The leading international market for performance of local films in 2007 was once again India, where around 94 per cent of the box office is generated by homegrown films. However, Hollywood is reported to be encroaching on this by as much as one percentage point of the box office each year. Japan was the second-top performing market by revenues but generated only half of India’s dominant total ($800m), and dropped over $120m year on year, following a new benchmark for market share (53.2 per cent) established in 2006.
In total, three local film markets generated over $500m at the theatrical box office, including third-placed France. Below that local films recorded more than $100m in revenues in a total of 10 international markets.
The UK film industry was ranked fifth by revenues, and its 2007 performance was 4.7 percentage points higher than its past five-year average (2002-2006). In fact, the majority of indigenous film industries—22 of the 35—recorded a performance better than their past five-year average, although the largest improvement was experienced in two Central and East European territories: Poland and the Czech Republic.
In particular, Hong Kong, Malaysia and South Korea recorded performances in 2007 with the largest negative balance, with at least an eight percentage point difference. In particular films from Hong Kong recorded a 22.0 per cent share, which was less than half the most recent high they recorded in 2004 (45.0 per cent).
China led in terms of market share of local films (not including India) and was the only international market where local films accounted for the majority of revenues in 2007, down from three territories the previous year, all of which (China, South Korea and Japan) were in the Asia-Pacific region.
In Europe, France was the leading territory by market share (and revenues) of local films, although there were six European territories in the top 10 overall. The Italian film industry was larger in size than both the German and Spanish markets in 2007. With a good 31.7 per cent of the box office from local films, it also ranked sixth by revenue, due to a 9.0 percentage point surge against its past five-year average.
Russia—where box office revenues are still growing fast—was once again in the top 10 but this was in addition to a 7.1 per cent increase in the 2007 performance of local films, and the third time Russian
films had collectively grossed over $100m.
In our study of 35 film markets, Austria was the bottom of the list in terms of market share (although we did not include Slovakia this year), whilst Estonia was ranked the lowest in terms of total revenues of local films, although as a direct result of being one of Europe’s smallest box office markets.
Source: As reported in Screen Digest, May 2008