Summary of our market study

The French film production market is estimated at 1.7 billion euros.

The global film production market is valued at $95 billion, with an annual growth rate of around 7.%.

The COVID-19 pandemic led to a sharp drop in attendance at French cinemas, from over 213 million admissions to 65.3 million in 2020, rising to 180 million in 2023.

The rise of streaming platforms and video-on-demand (VOD) disrupts the traditional market

The French film industry is adapting with a diversification of funding, including substantial public support from the CNC alongside private investment, while maintaining a fragmented market structure with many independent companies and subsidiaries of major groups.

French demand holds up

Traditionally characterized by the presence of films in cinemas, the industry is faced with the arrival of video-on-demand platforms such as Netflix and Prime Video.

French and American films each account for 40% of market share.

The film production sector is still relatively fragmented, with a large number of small and medium-sized independent companies, production groups and subsidiaries of major audiovisual groups.

The number of employees in the French film industry has halved in ten years, to just over 5,000.

More than half of all moviegoers are occasional moviegoers.

Players in the film industry

  • Netflix is a pioneer in the field of streaming platforms, constantly overturning the viewing habits of traditional cinemas.
  • Disney+, the family-oriented streaming service, brings beloved characters and timeless stories into the digital realm. With an arsenal of iconic brands such as Marvel, Star Wars and Pixar at its helm, Disney+ has quickly risen to the forefront of the streaming race.
  • Prime Video, an Amazon subsidiary, is adding its own range of original films and series to the streaming tapestry.
  • On the terrestrial front, France Télévisions, the TF1 group and Arte dominate the TV market.
  • Canal Plus Groupe, via MyCanal, merges traditional broadcasting with streaming capabilities
  • Pathé Gaumont, Mediawan, UGC and EuropaCorp cover film production, distribution and exhibition
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Summary and extracts

1 Market overview

1.1 Definition and scope of study

Cinematographic production is the implementation of film projects through budget management and the search for financial and technical resources. Film producers are responsible for the production of cinematographic works, which they then sell to distributors.

A distinction is made between film production and audiovisual production.

  • A cinematographic work is one "that has been approved for exhibition in France, or a foreign work that has been commercially exhibited in its country of origin";
  • An audiovisual work is a program "that does not belong to one of the following genres : full-length cinematographic works; news and current affairs programs; variety shows; game shows; programs other than dramas, the majority of which are setalized; sports broadcasts; commercials; teleshopping; self-promotion; teletext services".

In simple terms, cinematographic works are characterized by their vocation to be shown in cinemas. However, the worldwide success of video-on-demand platforms such as Netflix and Prime Video is now challenging the definition of cinematographic production, as this new trend is fuelling a transformation in the way audiovisual content is consumed and produced, namely delinearization. Netflix's eviction from the Cannes Film Festival in 2019, due to its refusal to release its films in cinemas, illustrates this upheaval.However, delinearization represents a considerable opportunity, as illustrated by the coronavirus epidemicduring the coronavirus epidemic, the film industry was able to adapt by offering films released at the beginning of the year on VOD.

The global market continues to boom, particularly with the emergence of the Chinese market. The global market was valued at $94.45 billion in 2022, and is expected to grow at a CAGR of 7.21% until 2030.North America accounted for the largest market share in 2022, with 35%. The industry is one of the most competitive in the world, with a large number of players constantly striving to stand out from the crowd.

France, Europe's leading market, has suffered the full force of the health crisis, but is experiencing a very encouraging acceleration (+25% in market size between 2021 and 2022). Attendance levels are recovering increasingly rapidly, as are the number of screenings offered by cinemas, though without reaching pre-Covid figures. The balance between French and American films shown in French cinemas is shifting. the market is undergoing a veritable revolution, with the rise of streaming platforms and video-on-demand (VOD) services, while sales of films in physical format are collapsing.

The market is still highly fragmented, and benefits from a variety of sources of funding, including public funding from the CNC (Centre National du Cinéma et de l'image animée), particularly in the wake of the health crisis, to revitalize this particularly hard-hit market.

1.2 A fast-growing global market, driven by the United States

The global film and entertainment market was valued at $**.** billion in ****, and is expected to grow at a CAGR of *.**% to ****. It's a high-growth market.

Sales projections for the global film and entertainment market World, **** - ****, in $ billions Source: ****

The film and entertainment industry encompasses the production, distribution and broadcasting of various forms of entertainment, and is therefore broader than the subject of our study, but provides us with information on market trends.in terms of revenue, films dominated the market with a share of **.*% in ****, we can assume that this share was approximately the same and therefore estimate the size of the cinema market at $**.** billion in **** [***].

