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Box Office
Box office continued its momentum to gross $9.5 billion in 2004 - a 25% increase over
five years ago. Close to half of this year's gross can be attributed to summer releases.
9.5
9.5
9.5
Billions USD
9.0
8.4
0.5%
0.3%
8.0
13.2%
7.7
9.8%
7.0
6.0
Source: MPAA
2000
2001
2002
2003
2004
3
Box Office
Box Office Growth
Year
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
Box Office
Gross
(USD MM)
$9,539.2
9,488.5
9,519.6
8,412.5
7,660.7
7,448.0
6,949.0
6,365.9
5,911.5
5,493.5
5,396.2
5,154.2
4,871.0
4,803.2
5,021.8
5,033.4
4,458.4
4,252.9
3,778.0
3,749.4
4,030.6
% Change
Prev. Period 2004 vs.
0.5%
(0.3)
0.5%
13.2
0.2
9.8
13.4
2.9
24.5
7.2
28.1
9.2
37.3
7.7
49.8
7.6
61.4
1.8
73.6
4.7
76.8
5.8
85.1
1.4
95.8
(4.4)
98.6
(0.2)
90.0
12.9
89.5
4.8
114.0
12.6
124.3
0.8
152.5
(7.0)
154.4
7.0
136.7
Box Office
Opening at $116 million Spider-Man 2 claimed the top spot for 2004 and highest opening
weekend of all time.
Title
Spider-Man 2
Shrek 2
Harry Potter: Prisoner Azkaban
The Day After Tomorrow
The Passion of the Christ
The Incredibles
The Bourne Supremacy
I, Robot
Van Helsing
The Village
Shark Tale
Troy
Meet the Fockers
50 First Dates
Ocean's Twelve
The Grudge
Alien Vs. Predator
National Treasure
Along Came Polly
SpongeBob Squarepants
Distributor
Sony
DreamWorks
Warner Bros.
Fox
NewMarket
Buena Vista
Universal
Fox
Universal
Buena Vista
DreamWorks
Warner Bros.
Universal
Sony
Warner Bros.
Sony
Fox
Buena Vista
Universal
Paramount
Release Date
June 30th
May 19th
June 4th
May 28th
February 25th
November 5th
July 23rd
July 16th
May 7th
June 30th
October 1st
May 14th
December 22nd
February 13th
December 10th
October 22nd
August 13th
November 19th
January 16th
November 19th
Box Office
(USD MM)
$115.8
108.0
93.7
85.8
83.8
70.5
52.5
52.2
51.7
50.7
47.6
46.9
46.1
45.1
39.2
39.1
38.3
35.1
32.5
32.0
Opening Weekend
Highest Grossing film:
2004: $115.8 million
1994: $37.2 million
Source: Variety
MPA Worldwide Market Research
Box Office
Second quarter pulled in the highest grosses in 2004 totaling $3 billion, representing 32%
of 2004 total box office.
USD in millions
2003
2004
$1,887.8 $1,966.2
2,353.4
3,027.6
2,618.6
2,557.1
2,628.8
1,988.4
$9,488.5 $9,539.2
% Change
4.2%
28.6
(2.4)
(24.4)
0.5%
2nd Qtr 2004 Box Office Hits
Box Office*
Rank Title
(USD in MM)
Finding Nemo
$339.7
1
The Matrix Reloaded
281.5
2
Bruce Almighty
242.6
3
X2: X-Men United
214.9
4
Anger Management
133.8
5
Top 5 Total:
$1,212.6
Box Office*
Rank Title
(USD in MM)
Shrek 2
$436.3
1
Harry Potter: Prisoner of Azkaban
249.4
2
The Day After Tomorrow
186.7
3
Troy
133.3
4
Van Helsing
120.1
5
Top 5 Total:
$1,125.7
Source: MPAA
MPA Worldwide Market Research
Admissions
Admissions Trends
Admissions have shown a steady
growth over the past decade - with
an average increase of 2% per year.
1.8
1.64
1.57
1.6
1.54
Billions
1.49
1.42
10.2%
1.4
-4.0%
-2.4%
4.7%
1.2
1.0
2000
Source: MPAA
2001
2002
2003
2004
Admissions
Admissions Growth
Source: MPAA
MPA Worldwide Market Research
Year
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
Admissions
1,536.1
1,574.0
1,639.3
1,487.3
1,420.8
1,465.2
1,480.7
1,387.7
1,338.6
1,262.6
1,291.7
1,244.0
1,173.2
1,140.6
1,188.6
1,262.8
1,084.8
1,088.5
1,017.2
1,056.1
1,199.1
% Change
Prev. Period
2004 vs.
