How is AVOD changing the marketplace?<\/a><\/p>\n Is filmmaking more inclusive?<\/a><\/p>\n How is AI affecting the film industry?<\/a><\/p>\n References<\/a>[\/vc_column_text][\/vc_column][vc_column width=”2\/3″ css=”.vc_custom_1554889401775{margin-bottom: 0px !important;}”][vc_column_text el_class=”intro-txt” css=”.vc_custom_1698421572680{margin-bottom: 10px !important;}”]\n In Q1 2022, 1 .51 million SVOD services were cancelled by British households with more than half a million cancellations attributed to \u2018money saving\u2019. 71 % of people in six European countries, and the UK, now use AVOD platforms. (5)<\/p>\n Moreover, only 29% of CTV households in the UK display willingness to incur extra costs for ad-free content, implying substantial room for AVOD expansion. The film industry has typically been considered a maledominated sector, however, from recent statistics according to ZIPPIA, this is reducing, with film crew standing at 51 .8% male and 48.2% female. (1)<\/p>\n The inclusion of women on-screen grew as well, with 47% of film leads being women and overall 42% of actors. Additionally, 22% of directors and 33% of film writers are women. (6)<\/p>\n Continuing with more inclusivity statistics, following the pandemic, Hollywood experienced a decline in diversity among its major film productions, according to a new study by UCLA researchers, streaming platforms provided more significant opportunities for women and individuals of diverse backgrounds compared to theatrically released films. Ethnic and gender inclusivity in theatrical films reverted back to 2019 or 201 8 levels in many metrics. (7)[\/vc_column_text][vc_column_text el_class=”intro-txt” css=”.vc_custom_1697189168898{margin-bottom: 10px !important;}”]Despite substantial evidence indicating that films with greater diversity attract larger audiences, the focus continues to be on movies featuring white male actors and directors. In the realm of theatrical releases, diversity metrics remain modest, with people of color comprising 22% of lead actors, 1 7% of directors, and 1 2% of writers. Women represented 39% of lead actors and 1 5% of directors, showing progress compared to a decade ago but reflecting numbers similar to five years ago. (7)<\/p>\n However, streaming releases exhibit greater inclusivity, featuring a higher number of films with diverse casts and female protagonists. In 2022, 64% of original streaming releases boasted casts with over 30% non-white representation, and approximately one-third of lead roles in prominent streaming movies were portrayed by individuals of color. (8)[\/vc_column_text][\/vc_column][\/vc_row][vc_row el_id=”arms”][vc_column][vc_empty_space height=”60px”][vc_separator][\/vc_column][\/vc_row][vc_row][vc_column width=”1\/3″][\/vc_column][vc_column width=”2\/3″][vc_column_text el_class=”intro-txt” css=”.vc_custom_1697190723450{margin-bottom: 10px !important;}”]\n Generative AI’s impact on the entertainment sector is a prominent topic garnering significant attention. This concern is well-founded, as generative AI has the capacity to produce the very outputs integral to the industry, including textual content like stories, scripts, advertisements, and reviews, along with dynamic and static images. (9)<\/p>\n Time and resource savings are a significant advantage, as AI can generate original stories from extensive script data. Casting efficiency is enhanced through AI’s analysis of past performance and social media, though concerns arise regarding job displacement. While AI can streamline tasks, it may lack human creativity and emotional depth, potentially resulting in a standardized approach to storytelling. (10)[\/vc_column_text][\/vc_column][\/vc_row][vc_row remove_bottom_col_margin=”true” el_id=”svod”][vc_column][vc_empty_space][vc_separator][\/vc_column][\/vc_row][vc_row full_width=”stretch_row_content” disable_element=”yes”][vc_column