
7.7
5.08
8.3
14.2
4.69
7.9
23.7
4.35
4.8
33.5
4.15
(1.7)
39.9
4.23
19.0
37.4
3.55
31.9
63.6
2.69
-115.8

% Change
CPI
2.4
1.6
3.4
2.7
1.6
1.7
2.9
3.3
2.5
2.7

Note: NATO average ticket price based on NSNB survey and reflects average price paid for all admissions to movie theaters,
inclusive of first run, subsequent runs, senior citizens, children, and all special pricing.

Source: MPAA
MPA Worldwide Market Research

10

U.S. Entertainment Industry: 2002 MPA Market Statistics

Film Rental
Titles grossing >$50 Million

Number of High Grossing Features:


Film Rentals
19

20
16

14

16

16
13

12
8
4

0
1998

1999

2000

50 mil +

2001

100 mil +

2002

Total Box Office


$268.7
Lord of the Rings: Two Towers
Ice Age
176.4
Die Another Day
154.7
Scooby-Doo: The Movie
153.3
A Beautiful Mind
149.5
Lilo & Stitch
145.8
Santa Clause 2
138.4
Minority Report
132.0
Lord of the Rings: Fellowship
130.9
Sweet Home Alabama
126.2
Mr. Deeds
126.2
The Bourne Identity
121.5
The Sum of All Fears
118.5
8 Mile
115.4
Total
$2,057.4
% of Total Box Office
22%
Titles grossing >$100 Million
Spider-Man
Harry Potter: Chamber Of Secrets
Signs
Austin Powers in Goldmember
Men in Black 2

Source: MPAA
MPA Worldwide Market Research

Total
% of Total Box Office

Total Box Office


$403.7
253.0
227.8
$213.1
190.4
$1,288.1
14%

11

U.S. Entertainment Industry: 2002 MPA Market Statistics

Films Released
Number of Theatrical Films Produced, Rated, & Released

Year
2002
2001
2000
1999
1998
1997
1996
1995

Produced
543
611
683
758
686
767
735
631

Rated
786
739
762
677
661
673
713
697

Released
467
482
478
461
509
510
471
511

Note: Films rated may be higher than films produced for a given year because films may be rated or rerated
months or even years after production.
Source: MPAA
MPA Worldwide Market Research

12

U.S. Entertainment Industry: 2002 MPA Market Statistics

Films Released

Films Released in the US


600
500

511

470

509

490

461

475
442

458

482

462

467

449

400
300
200
100

41

0
1995

19
1998
Total

19
1999

20

17
2000

New Releases

2001

18
2002

Reissued

Source: MPAA
MPA Worldwide Market Research

13

U.S. Entertainment Industry: 2002 MPA Market Statistics

Films Released
Average Box Office of New Releases

The number of films released in 2002


dipped slightly (3%), however the
average box office/title increased. In
2002, films grossed an average of
$21.2 million.

Year
2002
2001
2000
1999

All New
Releases
$21.2
18.2
16.7
16.9

MPAA New
Releases
$32.5
34.8
30.0
27.1

Feature Films Released in the US


New Films
Year
2002
2001
2000
1999
1998

MPAA
220
188
191
213
221

All Other
Distributors

229
274
267
229
269

Reissued Films
Total New
Releases
449
462
458
442
490

MPAA

All Other
Distributors

Total
Reissues

5
8
6
5
14

13
13
11
14
5

18
21
17
19
19

Source: MPAA
MPA Worldwide Market Research

14

U.S. Entertainment Industry: 2002 MPA Market Statistics

Ratings
Percent of films by Rating
1968 to 2002

NC-17/X
2%

R
58%

Top Grossing Films by Rating 1968 to 2002

Title
The Lion King
Monsters, Inc.
Toy Story 2
Aladdin
Toy Story

Distributor
Buena Vista
Buena Vista
Buena Vista
Buena Vista
Buena Vista

Box Office
($US mil)
312.9
255.9
245.9
217.4
191.8

Rating
G
G
G
G
G

Release
Date
Jun-94
Dec-01
Nov-99
Nov-92
Nov-95

1
2
3
4
5

Star Wars
E.T.
Star Wars: Phantom Menace
Harry Potter: Sorcerer's Stone
Star Wars: Attack of the Clones

Fox
Universal
Fox
Warner Bros.
Fox

461.0
435.0
431.1
317.6
310.3

PG
PG
PG
PG
PG

May-77
Jun-82
May-99
Nov-01
May-02

1
2
3
4
5

Titanic
Spider-Man
Jurassic Park
Forrest Gump
Lord of the Rings: Fellowship of the Ring

Paramount
Sony
Universal
Paramount
New Line

600.8
403.7
357.1
329.7
313.4

PG-13
PG-13
PG-13
PG-13
PG-13

Dec-97
May-02
Jun-93
Jul-94
Dec-01

1
2
3
4
5

Beverly Hills Cop


The Exorcist
Saving Private Ryan
Terminator 2
Gladiator

Paramount
Warner Bros.
Dreamworks
TriStar
Dreamworks

234.8
232.7
216.2
204.8
187.7

R
R
R
R
R

Dec-84
Dec-73
Jul-98
Jul-91
May-00

Rank
1
2
3
4
5

G
7%

PG
22%

PG-13
11%

Source: MPAA
MPA Worldwide Market Research

15

U.S. Entertainment Industry: 2002 MPA Market Statistics

Ratings
The success of 2002 is essentially due to the success of PG-13 films. PG-13 films made
up 65% of the top 20 films in 2002, while R rated films were not represented in the top 20
for the first time in two years.