-2.4%
-4.0%
(2.4)
10.2%
(6.3)
4.7
3.3
(3.0)
8.1
(1.0)
4.8
6.7
3.7
3.7
10.7
6.0
14.8
(2.3)
21.7
3.8
18.9
6.0
23.5
2.9
30.9
(4.0)
34.7
(5.9)
29.2
16.4
21.6
(0.3)
41.6
7.0
41.1
(3.7)
51.0
(11.9)
45.4
0.2
28.1
8
Admissions
Admissions Trends Per Capita
5.7
5.8
Admissions
5.6
5.4
5.4
5.3
5.2
5.2
5.2
5.1
5.0
5.0
4.8
4.8
4.6
4.5
4.4
19
80
19
84
19
90
19
94
20
00
20
01
20
02
20
03
20
04
Source: MPAA
MPA Worldwide Market Research
Admissions
Year
2004
2003
2002
2001
2000
1994
1990
1994
1980
Avg. Annual
% Change
Admission
2004 vs.
Price (USD) Prev. Period
$6.21
3.0%
6.03
3.8
3.0%
5.81
2.7
6.9%
5.66
4.9
9.8%
5.39
29.1
15.2
4.18
(1.1)
48.6
4.23
25.7
47.0
3.36
24.9
84.8
2.69
-130.8
% Change
CPI
3.3
1.9
2.4
1.6
3.4
1.7
3.3
2.5
2.7
Note: NATO average ticket price based on NSNB survey and reflects average price paid for all admissions to movie theaters,
inclusive of first run, subsequent runs, senior citizens, children, and all special pricing.
10
Film Rental
Titles grossing >$50 Million
25
20
19
16
19
16
15
10
5
2002
2003
0
2000
2001
50 mil +
100 mil +
2004
$1,820.7
19%
$874.4
9%
11
Films Released
Number of Theatrical Films Produced, Rated, & Released
Year
2004
2003
2002
2001
2000
1999
1998
1997
Produced
611
593
543
611
683
758
686
767
Rated
871
940
786
739
762
677
661
673
Released
483
473
467
483
478
461
509
510
Note: Films rated may be higher than films produced for a given year because films may be rated or rerated
months or even years after production.
Source: MPAA
MPA Worldwide Market Research
12
Films Released
453
410
475
483
458
462
466
449
473
483
459
475
300
200
100
43
17
21
17
14
0
1994
2000
Total
2001
2002
New Releases
2003
2004
Reissued
Source: MPAA
13
Films Released
Average Box Office of New Releases
The total number of films released in
2004 increased 2.1%. MPAA new
releases grossed an average of $34.6
million- an increase of 15%over the
past five years.
Year
2004
2003
2002
2001
2000
All New
Releases
$20.0
20.7
21.2
18.2
16.7
MPAA New
Releases
$34.6
41.6
32.8
34.8
30.0
Year
2004
2003
2002
2001
2000
1994
New Films
All Other
Total New
MPAA Distributors Releases
475
199
276
194
265
459
220
229
449
188
274
462
191
267
458
166
244
410
Reissued Films
All Other
Total
MPAA Distributors Reissues
8
1
7
4
10
14
5
12
17
8
13
21
6
11
17
17
26
43
Source: MPAA
MPA Worldwide Market Research
14
Ratings
Percent of films by Rating
1968 to 2004
Distributor
Buena Vista
Buena Vista
Buena Vista
Buena Vista
Buena Vista
Box Office
(USD MMl)
339.7
328.5
255.9
245.9
217.4
Rating
G
G
G
G
G
Release
Date
May-03
Jun-94
Nov-01
Nov-99
Nov-92
1
2
3
4
5
Star Wars
Shrek 2
E.T.
Star Wars: Phantom Menace
Harry Potter: Sorcerer's Stone
Fox
DreamWorks
Universal
Fox
Warner Bros.
