Futuresource: U.S. Video Entertainment Spending to Hit $123 Billion7 Aug, 2014 By: Chris Tribbey
Overall U.S. spending on video entertainment — covering pay-TV, VOD, theatrical, online video and packaged media — will hit $123 billion in 2015, according to data from Futuresource Consulting.
“At $120 billion, this approximates to an average of $1,000 being spent on video entertainment by every U.S. household,” said David Sidebottom, senior market analyst for Futuresource Consulting. "This is by far the highest in the world, and significantly higher than any European country."
Pay-TV still dominates, accounting for $90 billion of the pie, or 75% of what consumers spend on video content, according to the report, while in digital, electronic sellthrough is expected to grow 33% in 2014 to nearly $2 billion. Spending on all digital video in the U.S. is larger than the rest of the world combined.
Packaged-media sales continue to decline, through in the single digits, according to the report. By the end of 2014, DVD and Blu-ray Disc sales are still expected to hit $10 billion this year. However, by 2015 sales of digital video and box office revenue are both expected exceed packaged video spend for the first time.
“As in many other markets, packaged video is becoming increasingly driven by new-release product, with catalog suffering due to market saturation, declining retail space and the growth in video consumption on subscription VOD services,” Sidebottom said. “An unquenchable consumer thirst for entertainment, the extensive choice of delivery platforms and services now available, and economic recovery are creating the ultimate stimulus for the U.S. video entertainment market.”