• Portfolio Marketing

Every month the FOX Portfolio & Solutions team will bring you strategic marketing intelligence, insights, and solutions that focus on your brand needs and marketplace trends. This month’s update focuses on the entertainment industry and shares some key findings on the latest research, what’s new in the industry and how your brands can break through with the power of the FOX Portfolio. Below you’ll find the category insights newsletter on Entertainment.

 

CATEGORY REVIEW & OUTLOOK

MAGNA is forecasting Entertainment total ad spend to be up +14% YoY in 2022 and +11% in 2023 (1).  As the movie industry rebounds and streaming services vie for market share, MAGNA expects Entertainment national TV spend to grow mid-to-high single digits for both 2022 and 2023 and should be one of the few growth verticals in the next two years.

OTT video viewership is expected to continue to grow at a healthy pace over the next few years, thanks to a steady stream of original and premium content. In SVOD, the recent sub stagnation with major players could point to possible market saturation and subscription fatigue. Many movie executives agree that the return to pre-pandemic ticket sales may take years. The industry has also accepted the new exclusive theatrical window is now an average of 45 days, down from 75-90 days prior.

 

+34%

CATEGORY MEDIA AD SPEND

Increased in CY 2021 (2)

$7B-$9B

BOX OFFICE SALES

Projected in 2022 (3)

4.7

# of SUBSCRIPTION SERVICES

U.S. household access which could be close to peak stacking (4).

3

UPCOMING BLOCKBUSTERS

Top Gun, Avatar 2 & Black Panther: Wakanda Forever

MORE IS POSSIBLE WITH THE POWER OF FOX

CATEGORY HIGHLIGHTS

 

MOVIES

  • 2022 so far has seen successes such as Sony’s Spider-Man: No Way Home, Warner Bros’ The Batman and Marvel’s Doctor Strange in the Multiverse of Madness.
  • However, current ticket sales are tracking at about 40% below 2019 levels.
  • Analysts are projecting domestic box office sales between $7B – $9B in 2022,2  up from the $4.5B in 2021 but below the $11.3B in 2019.

 

 

 

MVPD

Total pay TV ended 1Q22 with 83M subs, down from 88M a year ago, as cord-cutting remains at an elevated level (5).

Now at about 13M subs, virtual MVPDs such as YouTube TV and Hulu + Live TV partly offset traditional video decline, although growth has slowed as prices have increased significantly over the years.

 

 

OTT

  • Streaming ad spending spiked the past two years, driven by increased competition and entry of new services.
  • After years of robust subscriber growth, SVOD started to see a slowdown in 1Q22 with major players reporting first quarterly sub loss in a decade.
  • On the other hand, ad-supported services have gained steam as consumers pushback on paying for multiple subscriptions. Netflix and Disney+ will add ad-based tiers by year end.

For Questions or more detail

Please contact the FOX Portfolio Strategy & Solutions team to help you with strategic marketing intelligence, insights and solutions.

STEPHANIE CHUA | Director, Portfolio Strategy & Solutions | stephaniekline.chua@fox.com

JEFF FOSTER | Senior Manager, Portfolio Strategy & Solutions | jeff.foster@fox.com

RISTEN CLARKE | Specialist, Portfolio Strategy & Solutions | risten.clarke@fox.com

1 MAGNA US Industry Report, Spring 2022

2 Standard Media Index

3 MoffettNathanson, Morgan Stanley

4 Kantar Entertainment on Demand, April 2022

5 Wells Fargo

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