Film

The film industry is greatly ruled by trends. Though filmmakers and industry executives attempt to carefully analyze the success and failures of films, it is nearly impossible to predict which films will capture the public's imagination and attract them to the theaters. So many different elements play parts in a film's success. How a film is promoted and distributed, the other films out at the time, and societal attitudes toward the subject matter are just a few of the factors that determine success. Studios are constantly on the lookout for the next big picture but are also anxious to play it safe and follow the formulas of reliable film product. Some industry experts fear that in the future studio executives will rely even more on focus groups and other audience screenings when releasing a picture, thereby limiting the original and creative efforts of the filmmakers.

According to PwC, global cinema revenue was projected to grow at an annual rate of 13 percent from 2022 through 2027, reaching more than $52 billion by 2027. Chief competition for theater ticket sales are multiple viewing options and devices. Hollywood blockbuster movies are expected to continue driving global box office revenue growth. The U.S. film industry and American movies are popular in foreign markets, with exports of U.S. films available in approximately 140 countries. Top filmed entertainment licensing markets include China, the United Kingdom, Germany, Canada, and India. PwC forecasts that China's cinema revenues will surpass those of the United States, growing at an annual rate of 27 percent from 2022 through 2027, to reach $24.8 billion by 2027. Issues of copyright and digital piracy, however, continue to pose threats to foreign markets. Special effects and animation will continue to create new jobs for those talented with computers as computer-generated imagery is used increasingly on films in all genres.

Production companies will hire the most popular big-name actors and directors to draw huge profits. Special effects and animation will continue to create new jobs for those talented with computers. Computer-generated imagery is being used increasingly on all films, not just science-fiction and horror projects; filmmakers use computers to create crowd scenes, detailed backdrops, and other elements common in all films.

The digital revolution also is affecting the film industry. According to the research group Mordor Intelligence, in 2024, the U.S. smart TV market size was estimated at nearly 32 million units, and was expected to grow to nearly 34.7 million units by 2029. Growth of the smart TV sector in the U.S. is being driven by increased adoption of over-the-top (OTT, also known as on demand) services for streaming TV shows and movies, and smart TV vendors are expanding shipments to build their safety stocks to meet consumers' demands.

Theaters also are competing with the Internet, personal computers, and mobile devices for the public's recreational dollar. After reaching 3.4 million petabytes (PB) in 2022, global data consumption is expected to reach 9.7 million PB in 2027, growing at an annual rate of 23.3 percent in that period, according to PwC. By 2027, 5G and Wi-Fi 6 will be widely released. Wi-Fi accounted for nearly 54 percent of the global traffic in 2022, and this high level is expected to continue through 2027.

Theaters are working hard to attract more people to the movies by providing enhanced stereo systems, comfortable seating, and other frills. The digital revolution is also enabling PC owners to photograph, edit, and graphically enhance their own films, and to present them on the Internet. As more people across the country put together their own films, studio executives may look to the Internet for new talent.

Today, movie production is inseparable from the TV and video industries. Companies make films to be released in theaters, but also plan for future streaming services, TV showings, and video rentals and sales. Feature films are more frequently produced specifically for release on TV, both network and cable, and then are produced on video.

Constantly changing TV and video technologies both challenge and feed the film industry. DVD, for example, offers viewers much more than a theater experience with the inclusion of director's cuts, outtakes, and commentary on the making of the film. Blu-ray DVD, the next generation of the format, provides an even sharper image and better sound quality. In both formats, viewers can skip to their favorite parts of a movie, watch it in a different language, or choose from various formats. Many DVDs and Blu-Rays also offer the consumer an option for a digital UltraViolet copy of the film, which makes it accessible via online streaming.

HDTV and 4K/ultra HDTV offer such high-quality pictures that some people say it is better than seeing a movie in a theater. Streaming video via services such as Netflix, Hulu, and Disney+, which make movies and television programs available on demand (also known as over the top, OTT), have dramatically changed how people consume filmed entertainment. In 2013, on-demand provider Netflix launched its first original programming, beginning with House of Cards, produced and directed by Hollywood star director, David Fincher. The show received three Emmy Awards. It helped established original streaming content as a serious new outlet for film and television programs and heralded a flood of new shows. In 2019, Apple+ and Disney+ were two new streaming services that made their debut, and more were on the way. In 2020, NBCUniversal/Comcast introduced an OTT service called Peacock, and WarnerMedia launched HBO Max, its OTT service.

Overall employment in the film industry is projected to grow through 2033, according to the Department of Labor. Film and video editors will experience average growth employment growth of 5 percent, due to the new content delivery methods for online TV and mobile devices. New York and Los Angeles will offer the most opportunities for work, and editors with experience in specialized editing software will have the advantage in the job market. Growth will be slower for camera operators, who will experience 2 percent growth through 2033. Producers and directors will experience faster than average employment growth, 8 percent, due to the public's demand for more movies and TV shows, the increase in online and streaming platforms, as well as foreign audiences' increased demand for American-produced films. Media and communication equipment workers will experience average employment growth through 2033.

The coronavirus pandemic that began in 2020 hit the film industry hard. Movie theaters closed, and many live-action movies and shows, for both theaters and television, paused, postponed, or ceased production. The release of blockbuster and independent movies to theaters stopped, and many of those films were redirected to video-on-demand or streaming services. Warner Bros. released, Wonder Woman 1984, a sequel to its global blockbuster, Wonder Woman, through HBO Max rather than movie theaters. Talk shows adopted remote formats with hosts and guests appearing in teleconferencing platforms. Disney also relied on their streaming service to market films such as Mulan and Artemis Fowl. By late 2020, theaters were re-opening with limited seating, and many film productions resumed work. The long-term effects of the pandemic on this industry remained to be seen.

In early 2021, only about 35 percent of the movie theaters in the U.S. were open and ticket sales were "hovering at an all-time low," according to an article in Variety magazine. On a positive note, global box office and theater revenue is expected to increase, returning to pre-pandemic levels by 2026. PwC reported that this forecast is "...primarily driven by a larger budget slate [that's] expected to drive more box office sales and more ad spend." The report noted, however, cinema admissions are projected to reach only 6.45 billion in 2028, falling short by 1.5 billion in comparison to the 7.92 billion cinema admissions in 2019. Cinema admissions in the U.S. are also expected not to reach pre-pandemic levels; PwC predicts 953 million cinema admission in the U.S. in 2028, a decrease from the 1.3 billion in 2019. Consumers adopted to using streaming platforms during the pandemic for viewing movies, TV shows, and other entertainment, and this habit is expected to continue. Other factors that may contribute to admissions decline include audience fatigue over superhero movies and the state of the economy.