width=”1\/2″][vc_column_text el_class=”intro-txt” css=”.vc_custom_1697191497521{margin-bottom: 10px !important;}”]\n (2) Strasbourg. (2023). GBO in the EU and the UK grew by 70% in 2022 (3) Motion Picture Industry Market. (2023). Motion Picture Industry Market Research Report. Demand Analysis & Opportunity Outlook 2022 – 2027, https:\/\/www.marketdataforecast.com\/market-reports\/motion-picture-industry-market<\/a><\/small><\/p>\n (4) 2022 Worldwide Box Office https:\/\/www.boxofficemojo.com\/year\/world\/2022\/<\/a><\/small><\/p>\n (5) Creamer, J. (2022). AVOD: The rise of ad-funded streaming. https:\/\/www.televisual.com\/news\/avod-the-rise-of-ad-funded-streaming\/<\/a><\/small>[\/vc_column_text][\/vc_column][vc_column width=”1\/2″][vc_column_text](6) Jennings, K. (2023). OpenEvidence, which is valued at $425 million, is taking on one of AI\u2019s big engineering challenges: large language models (7) Coyle, J. (2023). Hollywood is headed toward a \u20182-tiered system\u2019 with (8) Coyle, J. The biggest films of 2022 went backwards on diversity (9) Davenport, T., Bean, R. (2023). The Impact of Generative AI on (10) Graham, B. (2022). How AI is Revolutionising the Film Industry \u2013 and (2) Strasbourg. (2023). GBO in the EU and the UK grew by 70% in 2022 but fell short of pre-pandemic average by 28% https:\/\/www.obs.coe.int\/en\/web\/observatoire\/home\/-\/asset_publisher\/wy5m8bRgOygg\/content\/gbo-in-the-eu-and-the-uk-grew-by-70-in-2022-but-fell-short-of-pre-pandemic-average-by-28-1#:~:text=The%20estimated%20market%20share%20of,end%20of%20its%20normal%20range.<\/a><\/small><\/p>\n (3) Motion Picture Industry Market. (2023). Motion Picture Industry Market Research Report. Demand Analysis & Opportunity Outlook 2022 – 2027, https:\/\/www.marketdataforecast.com\/market-reports\/motion-picture-industry-market<\/a><\/small><\/p>\n (4) 2022 Worldwide Box Office https:\/\/www.boxofficemojo.com\/year\/world\/2022\/<\/a><\/small><\/p>\n (5) Creamer, J. (2022). AVOD: The rise of ad-funded streaming. https:\/\/www.televisual.com\/news\/avod-the-rise-of-ad-funded-streaming\/<\/a><\/small><\/p>\n (6) Jennings, K. (2023). OpenEvidence, which is valued at $425 million, is taking on one of AI\u2019s big engineering challenges: large language models whose training is stuck in the past. https:\/\/www.forbes.com\/sites\/katiejennings\/2023\/07\/27\/this-health-ai-startup-aims-to-keep-doctors-up-to-date-on-the-latest-science\/<\/a><\/small><\/p>\n (7) Coyle, J. (2023). Hollywood is headed toward a \u20182-tiered system\u2019 with white men dominating studio releases and diversity banished to streaming https:\/\/fortune.com\/2023\/03\/30\/hollywood-diversity-two-tiered-system-streaming-ucla-study-2022-studios\/<\/a><\/small><\/p>\n (8) Coyle, J. The biggest films of 2022 went backwards on diversity progress, study finds. https:\/\/eu.usatoday.com\/story\/entertainment\/movies\/2023\/03\/30\/hollywoods-biggest-films-dipped-diversity-2022-ucla-study-says\/11572935002\/<\/a><\/small><\/p>\n (9) Davenport, T., Bean, R. (2023). The Impact of Generative AI on Hollywood and Entertainment. https:\/\/sloanreview.mit.edu\/article\/the-impact-of-generative-ai-on-hollywood-and-entertainment\/<\/a><\/small><\/p>\nFast Facts<\/h4>\n
\n\n
Cinema bounced back in 2022<\/h2>\n[\/vc_column_text][vc_column_text el_class=”intro-txt” css=”.vc_custom_1697185164526{margin-bottom: 10px !important;}”]In 2022, the film industry experienced a pivotal year, testing the waters after pandemic-related restrictions. 2022 domestic box office increased 69.3% from nearly 3.95\u20ac billion in 2021 , to 6.69\u20ac billion. (1)
\nThe three highest-grossing films of the year were Avatar: The Way of the Water, Top Gun: Maverick, and Jurassic World: Dominion. All three are delayed sequels to some of Hollywood\u2019s greatest hits from the past.