461.0
436.7
435.0
431.1
317.6
PG
PG
PG
PG
PG
May-77
May-04
Jun-82
May-99
Nov-01
1
2
3
4
5
Titanic
Spider-Man
Lord of the Rings: Return of the King
Spider-Man 2
Jurassic Park
Paramount
Sony
New Line
Sony
Universal
600.8
403.7
377.0
373.4
357.1
PG-13
PG-13
PG-13
PG-13
PG-13
Dec-97
May-02
Dec-03
Jun-04
Jun-93
1
2
3
4
5
NewMarket
Warner Bros.
Paramount
Warner Bros.
Dreamworks
370.3
281.5
234.8
232.7
216.2
R
R
R
R
R
Feb-04
May-03
Dec-84
Dec-73
Jul-98
Rank
1
2
3
4
5
NC-17/X
2%
G
7%
R
58%
PG
21%
PG-13
12%
15
Ratings
In 2004, 11 of the top 20 films were rated PG-13. PG and PG-13 films account for 80% of
2004s top 20 films.
Title
Shrek 2
Spider-Man 2
The Passion of the Christ
The Incredibles
Harry Potter: Prisoner of Azkaban
The Day After Tomorrow
The Bourne Supremacy
Meet the Fockers
Shark Tale
The Polar Express
National Treasure
I, Robot
Troy
50 First Dates
Van Helsing
Fahrenheit 9/11
Dodgeball
The Village
The Grudge
Ocean's Twelve
Distributor
DreamWorks
Sony
NewMarket
Buena Vista
Warner Bros.
Fox
Universal
Universal
DreamWorks
Warner Bros.
Buena Vista
Fox
Warner Bros.
Sony
Universal
Lions Gate
Fox
Buena Vista
Sony
Warner Bros.
Box Office
(USD MM)
$436.7
373.4
370.3
252.7
249.4
186.7
176.1
175.8
160.9
156.6
156.3
144.8
133.3
120.8
120.1
119.1
114.3
114.2
110.2
110.0
Rating
PG
PG-13
R
PG
PG
PG-13
PG-13
PG-13
PG
G
PG
PG-13
R
PG-13
PG-13
R
PG-13
PG-13
PG-13
PG-13
G
5%
PG
25%
11
PG-13
55%
Year
2004
2003
2002
2001
Top 20 Grossing
G
PG
PG-13
5%
25%
55%
5%
15%
60%
5%
30%
65%
10%
20%
55%
R
15%
20%
0%
15%
Source: MPAA
MPA Worldwide Market Research
16
United States
Theatrical Costs
102.9
98.0
89.4
100
82.1
78.7
80
39.0
34.4
63.8
63.6
2003
2004
30.6
27.3
31.0
50.3
60
16.1
40
21.1
58.8
54.8
20
The 5% decrease in
Member Company
theatrical costs can
be attributed to the
12% decrease in
domestic marketing
costs.
6.7
47.7
34.3
14.4
0
1984
Source: MPAA
1994
2000
2001
Negative Costs
2002
Marketing Costs
17
Theatrical
MPAA Member Subsidiary / Affiliate Average Theatrical Costs
61.6
70
-39.8%
60
45.2
41.0
50
31.6
40
14.7
39.6
11.2
9.5
30
11.4
10.1
46.9
20
10
31.5
34.0
2001
2002
28.2
21.5
0
2000
Source: MPAA
MPA Worldwide Market Research
Negative Costs
2003
2004
Marketing Costs
18
Theatrical
MPAA Average Negative Costs *
(includes production costs, studio overhead and
capitalized interest)
Year
2004
2003
2002
2001
2000
1994
1984
Average Negative
Cost Per Feature
(USD in MM)
$63.6
63.8
58.8
47.7
54.8
34.3
14.4
% Change
Prev. Period 2004 vs.
-0.3%
0.1
-0.3%
23.3
8.2
(13.0)
33.4
59.8
16.1
137.9
85.5
341.3
-
Year
2004
2003
2002
2001
2000
Average Negative
Cost Per Feature
(USD in MM)
$28.2
46.9
34.0
31.5
21.5
% Change
Prev. Period 2004 vs.
