International film box office revenues fell by nine per cent in 2005, according to a US movie industry body.
The success of films like Narnia did not stop the decline
The Motion Picture Association of America said only four films made more than $300m (£172m) outside the US, compared with seven in 2004.
Chief executive Dan Glickman blamed the decline on drops in key markets such as Germany and Japan.
A run of blockbuster sequels and animated films would bring success in 2006, said Glickman.
Speaking at the ShoWest cinema conference, Glickman said the international box office would grow by 12% by 2011, due to rising markets such as China and Russia.
"The simple fact is that the international market is where the action is," Glickman said.
Glickman said the decline came after a 24% increase in ticket sales in 2004 and growth of more than 50% in the past decade.
He called on cinema owners to put pressure on their governments to enforce laws against pirates using camcorders, which he said accounted for 90% of illegal bootlegs.
"For all our efforts to combat it, we have yet to come up with a foolproof solution to the problem," he said.
The international box office decline came despite the release of blockbusters such as Harry Potter and the Goblet of Fire, which took more than $600m (£343m) to become the fifth biggest global movie of all time.
Other big releases included Star Wars: Episode III, Tim Burton's Charlie and the Chocolate Factory and King Kong, which was made by Lord of the Rings director Peter Jackson.