Global Box Office Flat in 2018, Netflix and Subscription Services Rise in Popularity

An anonymous reader shares a report: The domestic box office rebounded in 2018 in a recovery fueled by blockbusters such as 'Black Panther' and 'Incredibles 2.' Ticket sales in the U.S. climbed 7% to top out at a record $11.9 billion, according to a new report by the Motion Picture Association of America (MPAA). That helped off-set declines in overseas markets in Europe and Latin America, pushing the global box office to $41.1 billion, a year-over-year improvement of a percentage point. The MPAA study is produced by the entertainment industry trade group and is intended to provide a comprehensive look at the overall state of the film business.

In addition to box office revenues, the report found that the global home entertainment business increased by 16% to reach $55.7 billion last year. This was driven primarily by the rise of digital rentals, sales, and subscriptions to streaming services such as Netflix. Digital home entertainment spending in the U.S. increased 24% to $17.5 billion; internationally this sector climbed 34% to $25.1 billion. That helped plug the gap left by massive declines in the sale and rental of DVDs and Blu-rays. In the U.S., disc sales dropped 15% to $5.8 billion and fell 14% internationally to $7.3 billion. Four years ago, physical sales in the U.S. were $10.3 billion and were $14.9 billion internationally, a sign of just how precipitously the DVD market has fallen. Over that same period, digital spending has increased 170% globally. Much of that rise is attributable to the popularity of Netflix, Amazon Prime, and other subscription services. Globally, the number of digital subscriptions increased by 27% to 613.3 million. Online video subscriptions surpassed cable for the first time in 2018. Cable subscriptions fell 2% to 556 million.

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