Table of Contents
Box Office
US box office in 2002 reached an incredible $9.5 billion -- showing a hearty increase of
13%. Although alternative entertainment options (such as DVD and Pay-Per-View)
have caught the consumers attention, going to the theater remains a US past time.
9.5
9.0
Billions $
8.4
13.2%
8.0
7.0
7.7
7.5
9.8%
7.0
2.9%
7.2%
6.0
Source: MPAA
1998
1999
2000
2001
2002
3
Box Office
Box Office Growth
Box Office was up 13.2%
from 2001 , the highest
year-to-year increase in
20 years.
Source: MPAA
Box Office
% Change
Gross
Year (USD in MM) Prev. Period 2002 vs.
2002
$9,519.6
13.2%
8,412.5
9.8
2001
13.2%
7,660.7
2.9
24.3
2000
7,448.0
7.2
27.8
1999
6,949.0
9.2
37.0
1998
6,365.9
7.7
49.5
1997
5,911.5
7.6
61.0
1996
5,493.5
1.8
73.3
1995
5,396.2
4.7
76.4
1994
5,154.2
5.8
84.7
1993
4,871.0
1.4
95.4
1992
4,803.2
(4.4)
98.2
1991
5,021.8
(0.2)
89.6
1990
5,033.4
12.9
89.1
1989
4,458.4
4.8
113.5
1988
4,252.9
12.6
123.8
1987
3,778.0
0.8
152.0
1986
3,749.4
(7.0)
153.9
1985
4,030.6
7.0
136.2
1984
3,766.0
9.1
152.8
1983
3,452.7
175.7
1982
Box Office
Spider-Man, the #1 blockbuster for 2002 also ranked #1 for opening weekend grosses at
$115 million. An additional 7 films grossed over $50 million in their first weekend.
Source: Variety
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Distributor
Spider-Man
Sony
Harry Potter; Chamber of Secrets Warner Bros.
Star Wars II: Attack of the Clones Fox
Austin Powers: Goldmember
New Line
Lord of the Rings: Two Towers
New Line
Signs
Buena Vista
Scooby Doo
Warner Bros.
Men in Black 2
Sony
8 Mile
Universal
Die Another Day
MGM
Ice Age
Fox
XXX
Sony
Mr. Deeds
Sony
Red Dragon
Universal
The Scorpion King
Universal
Minority Report
Fox
Sweet Home Alabama
Buena Vista
Lilo & Stitch
Buena Vista
Blade 2
New Line
The Sum of All Fears
Paramount
Title
Release Date
May 3rd
November 11th
May 16th
July 26th
December 18th
August 2nd
June 14th
July 3rd
November 8th
November 22nd
March 15th
August 9th
June 28th
October 4th
April 19th
June 21st
September 27th
June 21st
March 22nd
May 31st
Box Office
($US mil)
$114.80
88.4
80.0
73.1
60.2
60.1
54.2
52.1
51.2
47.1
46.3
44.5
37.2
36.5
36.1
35.7
35.6
35.3
32.5
31.2
Box Office
4th quarter proved to be the strongest once again in 2002 - at $2.7 billion, the 4th
quarter represents 28% of the total 2002 box office.
USD in millions
2001
2002
$1,811.7 $1,991.9
1,891.5
2,490.8
2,267.4
2,334.1
2,441.8
2,702.8
$8,412.5 $9,519.6
Title
Harry Potter: Sorcerer's Stone
Monsters, Inc.
Lord of the Rings: Fellowship
Ocean's Eleven
Training Day
Top 5 Total:
% Change
9.9%
31.7
2.9
10.7
13.2%
4th Qtr 2002 Box Office Hits
Box Office*
($US mil)
294.7
240.8
182.5
140.9
76.3
$935.2
Box Office*
Rank Title
($US mil)
Harry Potter: Chamber of Secrets
247.4
1
Lord
of
the
Rings:
Two
Towers
236.0
2
Die Another Day
150.8
3
The Santa Clause 2
137.5
4
The Ring
127.0
5
Top 5 Total:
$898.7
Source: MPAA
MPA Worldwide Market Research
Admissions
Admissions Trends
1.7
1.64
Billions
1.6
1.48
1.49
1.5
10.2%
1.47
1.42
1.4
-1.0%
4.7%
-3.0%
1.3
1998
1999
2000
2001
2002
Source: MPAA
MPA Worldwide Market Research
Admissions
Admissions Growth
In 2002 admissions grew 10.2%
over 2001 -- the highest increase
since 1957.