2002 Top 20 Films by Rating

2002 Top 20 Grossing Films


Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Title
Spider-Man
Star Wars II: Attack of the Clones
Lord of the Rings: Two Towers
Harry Potter: Chamber of Secrets
My Big Fat Greek Wedding
Signs
Austin Powers in Goldmember
Men in Black 2
Ice Age
Die Another Day
Scooby-Doo
A Beautiful Mind*
Lilo & Stitch
XXX
The Santa Clause 2
Minority Report
Lord of the Rings: Fellowship*
The Ring
Sweet Home Alabama
Mr. Deeds

Distributor
Sony
Fox
New Line
Warner Bros.
IFC
Buena Vista
New Line
Sony
Fox
MGM
Warner Bros.
Universal
Buena Vista
Sony
Buena Vista
Fox
New Line
Dreamworks
Buena Vista
Sony

Box Office
(USD MM)
$403.7
310.3
268.7
253.0
228.8
227.8
213.1
190.4
176.4
154.7
153.3
149.5
145.8
141.2
138.4
132.0
130.9
127.3
126.2
126.2

Rating
PG-13
PG
PG-13
PG-13
PG
PG-13
PG-13
PG
PG
PG-13
PG
PG-13
PG
PG-13
G
PG-13
PG-13
PG-13
PG-13
PG-13

R
0%

G
5%

1
13

PG
30%

PG-13
65%

Year
2002
2001
2000

Top 20 Grossing
G
PG
PG-13
5%
30%
65%
10%
20%
55%
5%
15%
60%

R
0%
15%
20%

Source: MPAA
MPA Worldwide Market Research

16

U.S. Entertainment Industry: 2002 MPA Market Statistics

Theatrical
MPAA Member Company Average Theatrical Costs
100

13.6%

78.0

76.0

82.1

89.4

78.7

80
30.6

54.1

60
38.8

27.3

25.3

24.5

52.7

51.5

54.8

1998

1999

2000

31.0

14% increase in
average theatrical
costs can be
attributed to the
increase in
member company
negative costs.

17.7

40
23.3

20

13.7
4.3
9.4

12.0

6.5

58.8
47.7

36.4
26.8

16.8

0
1980
Source: MPAA

1985

1990

1995

Negative Costs

MPA Worldwide Market Research

2001

2002

Marketing Costs
17

U.S. Entertainment Industry: 2002 MPA Market Statistics

Theatrical
MPAA Member Subsidiary / Affiliate Average Theatrical Costs

10.2%

50

45.2

41.0

40

31.5

27.3

11.2
9.5

24.9

30

9.7

5.5
6.5

20

31.5

10

21.8

18.4

34.0

21.8

0
1998
Source: MPAA
MPA Worldwide Market Research

1999

2000

Negative Costs

2001

2002

Marketing Costs
18

U.S. Entertainment Industry: 2002 MPA Market Statistics

Theatrical
MPAA Average Negative Costs *
(includes production costs, studio overhead and
capitalized interest)

Year
2002*
2001*
2000*
1999
1998
1995
1990
1985
1980

Average Negative
Cost Per Feature
(USD in MM)

$58.8
47.7
54.8
51.5
52.7
36.4
26.8
16.8
9.4

% Change
Prev. Period 2002 vs.
23.3%
(13.0)
23.3%
6.5
7.3
(2.3)
14.3
44.8
11.6
35.8
61.6
59.6
119.5
78.8
250.4
526.6

* Due to changes in financial reporting regulations,


abandoned project costs are no longer included in
studio overhead, and as such are no longer a part
total Negative Costs.

MPAA Subsidiary/Affiliate Average


Negative Costs *
(includes production costs, studio overhead and
capitalized interest)

Year
2002*
2001*
2000*
1999
1998

Average Negative
Cost Per Feature
(USD in MM)

$34.0
31.5
21.5
18.4
21.8

% Change
Prev. Period 2001 vs.
8.0%
46.6
8.0%
16.9
58.3
(15.6)
85.1
56.2

* Subsidiaries include studio classics divisions


such as Sony Pictures Classics, Fox Searchlight,
New Line, Miramax, etc.

