The video production industry has recently boomed thanks to increasing demand for video content from online users – YouTube is already the second largest search engine and video consumption on other social media platforms is notable increasing and will continue to grow.
Thanks partly to this and to the fact that. In this article, we are going to deal with most of the topics that are relevant to the video production industry:
- 1. How much is the video production industry worth?
- 2. How big is the film industry alone?
- 3. How much has the industry grown in the last few years?
- 4. Amount of video productions released in the UK
- 5. Online video and streaming industry
- 6. What are the trends in the video production industry?
- 7. Number of video production companies in UK
- 8. Future of video production industry after Brexit
- 9. Top video production companies
1. What is the size of the video production industry?
2. How big is the film industry alone?
In 2018, the global box office was worth $41.7 billion
Statistic – Fact
Even though it seems like audiences are not going as often to cinemas, the box office is still performing as well as in the past. In general, it looks very stable in terms of revenue since 2004 both globally and in the United States.
3. How much has the video production industry increased over the past few years?
The growth of the video production industry over the last years has been notable. In fact, just from 2014 to 2018 it almost doubled its annual revenue to $286 billion.
Many predict that the video production market will continue to grow during the next decade as online video consumption keeps increasing and video marketing has become the most effective way to communicate with customers.
4. Amount of films released in the United Kingdom over the last two decades
Even though many theatres have struggled to keep their doors open over the last two decades since the rise of digital media and the evolution of video and television technology, the number of films and video productions released in the United Kingdom has increased significantly.
From 2000 to 2016 the number of productions has doubled even though tickets to cinemas have not experienced a similar trend.
Statistic – Fact
5. Video production industry
The production industry can be divided into two main categories: films and video. The film industry basically plays a different game from the video production companies whose main markets can be small and medium businesses who require video content for different purposes such as training or promotions for their next advertising campaign.
The reason for this classification is quite obvious, both categories compete in two completely different markets and offer different services although both are dedicated to video and film production.
6. What is the average cost of video production?
The average cost of an independent non-commercial video production varies enormously depending on the number of production days, locations and the final quality and goal of the production itself.
In general, it starts somewhere around £1000 and up to 50k for premium video shot at multiple locations with cast and makeup involved. The cost of video production can fall anywhere between 1000 and 50k. The average cost is 8k.
Please bear in mind that these figures are subjected to the kind of production, for example, a video interview, an hour-long with a limited amount of edition usually costs about £1000.
However, it could range from £500 to £2500 depending on the edition and what it is required into the final cut. For more information on video production costs, please get in touch with us.
7. Online video and streaming industry
One of the main changes the video production industry is undergoing is the sudden growth of online and on-demand streaming services consumptions. The US digital video industry is continuously growing year after year.
It almost doubled in about 6 years. This is affecting the largest production companies and Hollywood studios as consumer ́s video consumption habits are changing really fast.
It has helped smaller and independent companies to enter the market more easily partly thanks to the technological revolution which has made video content more accessible opening opportunities to film from all over the world to be viewed anywhere at any time.
8. Top video production industry trends
Video production companies are growing and experiencing these days welcoming market, meaning that more and more video companies are being formed recently just in the United Kingdom. But what are the trends within the industry and why is it growing so much?
8.1. Corporate video
Thanks to the affordability of video creation, corporations are investing in video more than ever before. Mainly as a tool to communicate more effectively to their audiences but also quite often by using it as a training tool for their staff or to communicate corporate announcements to investors.
Companies know that by having a powerful video marketing strategy, their company’s revenue can benefit enormously.
8.2. Digital video
Although the term digital video is applied to a certain way of capturing video by using non-analogic or traditional film methods, digital video generally is used for any video content that is intended to be displayed on any online or digital resources such as websites or digital video banners.
Today we can see many company’s websites have a video as it has become one of the most effective communication tools online and businesses want to leverage its power.
Therefore there has been an increasing demand for this kind of services. Digital video platforms and consumption such as YouTube has grown far beyond predictions.
8.3. Social media
Social video is one of the sectors that is growing notably too. Many marketers are allocating bigger budgets for social video creation as it is proven to drive more engagement with users.
In the future, social media video demand will most likely increase as marketing and consumers seem to have an insatiable appetite for video content.
Video editing is probably one of the most time-consuming parts of video production. It could sometimes take longer than the filming process itself.
Thanks to the internet, editing can be done from any country in the world, that is the reason why many companies are outsourcing video edition to countries where labour is cheaper such Philippines, India or Pakistan.
8.5. Video marketing agency
Many video production companies have found an increasing market by offering a combination of video production and video marketing services.
The marketing industry is clearly shifting towards video, YouTube influencers and the increase of digital video consumption has contributed to that.
Many marketers predict will be the future of marketing. So many video production companies are opting for extended their services.
9. Film industry trends
On-demand streaming services
Netflix, Amazon Prime and now Disney Plus have started their own demand services, millennials do not consume as much television as their parents however they are more likely to spend time watching online streaming films and series.
Therefore the popularity of services like Netflix has increased enormously over the last few years and its growth is predicted to continue on. Just recently Scorsese launched his last film The Irishman and was released straight on Netflix.
10. Video production industry predictions
As video production becomes more accessible by technology advancing really fast – today almost anyone can make a video on their phone and send it to anyone, video consumption increases and so does its demand. Therefore companies are using video more often.
Many think that cheaper filming equipment will result in a drop in demand for video production services however as technology is more accessible to everyone, great technology such as 4k, drone filming and multiple camera setup is becoming more standard and ultimately companies will require the highest standards in quality.
The video production industry has grown recently thanks to the fact that internet video consumption is growing exponentially each year and soon it will dominate most internet data usage.
It is very likely that social video becomes the norm soon in the future, and companies will need regular video filming.
11. The future of video production in the UK after Brexit
As you can see in the graph above the number of video production companies in the Uk have multiplied a lot in the past 20 years, the growth has been massive from barely two thousand companies to over thirteen video production companies in 2017.
However, the video production industry will undergo some changes as Brexit will impact the entire industry. According to Ibisworld, the withdrawal of EU funding after 2020 might eventually create a production drop in post-production.
On the other hand, the industry could possibly benefit from an increase in the number of US films being produced in the United Kingdom due to the drop in the value of the pound. Also, the overall industry might suffer from skill shortage and increasing wage costs after the UK leaves the European Union.
The United Kingdom was part of a deal for funding from Creative Europe which is meant to continue through 2020. Personel in this sectors will still be affected in a positive way by this deal which has contributed over 100 million pounds to the creative film industry.
12. Top video production companies
- Warner Bros
- Walt Disney Studios
- Universal Pictures
- Sony Pictures