Year
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
Admissions
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
1,196.9
1,056.1
% Change
Prev. Period
2002 vs.
10.2%
4.7
10.2%
(3.0)
15.4
(1.0)
11.9
6.7
10.7
3.7
18.1
6.0
22.5
(2.3)
29.8
3.8
26.9
6.0
31.8
2.9
39.7
(4.0)
43.7
(5.9)
37.9
16.4
29.8
(0.3)
51.1
7.0
50.6
(3.7)
61.2
(11.9)
55.2
0.2
36.7
13.3
37.0
55.2
Admissions
Admissions per capita continued to rise in 2002, U.S. residents attended an average of
5.7 movies.
Admissions
5.6
5.3
5.4
5.2
5.2
5.0
4.8
4.6
4.8
4.8
4.6
4.5
4.4
4.4
19
80
19
85
19
90
19
92
19
95
20
00
20
01
20
02
Source: MPAA
MPA Worldwide Market Research
Admissions
Year
2002
2001
2000
1999
1998
1995
1992
1990
1985
1980
Avg. Annual
% Change
Admission
2002 vs.
Price (USD) Prev. Period
$5.81
2.7%
5.66
4.9
2.7%
5.39
6.1
7.7
5.08
8.3
14.2
4.69
7.9
23.7
4.35
4.8
33.5
4.15
(1.7)
39.9
4.23
19.0
37.4
3.55
31.9
63.6
2.69
-115.8
% Change
CPI
2.4
1.6
3.4
2.7
1.6
1.7
2.9
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.
Source: MPAA
MPA Worldwide Market Research
10
Film Rental
Titles grossing >$50 Million
20
16
14
16
16
13
12
8
4
0
1998
1999
2000
50 mil +
2001
100 mil +
2002
Source: MPAA
MPA Worldwide Market Research
Total
% of Total Box Office
11
Films Released
Number of Theatrical Films Produced, Rated, & Released
Year
2002
2001
2000
1999
1998
1997
1996
1995
Produced
543
611
683
758
686
767
735
631
Rated
786
739
762
677
661
673
713
697
Released
467
482
478
461
509
510
471
511
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
511
470
509
490
461
475
442
458
482
462
467
449
400
300
200
100
41
0
1995
19
1998
Total
19
1999
20
17
2000
New Releases
2001
18
2002
Reissued
Source: MPAA
MPA Worldwide Market Research
13
Films Released
Average Box Office of New Releases
Year
2002
2001
2000
1999
All New
Releases
$21.2
18.2
16.7
16.9
MPAA New
Releases
$32.5
34.8
30.0
27.1
MPAA
220
188
191
213
221
All Other
Distributors
229
274
267
229
269
Reissued Films
Total New
Releases
449
462
458
442
490
MPAA
All Other
Distributors
Total
Reissues
5
8
6
5
14
13
13
11
14
5
18
21
17
19
19
Source: MPAA
MPA Worldwide Market Research
14
Ratings
Percent of films by Rating
1968 to 2002
NC-17/X
2%
R
58%
Title
The Lion King
Monsters, Inc.
Toy Story 2
Aladdin
Toy Story
Distributor
Buena Vista
Buena Vista
Buena Vista
Buena Vista
Buena Vista
Box Office
($US mil)
312.9
255.9
245.9
217.4
191.8
Rating
G
G
G
G
G
Release
Date
Jun-94
Dec-01
Nov-99
Nov-92
Nov-95
1
2
3
4
5
Star Wars
E.T.
Star Wars: Phantom Menace
Harry Potter: Sorcerer's Stone
Star Wars: Attack of the Clones
Fox
Universal
Fox
Warner Bros.
