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WEBSITE AHEDA Market Update Q1 2021

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WEBSITE AHEDA Market Update Q1 2021 HOME ENTERTAINMENT MARKET REVIEW (2021 – Q1) INDUSTRY FORUM | YEARBOOK LAUNCH AND AWARDS Document Index Page 3: Market Executive Summary Page 4-18: Industry Data Page 19: Theatrical Page 20: Subscription & Pay TV Services Page 21-23: AHEDA Committee Updates INDUSTRYAHEDA QUARTERLY FORUM MARKET YEARBOOK LAUNCHREVIEW AND AWARDS Market Executive Summary Opportunity for AHEDA, Studios & Retailers to increase platform awareness & education around range & windowing advantages for physical & digital transactional Total Physical & Digital Transactional Home Entertainment Market generating $93M in sales value in Q1 2021 Physical & Digital Transactional Markets both experiencing declines in Q1 due to the lighter New Release Slate Q1 2021 Digital Market EST (-26%) & VOD (-32%) Q1 2021 Physical Market -34%, while TV -27% & Film Catalogue -24% performed ahead of the overall physical market decline. #1 titles for Q1 2021 were Croods New Age (EST), Tenet (VOD) & Rams (Physical) The War With Grandpa ($7M) & The Witches ($5M) were the top performing box office releases in Q1 17.3M Australians now have access to some form of pay TV or SVOD service (+16% YOY), with all providers experiencing growth INDUSTRYAHEDA QUARTERLY FORUM MARKET YEARBOOK LAUNCHREVIEW AND AWARDS AUSTRALIA ENTERTAINMENT SPEND $127 MILLION SPENT IN Q1 Physical Disc Digital Cinema $52M $41M $34M -34% -30% -86% $127M INDUSTRYAHEDA QUARTERLY FORUM MARKET Source: GFK Retail Sales Tracking Physical Sales Value (Jan 21 to Mar 21), OMDIA Digital Market Sales (Jan 21 to Mar 21), MPDAA Theatrical Box Office (Jan 21 to Mar 21) YEARBOOK LAUNCHREVIEW AND AWARDS CONSUMPTION TRENDS BY FORMAT Which of the following have you watched in the last month? UHD/4K disc 90 80 (NET) DVD/Blu-ray 78 79 77 77 76 77 disc 75 74 72 72 70 70 71 71 Something in a 64 cinema 60 56 F2A TV 53 50 52 47 48 48 43 43 43 43 44 Pay TV 40 42 41 42 42 3839 39 38 38 3839 37 36 36 37 37 36 36 3535 34 35 35 34 3435 3434 33 33 32 33 3233 33 30 31 31 31 31 31 303131 3031 31 VOD 28 28 28 28 28 29 27 26 20 17 EST 13 13 13 12 12 12 11 11 11 11 11 12 10 1211 10 9 10 10 10 9 9 9 9 8 7 7 7 7 8 SVOD 0 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 NOV 2020- FEB 2021 CUTV CONSUMPTION UPDATE Free to Air TV saw declines, with COVID driving delays in programs & less live sport, this saw consumers searching for content in other ways, leading to increases in both physical & digital forms of consumption INDUSTRYAHEDA QUARTERLY FORUM MARKET YEARBOOK LAUNCHREVIEW AND AWARDS Source: GFK Consumerscope Q1 2021 CONSUMERS CONTINUE TO ACCESS CONTENT IN MULTIPLE WAYS WHICH OF THE FOLLOWING HAVE YOU WATCHED IN THE LAST MONTH : Q1, 2021 CONSUMPTION UPDATE 8% Digital & Physical 13% 28% ❑ Consumers continue to access content in a variety of ways, with several factors driving choice (e.g. gifting, only want to watch Digital only once, ownership, special features, value etc.) 8% Physical only ❑ ‘TV Only (Incl. Pay TV)’ Segment fell from 18% in Q1 2020 to 13% in