The film and television industry is going through rapid change due to the ever-changing consumption habits of consumers
NEW YORK--(BUSINESS WIRE)--A major challenge and opportunity for the film industry is managing the dynamic environment of changing consumer viewing habits. Another challenge is new distribution platforms within the traditional distribution framework of film, such as in the theatre, on pay TV or through home entertainment systems. As the lines are blurring, there is more competition for consumers’ time, whether it be long- or short-form programming, gaming, social media or a myriad of other content. One thing is clear: Being relevant and available when and how the end-user wants it is crucial. These and other observations are made by Wade Layton, Group Head and Managing Director, CIT Corporate Finance, Entertainment, Gaming, Sports and Media, a division of CIT Group Inc. (NYSE:CIT) cit.com, a leading provider of commercial lending and leasing services. Layton offers an overview of the trends and challenges facing the U.S. film industry in “Now Streaming: Entertainment Media Consumption” (cit.com/layton), the latest piece of market intelligence in the CIT Executive Spotlight (cit.com/executivespotlight) series of in-depth executive Q&As.
“The film and television industry is going through rapid change due to the ever-changing consumption habits of consumers,” said Layton. “Evolving technology is changing the way consumers watch movies and television, as offerings such as Netflix, Hulu and Amazon have become mainstream, and many new platforms are being launched by incumbent media companies. Short-form subject matter developed for sites such as YouTube, Maker Studios and Fullscreen has become a vibrant and growing form of content from a time-watched perspective.”
According to Layton, the following factors are also impacting the entertainment industry:
- International markets influence film production and distribution: International markets continue to be an important contributor to the ultimate profitability of widely released films. Markets, such as China, are adding theaters rapidly and are relatively under-penetrated.
- Technology trends are changing the way we watch movies and television programming: Developments in digital, cloud-based and physical storage, mobile and wireless broadband are among the major technological trends that have transformed the way content is accessed.
- Personal viewing habits are different today: Younger viewers consume media in much different ways than their parents do, and most people’s viewing habits are different than they were a few years ago. Mobile has huge upside in that viewing is no longer relegated to an in-home activity, and even within the home, viewing is not centered on the television screen. Similarly, as better user interfaces and more robust offerings are developed, video-on-demand and TV Everywhere should benefit.
- Kickstarter is changing the way lower budget, independent films are financed: Kickstarter has become an increasingly important funding vehicle for small, independent films, typically financed by individuals. Over the last few years, it has helped finance more than 85 films that were accepted by Sundance.
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About CIT Corporate Finance
CIT Corporate Finance provides lending, leasing and other financial and advisory services to the middle market with a focus on specific industries, including: Aerospace & Defense, Business Services, Communications, Energy, Entertainment, Gaming, Healthcare, Industrials, Information Services & Technology, Restaurants, Retail, Sports & Media and Transportation. www.cit.com/entertainment
Founded in 1908, CIT (NYSE: CIT) is a financial holding company with more than $35 billion in financing and leasing assets. It provides financing, leasing and advisory services to its clients and their customers across more than 30 industries. CIT maintains leadership positions in middle market lending, factoring, retail and equipment finance, as well as aerospace, equipment and rail leasing. CIT’s U.S. bank subsidiary CIT Bank (Member FDIC), BankOnCIT.com, offers a variety of savings options designed to help customers achieve their financial goals. cit.com
Matt Klein, 973-597-2020
Vice President, Media Relations