Source: MPAA
MPA Worldwide Market Research

19

U.S. Entertainment Industry: 2002 MPA Market Statistics

Theatrical
MPAA Member Subsidiary*/
Affiliate Average Marketing
Costs of New Feature Films

MPAA Member Company Average


Marketing Costs of New Feature Films

Year
2002
2001
2000
1999
1998
1995
1990
1985

All amounts USD in millions


Print
Advertising Total P&A
30.62
$3.31
$27.31
3.73
27.28
31.01
3.30
24.00
27.30
3.13
21.40
24.53
3.25
22.07
25.32
2.35
15.38
17.73
1.73
10.24
11.97
1.21
5.24
6.45

1.2%

Year
2002
2001
2000
1999
1998

All amounts USD in millions


Print
Advertising Total P&A
11.18
$1.42
$9.76
1.21
8.29
9.50
0.75
8.96
9.71
0.78
5.74
6.52
0.62
4.86
5.48

* Subsidiaries include studio classics divisions


such as Sony Pictures Classics, Fox
Searchlight, New Line, Miramax, etc.

Source: MPAA
MPA Worldwide Market Research

20

U.S. Entertainment Industry: 2002 MPA Market Statistics

Theatrical
MPAA Member Company Distribution of Advertising Costs by Media

Year
2002
2001
2000
1999
1998

% of Total
Internet/
Total $ Newspaper Network Spot TV
Online
$27.31
13.5%
23.0%
17.6%
0.9%
27.28
13.1
25.4
16.9
1.3
24.00
15.6
23.8
18.3
0.7
21.40
17.6
23.5
19.8
0.5
22.07
15.9
24.1
18.2
NA

Other Media includes:


Cable TV/Network TV
Network Radio
Spot Radio
Magazines
Billboards
Other Non-Media includes:
Production/Creative Services
Exhibitor Services
Promotion & Publicity
Market Research

Trailers
4.5%
5.1
6.4
7.8
4.7

Other NonMedia
19%

Other
Media
21.4%
20.2
18.8
15.4
18.2

Newspaper
14%

Other
Media
21%
Trailers
5%

Other
Non-Media
19.1%
17.9
16.3
15.5
18.9

Network
22%
Internet/
Online
1%

Spot TV
18%

Source: MPAA
MPA Worldwide Market Research

21

U.S. Entertainment Industry: 2002 MPA Market Statistics

Theatrical
MPAA Member Company Subsidiary* / Affiliate
Distribution of Advertising Costs by Media

Year
2002
2001
2000
1999
1998

% of Total
Internet/
Total $ Newspaper Network Spot TV
Online
$11.18
22.0%
25.7%
5.6%
0.9%
8.29
18.6
42.8
3.2
0.4
8.96
20.5
36.4
6.1
0.5
5.74
23.8
35.4
6.8
0.3
4.86
23.5
42.2
3.6
NA

Other Media includes:


Cable TV/Network TV
Network Radio
Spot Radio
Magazines
Billboards
Other Non-Media includes:
Production/Creative Services
Exhibitor Services
Promotion & Publicity
Market Research

Source: MPAA

Trailers
6.1%
5.2
5.5
4.1
4.1
Other NonMedia
19%

Other
Media
21.1%
9.9
13.8
10.5
3.6

Other
Non-Media
18.6%
19.9
17.3
19.1
19.0
Newspaper
22%

Other
Media
21%
Trailers
6%

Network
25%
Internet/
Online
1%

Spot TV
6%

* Subsidiaries include studio classics divisions such as Sony Pictures Classics, Fox Searchlight, New Line,
Miramax, etc.

MPA Worldwide Market Research

22

U.S. Entertainment Industry: 2002 MPA Market Statistics

Theatrical
Total Number of Screens

Year
2002
2001
2000
1999
1998
1995
1990
1985
1980

Total
Screens

% Change
2002 vs.

Indoor
Screens

% Change
2002 vs.

Drive-In
Screens

% Change
2002 vs.

35,280

34,630
36,110

-4.1%

650

36,764

-4.0%

654

-0.6%

37,396
37,185
34,186

(5.7)
(5.1)
3.2

36,679
36,448
33,440

(5.6)
(5.0)
3.6

717
737
746

(9.3)
(11.8)
(12.9)

27,805
23,689
21,147
17,590

26.9
48.9
66.8
100.6

26,958
22,774
18,327
14,029

28.5
52.1
89.0
146.8

847
915
2,820
3,561

(23.3)
(29.0)
(77.0)
(81.7)

Source: MPAA
MPA Worldwide Market Research

23

U.S. Entertainment Industry: 2002 MPA Market Statistics

Theatrical
Digital Cinema Screens
140

124

120
100
80
60

45
31

40
20
0

12

1999

2000

2001

2002

Source: Texas Instruments


MPA Worldwide Market Research

24

U.S. Entertainment Industry: 2002 MPA Market Statistics

Theatrical
Average Screens per Indoor Theater
6.2

6.1

6.0

Total Number of Theaters

5.8
5.6

5.5

5.4

5.3
5.2

5.2
1999

2000

2001

2002

Total
% Change Indoor % Change Drive-In % Change
Year Theaters 2002 vs. Theaters 2002 vs. Theaters 2002 vs.

