In its most recent annual report, the Motion Picture Association of America (MPAA) warned that consumers are shifting away from “traditional” moviegoing and toward more “premium” entertainment.
The report also noted that the growth of premium cable and satellite services and a decline in moviegoing are the “major drivers” of this trend.
Netflix and Amazon are both doing well in the premium market and have been growing at an astonishing rate for the past few years.
However, the MPAA notes that the overall growth rate of premium video services is slowing and the number of people who “go to the movies in theaters” has dropped from 3.3 billion in 2016 to 2.7 billion in 2020.
As of 2021, there were only 10.6 billion people in the U.S. who had a “going-to-the-movie” experience, down from 13.5 billion in 2015.
According to the MPSA, “the current premium TV market has not grown significantly since 2011, but the future for premium entertainment is looking bright.”
The group also noted “that over the next 10 years, there is no end in sight for the current premium industry.”
In the next year, Netflix could become the dominant player in the US moviegoing market, while Amazon could become a force to be reckoned with in the movie business, according to the report.
“As moviegoing is increasingly driven by consumers looking for entertainment in a more personalized and personalized way, the future in movies looks brighter,” it said.
This is also why the MPPA also said that “it is critical to ensure the industry is a place where consumers are not left out of the loop, where the quality of the content is of high quality and consumers have access to the best experiences.
This is the reason why we recommend the industry adopt a strategy of embracing and supporting all audiences and ensure the highest quality experiences for all.”