The EMEA region has recovered to slightly under half its pre-pandemic levels, finishing the year with $5bn.
The global theatrical and home entertainment market has surpassed pre-pandemic levels, reaching $99.7bn in 2021, and adding pay-TV revenues takes the combined figure to $328.2bn, matching 2019’s record high, according to a new report from the Motion Picture Association.
The pay-TV market includes monthly subscription fees for cable and other pay-TV services, as well as payments for on-demand content. In the United States, the combined theatrical and home/mobile entertainment market was $36.8bn in 2021, a 14% increase compared to 2020, but notably overtaking the 2019 figure of $36.1bn.
While both the international and US/Canada theatrical markets grew substantially compared to 2020, streaming continued to drive the growth of the overall industry. Subscriptions to streaming services reached 1.3bn globally, marking a 14% increase over 2020.
The MPA’s 2021 Theatrical and Home Entertainment Market Environment (THEME) Report provides a comprehensive analysis and survey of the theatrical and home/mobile entertainment market. This annual report includes in-depth data into how the film, television, and streaming industry performed during the year, as well as audience demographic information.
In 2021, the global home/mobile entertainment market reached $78.5bn, representing a 14% increase compared to 2020 and a 41% increase compared to 2019. In the United States, it increased to $32.3bn last year. This growth was driven by the digital market which increased 11% in the US and 24% internationally.
The international box office accounted for 79% of global admissions revenue in 2021, led by another strong year from China. The Chinese market first claimed the world’s box office crown in 2020 with a consistent slate of domestic titles upon cinemas’ reopening. That streak continued into 2021, with China reaching $7.3bn in annual ticket sales, a $4.4bn bump from 2020.
China’s leadership position buoyed the Asia Pacific region to $10.9bn. Japan was the only other market to join China and North America in registering over $1bn in theatrical box office sales during the year. In 2019, a total of 10 markets crossed $1bn in the box office.
Europe, Middle East & Africa (EMEA) recovered to slightly under half its pre-pandemic levels, finishing the year with $5bn. Latin America, unable to reach the $1bn mark for a second consecutive year, suffered more than any other global region during its recovery year. Cinemas in Latin America only managed to achieve roughly one-third of their pre-pandemic box office.
Another notable data point is that there was a significant return to production in 2021 due largely to the early and effective implementation of the industry’s strict health and safety protocols. 943 films entered production during 2021, an increase of 111% compared to 2020.
The number of subscriptions to streaming services around the world increased to 1.3bn (up from 1.2bn in 2020) and to 353.2m in the United States, both representing a 14%increase from 2020. 1,826 original series were released in 2021, including 559 scripted original series. This represented an increase of 15% in the original series from 2020, driven in part by the increase of series productions for online services. In 2021, online services produced a total of 693 series.
Online services also produced 179 original films released exclusively to their platforms in 2021, comparable to 2020 but representing an almost 60% increase from 2019.
Approximately 80% of US adults watch movies and shows/series through traditional television services, including pay-TV and online streaming services.
Since the onset of the Covid-19 pandemic, 53% of US adults reported that their viewing of movies or shows/series on a streaming service increased, while 42% reported that their viewing via pay-TV increased.
On the theatrical side, the global box office, which includes all films released in each country, was $21.3bn in 2021, up 81% from 2020 but remained below pre-pandemic levels. The international box office, outside the US and Canada, accounted for 79% of the global market. Due to Covid-19 impacts on the theatrical market, including varying theatre closures and reopenings, comparing the box offices of different countries remains challenging. Under those parameters, the top three box office markets outside the US and Canada were China ($7.3bn, including online ticketing fees), Japan ($1.5bn), and the UK ($0.8bn).
The US/Canada box office was $4.5bn in 2021, up 105% since 2020. Although the market was still lower than pre-pandemic levels, the number of tickets sold (470m) was up 100% compared to 2020.
Commenting on the finding of the report, Charles Rivkin, Chairman and CEO of the Motion Picture Association, said: “As the Motion Picture Association marks its 100th anniversary this year, our latest Theme report underscores how resilient and dynamic our industry is, and I couldn’t be more optimistic about the future of our business. We are just getting started in writing the next chapter of our industry as streaming continues to boom, theatres are rebounding, and the overall global market for our entertainment product recovers and breaks records. Our members are the most innovative companies on earth. Their capacity to bring people together through the timeless magic of extraordinary stories will continue to captivate billions of viewers over the next 100 years.”