Fox
461.0
435.0
431.1
317.6
310.3
PG
PG
PG
PG
PG
May-77
Jun-82
May-99
Nov-01
May-02
1
2
3
4
5
Titanic
Spider-Man
Jurassic Park
Forrest Gump
Lord of the Rings: Fellowship of the Ring
Paramount
Sony
Universal
Paramount
New Line
600.8
403.7
357.1
329.7
313.4
PG-13
PG-13
PG-13
PG-13
PG-13
Dec-97
May-02
Jun-93
Jul-94
Dec-01
1
2
3
4
5
Paramount
Warner Bros.
Dreamworks
TriStar
Dreamworks
234.8
232.7
216.2
204.8
187.7
R
R
R
R
R
Dec-84
Dec-73
Jul-98
Jul-91
May-00
Rank
1
2
3
4
5
G
7%
PG
22%
PG-13
11%
Source: MPAA
MPA Worldwide Market Research
15
Ratings
The success of 2002 is essentially due to the success of PG-13 films. PG-13 films made
up 65% of the top 20 films in 2002, while R rated films were not represented in the top 20
for the first time in two years.
Title
Spider-Man
Star Wars II: Attack of the Clones
Lord of the Rings: Two Towers
Harry Potter: Chamber of Secrets
My Big Fat Greek Wedding
Signs
Austin Powers in Goldmember
Men in Black 2
Ice Age
Die Another Day
Scooby-Doo
A Beautiful Mind*
Lilo & Stitch
XXX
The Santa Clause 2
Minority Report
Lord of the Rings: Fellowship*
The Ring
Sweet Home Alabama
Mr. Deeds
Distributor
Sony
Fox
New Line
Warner Bros.
IFC
Buena Vista
New Line
Sony
Fox
MGM
Warner Bros.
Universal
Buena Vista
Sony
Buena Vista
Fox
New Line
Dreamworks
Buena Vista
Sony
Box Office
(USD MM)
$403.7
310.3
268.7
253.0
228.8
227.8
213.1
190.4
176.4
154.7
153.3
149.5
145.8
141.2
138.4
132.0
130.9
127.3
126.2
126.2
Rating
PG-13
PG
PG-13
PG-13
PG
PG-13
PG-13
PG
PG
PG-13
PG
PG-13
PG
PG-13
G
PG-13
PG-13
PG-13
PG-13
PG-13
R
0%
G
5%
1
13
PG
30%
PG-13
65%
Year
2002
2001
2000
Top 20 Grossing
G
PG
PG-13
5%
30%
65%
10%
20%
55%
5%
15%
60%
R
0%
15%
20%
Source: MPAA
MPA Worldwide Market Research
16
Theatrical
MPAA Member Company Average Theatrical Costs
100
13.6%
78.0
76.0
82.1
89.4
78.7
80
30.6
54.1
60
38.8
27.3
25.3
24.5
52.7
51.5
54.8
1998
1999
2000
31.0
14% increase in
average theatrical
costs can be
attributed to the
increase in
member company
negative costs.
17.7
40
23.3
20
13.7
4.3
9.4
12.0
6.5
58.8
47.7
36.4
26.8
16.8
0
1980
Source: MPAA
1985
1990
1995
Negative Costs
2001
2002
Marketing Costs
17
Theatrical
MPAA Member Subsidiary / Affiliate Average Theatrical Costs
10.2%
50
45.2
41.0
40
31.5
27.3
11.2
9.5
24.9
30
9.7
5.5
6.5
20
31.5
10
21.8
18.4
34.0
21.8
0
1998
Source: MPAA
MPA Worldwide Market Research
1999
2000
Negative Costs
2001
2002
Marketing Costs
18
Theatrical
MPAA Average Negative Costs *
(includes production costs, studio overhead and
capitalized interest)
Year
2002*
2001*
2000*
1999
1998
1995
1990
1985
1980
Average Negative
Cost Per Feature
(USD in MM)
$58.8
47.7
54.8
51.5
52.7
36.4
26.8
16.8
9.4
% Change
Prev. Period 2002 vs.
23.3%
(13.0)
23.3%
6.5
7.3
(2.3)
14.3
44.8
11.6
35.8
61.6
59.6
119.5
78.8
250.4
526.6
Year
2002*
2001*
2000*
1999
1998
Average Negative
Cost Per Feature
(USD in MM)
$34.0
31.5
21.5
18.4
21.8
% Change
Prev. Period 2001 vs.