The global film and entertainment market is expected to grow fastest in North America. By ****, the region will account for over **% of the global market share. The United States is home to some of the world's largest production houses, and has provided viewers with cult films. The US film industry is one of the most influential in the world. The high level of investment by production companies in creative writing and technological growth in the industry is a major reason for the dominance of the American region. In addition, the mature consumer database ...

1.3 A healthy French market

Code **.**C - Production of motion pictures for the cinema covers the production and direction of auteur films and videos, both short and feature-length, intended primarily for theatrical release, so this is the sector we're interested in.

Size of the national film production market France, **** - ****, € billion Source: ****

The film production market in France has fluctuated over the years. The market fell sharply between **** and ****, losing **.*% in three years. Since ****, it has been growing, peaking at *,*** billion euros, the highest value since ****. Growth was extremely rapid between **** and ****, with the market increasing by **%.

In ****, France will record the highest attendance in Europe, with a total of ***.* million admissions (***)[***].

1.4 Impact of Covid-19 on the sector

The Covid-** crisis affected the film production sector on several levels:

postponement of shoots, reshoots at extra cost; rescheduling of certain releases, with the temporary closure of cinemas, reduced capacity and the introduction of strict sanitary protocols in cinemas (***); declining investment by TV channels.

It should be noted that business in **** was impacted mainly from May to October by the closure of cinemas, which did not encourage film production.

Comparison of film production activity between **** and **** France, ****-****, index base *** **** Source: ****

nB: the concentration of activity in November-December (***) also applies to previous and subsequent years.

2 Demand analysis

2.1 Cinema attendance still reeling from health crisis

A large part of producers' income depends on box-office takings from films shown in cinemas (***). Cinema attendance is thus a major determinant of producers' business.

Attendance at French cinemas fell by **.*% in ****, to just **.* million admissions, compared with over *** million admissions in ****. The year **** was also marked by very low attendance, but **** recorded *** million admissions, an encouraging figure for the sector.

French cinema attendance France, **** - ****, in millions Source: ****

The COVID-** crisis has not only led to a drop in attendance, but has also had a negative impact on the production of cinematographic works in France. The number of screenings on offer has also fallen sharply in **** and ****, due to successive confinements and cinema closures.

Number of screenings offered in cinemas France, **** - ****, in millions Source: ****

The number of screenings in cinemas fell by **.*% between **** and ****, from around *.* million to *.* million. This number remained relatively low in ****, before reaching *.* million in ****, recording a **.*% increase in one year.

The sector has therefore not quite recovered from the health crisis as far as cinemas are concerned, but the figures for **** are encouraging, and we can imagine that the figures for **** will reach, if not exceed, those for ****. However, the wave of bedbugs in ...

2.2 Changes in the French film-going population

The cinema-going population is defined as all individuals aged three and over who went to the cinema at least once during the year. Regular movie-goers are defined as those who go at least once a week, regular movie-goers as those who go at least once a month (***).

Structure of cinema-going public France, ****, in Source: ****

Occasional moviegoers account for the largest share of admissions, at **.*%.

Structure of cinema admissions France, ****, in Source: ****

On average, each moviegoer visited a cinema *.* times in ****.

Evolution of the cinema-going population in France France, **** - **** Source: ****

As we can see from the graph below, almost **.*% of the French population, or nearly **.* million people, went to the cinema at least once in ****. As a result, the penetration rate in France is on the rise, having fallen to **.*% in ****. However, it has not yet reached the values achieved by Covid, which stagnated at between **% and **%.

Demographically speaking, seniors (***) still account for the majority of cinema-goers, with **.*% of admissions.

French cinema attendance by age group France, ****, in Source: ****

However, if we compare these figures with the shares of these age groups in the French population, we can see that * - ** year-olds and ** - ** year-olds are over-represented in cin emas ma ...

2.3 The popularity of French films with audiences

In France, the majority of films shown in cinemas are French or American, and have been for a long time. American films are generally shown more than French ones, but this is not always the case. For example, in **** and ****, French films were more widely screened than American films.

Films shown in cinemas, by nationality France, ****, in % Source: ****

In ****, French films maintained a high market share of **.*%, up slightly on **** (***), or **.* million admissions, down *.*% on the ****-**** average. in ****, the supply of American films was relatively low, with just ** releases, compared with an average of *** films per year between **** and ****.

French films released abroad are another determinant of producer activity. There are also films co-produced with foreign producers.