Q1 2021. ‘Digital & Physical’ also increased from 23% in Q1 2020 to 28% in Q1 2021. COVID lockdowns saw consumers TV only (incl. Pay TV) expanding their viewing options leading to increases in both these segments None 43% INDUSTRYAHEDA QUARTERLY FORUM MARKET Base: Nat rep sample in the period specified (aged 14-65)* Source: GFK Consumerscope Q1 2021 Please note: Digital includes: EST, VOD, SVOD, CUTV, Piracy (indirect+direct) YEARBOOK LAUNCHREVIEW AND AWARDS *Please note: All segments may/ may not have consumed TV/Pay TV as well CONSUMERS FUTURE CONSUMPTION INTENTIONS Now thinking ahead to when the threat of COVID has passed. Compared to now, do you think you will spend more, the same or less time watching or using the following? FURTURE INTENTIONS UPDATE More Same Less ❑ Majority of consumers indicating they plan to maintain their current viewing habits Pay TV service 16 64 20 ❑ Some consumers indicating intentions to do less as DVD or Blu-ray Discs 15 62 22 COVID restrictions are eased & vaccinations are rolled out EST 15 61 24 VOD 15 62 23 SVOD 24 64 12 Catch-up TV' 19 66 15 Cinema 29 48 23 INDUSTRYAHEDA QUARTERLY FORUM MARKET YEARBOOK LAUNCHREVIEW AND AWARDS Source: GFK Consumerscope Q1 2021 AWARENESS & USAGE BY PLATFORM Which of these have you heard of & used ? 100 95 90 86 80 74 70 65 60 50 40 40 40 35 30 20 15 10 0 Digital purchase of a movie or TV series Digital rental of a movie or TV series (VOD) Paid subscription video-on-demand Premium Video on Demand (PVOD) (EST) streaming service (SVOD) Awareness Usage RANGE EDUCATION ❑ Opportunity for digital transaction to improve awareness Vs. SVOD ❑ Usage drop off steeper for EST & VOD INDUSTRYAHEDA QUARTERLY FORUM MARKET YEARBOOK LAUNCHREVIEW AND AWARDS Source: GFK Consumerscope Q1 2021 CONSUMER RANGE PERCEPTIONS OPPORTUNITY FOR EDUCATION Have the largest selection of movies & TV content ? RANGE EDUCATION 17% ❑ Significant number of consumers perceive SVOD services having a larger selection of titles compared to traditional digital & physical platforms ❑ Opportunity for AHEDA, Studios & Retailers to educate 11% consumers on the range & window advantages digital & physical platforms have compared to subscription services 61% 11% Disc (DVD, Blu-ray & UHD/4K Digital purchase of a movie or TV series Digital rental of a movie or TV series Paid subscription video-on-demand streaming services INDUSTRYAHEDA QUARTERLY FORUM MARKET YEARBOOK LAUNCHREVIEW AND AWARDS Source: GFK Consumerscope Q1 2021 WHAT ARE THE CONSUMERS SAYING? Agree 'If stores didn't sell movies on disc, I'd shop there less often’ 48% 'I will make a special trip to my store just to shop for a movie on disc’ 43% 'I'd be happy to pay more for a title I want to watch if it allows me to watch it before it's available my SVOD service’ 44% 'I get frustrated when movie & TV shows are removed from my SVOD service’ 63% 'I know how to buy or rent movies & TV shows digitally (e.g. via iTunes, Google Play) 64% INDUSTRYAHEDA QUARTERLY FORUM MARKET YEARBOOK LAUNCHREVIEW AND AWARDS Source: GFK Consumerscope Q1 2021 TOTAL HOME ENTERTAINMENT REVENUE CONTINUES TO SHIFT $537M $93M (-11%) (-37%) 23% 24% Total Digital Total