Product and Service

Companies included in Film& TV content distribution sector in admission to amusement industry primarily market, source, and distribute movie and TV content through digital, physical, and online platform. 


Demand for Product and Service

As indicated by the typical company data, the demand for theatre movie distribution has been declining slightly in the past several years.

The Sector

Sector’s Current, Trend, Causes behind trend, and Future

Current and Trend
  • Demand for physical movie and TV content products has gone down quickly.
  • Demand for studio’s movie distribution has also slightly gone down.
Causes behind the trend
  • The downward trend in theatre’s admission since 2016 may be the major reason for slight decline in demand for movie distribution of studios.
  • Increasing online download of movie and TV content is the major reason for declining demand for physical form of movie and TV content.
Industry Future
  • As downward trend in theatre industry continues, many distributors of content may not be able to survive if they fail to adapt quick changes in technology and preference of consumers.


General Financial Performance of Companies In the Sector

While it seems that the demand for films has been fluctuated depending on quantity and quality of release for some certain year, there is a downward global trend (except for China) in the industry of film content, which may be rooted to declining admissions of theatres in those regions. And this may be why, when the theatrical revenue (down average 3% in 2016 and 2017) of products of those companies goes down, their film content revenue from TV network (up 20% for the same period) and from physical media (up 6%) did not go down as deep as in theatres. However, the slowing down admission in theatres may, in return, affect investment for higher budget films and cause further decline in demand due to poor performance of those films. Strong increase in China’s theatrical market helps offset the decrease of admission in US market.
Growth in digital platform has been stable. Demand for TV content (series) seems to have been strong growing fast.
The general decrease in revenue has hurt profitability of those film makers in this sector. The typical company in this sector has an about 35-40% gross margin in 2017 with a SG&A as percentage of sales of about 25-32% and operating margin of 8-10%.
The typical enterprise price/EBI ratio is 46.

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