\nHowever, inflation still continues to rise, with costs jumping nearly 8% in 2022 (2). This includes costs of production and supply chain, causing the complexity of budgeting to increase. (3)[\/vc_column_text][vc_single_image image=”519″ add_caption=”yes” alignment=”center” css=”.vc_custom_1697185250000{padding-top: 10px !important;}”][vc_empty_space height=”45px”][vc_separator][vc_empty_space height=”25px”][vc_column_text]We were delighted to work on the highest-grossing release in Hindi cinema history, (total of US$ 130 million).<\/strong>[\/vc_column_text][vc_single_image image=”693″ add_caption=”yes” alignment=”center” css=”.vc_custom_1697186020536{padding-top: 10px !important;}”][\/vc_column][\/vc_row][vc_row el_id=”audiencetrends”][vc_column][vc_empty_space height=”60px”][vc_separator][\/vc_column][\/vc_row][vc_row][vc_column width=”1\/3″][\/vc_column][vc_column width=”2\/3″ css=”.vc_custom_1697187966604{background-position: 0 0 !important;background-repeat: no-repeat !important;}”][vc_column_text el_class=”intro-txt” css=”.vc_custom_1698422027173{margin-bottom: 10px !important;}”]\nHow is AVOD changing the marketplace?<\/h4>\n
![\"\"](\"https:\/\/annualreport.palmapictures.es\/annualreport-2022\/wp-content\/uploads\/sites\/9\/2023\/10\/SMART-ASSIST-1-webpage-219x300.jpg\")
Over the past years, subscription VOD (SVOD) platforms have dominated. However, the new trend emerges as platforms such as HBO Max and Disney’s Hulu offer viewers the option of reduced or no subscription fees in exchange for watching advertisements. Netflix is contemplating an ad-supported tier.<\/p>\n
\nNotably, the projected worldwide expenditure on AVOD series and films is set to surge to 64\u20ac billion by 2027, a notable increase from the 30\u20ac billion recorded in 2021 . Undoubtedly, affordability remains a key draw for AVOD.
\nAs AVOD continues to flourish and adfunded models gain traction, advertisers stand to benefit from the captivating potential of premium video platforms, paving the way for a dynamic and evolving media landscape. (5)[\/vc_column_text][\/vc_column][\/vc_row][vc_row el_id=”shiftofpower”][vc_column][vc_empty_space height=”60px”][vc_separator][\/vc_column][\/vc_row][vc_row][vc_column width=”1\/3″][\/vc_column][vc_column width=”2\/3″][vc_single_image image=”701″ add_caption=”yes” alignment=”center” css=”.vc_custom_1697189015359{padding-top: 10px !important;}”][vc_column_text el_class=”intro-txt” css=”.vc_custom_1697188722028{margin-bottom: 10px !important;}”]\nIs filmmaking more inclusive?<\/h4>\n
![\"\"](\"https:\/\/annualreport.palmapictures.es\/annualreport-2022\/wp-content\/uploads\/sites\/9\/2023\/10\/cameraportriat02-84x300.jpg\")
<\/h4>\nHow is AI affecting the film industry?<\/h4>\n
References<\/h4>\n[\/vc_column_text][vc_column_text](1) Elad, B. (2023). Film Industry Statistics \u2013 By The Distributor, Running Time, Demographic, Box Office Revenue, https:\/\/www.enterpriseappstoday.com\/stats\/film-industry-statistics.html<\/a>.<\/small><\/p>\n
\nbut fell short of pre-pandemic average by 28% https:\/\/www.obs.coe.int\/en\/web\/observatoire\/home\/-\/asset_publisher\/wy5m8bRgOygg\/content\/gbo-in-the-eu-and-the-uk-grew-by-70-in-2022-but-fell-short-of-pre-pandemic-average-by-28-1#:~:text=The%20estimated%20market%20share%20of,end%20of%20its%20normal%20range.<\/a><\/small><\/p>\n
\nwhose training is stuck in the past. https:\/\/www.forbes.com\/sites\/katiejennings\/2023\/07\/27\/this-health-ai-startup-aims-to-keep-doctors-up-to-date-on-the-latest-science\/<\/a><\/small><\/p>\n
\nwhite men dominating studio releases and diversity banished to streaming https:\/\/fortune.com\/2023\/03\/30\/hollywood-diversity-two-tiered-system-streaming-ucla-study-2022-studios\/<\/a><\/small><\/p>\n
\nprogress, study finds. https:\/\/eu.usatoday.com\/story\/entertainment\/movies\/2023\/03\/30\/hollywoods-biggest-films-dipped-diversity-2022-ucla-study-says\/11572935002\/<\/a><\/small><\/p>\n
\nHollywood and Entertainment. https:\/\/sloanreview.mit.edu\/article\/the-impact-of-generative-ai-on-hollywood-and-entertainment\/<\/a><\/small><\/p>\n
\nWhat it Means for the Future https:\/\/raindance.org\/how-ai-is-revolutionising-the-film-industry-and-what-it-means-for-the-future\/<\/a><\/small>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_tta_accordion active_section=”10″ no_fill=”true” collapsible_all=”true”][vc_tta_section title=”References” tab_id=”1697202836227-ec213843-cc18″][vc_column_text](1) Elad, B. (2023). Film Industry Statistics \u2013 By The Distributor, Running Time, Demographic, Box Office Revenue, https:\/\/www.enterpriseappstoday.com\/stats\/film-industry-statistics.html<\/a>.<\/small><\/p>\n