8.0%
46.6
8.0%
16.9
58.3
(15.6)
85.1
56.2
Source: MPAA
MPA Worldwide Market Research
19
Theatrical
MPAA Member Subsidiary*/
Affiliate Average Marketing
Costs of New Feature Films
Year
2002
2001
2000
1999
1998
1995
1990
1985
1.2%
Year
2002
2001
2000
1999
1998
Source: MPAA
MPA Worldwide Market Research
20
Theatrical
MPAA Member Company Distribution of Advertising Costs by Media
Year
2002
2001
2000
1999
1998
% of Total
Internet/
Total $ Newspaper Network Spot TV
Online
$27.31
13.5%
23.0%
17.6%
0.9%
27.28
13.1
25.4
16.9
1.3
24.00
15.6
23.8
18.3
0.7
21.40
17.6
23.5
19.8
0.5
22.07
15.9
24.1
18.2
NA
Trailers
4.5%
5.1
6.4
7.8
4.7
Other NonMedia
19%
Other
Media
21.4%
20.2
18.8
15.4
18.2
Newspaper
14%
Other
Media
21%
Trailers
5%
Other
Non-Media
19.1%
17.9
16.3
15.5
18.9
Network
22%
Internet/
Online
1%
Spot TV
18%
Source: MPAA
MPA Worldwide Market Research
21
Theatrical
MPAA Member Company Subsidiary* / Affiliate
Distribution of Advertising Costs by Media
Year
2002
2001
2000
1999
1998
% of Total
Internet/
Total $ Newspaper Network Spot TV
Online
$11.18
22.0%
25.7%
5.6%
0.9%
8.29
18.6
42.8
3.2
0.4
8.96
20.5
36.4
6.1
0.5
5.74
23.8
35.4
6.8
0.3
4.86
23.5
42.2
3.6
NA
Source: MPAA
Trailers
6.1%
5.2
5.5
4.1
4.1
Other NonMedia
19%
Other
Media
21.1%
9.9
13.8
10.5
3.6
Other
Non-Media
18.6%
19.9
17.3
19.1
19.0
Newspaper
22%
Other
Media
21%
Trailers
6%
Network
25%
Internet/
Online
1%
Spot TV
6%
* Subsidiaries include studio classics divisions such as Sony Pictures Classics, Fox Searchlight, New Line,
Miramax, etc.
22
Theatrical
Total Number of Screens
Year
2002
2001
2000
1999
1998
1995
1990
1985
1980
Total
Screens
% Change
2002 vs.
Indoor
Screens
% Change
2002 vs.
Drive-In
Screens
% Change
2002 vs.
35,280
34,630
36,110
-4.1%
650
36,764
-4.0%
654
-0.6%
37,396
37,185
34,186
(5.7)
(5.1)
3.2
36,679
36,448
33,440
(5.6)
(5.0)
3.6
717
737
746
(9.3)
(11.8)
(12.9)
27,805
23,689
21,147
17,590
26.9
48.9
66.8
100.6
26,958
22,774
18,327
14,029
28.5
52.1
89.0
146.8
847
915
2,820
3,561
(23.3)
(29.0)
(77.0)
(81.7)
Source: MPAA
MPA Worldwide Market Research
23
Theatrical
Digital Cinema Screens
140
124
120
100
80
60
45
31
40
20
0
12
1999
2000
2001
2002
24
Theatrical
Average Screens per Indoor Theater
6.2
6.1
6.0
5.8
5.6
5.5
5.4
5.3
5.2
5.2
1999
2000
2001
2002
Total
% Change Indoor % Change Drive-In % Change
Year Theaters 2002 vs. Theaters 2002 vs. Theaters 2002 vs.
