U.S. Entertainment Industry:

1
U.S. Entertainment Industry
2006 Market Statistics
MPA Worldwide Market Research Analysis
2
Table of Contents
Box Office . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
. 3-5 Admissions . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . .
6-9 Films Released . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . 10-12 Ratings
. . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . 13-14 Theatrical . .
. . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 15-23 Theatrical Costs . . .
. . . . . . . . . . . . . . . 15-16 Negative
Costs . . . . . . . . . . . . . . . . .
. 17 Marketing Costs . . . . . . . . . . . . . .
. . . 18-20 Screens . . . . . . . . . . . . . .
. . . . . . . . . . 21-22 Theaters . . . . . . .
. . . . . . . . . . . . . . . . 23 Employment .
. . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . 24-25 Home Video . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
. . . 26-34 Penetration . . . . . . . . . . . .
. . . . . . . . . 26-27 VCR DVD Statistics . .
. . . . . . . . . . . 28-29 DVD Statistics . . .
. . . . . . . . . . . . . . . . 30-34 Television
. . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 35-41 Television
Statistics . . . . . . . . . . . . . .
. 35-36 Cable Satellite Statistics . . . . . .
. . . 37-41 Technology . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. 42-48 PC Statistics . . . . . . . . . . . . .
. . . . . . . . 42-43 Internet Statistics . . .
. . . . . . . . . . . . . . 44-48 Media
Consumption . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 49-52
Page 2
3
U.S. Entertainment Industry 2006 Market
Statistics
Box Office
The U.S. box office rebounded in 2006 with 9.49
billion, a 5.5 gain.
Box Office Trends
5.5
-0.3
0.5
-5.7
Source MPAA
Page 3
4
U.S. Entertainment Industry 2006 Market
Statistics
Box Office
Box Office Growth
Box Office has grown 3.6 billion over the last
10 years and 5.7 billion over the last 20.
Source MPAA
Page 4
5
U.S. Entertainment Industry 2006 Market
Statistics
Box Office
3 of the top 5 openers in 2006 were sequels, with
the second Pirates of the Caribbean installment,
Pirates of the Caribbean Dead Mans Chest,
taking the top spot with 135.6 million.
2006 High Grossing Opening Weekend
Opening Weekend Highest Grossing film 2006
135.6 million 1996 56.8 million
Source Variety
Page 5
6
U.S. Entertainment Industry 2006 Market
Statistics
Admissions
A 3-year decline in ticket sales ended in 2006
when 1.45 billion tickets were sold, a 3.3
increase.
Admissions Trends
3.3
-4.0
-2.4
-8.7
Source MPAA
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7
U.S. Entertainment Industry 2006 Market
Statistics
Admissions
Admissions Growth
In 2006, admissions gained 3.3, ending a 3-year
decline.
Note 1989 to present based on NATO average
ticket price
Source MPAA
Page 7
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U.S. Entertainment Industry 2006 Market
Statistics
Admissions
Admissions Trends per Capita
Source MPAA
Page 8
9
U.S. Entertainment Industry 2006 Market
Statistics
Admissions
Average Annual Admission Price
Note NATO average ticket price based on a
survey by Goodman Company and reflects average
price paid for all admissions to movie theaters,
inclusive of first run, subsequent runs, senior
citizens, children, and all special pricing.
Source MPAA, Bureau of Labor Statistics
Page 9
10
U.S. Entertainment Industry 2006 Market
Statistics
Films Released
Number of Theatrical Films Produced, Rated,
Released
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
Page 10
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U.S. Entertainment Industry 2006 Market
Statistics
Films Released
There were 12 more films released in 2006 than
in 2005. MPAA new releases grossed an average
of 32.7 million.
Feature Films Released in the US
Source MPAA
Page 11
12
U.S. Entertainment Industry 2006 Market
Statistics
Films Released
Feature Films Released in the US
Source MPAA
Page 12
13
U.S. Entertainment Industry 2006 Market
Statistics
Ratings
In 2006, 13 of the top 20 films were rated PG-13.
PG and PG-13 films account for 85 of 2006s top
20 films.
2006 Top 20 Films by Rating
2
1
4
13 films
Includes box office data as of February 2007
Source MPAA, Nielsen EDI
Page 13
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U.S. Entertainment Industry 2006 Market
Statistics
Ratings
Top Grossing Films by Rating 1968 to 2006
Percent of Films by Rating 1968 to 2006
Source MPAA, Nielsen EDI
Page 14
15
U.S. Entertainment Industry 2006 Market
Statistics
Theatrical Costs
MPAA Member Company Average Theatrical Costs
105.8
100.3
100.5
99.7
78.2
Millions USD
Source MPAA
Note All data adjusted to exclude MGM.
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16
U.S. Entertainment Industry 2006 Market
Statistics
Theatrical Costs
MPAA Member Subsidiary/Affiliate Average
Theatrical Costs
62.0
48.5
45.4
40.4
38.7
Millions USD
Subsidiaries and affiliates include studio
classics and specialty divisions such as Fox
Searchlight, Miramax, New Line, Sony Pictures
Classics, etc.
Source MPAA
Note All data adjusted to exclude MGM.
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U.S. Entertainment Industry 2006 Market
Statistics
Theatrical Costs
Average Negative Costs
(includes production costs, studio overhead and
capitalized interest)
Subsidiaries and affiliates include studio
classics and specialty divisions such as Fox
Searchlight, Miramax, New Line, Sony Pictures
Classics, etc.
Source MPAA
Note All data adjusted to exclude MGM.
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U.S. Entertainment Industry 2006 Market
Statistics
Theatrical Costs
Average Marketing Costs of New Feature Films
Subsidiaries and affiliates include studio
classics and specialty divisions such as Fox
Searchlight, Miramax, New Line, Sony Pictures
Classics, etc.
Source MPAA
Note All data adjusted to exclude MGM.
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U.S. Entertainment Industry 2006 Market
Statistics
Theatrical Costs
MPAA Member Company Distribution of Advertising
Costs by Media