Digital 43% 44% 20% 20% 57% 56% 2020 Full Year 2021 - Q1 Physical EST VOD Physical EST VOD INDUSTRY FORUM AHEDA QUARTERLY MARKET Source: GFK Retail Sales Data & OMDIA Digital Market Data YEARBOOK LAUNCHREVIEW AND AWARDS DIGTAL EST - MARKET UPDATE 2020 Full Year TOP 5 Film 2021 - Q1 1 2 3 4 5 1 2 3 4 5 TOP 5 TV 1 2 3 4 5 1 2 3 4 5 -6% EST UPDATE ❑ The reduced New release slate continued to significantly impact the 2020 EST market in Q1 2021, comping some large releases in Q1 2020 -26% (e.g. Joker, Frozen 2, Star Wars & Jumanji Next Level) ❑ The month of Jan was the best performing month for the EST $105M Q1 market at -5%, whilst Feb saw the biggest declines at -46% $19M ❑ EST movies saw a -27% decline in Q1, while EST TV dropped -21% INDUSTRYAHEDA QUARTERLY FORUM MARKET Please Note: Title rankings based on GFK Digital Data (Global Accounts Only) YEARBOOK LAUNCHREVIEW AND AWARDS Source: OMDIA Digital Market Data 2020 & 2021 Q1. GFK Digital Market Data used for title lists (Global Accounts Only) DIGTAL EST DISTRIBUTOR UPDATE Q1 Q1 Market JAN FEB MAR Market Distributor Share Market Market Market EST DISTRIBUTOR UPDATE Share Change Share % Share % Share % % ❑ Warner, NBCU, HBO, Paramount, Madman & Defiant (+/-) all experiencing Q1 EST market share growth 23.4% -8.8% 23.7% 24.9% 20.7% Disney 18.9% +4.4% 22.9% 21.4% 22.0% Warner 21.6% +2.5% 20.4% 22.2% 25.9% NBCU Sony 13.7% -1.5% 11.3% 10.8% 10.7% 8.0% -0.6% 8.2% 7.4% 6.7% Roadshow HBO 4.5% +0.6% 5.6% 6.6% 5.6% 5.0% +0.7% 5.4% 4.3% 6.5% Paramount Madman 1.5% +0.1% 1.6% 1.3% 1.2% 0.4% +0.1% 0.6% 0.6% 0.4% Defiant Digital Market Share % = Number of Transactions (Volume) INDUSTRYAHEDA QUARTERLY FORUM MARKET Source: OMDIA Digital Market Data. YEARBOOK LAUNCHREVIEW AND AWARDS DIGITAL VOD MARKET UPDATE TOP 5 2020 Full Year 2021 - Q1 1 2 3 4 5 1 2 3 4 5 Please Note: Title rankings based on GFK Digital Data (Global Accounts Only) -3% VOD UPDATE ❑ The reduced New Release slate continued to significantly impact 2020 the VOD market in Q1 2021, comping some large releases in Q1 2020 (e.g. Joker, Hustlers & Once Upon a Time in Hollywood) -32% ❑ The month of Jan was the best performing month for the VOD $121M market at -21%, whilst Mar saw the biggest declines at -39% Q1 $22M INDUSTRY FORUM AHEDA QUARTERLY MARKET Source: OMDIA Digital Market Data 2020 & 2021 Q1. GFK Digital Market Data used for title lists (Global Accounts Only) YEARBOOK LAUNCHREVIEW AND AWARDS DIGTAL VOD DISTRIBUTOR UPDATE Q1 Q1 JAN FEB MAR Market Market Market Market Market VOD DISTRIBUTOR UPDATE Distributor Share Share Share % Share % Share % ❑ NBCU, Warner & Madman all experiencing Full Year % Change VOD market share growth (+/-) Disney 24.4% -1.2% 21.3% 24.9% 21.9% NBCU 19.0% +2.8% 19.0% 19.3% 18.8% Warner 13.3% +4.3% 18.7% 16.0% 19.4% Roadshow 15.2% -3.5% 14.8% 18.6% 15.2% Sony 16.0% -1.7% 11.7% 11.7% 11.9% Madman 3.1% +0.1% 6.2% 1.5% 3.0% Paramount 6.8% -0.6% 5.1% 5.5% 6.3% Defiant 1.8% -0.1% 2.8% 2.1% 3.0% Digital Market Share % = Number of Transactions (Volume) INDUSTRYAHEDA QUARTERLY FORUM MARKET YEARBOOK LAUNCHREVIEW AND AWARDS Source: OMDIA Digital Market Data.
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