Film forecast beyond festival and fanfare, PwC predicts a bright future for the industry

TORONTO, Sept. 7, 2011 /CNW/ - The Toronto International Film Festival (TIFF) is just days away, and the future looks bright for the film industry. According to PwC, global consumer spending on filmed entertainment will grow at a 5.9% compound annual rate over the next five years reaching US$114.8 billion in 2015 from $86.2 billion in 2010. This growth is strongest in markets showcased at TIFF. Canada's biggest film festival will screen more than 300 films from over 60 countries.

Producers from both major and emerging markets like China, Vietnam, Romania, Russia and India will see high compound annual growth rates ranging from 10% - 26%, between now and 2015. At the same time markets in North and South America, Europe and the Middle East will see moderate to strong gains between 3% and 9%.

"Revenues for filmed entertainment will be fuelled by the youth market and a variety of options for consumers to access movies. Watching movies online and via mobile devices will supplement box office spending on filmed entertainment," says Michael Paterson, partner in PwC's Entertainment & Media practice. "Expect to see higher quality film experiences for consumers as the industry looks for new ways to stay competitive by differentiating the way we access movies and enhancing the movie going experience."

Filmed entertainment market, 2011 - 2015* 
Country     Spending in $US millions     2011-2015 CAGR (%)
      2011     2012     2013     2014     2015      
Canada     3,956     4,123     4,304     4,477     4,641     4.2
US     36,842     38,853     41,151     43,448     45,686     5.4
France     4,002     4,195     4,372     4,538     4,683     4.2
Germany     3,750     3,871     4006     4137     4,241     3.7
Italy     2,123     2,228     2345     2463     2,552     4.4
United Kingdom     6,047     6,362     6711     7069     7,364     4.9
Czech Republic     140     147     156     163     169     4.9
Romania     40     45     50     55     60     11.4
Russia     1,734     1,972     2208     2375     2,547     10.7
Israel     170     177     184     192     198     4.1
South Africa     319     337     357     372     389     4.9
Australia     3,872     4,115     4353     4585     4,810     5.8
India     2,058     2,325     2561     2819     3,095     10.8
Japan     7,403     7,812     8,296     8,686     8,932     3.1
Argentina     254     279     304     332     360     8.9
Brazil     1,499     1,641     1,790     1,937     2,070     8.6
China     2,716     3,508     4,358     5,269     6,254     26.0
Vietnam     8     10     12     14     17     23.2

*Includes consumer spending at the box office, cinema advertising, in-store rental market, physical sell-through market, and electronic distribution.

According to PwC, worldwide box office spending will increase from US$33 billion in 2010 to US$48.7 billion by 2015, an 8.1% compound annual interest gain, supported by the growth in 3-D film screens. The increase in the number of 3-D screens will raise average prices which consumers will pay, keeping movie admissions steady. In 2010 in Canada, there were 350 3-D screens and the average price of a single movie ticket rose 5.5% over 2009, the first gain of more than 5% since 2000.

"While consumers may become more selective in choosing to see a 3-D film over the next few years, we believe 3-D and other innovations will have a long-term positive impact on admissions because these enhancements help to distinguish the theatrical experience from the home video and online experiences of watching a movie," says Paterson.

In Canada, film and TV production generated about $6.8 billion in GDP in the Canadian economy in 2010 and led to the employment of over 117,000 individuals on a full-time basis across the country. North America will continue to be the biggest region for filmed entertainment, growing at 5.2% from US$39 billion in 2010 to over US$50 billion by 2015.

Ontario, British Columbia and Quebec have the highest share of total volume production in Canada at 39%, 27% and 25% respectively.

"Tax incentives are a critical part of the growth of the film industry, including domestic and international co-productions," says Tracey Jennings, PwC's Canadian Entertainment & Media Leader. "PwC continues to assist clients to obtain these tax credits which help to offset the cost of production in Canada. We have also seen many of the provinces enhance, and others introduce, digital media tax incentives which are becoming more important in a world of digital convergence. "

For more information, please visit Press copies of PwC's Global Entertainment & Media Outlook, 2011 - 2015 and The Big Table of Film and Video Incentives in Canada are also available from the media contacts.

Follow PwC on Twitter at @PwC_Canada_LLP and on Facebook at

About PwC
The firms of the PwC network provide industry-focused assurance, tax and advisory services to enhance value for clients. More than 161,000 people in 154 countries in PwC firms across the PwC network share their thinking, experience and solutions to develop fresh perspectives and practical advice. In Canada, PricewaterhouseCoopers LLP, an Ontario limited liability partnership, and its related entities have more than 5,700 partners and staff in offices across the country. See for more information.

"PwC" is the brand under which member firms of PricewaterhouseCoopers International Limited (PwCIL) operate and provide services. Together, these firms form the PwC network. Each firm in the network is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way.

Note to Editors: PwC changed its name from PricewaterhouseCoopers to PwC in the fall of 2010. "PwC" is written in text with a capital "P" and capital "C." Only when you use the PwC logo is the name represented in lower case.


"PwC" refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. 


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Kiran Chauhan
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David Rowney
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