-39.8%
0.1
-39.8%
8.0
(17.0)
46.6
(10.4)
31.3
-
Source: MPAA
MPA Worldwide Market Research
19
Theatrical
MPAA Member Subsidiary*/ Affiliate
Average Marketing Costs of New
Feature Films
Year
2004
2003
2002
2001
2000
1994
1984
12%
Year
2004
2003
2002
2001
2000
Source: MPAA
MPA Worldwide Market Research
20
Theatrical
MPAA Member Company Distribution of Advertising Costs by Media
% of Total
Year Total $ Newspaper Network Spot TV
2004 $30.61
12.8%
22.9%
13.3%
2003 34.84
13.9
23.2
15.7
2002 27.31
13.5
23.0
17.6
2001 27.28
13.1
25.4
16.9
2000 24.00
15.6
23.8
18.3
Other Media includes:
Cable TV/Network TV
Network Radio
Spot Radio
Magazines
Billboards
Other Non-Media includes:
Production/Creative Services
Exhibitor Services
Promotion & Publicity
Market Research
Internet/
Online
2.4%
1.3
0.9
1.3
0.7
Other
Other
Trailers Media Non-Media
7.4%
22.2%
19.0%
4.4
21.9
19.5
4.5
21.4
19.1
5.1
20.2
17.9
6.4
18.8
16.3
Other NonMedia
19%
Newspaper
13%
Network
24%
Other
Media
22%
Trailers
7%
Internet/
Online
1%
Spot TV
13%
Source: MPAA
MPA Worldwide Market Research
21
Theatrical
MPAA Member Company Subsidiary* / Affiliate
Distribution of Advertising Costs by Media
% of Total
Year Total $ Newspaper
2004 $10.13
19.7%
2003 12.80
18.6
2002 9.76
22.0
2001 8.29
18.6
2000 8.96
20.5
Other Media includes:
Cable TV/Network TV
Network Radio
Spot Radio
Magazines
Billboards
Other Non-Media includes:
Production/Creative Services
Exhibitor Services
Promotion & Publicity
Market Research
Source: MPAA
MPA Worldwide Market Research
Network Spot TV
19.9%
13.1%
20.9
7.3
25.7
5.6
42.8
3.2
36.4
6.1
Internet/
Online
2.2%
1.6
0.9
0.4
0.5
Trailers
7.5%
4.7
6.1
5.2
5.5
Other NonMedia
17%
Other
Media
21%
Trailers
7%
Other
Media
21.0%
28.0
21.1
9.9
13.8
Other
Non-Media
16.7%
19.0
18.6
19.9
17.3
Newspaper
20%
Network
20%
Internet/
Online
1%
Spot TV
13%
22
Theatrical
Total Number of Screens
Year
2004
2003
2002
2001
2000
1994
1990
1984
1980
Total
Screens
Indoor
Screens
35,786
% Change
2004 vs.
2.2%
35,280
36,764
37,396
Drive-In
Screens
35,499
% Change
2004 vs.
1.4%
647
% Change
2004 vs.
-7.1%
3.7
(0.5)
(2.1)
34,630
36,110
36,679
3.9
(0.3)
(1.9)
650
654
717
(7.5)
(8.1)
(16.2)
26,586
23,689
37.6
54.5
25,701
22,774
40.0
58.0
885
915
(32.1)
(34.3)
20,200
17,590
81.2
108.0
17,368
14,029
107.2
156.6
2,832
3,561
(78.8)
(83.1)
36,594
35,993
601
Source: MPAA
MPA Worldwide Market Research
23
Theatrical
Worldwide Digital Cinema Screens
400
80%
328
300
47%
176%
182
200
45%
158%
124
100
12
31
45
0
1999
Source: Screen Digest
MPA Worldwide Market Research
2000
2001
2002
2003*
2004
*Updated by source
24
Theatrical
Average Screens per Indoor Theater
6.5
6.4
6.3
6.3
6.1
6.1
5.9
5.7
5.5
5.5
5.3
5.3
2000
2001
2002
2003
2004
Total
% Change Indoor % Change Drive-In % Change
Year Theaters 2004 vs. Theaters 2004 vs. Theaters 2004 vs.
