Gower Street’s report, released on Tuesday, isn’t surprising for the global film industry. The historical labor strikes in Hollywood led to numerous movies being postponed from 2024 to 2025, potentially causing a loss of up to $2 billion overall.
Gower Street attributes this decline to a 50% reduction in production time due to the strikes, rather than a lack of interest from consumers in attending cinemas. Barbeinheimer was the sole contributor to restoring a pre-pandemic status this summer. Mitchell stated, “July 2023 marked a record-breaking month at the global box office, indicating a strong audience demand for compelling theatrical releases.”
Gower Street CEO Dimitrios Mitsinikos anticipates a prosperous 2025 at the global box office, foreseeing it as a potential trend-setter for the latter half of the decade.
Despite ongoing adjustments in global moviegoing habits post-COVID-19, 2023 is projected to witness a 29 percent increase in revenue compared to 2022, with a notable uptick of 20 to 22 percent in North America.
However, 2023 global revenue is expected to remain 21 to 22 percent below the pre-pandemic levels of 2019, and Gower Street’s outlook for 2024 reflects a 25 percent decline from the same benchmark.Gower Street predicts that North American box office revenue for 2024 will reach $8 billion, showing an 11 percent decrease from 2023 and a 30 percent drop from the 2017-2019 average. The 2024 foreign box office, excluding China, is expected to be $15.6 billion, trailing 7 percent behind 2023, with local productions providing support. Nevertheless, this figure remains 21 percent below the 2017-2019 average.China’s box office revenue is anticipated to see a modest 5% year-over-year increase in 2024, with the country favoring local productions over Hollywood content. The projected revenue for the upcoming year is $7.9 billion, up from an estimated $7.6 billion in 2023.
Thomas Berane, chief analyst at Gower Street, noted that the international market is somewhat less affected by the Hollywood strike’s impact on the limited release calendar compared to the domestic market.
Gower Street is set to release its final statistics for 2023 during the first week of January.
FAQs:
Q1: Where are the headquarters of Gower Street?
A1: Los Angeles, California.
Q2: Has the labor strike ended in the US?
A2: Yes.
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