Source: MPAA
2002
6,050
5,635
415
2001
7,070
-14.4%
6,596
-14.6%
474
-12.4%
2000
7,421
(18.5)
6,909
(18.4)
512
(18.9)
1999
7,551
(19.9)
7,031
(19.9)
520
(20.2)
1998
7,418
(18.4)
6,894
(18.3)
524
(20.8)
1995
7,744
(21.9)
7,151
(21.2)
593
(30.0)
25
Theatrical
Theaters by Number of Screens
Type
2001
2002
%
Change
Single Screen
2,280
1,682
-26.2%
Miniplex
(2 to 7 screens)
2,901
2,457
(15.3)
Multiplex
(8 to 15 screens)
1,458
1,437
(1.4)
431
474
10.0
Megaplex
(16 or more screens)
Megaplex
8%
Single
Screen
28%
Multiplex
24%
Miniplex
40%
26
Employment
US Motion Picture Industry Employment Areas
(000s)
% Change
Year
2002(p)
2001*
2000*
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
Production
Video Tape
& Services Theaters
Rental
259.2
142.0
163.6
264.8
137.7
163.7
270.1
138.6
164.7
270.9
140.4
170.3
255.4
136.8
166.7
237.4
133.0
160.9
222.5
123.9
155.1
200.7
118.7
146.1
169.6
113.4
138.8
152.7
110.6
132.4
148.8
110.2
127.1
153.1
112.0
131.2
147.8
112.1
133.7
133.9
109.9
118.2
113.7
108.0
103.3
Other
18.1
16.8
16.9
17.2
17.1
19.1
23.2
22.1
19.4
16.3
14.8
14.6
14.1
12.7
15.9
Total
582.9
583.0
590.3
598.8
576.0
550.4
524.7
487.6
441.2
412.0
400.9
410.9
407.7
374.7
340.9
27
Employment
Motion Picture Industry Employment Areas
Production & Services
Theaters
300
255
Thousands
250
201
223
146
270
265
259
237
200
155
270
Video Rental
161
167
170
165
133
137
140
139
1998
1999
2000
164
164
150
100
119
124
1995
1996
138
142
50
1997
2001
2002
28
Home Video
VCR Penetration in US TV Households
Year
2002
2001
2000
1999
1998
1997
1996
1995
1990
1985
1980
VCR Penetration
Rate
(% TV HHs)
91%
91.2
86.2
85.1
84.6
82.0
82.2
79.5
70.2
27.3
2.4
29
Home Video
Sales of Home Entertainment to US Dealers
Units in MM
VHS
Year
2002
2001
2000
1999
1998
1997
% of Change
Rental Sell -Through
Total
Cassettes
Cassettes Cassettes Prev. Year 2002 vs.
50.2
433.2
483.4
-24.2%
71.4
566.0
637.4
(4.8)
-24.2%
78.4
591.2
669.6
1.1
(27.8)
73.1
589.1
662.2
(5.7)
(27.0)
44.5
657.8
702.3
4.0
(31.2)
39.9
635.5
675.4
(28.4)
Units in MM
DVD
Year
2002
2001
2000
1999
1998
1997
Rental
DVDs
69.2
37.1
14.0
8.6
1.6
0.1
Sell -Through
DVDs
633.2
344.7
174.4
91.3
32.7
10.7
Total
DVDs
702.4
381.8
188.4
99.9
34.3
10.8
% of Change
Prev. Year 2002 vs.
84.0%
102.7
84.0%
88.6
272.8
191.3
603.1
217.6
1,947.8
6,403.7
30
Home Video
DVD Penetration in US TV Households
Year
2002
2001
2000
1999
1998
1997
DVD
TV
Penetration
Households Households
Rate
38.8
106.7
36.4%
105.2
24.8
23.6
102.2
13.0
12.7
100.8
4.6
4.6
99.4
1.2
1.2
0.3
98.0
0.3
DVD
Households
38.8
24.8
13.0
4.6
1.2
0.3
Yearly
56.5%
90.8
182.6
283.3
300.0
-
2002 vs.