Source: MPAA
2003
6,012
5,620
392
2003
6,066
-0.9%
5,658
-0.7%
408
-3.9%
2002
6,050
(0.6)
5,635
(0.3)
415
(5.5)
2001
7,070
(15.0)
6,596
(14.8)
474
(17.3)
2000
7,421
(19.0)
6,909
(18.7)
512
(23.4)
1995
7,744
(22.4)
7,151
(21.4)
593
(33.9)
25
Theatrical
Theaters by Number of Screens
Type
2003
2004
%
Change
Single Screen
1,684
1,629
-3.3%
Miniplex
(2 to 7 screens)
2,419
2,337
(3.4)
Multiplex
(8 to 15 screens)
1,473
1,523
3.4
490
523
6.7
Megaplex
(16 or more screens)
Megaplex
9%
Single
Screen
27%
Multiplex
25%
Miniplex
39%
26
Employment
US Motion Picture Industry Employment Areas
(000s)
% Change
Year
2004 (p)
2003
2002
2001
2000
1999
1998
1997
1996
1995
Production &
Theaters and
Services
Video Tape Rental
198.3
141.0
183.1
139.2
191.7
138.4
180.9
133.2
182.1
136.9
182.5
133.2
172.0
135.0
159.6
131.2
149.8
122.2
135.2
117.1
Other
28.6
29.4
30.6
32.6
32.6
32.9
31.7
32.2
33.9
31.4
Total
367.9
350.6
360.7
346.7
351.6
348.6
338.7
323.0
305.9
283.7
27
Employment
Motion Picture Industry Employment Areas
200
Thousands
150
Other
182
181
137
133
33
2000
192
183
198
114
100
112
50
27
138
139
141
33
31
29
29
2001
2002
2003
2004
0
1994
Source: Bureau of Labor Statistics
28
Home Video
Year
2004
2003
2002
2001
2000
1994
1990
1984
1980
TV
VCR
% Change VCR HHs
Households Households
Prev. Period
2004 vs.
(MM)
(MM)
109.6
98.9
0.5%
108.4
98.4
0.8
0.5%
106.7
97.6
1.5
0.5
105.5
96.2
9.2
1.3
102.2
88.1
21.0
2.8
94.2
72.8
11.4
2.8
93.1
65.4
335.7
35.8
85.3
15.0
710.8
51.3
78.0
1.9
5,243.8
VCR Penetration
Rate
(% TV HHs)
90.2%
90.8
91.5
91.2
86.2
77.3
70.2
17.6
2.4
29
Home Video
Sales of Home Entertainment to US Dealers*
VHS
DVD
Units in MM
% of Change
Rental Sell -Through
Total
Year Cassettes
Cassettes Cassettes Prev. Year 2004 vs.
2004
33.0
115.7
148.7
-49.4%
47.5
240.2
293.6
(39.0)
-49.4%
2003
73.6
407.4
481.0
(23.1)
(69.1)
2002
86.2
539.6
625.8
(5.8)
(76.2)
2001
99.4
565.0
664.4
-(77.6)
2000
Year
2004
2003
2002
2001
2000
Rental
DVDs
149.1
111.8
79.1
37.1
13.9
Units in MM
Sell -Through
DVDs
1,313.1
985.0
650.5
350.0
174.4
Total
DVDs
1,462.2
1,096.8
729.6
387.1
188.3
% of Change
Prev. Year 2004 vs.
33.3%
50.3
33.3%
88.5
100.4
105.6
277.7
-676.5
30
Home Video
2004 Top 20 Home Entertainment Titles
by Unit Sales*
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Title
Shrek 2
Lord of the Rings: Return of the King
The Passion of the Christ
Harry Potter: Prisoner of Azkaban
Spider-Man 2
The Lion King 1-1/2
Elf
Brother Bear
The Day After Tomorrow
Star Wars Trilogy
The Matrix Revolutions
Kill Bill Vol.1
Cheaper by the Dozen
American Wedding
The Bourne Supremacy
The Last Samurai
Shrek
Aladdin - Special Edition
Dr. Seuss' The Cat in the Hat
Princess Diaries 2: Royal Engagement
Distributor
DreamWorks
New Line
Fox
Warner Bros.
Sony
BV/Disney
New Line
BV/Disney
Fox
Fox
Warner Bros.
BV/Miramax
Fox
Universal
Universal
Warner Bros.