Source: MPAA

2002

6,050

5,635

415

2001

7,070

-14.4%

6,596

-14.6%

474

-12.4%

2000

7,421

(18.5)

6,909

(18.4)

512

(18.9)

1999

7,551

(19.9)

7,031

(19.9)

520

(20.2)

1998

7,418

(18.4)

6,894

(18.3)

524

(20.8)

1995

7,744

(21.9)

7,151

(21.2)

593

(30.0)

MPA Worldwide Market Research

25

U.S. Entertainment Industry: 2002 MPA Market Statistics

Theatrical
Theaters by Number of Screens

Type

2001

2002

%
Change

Single Screen

2,280

1,682

-26.2%

Miniplex
(2 to 7 screens)

2,901

2,457

(15.3)

Multiplex
(8 to 15 screens)

1,458

1,437

(1.4)

431

474

10.0

Megaplex
(16 or more screens)

Megaplex
8%

Single
Screen
28%

Multiplex
24%

Miniplex
40%

Total Number of Theaters: 6,050


Source: MPAA
MPA Worldwide Market Research

26

U.S. Entertainment Industry: 2002 MPA Market Statistics

Employment
US Motion Picture Industry Employment Areas
(000s)
% Change
Year
2002(p)
2001*
2000*
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988

Production
Video Tape
& Services Theaters
Rental
259.2
142.0
163.6
264.8
137.7
163.7
270.1
138.6
164.7
270.9
140.4
170.3
255.4
136.8
166.7
237.4
133.0
160.9
222.5
123.9
155.1
200.7
118.7
146.1
169.6
113.4
138.8
152.7
110.6
132.4
148.8
110.2
127.1
153.1
112.0
131.2
147.8
112.1
133.7
133.9
109.9
118.2
113.7
108.0
103.3

Source: Bureau of Labor Statistics


MPA Worldwide Market Research

Other
18.1
16.8
16.9
17.2
17.1
19.1
23.2
22.1
19.4
16.3
14.8
14.6
14.1
12.7
15.9

Total
582.9
583.0
590.3
598.8
576.0
550.4
524.7
487.6
441.2
412.0
400.9
410.9
407.7
374.7
340.9

Yearly 2002 vs.


-1.3%
-(1.2)
0.0%
(1.4)
(1.3)
4.0
(2.7)
4.7
1.2
4.9
5.9
7.6
11.1
10.5
19.5
7.1
32.1
2.8
41.5
(2.4)
45.4
0.8
41.9
8.8
43.0
9.9
55.6
-71.0

* revised by Bureau of Labor Statistics


(p) preliminary estimate

27

U.S. Entertainment Industry: 2002 MPA Market Statistics

Employment
Motion Picture Industry Employment Areas
Production & Services

Theaters

300
255

Thousands

250
201

223

146

270

265

259

237

200
155

270

Video Rental

161

167

170

165

133

137

140

139

1998

1999

2000

164

164

150
100

119

124

1995

1996

138

142

50
1997

2001

2002

Source: Bureau of Labor Statistics


MPA Worldwide Market Research

28

U.S. Entertainment Industry: 2002 MPA Market Statistics

Home Video
VCR Penetration in US TV Households

Year
2002
2001
2000
1999
1998
1997
1996
1995
1990
1985
1980

% Change VCR HHs


VCR
TV Households Households
Prev. Period
2002 vs.
(MM)
( MM)
106.7
97.6
1.5%
105.5
96.2
9.2
1.5%
102.2
88.1
2.7
10.8
100.8
85.8
2.0
13.8
99.4
84.1
4.6
16.1
98.0
80.4
2.0
21.4
95.9
78.8
4.0
23.9
95.4
75.8
4.1
28.8
93.1
65.4
5.0
49.3
86.1
23.5
56.7
315.4
78.0
1.9
5,038.4

VCR Penetration
Rate
(% TV HHs)
91%
91.2
86.2
85.1
84.6
82.0
82.2
79.5
70.2
27.3
2.4

Source: Nielsen Media Research


MPA Worldwide Market Research

29

U.S. Entertainment Industry: 2002 MPA Market Statistics

Home Video
Sales of Home Entertainment to US Dealers
Units in MM

VHS

Year
2002
2001
2000
1999
1998
1997

% of Change
Rental Sell -Through
Total
Cassettes
Cassettes Cassettes Prev. Year 2002 vs.
50.2
433.2
483.4
-24.2%
71.4
566.0
637.4
(4.8)
-24.2%
78.4
591.2
669.6
1.1
(27.8)
73.1
589.1
662.2
(5.7)
(27.0)
44.5
657.8
702.3
4.0
(31.2)
39.9
635.5
675.4
(28.4)
Units in MM

DVD

Year
2002
2001
2000
1999
1998
1997

Rental
DVDs
69.2
37.1
14.0
8.6
1.6
0.1

Sell -Through
DVDs
633.2
344.7
174.4
91.3
32.7
10.7

Total
DVDs
702.4
381.8
188.4
99.9
34.3
10.8

% of Change
Prev. Year 2002 vs.
84.0%
102.7
84.0%
88.6
272.8
191.3
603.1
217.6
1,947.8
6,403.7

Source: Adams Media Research


MPA Worldwide Market Research

30

U.S. Entertainment Industry: 2002 MPA Market Statistics

Home Video
DVD Penetration in US TV Households

Year
2002
2001
2000
1999
1998
1997

DVD
TV
Penetration
Households Households
Rate
38.8
106.7
36.4%
105.2
24.8
23.6
102.2
13.0
12.7
100.8
4.6
4.6
99.4
1.2
1.2
0.3
98.0
0.3