• Other Media includes
• Cable TV
• Radio
• Magazines
• Billboards

• Other Non-Media includes
• Production/Creative Services
• Exhibitor Services
• Promotion Publicity
• Market Research

Source MPAA
Note All data adjusted to exclude MGM.
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U.S. Entertainment Industry 2006 Market
Statistics
Theatrical Costs
MPAA Member Subsidiary/Affiliate Distribution of
Advertising Costs by Media

• Other Media includes
• Cable TV
• Radio
• Magazines
• Billboards

• Other Non-Media includes
• Production/Creative Services
• Exhibitor Services
• Promotion Publicity
• Market Research

Subsidiaries and affiliates include studio
classics and specialty divisions such as Fox
Searchlight, Miramax, New Line, Sony Pictures
Classics, etc.
Source MPAA
Note All data adjusted to exclude MGM.
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21
U.S. Entertainment Industry 2006 Market
Statistics
Theatrical
Total Number of Screens
Source Nielsen EDI
Page 21
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U.S. Entertainment Industry 2006 Market
Statistics
Theatrical
Worldwide Digital Cinema Screens
253
154
76
19
308
30
Source Screen Digest
Historical figures updated by source
Page 22
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U.S. Entertainment Industry 2006 Market
Statistics
Theatrical
Theaters by Number of Screens 2006
Total Number of Theaters 6,356
Source Nielsen EDI
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U.S. Entertainment Industry 2006 Market
Statistics
Employment
US Motion Picture Industry Employment Areas (000s)
Source Bureau of Labor Statistics
2006 figure is preliminary
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U.S. Entertainment Industry 2006 Market
Statistics
Employment
Motion Picture Industry Employment Areas
Source Bureau of Labor Statistics
Page 25
26
U.S. Entertainment Industry 2006 Market
Statistics
Home Video
VCR Penetration in US TV Households
Source Nielsen Media Research
Page 26
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U.S. Entertainment Industry 2006 Market
Statistics
Home Video
DVD Penetration in US TV Households
2006 Total HDV Set-Top Console Households
300,000 2006 Total HDV Households (including game
PC HDV-ROM) 1,300,000
Source Nielsen Media Research, Adams Media
Research
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U.S. Entertainment Industry 2006 Market
Statistics
Home Video
Sales of Home Entertainment to US Dealers
Source Adams Media Research
Historical figures have been updated by source
Page 28
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U.S. Entertainment Industry 2006 Market
Statistics
Home Video
2006 Top 10 Home Entertainment Sell-Through
Titles by Unit Sales
includes both DVD and VHS Re-Release
Source Home Media Retailing
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U.S. Entertainment Industry 2006 Market
Statistics
Home Video
DVD Statistics
Total Average Selling Price for All Players in
2006  95 (Includes single DVD, Up Convert, DVD
Recorder, DVD/VHS combo, and Portable)
Includes set-top and portable DVD players, Home
Theater in Box systems, TV/DVD and DVD/VCR
combination players
Includes Sell-Through and Rental DVD
Source CEA, Digital Entertainment Group, NPD
Group
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U.S. Entertainment Industry 2006 Market
Statistics
Home Video
DVD Player Shipments to Dealers
Source CEA
Page 31
32
U.S. Entertainment Industry 2006 Market
Statistics
Home Video
New DVD Releases
Total DVD Titles Available
Titles available on DVD include movies and
music videos
Source DVD Report/Home Media Retailing, Digital
Entertainment Group
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U.S. Entertainment Industry 2006 Market
Statistics
Home Video
Average Price per DVD Title
45,000 Titles Available
20,000 Titles Available
29,000 Titles Available
40, 000 Titles Available
68,000 Titles Available
Source Digital Entertainment Group, DVD Release
Report
Historical figures have been updated by source
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U.S. Entertainment Industry 2006 Market
Statistics
Home Video
Household Growth Internet vs. Broadband vs. DVD
Source IDC, Adams Media Research
Historical figures have been updated by source
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U.S. Entertainment Industry 2006 Market
Statistics
Television
Television Households
Source Nielsen Media Research, Census Bureau
Page 35
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U.S. Entertainment Industry 2006 Market
Statistics
Television
Factory Sales of Digital TV Sets and Displays
23.9 mil Units
11.4 mil Units
8.0 mil Units
5.5 mil Units
4.1 mil Units
Historical figures have been updated by source
Source CEA
2006 figure is an estimate
Page 36
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U.S. Entertainment Industry 2006 Market
Statistics
