This week, accounting firm PwC published its “Global Entertainment & Media Outlook” report forecasting future trends across many entertainment sectors, including exhibitions. Using 2019 as a benchmark, PwC is forecasting that the global box office in 2025 will surpass the $39.4B produced in 2019.
However, the report also shows that global admissions will continue to lag behind those of earlier years, with 2027 coming in at 7.2B admissions compared with 7.9B in 2019. The recovery of revenue is projected to outpace admissions due to the impact of inflation and the increased percentage of higher-price tickets sold for Premium Large Format (PLF) screenings.
The PwC report makes a direct correlation between the increasing number of films that studios are releasing to theatres and the growth in attendance and box office. The report also forecasts that China will once again overtake the U.S. as the largest theatrical market, with a projected 2027 box office gross of $13.2B in China compared with $11.9B in the U.S.
This report confirms what many exhibitors have seen up close, that a complete recovery in revenues will come from selling more to each moviegoer, through an increase in ticket prices and selling more add-ons such as concessions, in-theatre dining, and entertainment options.