DVD
Households
38.8
24.8
13.0
4.6
1.2
0.3

Yearly
56.5%
90.8
182.6
283.3
300.0
-

2002 vs.
56.5%
198.5
743.5
3133.3
12833.3

Source: Nielsen Media Research, Adams Media Research


MPA Worldwide Market Research

31

U.S. Entertainment Industry: 2002 MPA Market Statistics

Home Video

DVD Statistics

1998

1999

2000

2001

2002

DVD Players Shipped to Dealers (in thousands)

1,100 4,100

Installed Consumer Base (in thousands)1

1,250 4,800 14,700 31,400 56,500

Average DVD Player Price (in USD)

$390

DVD Software Units Shipped to Dealers 2 (in MM)


Titles Available on DVD 3

25.1

$275
98.0

1,500 5,000

8,499 12,706 17,090

$204

$153

$140

182.4

364.4

685.0

8,500 13,000 20,000

Numbers updated per new source


Includes Sell-Through and Rental DVD
3
Titles available on DVD include movies and music videos
2

Source: CEA, Adams Media Research, DVD Entertainment Group


MPA Worldwide Market Research

32

U.S. Entertainment Industry: 2002 MPA Market Statistics

Home Video
DVD Player Shipments
to Retailers

Month

2001

2002

Change

January

572,031

542,698

(5.1)

February

555,856

736,118

32.4

1,207,489

1,404,026

16.3

April

631,353

1,095,930

73.6

May

523,225

950,412

81.6

June

920,839

1,632,032

77.2

July

693,013

966,129

39.4

August

673,926

884,288

31.2

September

1,768,821

2,299,864

30.0

October

1,516,211

1,704,148

12.4

November

1,781,048

2,544,130

42.8

December

1,862,772

2,330,048

25.1

Total

12,706,584

17,089,823

34%

March

Source: Consumer Electronics Association


MPA Worldwide Market Research

33

U.S. Entertainment Industry: 2002 MPA Market Statistics

Home Video

DVD Player Sales to US Consumers


Year
2002
2001
2000
1999
1998
1997

DVD Players
(000s)
25,100
16,700
9,700
4,070
1,080
320

Yearly
Change
50.3%
72.2
138.3
276.9
237.5
--

2002
Versus
-50.3%
158.8
516.7
2,224.1
7,743.8

DVD Titles Available


Titles
Available
20,000
13,000
8,500
5,000
1,500
600

Yearly
Change
53.8%
52.9
70.0
233.3
150.0
--

2002
Versus
-53.8%
135.3
300.0
1233.3
3233.3

Source: DVD Report/Phillips Business Information, DVD Entertainment Group


MPA Worldwide Market Research

34

U.S. Entertainment Industry: 2002 MPA Market Statistics

Home Video

US Average Price per DVD Title


30
$25.31

$25.54

25

20

$22.65
1,500 Titles
Available

5,000 Titles
Available

$20.48

$20.78

8,500 Titles
Available
13,000 Titles
Available

20,000 Titles
Available

15

10
1998

1999

2000

2001

2002

Source: DVD Entertainment Group


MPA Worldwide Market Research

35

U.S. Entertainment Industry: 2002 MPA Market Statistics

Home Video
US HH Growth:
Internet vs. Broadband vs. DVD
(in millions)
70

66.9
60.1

60

54.4

50

45.2
38.8

40
31.7
30

24.8
17.6

20

13.0

10
0

0.6

4.6

1.2

1998

11.4

6.2
1.8

1999
Internet HHs

2000

2001

Broadband HHs

2002

DVD HHs

Source: e-Marketer, Nielsen Media Research, Adams Media Research


MPA Worldwide Market Research

36

U.S. Entertainment Industry: 2002 MPA Market Statistics

Television
Television Households
(MM)
Year
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1985

Total
Households
109.3
108.2
104.7
103.9
102.5
101.0
99.6
98.9
97.1
96.4
95.7
94.3
93.3
92.8

TV
Households
106.7
105.5
102.2
100.8
99.4
98.0
95.9
95.4
94.2
93.1
93.1
92.0
93.1
86.1

Penetration Rate
(% of Total HHs)
97.6%
97.5
97.6
97.0
97.0
97.0
96.3
96.5
97.0
96.6
97.3
97.6
99.8
92.8

