Q3 MARKET REVIEW - aheda.com.au

INDUSTRY FORUM | YEARBOOK LAUNCH AND AWARDS

Q3 MARKETREVIEW

INDUSTRY FORUM YEARBOOK LAUNCH AND AWARDS

Market Executive Summary

AHEDA QUARTERLY MARKET

REVIEW

Physical & Digital Transactional Markets both experiencing declines in Q3 due to significantly softer New Release Slate

YTD growth for both digital EST (+1.9%) & VOD (+5.4%)

Physical TV +1% & Film Catalogue -8% performing ahead of the overall market decline in Q3.

Total Physical & Digital Transactional Home Entertainment Market generating $588M in sales value (MAT to Sep 2020)

Q3 saw the reopening of theatres across the nation, with consumers returning to the cinema, TENET & TROLLS leading the charge in the box

office resurgence

ANZSA piracy reduction strategies proving effective 2016 - 2020. Estimate

that the volume of piracy has fallen by 30-40% in that period.


AUSTRALIA ENTERTAINMENT SPENDOVER $1.1 BILLION MAT

$1.1B


REVIEW

Physical Disc

$348M

-20%

Cinema

$531M

-55%

Digital

$240M

Flat

Source: GFK Retail Sales Tracking Physical Sales Value (Oct 19 to Sep 20), OMDIA Digital Market Sales (Oct 19 to Sep 20), MPDAA Theatrical Box Office (Oct 19 to Sep 20)

https://thenounproject.com/term/tickets/25084

https://thenounproject.com/term/cd/96459


Source: GFK Retail Sales Tracking Physical Sales Value (Jul 20-to Sep 20), OMDIA Digital Market Sales (Jul 20 to Sep 20), MPDAA Theatrical Box Office (Jul 20 to Sep 20)

AUSTRALIA ENTERTAINMENT SPENDOVER $168 MILLION IN Q3


REVIEW

Physical Disc

$71M

-24%

Cinema

$46M

-83%

Digital

$51M

-17%

$168M

https://thenounproject.com/term/tickets/25084

https://thenounproject.com/term/cd/96459

INDUSTRY FORUM YEARBOOK LAUNCH AND AWARDS Source: GFK ConsumerScope Q1 2020

CONSUMERS CONTINUE TO ACCESS CONTENT IN MULTIPLE WAYS

23%

45%

8%

18%

7%

Digital & Physical

Digital only

Physical only

TV only (incl. Pay TV)

None

WHICH OF THE FOLLOWING HAVE YOU WATCHED IN THE LAST MONTH : Q1, 2020


REVIEW

Base: Nat rep sample in the period specified (aged 14-65)*

Please note: Digital includes: EST, VOD, SVOD, CUTV, Piracy (indirect+direct)

*Please note: All segments may/ may not have consumed TV/Pay TV as well


Source: GFK Retail Sales Data & OMDIA Digital Market Data

TOTAL HOME ENTERTAINMENT REVENUE CONTINUES TO SHIFT

58%

20%

22%

Q3Physical EST VOD


REVIEW

56%

20%

24%

YTDPhysical EST VOD

$122M (-21%)

$414.6M (-11%)

Total Digital

44%

Total Digital

42%


EST UPDATE

• Whilst the EST market performed strongly during the

initial pandemic period in Q2, with April (+55%) &

May (+29%), Q3 saw the impact of less New release

slate in the market

• EST Film was down -26% in Q3, whilst EST TV

experienced a softer decline at -10%

• Amazon Transactional (EST & VOD Film only)

launched in May 2020

Source: OMDIA Digital Market Data YTD & Q3. GFK Digital Market Data used for title lists (Global Accounts Only)

DIGTAL ESTMARKET UPDATE


REVIEW

YTDTOP 5

Q3

1 3

$25M

Q3$83.5M

YTD

-21%

-1.9%

5

Please Note: Title rankings based on GFK Digital Data (Global Accounts Only)

2 4 1 2 3 4 5


DIGTAL EST DISTRIBUTOR UPDATE


REVIEW

EST DISTRIBUTOR UPDATE• Warner, NBCU, Roadshow, Sony, Paramount &

Defiant all experiencing YTD EST market share

growth

• No major monthly share shifts across the Q3 months,

with the absence of major slate fluctuations

Distributor

YTDMarket

Share

%

YTDMarket

Share

Change

(+/-)

JULMarket

Share %

AUGMarket

Share %

SEPMarket

Share %

Disney 27.5% -2.7% 23.7% 25.2% 24.2%

Warner 17.6% +1.3% 22.5% 21.9% 20.3%

NBCU 20.4% +2.8% 21.9% 20.2% 20.7%

HBO 4.4% -4.0% 5.5% 7.0% 5.6%

Roadshow 8.2% +1.5% 7.6% 8.1% 8.2%

Sony 15% +3.8% 12.2% 11.4% 14.1%

Paramount 4.7% +1.3% 4.2% 4.2% 5.0%

Madman 1.4% -0.3% 1.0% 1.1% 1.3%

Defiant 0.4% +0.3% 1.0% 0.5% 0.3%

Digital Market Share % = Number of Transactions (Volume)

Source: OMDIA Digital Market Data


DIGITAL VODMARKET UPDATE

VOD UPDATE• VOD market performed strongly during the

pandemic, with April (+49%) & May (+43%).