56.5%
198.5
743.5
3133.3
12833.3
31
Home Video
DVD Statistics
1998
1999
2000
2001
2002
1,100 4,100
$390
25.1
$275
98.0
1,500 5,000
$204
$153
$140
182.4
364.4
685.0
32
Home Video
DVD Player Shipments
to Retailers
Month
2001
2002
Change
January
572,031
542,698
(5.1)
February
555,856
736,118
32.4
1,207,489
1,404,026
16.3
April
631,353
1,095,930
73.6
May
523,225
950,412
81.6
June
920,839
1,632,032
77.2
July
693,013
966,129
39.4
August
673,926
884,288
31.2
September
1,768,821
2,299,864
30.0
October
1,516,211
1,704,148
12.4
November
1,781,048
2,544,130
42.8
December
1,862,772
2,330,048
25.1
Total
12,706,584
17,089,823
34%
March
33
Home Video
DVD Players
(000s)
25,100
16,700
9,700
4,070
1,080
320
Yearly
Change
50.3%
72.2
138.3
276.9
237.5
--
2002
Versus
-50.3%
158.8
516.7
2,224.1
7,743.8
Yearly
Change
53.8%
52.9
70.0
233.3
150.0
--
2002
Versus
-53.8%
135.3
300.0
1233.3
3233.3
34
Home Video
$25.54
25
20
$22.65
1,500 Titles
Available
5,000 Titles
Available
$20.48
$20.78
8,500 Titles
Available
13,000 Titles
Available
20,000 Titles
Available
15
10
1998
1999
2000
2001
2002
35
Home Video
US HH Growth:
Internet vs. Broadband vs. DVD
(in millions)
70
66.9
60.1
60
54.4
50
45.2
38.8
40
31.7
30
24.8
17.6
20
13.0
10
0
0.6
4.6
1.2
1998
11.4
6.2
1.8
1999
Internet HHs
2000
2001
Broadband HHs
2002
DVD HHs
36
Television
Television Households
(MM)
Year
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1985
Total
Households
109.3
108.2
104.7
103.9
102.5
101.0
99.6
98.9
97.1
96.4
95.7
94.3
93.3
92.8
TV
Households
106.7
105.5
102.2
100.8
99.4
98.0
95.9
95.4
94.2
93.1
93.1
92.0
93.1
86.1
Penetration Rate
(% of Total HHs)
97.6%
97.5
97.6
97.0
97.0
97.0
96.3
96.5
97.0
96.6
97.3
97.6
99.8
92.8
37
Television
Factory Sales of Digital TV Sets and Displays
$5,000
2.7 mil
Units
4,560
$4,000
3,147
$3,000
1.425 mil
Units
2,433
2,615
2,200
$2,000
$1,000
1,835
648,000
Units
14,000
Units
43
1,689
1,426
121,000
Units
295
$0
1998
1999
2000
2001
2002
Dollars in Millions
38
Television
Television Advertising Expenditures
27.6
30
23.5
25
$ Billions
28.9
28.0
21.5
20
12.0
10.9
11.8
16.7
16.2
16.9
2000
2001
2002
8.9
7.4
15
14.2
14.6
1998
1999
10
Broadcast Advertising
Source: PriceWaterhouseCoopers
MPA Worldwide Market Research
39
Television
Number of Cable and Satellite Channels
300
Launch of
Digital Cable
250
267
250
227 235
202
200
168
155
Launch of 150
Digital
Satellite
130
91
100
72
60
113
78
50
20
20
20
19
19
19
19
19
19
19
19
19
19
02
01
00
99
98
97
96
95
94
93
92
91
90
40
Television
Year
2002
2001
2000
1999
1998
1997
1996
1995
1990
1985
1980
TV
Households
(in MM)
106.7
105.5
102.2
100.8
99.4
98.0
95.9
95.4
93.1
86.1
78.0
Basic Cable
Households
(in MM)
72.2
73.2
69.5
68.6
67.1
66.0
64.0
62.7
54.9
39.8
17.6
Basic Cable
% Change Basic Cable HHs Penetration Rate
Prev. Year
2002 vs.
(% TV HHs)
-1.3%
67.7%
5.3
-1.3%
69.4
1.3
3.9
68.0
2.2
5.3
68.1
1.7
7.7
67.5
3.1
9.4
67.3
2.1
12.9
66.7
4.9
15.2
65.7
4.4
31.6
59.0
6.7
81.5
46.2
310.4
22.6
41
Television
According to the FCC, as of July,
2001, the average subscriber paid
00
$14 /month for basic cable and
99
$36 /month for expanded basic
cable.
Year
2002
2001
2000
1999
1998
1995
1990
1985
TV HHs
(in MM)
106.7
105.5
102.2
100.8
99.4
95.4
93.1
86.1
2002 vs.