Source: Nielsen Media Research, Census Bureau


MPA Worldwide Market Research

37

U.S. Entertainment Industry: 2002 MPA Market Statistics

Television
Factory Sales of Digital TV Sets and Displays
$5,000
2.7 mil
Units

4,560

$4,000
3,147
$3,000

1.425 mil
Units

2,433

2,615

2,200
$2,000

$1,000

1,835

648,000
Units
14,000
Units

43

1,689
1,426

121,000
Units

295

$0
1998

1999

2000

Average Unit Price

2001

2002

Dollars in Millions

Source: Nielsen Media Research;Consumer Electronics Association


MPA Worldwide Market Research

38

U.S. Entertainment Industry: 2002 MPA Market Statistics

Television
Television Advertising Expenditures
27.6

30

23.5

25

$ Billions

28.9

28.0

21.5

20

12.0

10.9

11.8

16.7

16.2

16.9

2000

2001

2002

8.9
7.4

15
14.2

14.6

1998

1999

10
Broadcast Advertising

Cable Network Advertising

Source: PriceWaterhouseCoopers
MPA Worldwide Market Research

39

U.S. Entertainment Industry: 2002 MPA Market Statistics

Television
Number of Cable and Satellite Channels
300

Launch of
Digital Cable

250

267
250
227 235

202
200

168
155

Launch of 150
Digital
Satellite

130
91

100

72

60

113

78

50
20

20

20

19

19

19

19

19

19

19

19

19

19

02

01

00

99

98

97

96

95

94

93

92

91

90

Source: Screen Digest

345% increase in cable and satellite channels since 1990


18% increase in cable since 1999

MPA Worldwide Market Research

40

U.S. Entertainment Industry: 2002 MPA Market Statistics

Television

Basic Cable Households *

Year
2002
2001
2000
1999
1998
1997
1996
1995
1990
1985
1980

TV
Households
(in MM)
106.7
105.5
102.2
100.8
99.4
98.0
95.9
95.4
93.1
86.1
78.0

Basic Cable
Households
(in MM)
72.2
73.2
69.5
68.6
67.1
66.0
64.0
62.7
54.9
39.8
17.6

Basic Cable
% Change Basic Cable HHs Penetration Rate
Prev. Year
2002 vs.
(% TV HHs)
-1.3%
67.7%
5.3
-1.3%
69.4
1.3
3.9
68.0
2.2
5.3
68.1
1.7
7.7
67.5
3.1
9.4
67.3
2.1
12.9
66.7
4.9
15.2
65.7
4.4
31.6
59.0
6.7
81.5
46.2
310.4
22.6

* Refers to wired cable households with basic cable

Source: Nielsen Media Research


MPA Worldwide Market Research

41

U.S. Entertainment Industry: 2002 MPA Market Statistics

Television
According to the FCC, as of July,
2001, the average subscriber paid
00
$14 /month for basic cable and
99
$36 /month for expanded basic
cable.

Pay Cable Households *

Year
2002
2001
2000
1999
1998
1995
1990
1985

TV HHs
(in MM)
106.7
105.5
102.2
100.8
99.4
95.4
93.1
86.1

Pay Cable HHs


(in MM)
34.4
34.1
33.7
31.7
39.1
30.4
27.0
22.8

% Change Pay Cable HHs


Prev. Period
0.9%
1.2
6.3
(18.9)
28.6
12.0
18.4
-

2002 vs.
0.9%
2.1
8.5
(12.0)
13.2
27.4
50.9

Pay Cable Penetration


Rate (% TV HHs)
32.2%
32.3
33.0
31.4
39.3
31.9
29.0
26.5

* Refers to wired cable households subscribing to premium channels. 1999 decline due in part to redefinition of
some premium channels to basic cable.
Source: Nielsen Media Research, FCC
MPA Worldwide Market Research

42

U.S. Entertainment Industry: 2002 MPA Market Statistics

Television
US Addressable Cable Households *

Year
2002
2001
2000
1999
1998
1995
1990
1985

* *2002 figure is preliminary


Source: Kagan Media Money
MPA Worldwide Market Research

Addressable
% Change
Households
Prev. Period 2002 vs.
(in MM)**
35.3
10.3%
32.0
(14.7)
10.3%
37.5
6.5
(5.9)
35.2
6.0
0.3
33.2
15.7
6.3
28.7
30.5
23.0
22.0
144.4
60.5
9.0
292.2

*Cable homes which have set-top boxes (usually for pay-per-view

purposes) that can be tracked to an exact location in the home.


43

U.S. Entertainment Industry: 2002 MPA Market Statistics

Television

US Digital Cable Subscribers


25
20

(Millions)

52.3%

15
1998: Digital cable
launched in the US

10

21.1
13.85

7.63
1.34

3.4

1998

1999

0
2000

2001

2002*

*Preliminary
Source: Kagan Media Money
MPA Worldwide Market Research

44

U.S. Entertainment Industry: 2002 MPA Market Statistics

Television

Satellite Households

Year
2002
2001
2000
1999
1998
1997
1996
1995

Satellite
Households
(in MM)
17.6
12.9
9.6
8.6
8.3
6.4
4.4
3.3

% Change
Prev. Year
2002 vs.
36.5%
34.4
36.5%
11.6
83.4
3.6
104.7
29.7
112.1
45.5
175.1
33.3
300.1
433.5

Source: Nielsen Media Research


MPA Worldwide Market Research

45

U.S. Entertainment Industry: 2002 MPA Market Statistics

Television
According to Adams Media
Research, the average price
VOD price was $4.10.