DreamWorks
BV/Disney
Universal
BV/Disney
Box Office
(USD MM)
$436.7
377.0
370.3
249.4
373.4
DTV**
173.4
85.3
186.7
N/A
139.3
70.1
138.6
104.4
176.0
111.1
267.7
271.0
100.4
95.1
Units Sold
(MM)
22.22
17.29
12.67
12.29
11.08
9.16
8.92
8.46
6.70
6.20
5.78
5.66
5.59
5.49
5.28
5.22
5.16
5.03
4.91
4.60
31
Home Video
Year
2004
2003
2002
2001
2000
TV
DVD
DVD Penetration
Households Households
Rate
(MM)
(MM)
(% TV HHs)
109.6
65.4
59.7%
108.4
46.7
43.1
106.7
38.8
36.4
105.2
24.8
23.6
102.2
13.0
12.7
% Change
DVD
Households
Prev. Period 2004 vs.
(MM)
65.4
40.1%
46.7
20.3
40.1%
38.8
56.5
68.6
90.8
24.8
163.8
13.0
403.3
32
Home Video
DVD Statistics
2000
DVD Players Shipped to Dealers (in thousands)
Installed Consumer Base (in thousands)
Average DVD Player Price (in USD)*
DVD Software Units Shipped to Dealers 1 (in MM)
Titles Available on DVD 2
2001
2002
2003
2004
8,499
12,706
17,090
21,994
20,000
14,700
31,400
56,500
90,187 127,313
$204
$153
$136
$103
$90
182
364
685
1,023
1,518
8,500
13,000
20,000
29,000
40,000
33
Home Video
DVD Player Shipments
to Retailers
Month
2003
2004
Change
January
797,058
1,111,285
39.4%
February
743,488
919,295
23.6
March
1,613,649
1,545,112
(4.2)
April
1,272,337
1,161,857
(8.7)
May
1,332,897
1,369,035
2.7
June
2,100,432
1,388,971
(33.9)
July
999,508
1,314,934
31.6
August
1,436,878
1,231,961
(14.3)
September
2,496,497
3,257,574
30.5
October
2,491,871
2,322,691
(6.8)
November
3,682,691
2,723,920
(26.0)
December
3,027,083
1,653,278
(45.4)
Total
21,994,389
19,999,913
-9.1%
34
Home Video
Year
2004
2003
2002
2001
2000
1999
1998
DVD Players
(000s)
37,000
33,700
25,100
16,700
9,900
3,550
950
Yearly
Change
9.8%
34.3
50.3
68.7
178.9
273.7
--
2004
Versus
-9.8%
47.4
121.6
273.7
942.3
3,794.7
Titles
Available
40,000
29,000
20,000
13,000
8,500
5,000
1,500
Yearly
Change
37.9%
45.0
53.8
52.9
70.0
233.3
--
2004
Versus
-37.9%
100.0
207.7
370.6
700.0
2,566.7
35
Home Video
25
$22.63
$20.53
$21.00
$20.04
$20.52
20
8,500 Titles
Available
13,000 Titles
Available
20,000 Titles
Available
2001
2002
15
29,000 Titles
Available
10
2000
2003
2004
36
Home Video
US HH Growth: Internet vs. Broadband vs. DVD
68.4
70
62.2
65.4
55.4
60
50.9
Millions
50
46.7
42.8
38.8
40
29.0
24.8
30
20
21.7
15.9
13.0
10.9
10
5.4
0
2000
2001
Internet HHs
2002
Broadband HHs
2003
2004
DVD HHs
37
Television
Television Households
Year
2004
2003
2002
2001
2000
1995
1990
1985
Total
Households
(MM)
111.3
110.3
109.3
108.2
104.7
98.9
93.3
92.8
38
Television
Factory Sales of Digital TV Sets and Displays
5.7 mil
Units
$8,000
8,000
3.9 mil
Units
6,149
$6,000
2.5 mil
Units
$4,000
4,281
1.425 mil
Units
648,000
Units
2,200
2,615
$2,000
1,426
1,835
1,689
1,441
1,406
2001
2002
2003
2004
$0
2000
Sales in Millions
39
Television
Television Advertising Expenditures
80
67.1
57.9
59.8
56.3
52.4
Billions USD
60
32.6
29.5
25.4
40
28.3
29.1
20
28.4
27.0
28.0
30.7
2000
2001
2002
2003
34.5
Broadcast Advertising
2004
Source: PriceWaterhouseCoopers
MPA Worldwide Market Research
40
Television
Number of Cable and Satellite Channels
324
350
Launch of
Digital Cable
300
267
235
227
250
283
250
202
168
200
Launch of
Digital
Satellite
155
150
113
130
100
60
50
20
20
20
20
20
19
19
19
19
19
19
19
04
03
02
01
00
99
98
97
96
95
94
90
)
(p
41
Television
Year
2004
2003
2002
2001
2000
1995
1990
1985
1980
TV
Households
(MM)
109.6
108.4
106.7
105.5
102.2
95.4
93.1
86.1
78.0
Basic Cable
Households
(MM)
73.9
73.9
72.2
73.2
69.5
62.7
54.9
39.8
17.6
2004 vs.