However similar to the EST market, VOD saw

declines in Q3 due to the softer New Release slate

• Amazon Transactional (EST & VOD Film only)

launched in May 2020


REVIEW

$26.3M

Q3$97.9M

YTD

-12%

YTDTOP 5

Q3

+5.4%

2 1 3 4

Please Note: Title rankings based on GFK Digital Data (Global Accounts Only)

Source: OMDIA Digital Market Data YTD & Q3. GFK Digital Market Data used for title lists (Global Accounts Only)

1 3 4 5 52


DIGTAL VODDISTRIBUTOR UPDATE


REVIEW

VOD DISTRIBUTOR UPDATE• NBCU, Roadshow, Sony & Defiant all experiencing

YTD VOD market share growth

• No major monthly share shifts across the Q3

months, with the absence of major slate fluctuations

Distributor

YTDMarket

Share

%

YTDMarket

Share

Change

(+/-)

JULMarket

Share %

AUGMarket

Share %

SEPMarket

Share %

Disney 24.9% -3.4% 21.7% 23.7% 29.4%

NBCU 17.6% +3.0% 24.6% 20.3% 11.3%

Warner 11.9% -3.7% 11.5% 13.3% 19.3%

Roadshow 16.0% +5.2% 13.2% 14.8% 15.8%

Sony 18.1% +2.8% 17.7% 16.4% 13.7%

Paramount 7.3% -0.2% 7.0% 6.9% 6.3%

Madman 2.3% -0.6% 1.6% 1.5% 2.1%

Defiant 1.6% +0.1% 2.3% 2.7% 1.7%

Digital Market Share % = Number of Transactions (Volume)

Source: OMDIA Digital Market Data


PHYSICAL MARKET UPDATE

DISC UPDATE• Q3 saw a steeper decline for the physical market versus the YTD

performance, this decline driven by the significantly reduced new

release slate this year (New Release Film -82% in Q3)

• Film Catalogue has experienced much softer declines during the

Q3 period, running at -8%, Jumanji: The Next level, 1917 & Ford

Vs. Ferrari all performing well in their catalogue window

• TV has performed exceptionally well during the Q3 period (+1%),

with some strong title performances on Yellowstone S1 & 2,

Game of Thrones S8, NCIS S17 & Outlander S5


REVIEW

YTD

(154k) (147k) (128k) (97k) (95k)

TOP 5Q3

1 2 3

(21k) (20k) (19k) (19k) (19k)

$71M

Q3$233M

YTD

-24%

-19%

Source: GFK Retail Sales Tracking Physical Sales Value (Jan 20 to Sep 20 & Jul 20 to Sep 20)

4 5 1 2 3 4 5


PHYSICALDISTRIBUTOR UPDATE


REVIEW

PHSYICAL DISTRIBUTOR UPDATE

• Universal Sony, Madman, Shock & Others all achieving

YTD market share gains

• ‘The Iron Mask’ performing exceptionally well for Madman

in Q3, leading to market share growth

Distributor

YTDMarket

Share

%

YTDMarket

Share

Change

(+/-)

YTDValue %

Change

Q3Market

Share

%

Q3Market

Share

Change

(+/-)

Q3Value %

Change

Universal Sony(Incl. Paramount)

39% +7% -3% 39.20% +6% -11%

Disney (Incl. Fox)

22% -8% -40% 18.31% -12% -54%

Roadshow 22% -3% -29% 22.65% -0.5% -26%

Madman 11% +4% +20% 14.13% +6% +32%

Beyond 2% -0.1% -25% 0.93% -1% -65%

Shock 2% +0.4% -2% 3.25% +1% +25%

Others 1% +0.2% -8% 1.53% +0.3% -6%

Total -19% -24%

Source: GFK Retail Sales Tracking Physical Sales Value


4K ULTRA HDGENERATING OVER $2M IN Q3 SALES VALUE


REVIEW

4K ULTRA HD UPDATE• The UHD 4K market saw a YOY decline in Q3 2020

• Due to the smaller New Release slate, no new 4K

titles launched in market in Q3 2020, catalogue was

driving all the 4K value in the period

Source: GFK Retail Sales Tracking Physical Sales

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020

UHD 4K Sales Value By Quarter


THEATRICALUPDATE


REVIEW

THEATRICAL UPDATE• YTD has seen significant declines due to cinema

closures across the nation in Q2 due to COVID

lockdowns

• Q3 Saw the reopening of theatres across the nation, with

consumers slowly returning to the cinema, TENET &

TROLLS WORLD TOUR leading the charge in the box

office resurgence

• Several major theatrical releases have been moved out

of year into 2021 (e.g. Mulan, Peter Rabbit 2, Black

Widow, Fast & Furious). Expecting a strong pipeline of

theatrical content to hit theatres in 2021

$227M

-73%

Theatrical Box Office YTD to SEP

YTD

($23M) ($20M) ($16M) ($15M) ($14M)

TOP 5Q3

($11M) ($7M) ($4M) ($3M) ($3M)

1 2 3 4 5

Source: MPDAA Theatrical Box Office (Jan 20 to Sep 20)

1 2 3 4 5


Source: The Roy Morgan Research to 31st May 2020 (How many people have access to a service, either through their own or someone else’s subscription)

SUBSCRIPTION & PAY TV SERVICESUPDATE


REVIEW

SVOD & PAY TV UPDATE• SVOD services have all seen growth in the

pandemic, with Netflix, Stan, Amazon Prime Video

and Disney+ all recording gains in viewership

• New Entrants Disney+ & Amazon Prime have added

significant market share in a short amount of time

15.74mAustralians had access to some form of pay TV or

SVOD service (+12% YOY)

13.2m 2.4m5.5m 4.4m 2.1m

Documents

Q3 MARKET REVIEW - aheda.com.au