International Movie Earnings To Surpass Domestic Revenues in 2005

Kagan Research: The motion picture business will reach an inflection point in 2005, with international revenue streams overtaking domestic by $25.4 bil. vs. $24.9 bil. at year-end. That gap will continue to widen over the next decade.

As growth in the domestic home video market slows, international markets will become key growth segments for motion picture distributors. We estimate by 2014, international will grow to $38.2 bil. and domestic to $34.8 bil., with international home video providing the largest revenue stream at $17.7 bil.

Despite the continued decline of box office gross and flattening domestic DVD sales, growth going forward will keep capital flowing into the motion picture business. The most successful growth stream has been home video, posting a 10.5% CAGR for the past decade. The study projects continued growth in this sector, with revenues rising from an estimated $25.7 bil in 2005 to $33.6 bil. by 2014.

THE BUSINESS OF MOVIE PRODUCTION & DISTRIBUTION 2006

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