0.1%
2.3%
1.0
6.4
17.9
34.7
85.8
320.1
Basic Cable
Penetration Rate
(% TV HHs)
67.5%
68.1
67.7
69.4
68.0
65.7
59.0
46.2
22.6
42
Television
According to the FCC, as of January 2004, the average
subscriber paid $4532/month for expanded basic cable for a 5.4%
increase from the previous year. An additional $1605/month was
paid to add digital tier, an increase of 5.6% since 2003.
Year
2004
2003
2002
2001
2000
1995
1990
1985
TV
Households
(in MM)
109.6
108.4
106.7
105.5
102.2
95.4
93.1
86.1
Pay Cable
Households
(in MM)
35.1
40.0
34.4
34.1
33.7
30.4
27.0
22.8
2004 vs.
-12.2%
2.1%
3.0
4.2
15.5
30.1
54.0
Pay Cable
Penetration Rate
(% TV HHs)
32.0%
36.9
32.2
32.3
33.0
31.9
29.0
26.5
43
Television
Year
2004
2003
2002
2001
2000
Addressable
Households
(in MM)**
36.8
36.0
35.3
32.0
37.5
% Change
Prev. Period
2.2%
2.0
10.3
(14.7)
-
2004 vs.
2.2%
4.2
15.0
(1.9)
*Cable homes which have set-top boxes (usually for pay-per-view purposes)
that can be tracked to an exact location in the home.
44
Television
US Digital Cable Subscribers
14.5%
27.7
30
24.2
25
21.3
Millions
20
1998: Digital cable
launched in the US
16.9
15
10
10
5
4.1
1.6
0
1998
1999
2000
2001
2002
2003
2004
45
Television
Satellite Households
Year
2004
2003
2002
2001
2000
1998
1997
1996
1995
Satellite
Households
(MM)
22.2
19.4
17.6
12.9
9.6
8.3
6.4
4.4
3.3
% Change
Prev. Period
14.6%
10.2
36.4
34.4
15.7
29.7
45.5
33.3
-
2004 vs.
14.6%
26.3%
72.3
131.5
167.8
247.3
405.1
573.5
46
Television
According to Adams Media
Research, the average VOD
price was $387 in 2004.
VOD
Year
2004
2003
2002
2001
2000
1999
TV Households
(in MM)
109.6
108.4
106.7
105.5
102.2
100.8
VOD Households*
(in MM)
16.9
9.5
6.0
2.5
0.4
0.0
VOD Penetration
Rate (% TV HHs)
15.4%
8.8
5.6
2.4
0.4
0.0
VOD Consumer
Spending (MM)
$337.2
202.4
122.2
28.6
9.8
0.8
Source: Nielsen Media Research, Adams Media Research, Video Store Magazine
MPA Worldwide Market Research
47
Technology
PC Households
Year
2004*
2003
2002
2001
2000
PC Households
(in MM)
72.1
67.1
62.2
57.4
55.1
% Change
2004 vs.
7.5%
15.9
25.6
30.9
PC Penetration Rate
(% of Total US HHs)
64.8%
60.8
56.9
53.0
52.6
*Preliminary
Source: US Census Bureau, IDC
MPA Worldwide Market Research
48
Technology
US PC Households
80.0
64.8%
Penetration
60.8%
Penetration
70.0
Millions
56.9%
Penetration
72.1
67.1
53.0%
Penetration
60.0
62.2
52.6%
Penetration
57.4
55.1
50.0
2000
2001
2002
2003
2004*
*Preliminary
49
Technology
Year
2004*
2003
2002
2001
2000
Internet
Households
(in MM)
68.4
62.2
55.4
50.9
42.8
% Change
2004 vs.
