Global box office revenue tops $25bn worldwide for the first time

December 2007

Source: Sawa

In 2006, global box office staged a general recovery from the widely reported slump that had plagued cinemas a year prior. The brighter prospects were linked to a stronger line up of Hollywood titles, but certain local film markets also rose to the challenge. Box office revenues from cinemas worldwide eclipsed$25bn in US$ dollar values for the first time in 2006,with an eight per cent rise in revenues year on year. Notably, there was a recovery and/or continued grow thin all world regions in revenue terms.

Globally, there was a smaller increase in actual cinema ticket sales, reaching a new peak of 7.9bn in 2006, up from 7.5bn a year prior. The annual increase stands at just under five per cent, indicating that ticket price inflation is still a major driver behind the increase in box office revenues. The global average ticket price increased to a new world high of $3.23.Despite a six per cent rise in box office revenues in Western Europe to hit $6.8bn, the 2006 total falls just under the most recent high set back in 2004 ($7.0bn),but still goes on record as the second highest ever generated.

The box office in Central and Eastern Europe continued to increase for the seventh consecutive year and now accounts for just over 10 per cent of Europe’s box office revenues, and is the world’s fastest growing theatrical region.

North America accounted for 40.1 per cent of the world box office, its lowest proportion since 1995 and a share that has fallen from a high of 49.3 per cent back in2002.As a result, international markets yielded the majority or59.9 per cent of world revenues in 2006, up from 58.9per cent in 2005.In South America revenues were up by 17 per cent, with revenue rises in US dollar terms in the majority of territories.

Brazil, the largest market in the region posted a15 per cent increase, which belies a small decrease in actual attendance.

Box office markets in Asia posted strong annual growth rates due in part to the large but developing markets of China and India, as well as strong growth in Malaysia, Indonesia and Turkey, all contributing to a 17 per cent rise for the region. In the Far East a more steady 5.0 percent increase was noted.

Our global screen count included a net addition of 1,085screens, to finish the year on 148,760. Screen growth in Asia actually increased for the first time in five years led by new construction in Turkey, Vietnam and India. In India, the conversion rate of small screen closures to modern multiplex cinemas has been gradually slowing to the rate of stabilization in the overall screen base.