August 10, 2022
Consumers spent $17.9 billion on movies and TV shows consumed at home and on the go in the first six months of 2022, according to data from DEG: The Digital Entertainment Group. For the first half, spending rose 11.3% from the $16.1 billion consumers spent in the first six months of 2021.
Second-quarter year-over-year spending grew 10.8%, for a total of more than $9 billion, “even as consumers began to take summer vacations they had postponed during the pandemic and amid economic concerns including record high U.S. gas prices and decades-high inflation,” the DEG noted.
The first-half 2022 growth — including a 13.8% increase across all digitally delivered formats (electronic sellthrough or digital purchase, VOD and subscription streaming) — was fueled by an increasing flow of new theatrical releases, according to the DEG. Those included numerous entertainment franchises such as “Spider-Man,” “Batman,” “Sonic the Hedgehog,” “Sing” and Uncharted, released in premium and traditional windows.
Consumer spending on subscription streaming was again the standout, rising more than 16% to $7.4 billion for the second quarter, and by more than 17% to $14.6 billion in the first six months of 2022.
Among the other categories, only digital purchases gained in the first half, growing 3.2% to $1.24 billion. Spending on digital sellthrough was essentially flat in the second quarter of 2022 at $592.1 million.
Total digital spending grew 13% to $8.5 billion in the second quarter and jumped 13.8% to $16.8 billion in the first half.
Sellthrough spending on both digital and physical fell 6.2% to $996.8 million in the second quarter and dropped 5.4% to $2 billion in the first half of 2022. Spending on physical fell 13.6% to $404.7 million in the second quarter and dropped 16.3% to $793.2 million in the first half.
Total rental spending on digital and physical fell 15% in the second quarter to $628.2 million and dropped 13.8% to $1.3 billion for the first half. Rental excluding VOD fell 14.6% in the second quarter to $166.1 million and dropped 15.9% to $362.2 million in the first half.
Among the highlights for the second quarter and first half of 2022:
- Digital purchases of theatrical titles rose almost 19% in the second quarter, and 18% for the first half, including premium digital rental and purchase titles. (Premium spending is included in DEG tracking for 2022. Numbers do not include Disney+ Premier Access titles. Reporting for second quarter and first half 2021 was revised to include premium titles for purposes of comparison with 2022.)
- The surge in theatrical new releases also benefited premium physical formats, with spending on 4K Ultra HD Blu-ray titles growing 33% for both the second quarter and first half. High-profile catalog classics also contributed to the 4K Ultra HD format’s performance, with collections including The Godfather Trilogy, Jurassic 5-Movie Collection and the Harry Potter Complete 8-Film Collection among the top 4K Ultra HD titles of the second quarter. The strong performance of the 4K format bolstered the entire Blu-ray disc category, which was off less than 6% for the second quarter.
- The top titles rented and purchased by consumers in the second quarter of 2022 included The Bad Guys, The Batman, Dog, Encanto, The Lost City, Moonfall, Morbius, The Northman, Sing 2, Sonic the Hedgehog 2, Spider-Man: No Way Home and Uncharted.
- The box-office take for the titles released to the home in the second quarter jumped more than 500% from the year earlier period, although that number remains about 40% less than in 2019, pre-pandemic.