Consumer Spending on Home Entertainment Tops $20 Billion for First Time Since Great Recession

Home entertainment spending in 2017 came in at an estimated $20.5 billion, up 5.26% from 2016, DEG says.

As expected, the gains came largely on the digital side, with total digital spending up nearly 20% to $13.7 billion.

Subscription streaming accounted for the bulk of digital spending growth, with consumer spending on streaming jumping more than 31% to an estimated $9.6 billion – although DEG cautions that one reason for the pronounced jump is that the trade group is including a broader spectrum of OTT service, including Amazon Prime, whereas in the past the streaming revenue figure was based primarily on Netflix.

Consumers in 2017 spent an estimated $2.15 billion on the electronic purchase of movies and other filmed content, up nearly 6% from the prior year. This growth was driven by a 12% increase in the purchase of theatrical films, DEG says.

Spending on discs was down 14.1%, to an estimated $4.7 billion.

Sales of 4K Ultra HD TVs, players and content “was again strong” in 2017, DEG said in a news release. More than 14.6 million 4K UHD TVs were sold in 2017, bringing the number of total households to more than 30 million.

In addition, DEG said, there are approximately 8 million households with 4K UHD Blu-ray Disc playback devices (including set-top players and game consoles).

HDTV (including 4K UHD) penetration now totals more than 120 million households.

Blu-ray Disc playback devices (including set-tops and game consoles) are now in 97 million U.S. households.

The number of 4K Ultra HD titles in the market grew to 267 titles at the end of 2017, representing some $147 million in sales – a growth rate of 187% over the prior year.

Among the best-selling titles overall for 2017 were Moana (Walt Disney Studios); Rogue One: A Star Wars Story (Walt Disney Studios); Beauty and the Beast (Walt Disney Studios); Wonder Woman (Warner Bros. Home Entertainment); Trolls (DreamWorks Animation, Twentieth Century Fox Home Entertainment); Sing (Universal Pictures Home Entertainment), Guardians of the Galaxy Volume 2 (Walt Disney Studios); Fantastic Beasts and Where to Find Them (Warner Bros. Home Entertainment); Logan (Twentieth Century Fox Home Entertainment); and Doctor Strange (Walt Disney Studios).

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