0.9%
2.1
8.5
(12.0)
13.2
27.4
50.9
* Refers to wired cable households subscribing to premium channels. 1999 decline due in part to redefinition of
some premium channels to basic cable.
Source: Nielsen Media Research, FCC
MPA Worldwide Market Research
42
Television
US Addressable Cable Households *
Year
2002
2001
2000
1999
1998
1995
1990
1985
Addressable
% Change
Households
Prev. Period 2002 vs.
(in MM)**
35.3
10.3%
32.0
(14.7)
10.3%
37.5
6.5
(5.9)
35.2
6.0
0.3
33.2
15.7
6.3
28.7
30.5
23.0
22.0
144.4
60.5
9.0
292.2
Television
(Millions)
52.3%
15
1998: Digital cable
launched in the US
10
21.1
13.85
7.63
1.34
3.4
1998
1999
0
2000
2001
2002*
*Preliminary
Source: Kagan Media Money
MPA Worldwide Market Research
44
Television
Satellite Households
Year
2002
2001
2000
1999
1998
1997
1996
1995
Satellite
Households
(in MM)
17.6
12.9
9.6
8.6
8.3
6.4
4.4
3.3
% Change
Prev. Year
2002 vs.
36.5%
34.4
36.5%
11.6
83.4
3.6
104.7
29.7
112.1
45.5
175.1
33.3
300.1
433.5
45
Television
According to Adams Media
Research, the average price
VOD price was $4.10.
VOD
Year
2002
2001
2000
1999
TV
VOD
VOD/SVOD
Households Households VOD Penetration Rate Revenue
(in MM)
(in MM)*
(% TV HHs)
(in MM)*
106.7
5.5
5.15%
$480
105.5
3.0
2.84%
329
102.2
0.2
0.20%
27
100.8
0.0
0.00%
0
* 2002 figure is preliminary
46
Technology
PC Households
Year
2002*
2001
2000
1999
1998
1997
1996
1995
1994
1993
1990
*Preliminary
Source: MPAA, US Census Bureau, e-Marketer
MPA Worldwide Market Research
47
Technology
US PC Households
80.0
72.7
69.1
66.5%
Penetration
(Millions)
66.0
61.1
60.0
63.0%
Penetration
66.0%
Penetration
59.0%
Penetration
51.0
49.9%
Penetration
44.0
43.6%
Penetration
40.0
1997
1998
1999
2000
2001
2002*
*Preliminary
Source: MPAA, e-Marketer
MPA Worldwide Market Research
48
Technology
After seeing a small decline in 2001, shipments in both the US & Worldwide are
expected to rise slightly in 2002 and continue the upward growth into 2003.
1999
41.4
79.2
120.6
2000
52.4
87.5
139.9
2001
47.2
86.9
134.1
2002*
47.6
87.9
135.5
2003e
51.0
96.0
147.0
1999
17.7
30.9
48.6
2000
19.3
32.7
52.0
2001
15.5
30.5
46.1
2002*
15.7
30.6
46.3
2003e
15.9
32.3
48.2
*Preliminary
Source: e-Marketer, IDC
MPA Worldwide Market Research
49
Technology
Year
2002*
2001
2000
1999
1998
1997
1996
1995
1990
% of PC
HHs
92.0%
87.0
82.5
74.0
62.0
49.5
39.3
28.3
7.3
% of Total
US HHs
61.2%
57.4
52.0
43.6
30.9
21.6
15.3
9.5
1.7
*Preliminary
Source: MPAA, US Census Bureau, e-Marketer
MPA Worldwide Market Research
50
Technology
US Internet Households
80.0
66.9
61.2%
Penetration
60.1
60.0
(Millions)
54.4
57.4%
Penetration
52.0%
Penetration
45.2
43.6%
Penetration
40.0
31.7
21.8
20.0
30.9%
Penetration
21.6%
Penetration
1997
*Preliminary
Source: MPAA, e-Marketer
MPA Worldwide Market Research
1998
1999
2000
2001
2002*
51
Technology
Number of Households with Broadband Internet Access
20.0
15.4%
Penetration
16.8
(Millions)
15.0
10.4%
Penetration
11.2
10.0
5.9%
Penetration
6.2
5.0
0.6%
Penetration
1.8%
Penetration
1.9
0.6
0.0
1998
*Preliminary
Source: e-Marketer
MPA Worldwide Market Research
1999
2000
2001
2002*
52
Technology
In 2002, broadband households are projected to grow 50% as cable modem remains the
preferred connection choice.