Attendance is fairly irregular from year to year, with **** and **** rather disappointing. Attendance plummeted in **** following the health crisis, before gradually rising again to reach **.* million admissions in ****.

International attendance figures for French films World, **** - ****, in millions of admissions Source: ****

2.4 Film broadcasts on television

To broadcast cinematographic content, TV channels buy the rights to broadcast it. Thus, the number of films broadcast by TV channels, which depends on the amount of their investments, is another determinant of the activity of film producers.

In ****, cinematographic films accounted for only *.*% of the television offer, but *.*% of consumption [***].

In all, more than *,*** films were broadcast on TV channels. The Canal + Group was the TV channel group broadcasting the most, with *** films.

Number of films broadcast by TV channel France, ****, in number of films Source: ****

In ****, a total of *,*** films were broadcast, down *.*% on ****. **.*% of these films were broadcast for the first time. The number of broadcasts totaled *,***, down *.*% on ****. The vast majority of films broadcast were French (***).

Breakdown of films broadcast on television by nationality France, ****, in Source: ****

American films still account for almost a third of the offering (***). The film with the highest audience share in **** was Qu'est-ce qu'on a fait au bon Dieu, broadcast on TF* and attracting *.* million viewers.

2.5 Falling sales of films in physical format, the rise of video-on-demand and the rise of piracy

Once a film has been shown in cinemas and/or broadcast on television, it can be released on physical media (***) or in digital format. Producers are remunerated on the basis of sales, and online film piracy is a major drawback for producers.

DVD and Blu-ray film sales have fallen sharply over the last decade.

Evolution of film sales (***) by value France, **** - ****, in M€ Source: ****

In ****, physical videos are estimated to have sold €***.* million, down *.*% on ****. Theatrical films accounted for **.*% of this market, i.e. around ***.* million euros. French cinema accounted for a market share of **.*%. The best-selling film in physical format this year was Top Gun: Maverick[***].

This market is therefore in steep decline and is destined to disappear, leaving its place to streaming. Some production companies have already announced the end of physical sales for their films. Walt Disney, for example, has decided to definitively cease sales of DVDs and Blu-rays from its studios in Australia and New Zealand in July ****. This decision is the result of declining sales of physical versions of films, as well as the increasing popularity of streaming platforms[***].

On the contrary, video-on-demand has seen a sharp rise: the market was estimated at *.* billion euros ...

3 Market structure

3.1 Sector organization

The diagram below highlights the main activities carried out by film producers.

Source: ****

Producers are also in charge of mobilizing the necessary financing, both public and private.

Producers are thus upstream of the film industry, responsible for the production of works that will be exploited by various players:

cinema exhibitors ; video publishers and digital platforms; television channels.

Each type of exploitation generates remuneration for the producers, often based on the revenues generated.

To help you understand the role of producers in the organization of the film industry, here's a schematic diagram:

Source: ****

3.2 Number of companies and associated workforce in film production

The number of establishments registered under NAF code **.**C, dedicated to the production of films for the cinema, experienced a period of decline between **** and ****, falling from *,*** to *,*** (***), before gradually increasing until today. The health crisis has had no significant effect on the sector's workforce.

Number of establishments and employees registered under NAF code **.**C France, ****-****, in number of establishments and employees Source: ****

The following map shows a very high concentration of establishments in the Ile-de-France region, which accounts for **% of the sector's establishments.

Source: ****

Source: ****

3.3 Market concentration, filming and post-production

The film production sector in France is relatively fragmented:

numerous small- to medium-sizedindependent companies, often specialized by content type or genre; subsidiaries of major audiovisual groups, such as Canal + or TF* ; production groups, such as Gaumont, Mediawan or EuroparCorp.

In ****, *** different companies produced the *** approved French-initiative films, including ** co-delegated productions, illustrating the sector's low level of concentration. The table below groups production companies according to the number of films produced in ****.

Source: ****

The number of shooting days for French-initiated feature films ranged from *,*** to *,*** before dropping to *,*** in **** due to the health crisis. This number then rose sharply in **** to *,***, due to the many postponements of shooting from **** to ****. In ****, this number fell slightly to *,*** shooting days.

Number of shooting days for French-initiated feature films France, **** - ****, in number of days Source: ****

In ****, the majority of post-production work for the *** approved French-initiative films was carried out in France. However, ** films (***) were produced abroad, including ** in Belgium.

For films with a foreign majority, **.*% (***). Sound postproduction and digital visual effects for these films were also mostly carried out in France, with ** and ** films respectively[***].

3.4 Financing film production in France

Overall, the two main sources of financing are :

contributions from French producers: **.*% in **** ; tV channels (***): **% in ****.