VOD

Year
2002
2001
2000
1999

TV
VOD
VOD/SVOD
Households Households VOD Penetration Rate Revenue
(in MM)
(in MM)*
(% TV HHs)
(in MM)*
106.7
5.5
5.15%
$480
105.5
3.0
2.84%
329
102.2
0.2
0.20%
27
100.8
0.0
0.00%
0
* 2002 figure is preliminary

VOD = Video on Demand; An advanced pay-per-view programming


service which enables viewers to order and watch movies on demand
and to pause, rewind or fast-forward them.

Source: Nielsen Media Research, Kagan World Media,


National Cable & Telecommunications Association, Adams Media Research
MPA Worldwide Market Research

46

U.S. Entertainment Industry: 2002 MPA Market Statistics

Technology
PC Households

Year
2002*
2001
2000
1999
1998
1997
1996
1995
1994
1993
1990

PC HHs in % Change % of Total


MM
2002 vs.
US HH's
72.7
66.5%
69.1
5.2%
66.0
66.0
10.2
63.0
61.1
19.0
59.0
51.2
42.0
49.9
44.0
65.2
43.6
38.8
87.4
39.0
33.6
116.4
34.0
32.0
127.2
33.0
28.9
151.6
30.0
21.9
232.0
23.5

*Preliminary
Source: MPAA, US Census Bureau, e-Marketer
MPA Worldwide Market Research

47

U.S. Entertainment Industry: 2002 MPA Market Statistics

Technology
US PC Households
80.0
72.7
69.1

66.5%
Penetration

(Millions)

66.0
61.1
60.0

63.0%
Penetration

66.0%
Penetration

59.0%
Penetration

51.0
49.9%
Penetration

44.0
43.6%
Penetration

40.0
1997

1998

1999

2000

2001

2002*

*Preliminary
Source: MPAA, e-Marketer
MPA Worldwide Market Research

48

U.S. Entertainment Industry: 2002 MPA Market Statistics

Technology
After seeing a small decline in 2001, shipments in both the US & Worldwide are
expected to rise slightly in 2002 and continue the upward growth into 2003.

PC Shipments (Units in MM)


Worldwide
Consumer
Commercial
TOTAL

1999
41.4
79.2
120.6

2000
52.4
87.5
139.9

2001
47.2
86.9
134.1

2002*
47.6
87.9
135.5

2003e
51.0
96.0
147.0

PC Shipments (Units in MM)


US
Consumer
Commercial
TOTAL

1999
17.7
30.9
48.6

2000
19.3
32.7
52.0

2001
15.5
30.5
46.1

2002*
15.7
30.6
46.3

2003e
15.9
32.3
48.2

*Preliminary
Source: e-Marketer, IDC
MPA Worldwide Market Research

49

U.S. Entertainment Industry: 2002 MPA Market Statistics

Technology

Number of Households with Internet Access

Year
2002*
2001
2000
1999
1998
1997
1996
1995
1990

Internet HHs % Change


(MM)
2002 vs.
66.9
60.1
11.3
54.4
23.0
45.2
48.0
31.7
111.0
21.8
206.9
15.2
340.1
9.4
611.7
1.6
4081.3

% of PC
HHs
92.0%
87.0
82.5
74.0
62.0
49.5
39.3
28.3
7.3

% of Total
US HHs
61.2%
57.4
52.0
43.6
30.9
21.6
15.3
9.5
1.7

*Preliminary
Source: MPAA, US Census Bureau, e-Marketer
MPA Worldwide Market Research

50

U.S. Entertainment Industry: 2002 MPA Market Statistics

Technology
US Internet Households
80.0
66.9
61.2%
Penetration

60.1

60.0

(Millions)

54.4

57.4%
Penetration
52.0%
Penetration

45.2
43.6%
Penetration

40.0

31.7
21.8

20.0

30.9%
Penetration
21.6%
Penetration

1997
*Preliminary
Source: MPAA, e-Marketer
MPA Worldwide Market Research

1998

1999

2000

2001

2002*

Note: Penetration is calculated as a


percentage of total US households.

51

U.S. Entertainment Industry: 2002 MPA Market Statistics

Technology
Number of Households with Broadband Internet Access
20.0
15.4%
Penetration

16.8

(Millions)

15.0
10.4%
Penetration

11.2

10.0
5.9%
Penetration

6.2

5.0
0.6%
Penetration

1.8%
Penetration

1.9

0.6

0.0
1998

*Preliminary
Source: e-Marketer
MPA Worldwide Market Research

1999

2000

2001

2002*

Note: Revised 2000-2001 figures reflect change in source;


Penetration is calculated as a percentage of total US households.

52

U.S. Entertainment Industry: 2002 MPA Market Statistics

Technology
In 2002, broadband households are projected to grow 50% as cable modem remains the
preferred connection choice.

US Broadband Households by Type of Connection


2001

2002p

Other*
2.7%

Other*
4.1%

DSL
36.6%

DSL
36.9%
Cable Modem
60.7%

Cable Modem
59.0%

* Other includes fixed wireless, satellite, and fiber

Source: e-Marketer
MPA Worldwide Market Research

53

U.S. Entertainment Industry: 2002 MPA Market Statistics

Technology
US Broadband Households versus Dial-up Households
50.0

(Millions)

40.0

45.2

46.1

44.7

41.8

30.0

30.5

20.0

23.3
16.8

10.0
0.0

42.1

11.2
6.2

2000

2001

2002*

Broadband

*Preliminary
Source: e-Marketer
MPA Worldwide Market Research

2003e

2004e

Dial-up
* Other includes: fixed wireless, satellite, fiber, Ethernet
and powerline technology
Note: Revised Broadband 2000-2001 figures reflect
change in source.

