A new study from PricewaterhouseCoopers examines high-definition DVDs and digital cinema, finding that digital and HD filmed content will reach $103.3 billion, up from $81.2 billion in 2006. The study, entitled "Global Entertainment and Media Outlook: 2007-2011," emphasizes Asia Pacific as the fastest growing market and finds that download-to-own services will remain a niche market but one that will grow tremendously over the next few years.
One of the most interesting predictions is that digital cinema will "reinvigorate the box office to the tune of $11.7 billion by 2011," according to Reuters' Gina Keating in her article on the report.
There are still a lot of controversies, particularly in the length of time given to release for DVD, which digital cinema encourages. However, theater owners are adamantly opposed to such a move because, while it will benefit the production companies, it may very well be detrimental to the box office, especially due to the fact that one can own a movie on DVD for about the cost of a couple viewing it once at a theater, not counting the costs for snacks and beverages.
The report also emphasizes that losses in in-store video rentals should be more than offset by the increase in online video rental. Be sure to check out the full report.
I wrote about another study from PricewaterhouseCoopers late last month, in which Asia Pacific was also expected to be "the fastest-growing convergent platform region with a projected 13.5% increase" for spending on "convergent platforms. See more here.
I have written in the past about how digital moviemaking is also allowing for regionally specific filmmaking, such as with the plans for a film made in Kentucky called Red Velvet Cake. I wrote:
Red Velvet Cake may or may not be a success in national or international distribution--that's yet to be seen--but it's already become an important part of Ohio County folklore through its use of landmarks across the county and a significant number of locals in the film. While the market has yet to be fully explored, it makes me wonder if regional film industries may have an even more vibrant future than we realize, if marketed correctly.
Thanks to Todd Cunningham for bringing the report to my attention.