Forecast financing for French-initiated films France, ****, in Source: ****

However, the financing structure varies according to the type of film and its budget.

Funding for French-initiated films fell between **** and ****, reaching *** million euros (***), before falling again in **** to *** billion euros.

Financing trends for French-initiated films France, ****- ****, in M€ Source: ****

Although revenues generated by movie theaters do not directly finance film production, it is interesting to study their evolution. These revenues, which were rising until ****, were hit hard by the health crisis. They have been on the rise since ****, but have failed to reach the **** figures, settling at just *.*** billion euros in ****.

evolution of revenues generated by movie theaters France, **** - ****, in € billions Source: ****

Average revenue per admission is rising steadily, reaching €*.** in ****.

average box-office receipts per cinema admission France, **** - ****, in € Source: ****

3.5 Public funding

The CNC is a key player in the French cinematographic and audiovisual landscape, and is also involved in financing these sectors through grants. In ****, the CNC disbursed ***.* million euros in support. The breakdown by sector was as follows.

Breakdown of CNC support by sector France, ****, in Source: ****

Cinema therefore benefited most from this support in ****, with **.*% of the total, corresponding to *** million euros.

4 Offer analysis

4.1 Typology of film productions

The chart below shows the breakdown of approved films by genre, with fiction dominating other genres (***).

Number of films approved by genre France, ****, in number of films Source: ****

However, there is an upward trend in the production of documentaries and animated films, although the latter are more volatile.

number of approved documentaries and animated films France, **** - ****, in number of films Source: ****

4.2 A relatively constant number of films produced per year

In ****, French film production reached just *** approved films, down *.*% compared with the annual average of *** approved films between **** and ****. This decline follows a very dynamic ****, when filming was halted for *.* months in **** and many projects were postponed. the number of French-initiated films also fell by **.*% on the ****-**** average, to ***. However, the production of co-produced films increased, with a notable rise in majority (***) co-productions. In ****, *** co-production films were approved, representing over **% of approved films for the first time since ****. Production of films with a foreign majority also increased, with ** titles in ****, also recording its highest level ever[***].

Number of feature films produced France, ****-****, in units Source: ****

In addition, most French-initiated films approved in **** are the producer's third or more films.

Number of approved films by number of films already made by the director France, ****, in number of films Source: ****

4.3 Highly fluctuating quotes

The average film estimate corresponds to the average estimate (***) after having reached its lowest level in ****. The value of the average estimate in **** was the highest it had been since ****.

Average estimates for French-initiated films France, **** - ****, in M€ Source: ****

In ****, the median estimate for French-initiated films was €*.** million, down *.*% on ****, but still up **.*% on ****.

Films with a budget of between €* and €* million are the most numerous.

Number of French-initiated films by budget France, ****, in number of films Source: ****

5 Regulations

5. A sector largely dependent on public aid and subsidies

CNC's role in the industry :

The Centre National de la Cinématographie was created in ****. Its role is to manage the State's financial support for the film industry. Among the CNC's most important prerogatives are [***]:

support for film production and distribution; creation and modernization of movie the aters ; production of programs for all television networks.

The CNC implements a policy designed to encourage the promotion and distribution of works, as well as broad public access to cinemas, thanks to a system of specific aids for theatrical distribution, economic support for exhibition, and so on.

Exceptional measures following the Covid-** crisis:

The government's recovery plan provides for the allocation of *** million euros to the Centre national du cinéma et de l'image animée (***) to support the audiovisual and film industries. Of this sum, ** million euros will be used to offset the CNC's tax losses and maintain existing support for creation and distribution. The remaining *** million euros will finance new measures to support the entire production chain, including support for creators, production support, modernization of technical industries and international development. These measures have been defined in consultation with professional organizations. The recovery plan does not include the €** million state compensation for cinema ...

6 Positioning the players

6. Segmentation

  • Pathé Gaumont
  • Netflix
  • Canal Plus Groupe (MyCanal)
  • France Télévision
  • EuropaCorp
  • Mediawan
  • TF1 Groupe
  • UGC
  • Videlio
  • FL Entertainment - Banijay
  • Studio Canal (Canal+)
  • ARP selection
  • Les films du Losange
  • Eddy Production
  • Prime Video
  • Disney+
  • Arte Groupe
  • Dark Matters
  • Newen Studios
  • Asacha Média Group
  • Incognita Production Media
  • Vantiva (ex Technicolor Groupe)
  • Technicolor Creative Studio (Vantiva groupe)
  • Webedia

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