×
You will be redirected back to your article in seconds

Home Entertainment Spending in U.S. Hit Record $23.3 Billion in 2018

U.S. consumer spending on home entertainment hit a new record in 2018, buoyed by subscription streaming as well as transactional video-on-demand (TVOD), DEG: The Digital Entertainment Group announced Jan. 8.

Total consumer spending on home entertainment during the year shot up to an estimated $23.3 billion, up 11.5% from 2017, the DEG said, noting that figures are preliminary. Final numbers will be issued in early February.

As expected, subscription streaming – chiefly through Netflix, Amazon Prime Video and Hulu – led the way, with a 30% year-over-year gain to $12.9 billion.
Consumers spent an estimated $2.46 billion on digital purchases of movies, TV shows and other content, up 14.4% from what they spent in 2017.

Consumers spent another $2.09 billion to stream movies on demand, the electronic equivalent of renting a DVD or Blu-ray Disc, up 6.2% from the prior year.
Total spending on TVOD, the DEG estimates, came in at $4.55 billion, a healthy 10.5% spike from TVOD spending in 2017.

Total disc sales continued to fall, despite the growing popularity of 4K Ultra HD Blu-ray, with consumer spending on physical media in 2018 coming in at an estimated $4.03 billion, a 14.6% drop from the prior year.

In the fourth quarter of 2018, home entertainment spending was particularly strong, with an overall gain of 13% to $6.3 billion.

Subscription streaming the fourth quarter was up 30% to an estimated $3.49 billion, while EST rose 20.2% to $664 million and on-demand streaming was up 21.8% to nearly $517 million.

Combined consumer spending on DVDs and Blu-ray Discs in the fourth quarter of 2018 was $1.24 billion, down 14.8% from the fourth quarter of 2017.

Sales of 4K UHD content rose 70% during the year and 46% in the fourth quarter. The number of 4K Ultra HD Blu-ray titles available in the market grew to 445 titles, with another 682 4K titles available digitally.

The U.S. box-office performance of films released in the year rose nearly 15%, to around $12 billion, per the DEG report.

4K UHD TV penetration rose 61% over the year-earlier period, to 48 million households. Also during the year, penetration of 4K-capable player devices (game consoles and set-top boxes) rose 66%, to 13 million homes.

Thomas K. Arnold is editorial director of Media Play News.

More Digital

  • Bob Bakish Variety Cover Story

    Viacom Has Acquired Pluto TV Streaming Service for $340M

    Viacom has acquired Los Angeles-based video streaming service Pluto TV for $340 million in cash, both companies confirmed Tuesday. “Today marks an important step forward in Viacom’s evolution, as we work to move both our company and the industry forward,” said Viacom CEO Bob Bakish in a statement. “Pluto TV’s unique and market-leading product, combined [...]

  • Bob PittmanVariety Entertainment Summit at CES,

    iHeartMedia Bankruptcy Plan Approved, CEO Bob Pittman's Contract Renewed

    A U.S. court has approved the bankruptcy plan of iHeartMedia, the biggest radio broadcaster in the U.S., which will shave down its crushing debt load and separate iHeartMedia from Clear Channel Outdoor Holdings. The company said chairman and CEO Bob Pittman and Rich Bressler, president, COO and CFO, have extended their contracts by four years. [...]

  • Instagram Logo

    Netflix Lets iOS Users Share Movies, Shows to Instagram Stories

    Netflix is tapping into Instagram Stories for some word-of-mouth promotion: The streaming video service rolled out a new Instagram integration Tuesday that allows iOS users to share their favorite movies and TV shows via Stories. To do so, users simply select the title of their choice within the Netflix iOS app, and then share it [...]

  • Brian Lockhart - ESPN+

    ESPN Hires NFL Media's Brian Lockhart to Head ESPN+ Original Content

    ESPN recruited Brian Lockhart, who has spent more than a decade at NFL Media, as executive producer of original content for the ESPN+ subscription-streaming service. Lockhart will oversee strategy and development for all ESPN+ original programming initiatives, including new projects as well as existing shows such as “Detail,” “More Than an Athlete,” “The Board Room,” [...]

  • Roma

    Netflix Joins the Motion Picture Association of America

    UPDATED WASHINGTON — Netflix has joined the Motion Picture Association of America, a move that reflects its evolution as a major player in the movie business. The MPAA currently has six major studios as members, and it collected about $38 million in membership dues in 2017, according to its most recent filing with the IRS. [...]

  • The Expanse

    Amazon Launching 'The Expanse' Seasons 1-3 Worldwide Ahead of Season 4 Premiere

    Amazon has acquired worldwide subscription-streaming rights to the first three seasons of “The Expanse,” the space thriller that originally aired on Syfy, leading up to Prime Video’s debut of season 4 later in 2019. Seasons 1-2 of “The Expanse” are currently available in the U.S. on Prime Video. All three seasons, comprising 36 episodes in [...]

More From Our Brands

Access exclusive content