10.0%
23.5
34.4
59.8
% of PC HHs
94.9%
86.3
76.8
70.6
59.4
% of Total
US HHs
61.4%
56.4
50.7
47.0
40.9
*Preliminary
50
Technology
US Internet Households
61.4%
Penetration
70.0
68.4
56.4%
Penetration
60.0
Millions
47.0%
Penetration
50.0
62.2
50.7%
Penetration
40.9%
Penetration
55.4
50.9
42.8
40.0
2000
2001
2002
2003
2004*
*Preliminary
51
Technology
Year
2004*
2003
2002
2001
2000
Broadband
Households
(in MM)
% Change
2004 vs.
% of Internet
HHs
% of Total
US HHs
29.0
21.7
15.9
10.9
5.4
33.6%
82.4
166.1
437.0
42.4%
34.9
28.7
21.4
12.6
26.0%
19.7
14.5
10.1
5.2
*Preliminary
52
Technology
Number of Households with Broadband Internet Access
26.0%
Penetration
30.0
29.0
19.7%
Penetration
Millions
25.0
21.7
14.5%
Penetration
20.0
15.0
10.0
15.9
10.1%
Penetration
5.2%
Penetration
10.9
5.4
5.0
2000
2001
2002
2003
2004*
*Preliminary
53
Technology
Number of US Mobile Internet Users
96%
47.0
50.0
40.0
Millions
60%
30.0
24.0
200%
20.0
10.0
15.0
7%
5.4
5.0
2000
2001
0.0
Source: IDC
MPA Worldwide Market Research
2002
2003
2004*
*Preliminary
54
Media Consumption
Media Consumption based on Hours per Person*
2000
2001
2002
2003 2004p
% Change
03-04
00-04p
Filmed Entertainment
Cable & Satellite TV
Broadcast TV
Consumer Internet
Home Video1
Box Office
Interactive TV 2
769
843
918
975 1,010
866
833
787
769
782
107
139
158
176
189
51
56
65
70
78
12
13
14
13
13
2
2
2
2
3
1,807 1,886 1,944 2,005 2,075
3.6%
-0.6
7.4
11.4
0.0
50.0
3.5%
31.3%
-8.4
76.6
52.9
8.3
50.0
14.8%
Subtotal
943
955
990 1,002 1,035
258
229
200
184
180
180
177
175
171
169
135
127
125
121
118
109
106
109
108
107
59
60
64
69
71
1,684 1,654 1,663 1,655 1,680
3.3%
-4.2
-1.1
-1.7
-1.8
2.9
1.5%
9.8%
-19.4
-5.4
-6.4
-10.8
20.3
-0.2%
Total
2.6%
7.6%
Subtotal
Other Entertainment
Broadcast & Satellite Radio
Recorded Music
Daily Newspapers
Consumer Magazines
Consumer Books
Video Games
55
Media Consumption
Media Consumption based on Hours per Person per Year 1
2,500
2,124
2,092
2,077
2,063
2,104
2,000
1,500
1,448
1,530
1,597
1,651
1,367
1,000
2000
2001
2002
2003
Following trends in
previous years, it is
estimated that the average
person will spend the
majority of their time with
media supported by
advertising (56%) in 2004.
Within this category, 49%
of the hours consumed
will be spent listening to
broadcast & satellite
radio.
2004p
* Broadcast television, broadcast & satellite radio, daily newspapers, consumer magazines
** Cable & satellite television, box office, home video, interactive television, recorded music, video games, consumer Internet,
consumer books
56
Media Consumption
Consumer Spending per Person per Year 1
(USD)
$221.52
$248.02
$234.65
$202.73
$187.93
$172.04
$135.02
$151.94
$114.26
$100.01
$84.76
$96.35
$107.02
$49.64
$68.94
$86.13
$84.45
$87.51
$89.68
$90.30
$60.89
$64.81
$72.02
$72.60
$77.12
$52.48
$52.84
$53.30
$53.68
$53.29
$61.24
$57.92
$52.39
$48.72
$47.63
$47.70
$46.96
$46.79
$41.24
$45.77
2000
2001
2002
2003
Consumer Magazines
Consumer Books
Recorded Music
Consumer Internet
Newspapers
Home Video
2004p
Other*
TV**
1
57
Media Consumption
Consumer Spending per Person per Year 1
(USD)
$800
$653.22
$600
$693.94
$742.13
$593.11
$545.84
$400
$200
$99.80
$100.18
$100.09
$94.92
$99.06
$0
2000
2001
2002
2003
2004p
58