54

U.S. Entertainment Industry: 2002 MPA Market Statistics

Technology

Number of US Mobile Internet Users


75.0
63.5

(Millions)

60.0
45.0

43.0

30.0

22.5

15.0
4.0

8.9

0.0
2000

2001

2002*

2003e

2004e

*Preliminary
Source: e-Marketer
MPA Worldwide Market Research

55

U.S. Entertainment Industry: 2002 MPA Market Statistics

Technology
In September 2001, there were 7.6 million U.S. households that contained an
internet access device other than a computer.

Number of US Households (2001*)

Cellphone or
pager

5.1

PDA or other
handheld
device

1.9

Television

0.6

* 2002 figures not yet available

(Millions)

Source: US Department of Commerce, e-Marketer


MPA Worldwide Market Research

56

U.S. Entertainment Industry: 2002 MPA Market Statistics

Media Consumption
Media Consumption based on Hours per Person
1999

2000

Percent Change:
2001 2002p 2001-2002 1998-2002

667
720
884
867
54
82
36
39
13
13
0
2
1,654 1,723

774
865
106
46
12
2
1,805

846
851
815
810
134
157
56
77
13
13
2
2
1,866 1,910

0.59
(0.61)
17.16
37.50
0.00
0.00
2.36

27.59
(8.37)
190.74
113.89
0.00
N/A
15.48

Subtotal

936
967
283
290
185
183
125
124
120
121
43
61
1,692 1,746

964
264
179
121
111
75
1,714

983 1,001
238
228
177
175
119
117
109
107
78
84
1,704 1,712

1.83
(4.20)
(1.13)
(1.68)
(1.83)
7.69
0.47

6.94
(19.43)
(5.41)
(6.40)
(10.83)
95.35
1.18

Total

3,346 3,469

3,519

3,570 3,622

1.46

8.25

1998

Filmed Entertainment
Cable & Satellite TV
Broadcast TV
Consumer Internet
Home Video1
Box Office
Interactive TV 2

Subtotal
Other Entertainment
Radio
Recorded Music
Daily Newspapers
Consumer Magazines
Consumer Books
Video Games

1 Includes
2

playback of prerecorded tapes only


Video-on-Demand only

Source: Veronis Suhler Stevenson


MPA Worldwide Market Research

57

U.S. Entertainment Industry: 2002 MPA Market Statistics

Media Consumption
Media Consumption based on Hours per Person per Year
2500
2,130

2,141

2,129

2,094

2,103

2000

1500
1,328

1000

1,390

1,476

1,519

In 2002, its projected that


the average person will
spend 58% of their time with
media that is supported by
advertising. Within this
category, its expected that
most people will spend
more hours with broadcast
television than other forms
of media.

1,216

1998

1999

2000

2001

2002p

Increase due to.

Media Supported by Advertising *


Media Supported Predominately by Consumer Purchases **
* Broadcast television, radio, daily newspapers, consumer magazines
** Cable & satellite television, box office, home video, interactive television, recorded music, video games,
consumer Internet, consumer books

Source: Veronis Suhler Stevenson


MPA Worldwide Market Research

58

U.S. Entertainment Industry: 2002 MPA Market Statistics

Media Consumption
Consumer Spending per Person per Year
(USD)
$225.34
$181.71

$194.63

$210.58

$167.38
$97.33

$102.46

$109.60

$92.58
$86.13

$119.23

$87.02

$89.04

$87.34

$59.78

$62.19

$41.77

$50.63

$62.08

$75.10

$61.67

$65.13

$62.80

$60.57

$58.81

$53.37

$53.83

$53.39

$54.12

$54.70

$46.45

$44.87

$43.87

1998

1999

2000

$84.16
$49.72
$27.63

Consumer Magazines
Other*

Newspapers
Consumer Books

$69.55

$43.57

2001

Recorded Music
Home Video

$76.88

$44.07

2002p
Consumer Internet
TV**

* Other includes: Box Office, Video Games & Interactive TV


** TV includes: Cable & Satellite TV (Basic & Premium services)

Source: Veronis Suhler Stevenson


MPA Worldwide Market Research

59

U.S. Entertainment Industry: 2002 MPA Market Statistics

Media Consumption
Consumer Spending per Person per Year
(USD)
$700
$600
$500

$483.14

$534.76

$560.05

$598.51

$642.38

$400
$300
$200
$100

$99.98

$99.82

$98.26

$97.69

$98.77

$0
1998

1999

2000

2001

2002p

Media Supported by Advertising*


Media Supported Predominately by Consumer Purchases**
* Daily newspapers, consumer magazines
** Cable & satellite television, box office, home video, interactive television, recorded music,
video games, consumer Internet, consumer books

Source: Veronis Suhler Stevenson


MPA Worldwide Market Research

60

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