Television
Basic Cable Households
Source Nielsen Media Research
Refers to wired cable households with basic
cable
Page 37
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U.S. Entertainment Industry 2006 Market
Statistics
Television
Pay Cable Households
Source Nielsen Media Research
Refers to wired cable households subscribing to
premium channels
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U.S. Entertainment Industry 2006 Market
Statistics
Television
Digital Cable Subscribers
9.7
Source Adams Media Research
Page 39
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U.S. Entertainment Industry 2006 Market
Statistics
Television
Satellite Households
Source Nielsen Media Research
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U.S. Entertainment Industry 2006 Market
Statistics
Television
Video On Demand (VOD) Households
Video on Demand is an advanced pay-per-view
programming service which enables viewers to
order and watch movies on demand and to pause,
rewind or fast-forward them.
Source Nielsen Media Research, Adams Media
Research
Historical figures have been updated by source
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U.S. Entertainment Industry 2006 Market
Statistics
Technology
PC Households
Source US Census Bureau, IDC
2005 updated by source
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U.S. Entertainment Industry 2006 Market
Statistics
Technology
PC Households
70.7 Penetration
67.1 Penetration
63.0 Penetration
59.7 Penetration
56.9 Penetration
Source US Census Bureau, IDC
Penetration is calculated as a percentage of
total US households
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U.S. Entertainment Industry 2006 Market
Statistics
Technology
Internet Households
Source US Census Bureau, IDC
2005 updated by source
Page 44
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U.S. Entertainment Industry 2006 Market
Statistics
Technology
Internet Households
64.9 Penetration
61.5 Penetration
58.0 Penetration
54.0 Penetration
50.7 Penetration
Source US Census Bureau, IDC
Penetration is calculated as a percentage of
total US households
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U.S. Entertainment Industry 2006 Market
Statistics
Technology
Broadband Households
Source US Census Bureau, IDC
2005 updated by source
Page 46
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U.S. Entertainment Industry 2006 Market
Statistics
Technology
Broadband Households
50.2 Penetration
40.2 Penetration
25.6 Penetration
23.7 Penetration
14.5 Penetration
Historical figures have been updated by source
Source US Census Bureau, IDC
Penetration is calculated as a percentage of
total US households
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U.S. Entertainment Industry 2006 Market
Statistics
Technology
Internet Users
INTERNET USER a person accessing the Internet
at least once per month through a PC or Internet
access device. There is no age limitation for
user.
MOBILE INTERNET USERS a person accessing the
Internet at least once per month from a mobile
device that accesses the Internet across a 2,
2.5, or 3G cellular network connections.
Source IDC
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U.S. Entertainment Industry 2006 Market
Statistics
Media Consumption
Media Consumption based on Hours per Person
1 Includes playback of prerecorded VHS cassettes
and DVDs only
Source Veronis Suhler Stevenson
Historical figures have been updated by source
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50
U.S. Entertainment Industry 2006 Market
Statistics
Media Consumption
Media Consumption based on Hours per Person per
Year
Note Advertising refers to broadcast
television, broadcast satellite radio, daily
newspapers, consumer magazines. Consumer
purchases refer to cable satellite television,
box office, home video, recorded music, video
games, consumer Internet, consumer books.
Source Veronis Suhler Stevenson
Historical figures have been updated by source
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U.S. Entertainment Industry 2006 Market
Statistics
Media Consumption
Consumer Spending per Person per Year (USD)
Note TV includes Broadcast TV and Cable
Satellite TV (Basic Premium services). Note
Other includes Box Office, Video Games, Mobile
Content, Broadcast/Satellite Radio.
Source Veronis Suhler Stevenson
Historical figures have been updated by source
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U.S. Entertainment Industry 2006 Market
Statistics
Media Consumption
Consumer Spending per Person per Year (USD)
Note Advertising refers to broadcast
television, broadcast satellite radio, daily
newspapers, consumer magazines. Consumer
purchases refer to cable satellite television,
box office, home video, recorded music, video
games, consumer Internet, consumer books.
Source Veronis Suhler Stevenson
Historical figures have been updated by source
Page 52