The MPTAC Industry Update session at ShowCanada 2003 features a summary presentation of highlights from the ‘State of the Movie Going Industry’ report by Howard Lichtman, president of Lightning Group, a strategic marketing company based in Toronto specializing in the movie and entertainment industries.

Lichtman’s presentation at ShowCanada is based on the Lightning Group’s annual 300-page state-of-the-industry study, a single source reference for both the North American and Canadian theatrical film industries.

This year’s report points to ongoing record admissions and revenues for the movie industry in North America. Admissions were up over 10% in ’02 to $1.64 billion, the largest increase since 1957, says Lichtman.

North American box-office revenues were up 13.2% in ’02 to just over US$9.5 billion, the first time the industry has topped the US$9-billion level and highest year-over-year increase in two decades.

Lichtman says the cost of making and marketing studio pictures increased by 23.3% to US$58.8 million in ’02. P&A costs for studio movies dipped slightly (by 1.2%) from US$31 million to US$30.5 million, mainly because the ad market was weaker and not because studios reduced their media buys.

Combined, studio movies cost on average US$89.4 million to shoot and market, or about $140 million in Canadian dollars.

The average production cost for an American subsidiary-financed feature film (brands like Sony Pictures Classics, Fox Searchlight and Miramax, etc.) was up 8% in ’02 to US$34 million. The average cost of marketing these so-called ‘mini-major’ releases rose significantly, from US$9.5 million to US$11.8 million.

In broader terms, Lichtman’s ‘State of the Movie Going Industry’ report, available at a cost of $600 through the Lightning Group and MPTAC, includes Canadian-specific theatrical trends, in-depth seasonal analysis, demographic profiles of moviegoers and data/charts on studio market share.

The report also includes analysis of individual blockbuster performances, media strategies, the scale of releases (number of prints, etc.), trends in exhibition technology, including the number and types of screens, and a section called ‘O! Canada,’ outlining those movies which performed best in the Canadian market.

A chapter called ‘Sequel Madness’ examines branding and sequels. Lichtman says the report also looks at the incidence and impact of remakes, adaptations and books as brands, and films based on videogames.