2002p
Other*
2.7%
Other*
4.1%
DSL
36.6%
DSL
36.9%
Cable Modem
60.7%
Cable Modem
59.0%
Source: e-Marketer
MPA Worldwide Market Research
53
Technology
US Broadband Households versus Dial-up Households
50.0
(Millions)
40.0
45.2
46.1
44.7
41.8
30.0
30.5
20.0
23.3
16.8
10.0
0.0
42.1
11.2
6.2
2000
2001
2002*
Broadband
*Preliminary
Source: e-Marketer
MPA Worldwide Market Research
2003e
2004e
Dial-up
* Other includes: fixed wireless, satellite, fiber, Ethernet
and powerline technology
Note: Revised Broadband 2000-2001 figures reflect
change in source.
54
Technology
(Millions)
60.0
45.0
43.0
30.0
22.5
15.0
4.0
8.9
0.0
2000
2001
2002*
2003e
2004e
*Preliminary
Source: e-Marketer
MPA Worldwide Market Research
55
Technology
In September 2001, there were 7.6 million U.S. households that contained an
internet access device other than a computer.
Cellphone or
pager
5.1
PDA or other
handheld
device
1.9
Television
0.6
(Millions)
56
Media Consumption
Media Consumption based on Hours per Person
1999
2000
Percent Change:
2001 2002p 2001-2002 1998-2002
667
720
884
867
54
82
36
39
13
13
0
2
1,654 1,723
774
865
106
46
12
2
1,805
846
851
815
810
134
157
56
77
13
13
2
2
1,866 1,910
0.59
(0.61)
17.16
37.50
0.00
0.00
2.36
27.59
(8.37)
190.74
113.89
0.00
N/A
15.48
Subtotal
936
967
283
290
185
183
125
124
120
121
43
61
1,692 1,746
964
264
179
121
111
75
1,714
983 1,001
238
228
177
175
119
117
109
107
78
84
1,704 1,712
1.83
(4.20)
(1.13)
(1.68)
(1.83)
7.69
0.47
6.94
(19.43)
(5.41)
(6.40)
(10.83)
95.35
1.18
Total
3,346 3,469
3,519
3,570 3,622
1.46
8.25
1998
Filmed Entertainment
Cable & Satellite TV
Broadcast TV
Consumer Internet
Home Video1
Box Office
Interactive TV 2
Subtotal
Other Entertainment
Radio
Recorded Music
Daily Newspapers
Consumer Magazines
Consumer Books
Video Games
1 Includes
2
57
Media Consumption
Media Consumption based on Hours per Person per Year
2500
2,130
2,141
2,129
2,094
2,103
2000
1500
1,328
1000
1,390
1,476
1,519
1,216
1998
1999
2000
2001
2002p
58
Media Consumption
Consumer Spending per Person per Year
(USD)
$225.34
$181.71
$194.63
$210.58
$167.38
$97.33
$102.46
$109.60
$92.58
$86.13
$119.23
$87.02
$89.04
$87.34
$59.78
$62.19
$41.77
$50.63
$62.08
$75.10
$61.67
$65.13
$62.80
$60.57
$58.81
$53.37
$53.83
$53.39
$54.12
$54.70
$46.45
$44.87
$43.87
1998
1999
2000
$84.16
$49.72
$27.63
Consumer Magazines
Other*
Newspapers
Consumer Books
$69.55
$43.57
2001
Recorded Music
Home Video
$76.88
$44.07
2002p
Consumer Internet
TV**
59
Media Consumption
Consumer Spending per Person per Year
(USD)
$700
$600
$500
$483.14
$534.76
$560.05
$598.51
$642.38
$400
$300
$200
$100
$99.98
$99.82
$98.26
$97.69
$98.77
$0
1998
1999
2000
2001
2002p
60