In 2024, the global film and TV industry faced a slowdown that affected every area of the business.
US feature production levels in 2023 fell by over 35%: 510 films in 2023 as opposed to 810 in 2022.1
That had a knock-on effect for exhibition in 2024 with a product shortage and reduced numbers of movies for cinema operators to programme.
The post-pandemic global film and TV production boom came to an end. According to research from Bectu revealed in late July 2024 half of UK screen industry workers remain out of work, research from the UK’s media and entertainment union.
The union also described a state of emergency in the TV industry as that sector experienced its steepest ever decline in TV broadcast audiences in 2023.
Audience Trends
The move away from viewing on linear TV to SVOD has continued, leading to further atomisation of the audience as people watch content at times that suit them.
Although, some have predicted this could benefit movies with recent research in Denmark suggesting younger audiences in particular hanker for the collective experience of watching genres like horror and comedy on the big screen.
After years of growth, viewing hours for streamer services began to flatline, although Netflix subscriber numbers have continued to increase and were at 282.72 million globally by late 2024.
In China, which had briefly outstripped North America as the biggest global film market in revenue terms, theatrical box office dropped in 2024 by an estimated $1.7 billion on the three year average.
Cinema admissions in India declined albeit the fall was masked by ticket price rises. Cinema admissions in major Latin American markets still lagged behind what they were in 2019 and a number of expected global blockbusters ended up selling fewer tickets than anticipated.
Box Office Recovery
However, the sector has been rallying.
Despite the buffeting experienced in the first half of 2024, toward the end of the year, optimism returned. It wasn’t just the surge in global box office, after several lean years, Disney was again the leading US studio - and the company was insisting on a 64 day theatrical window for most of its releases, safeguarding the theatrical experience.
Although cinemagoing wasn’t back at pre-Covid levels (it was at approximately $26 billion in 2023 having been at $39 billion in 2019), across Europe, box office results in 2024 were slightly better than had been anticipated.
The annual haul in the UK and Ireland in 2024 was £1.06 billion, only very marginally down on the 2023 figures of £1.062 billion.
Across Europe, certain local movies were achieving strong, and largely unexpected, results. In Italy in 2023/2024, black and white 1940s set feminist melodrama, There’s Still Tomorrow, made $40 million at the local box office.
In 2024, meanwhile, a Swedish local documentary, The Last Journey, about a retired teacher and his son going on a road trip to France, sold more than 400,000 cinema tickets - a record number that was all the more striking given this was a movie which appealed most to an older demographic.
There are signs in the UK and Irish market that independent and foreign language films are re-establishing a foothold both in cinemas and on streaming services. There is also evidence of an emerging younger cinephile audience, with younger viewers using social platform Letterboxd to find recommendations.
Independent arthouse streaming company, producer and distributor MUBI is continuing to grow with offices in 14 countries and a slate including new festival favourites and award contenders (The Substance, Past Lives) as well as classic older titles.
European Production Opportunities
In Europe, there was renewed confidence with regard to the prospects for independent domestic production.
During 2024, the UK, increased tax incentives for low and medium budget local productions - and boosted fiscal measures for VFX. In Ireland, there were further enhancements to Section 481 film tax credit.
The European gaming industry has moved from being a niche market to becoming a “powerhouse industry worth nearly $187 million in global revenues” in 2024.
Augmented Reality (AR) and Virtual Reality (VR) are likewise driving economic growth. When PwC’s 2019 report Seeing Is Believing estimated that “VR and AR have the potential to add $1.5 trillion to the global economy by 2030,” many scoffed at what seemed an absurdly optimistic target.
However, by 2024, the XR market was already worth $25 billion according to Augmented World Expo analysts – and, after AI, is the fast growing tech sector.
Meanwhile, there are signs in some territories that the EU’s Audiovisual Media Services Directive (AVMSD), is successfully funneling extra resources into domestic movie production.
AVMSD allows Member States to place financial levies on VOD services based elsewhere, but targeting their national audiences. The levies are optional but platforms also face a mandatory 30% quota of projects made in Europe.
In France, the global streamers led by Disney, Netflix and Prime Video are currently being asked to invest a minimum of 20% of local turnover back into French production as part of the Directive. A report published in November 2024 by France’s National Cinema Centre (CNC) and audiovisual authority ARCOM revealed that this had led to international streamers investing $1.02 billion in French production.
Governments throughout Europe and beyond are continuing to support tax initiatives to lure inward investment projects.
In November 2024, Denmark became the latest to launch a film tax incentive with a rebate on expenses worth an expected 25%. The UK also improved their tax incentive schemes in the last year.
Tax incentive schemes have always been subject to revision. Nonetheless, they remain crucial to growing the film and TV sectors in Europe and beyond.
“Survive till 25” was a familiar refrain in 2024, voiced across different sectors of the international industry during what was widely acknowledged as a period of retrenchment and economic uncertainty.
However, the year ended with the global industry looking to rebound, and with existential fears about its long-term future largely allayed.