A Thriving Global Marketplace
The film industry is a $36.4 billion global market. Over the past 10 years, that market has grown at an annualized rate of 3.5% with the average film earning above $21 million worldwide. This steady growth rate is inclusive of the worst global economic event in history, and numerous technological changes within the film sector. In fact, in the U.S., movie theaters continue to draw more people than all theme park destinations and sporting events, combined. 513 million tickets were sold among major theme parks and professional sporting events in 2014. 1.2 billion tickets were purchased by an estimated 68% of the total population in that same year.
Despite this fact, amidst a thriving industry, approximately 60% of all movies produced fail to make a profit. This shocking figure can sometimes be a result of creative accounting strategies employed by large production studios looking to mitigate corporate taxation. However, for the independent filmmaker, there is often a sound, realistic explanation for this phenomenon. Simply put, films are the dreams of the creative and can often be subject to losses due to poor business planning. So, while there is a known formula for avoiding film-failure, it is this lack of financial acumen and near-sighted focus on only the creative side of the film which drives that statistic. This has generated a need-driven demand for film finance companies like TriStar Global Entertainment to provide financial support and diligence to the global independent film market.