May 16, 2022
Netflix may have taken a big hit as talk of “streaming fatigue” grow louder, but first-quarter consumer spending estimates from DEG: The Digital Entertainment Group show subscription streaming demand ticked back up after a slight dip during the 2021 holiday period.
The trade group estimated just slightly more than 80% of consumer spending in the first quarter of 2022 went to SVOD services, as the total amount of money spent on subscriptions rose nearly 17% to a record $6.93 billion, up from $5.93 billion in the first quarter of 2021.
The gain lifted total consumer spending on home entertainment 10.9% to $8.7 billion, DEG reported.
The SVOD share of total home entertainment spending almost matched its all time high of 80.2% from the third quarter of 2021, a tally that dropped to 77.2% in the fourth quarter.
On the transactional video-on-demand (TVOD) front, consumer spending was down less than 2% to $1.14 billion, from $1.16 billion. Digital sales of movies, TV shows and other filmed content rose 6.7% to $643.6 million from $603.1 million, but digital rental spending fell nearly 11% to $501 million, from $561.9 million in the year-ago quarter.
Digital purchases of theatrical movie titles increased 17.3%, fueled by “renewed box office activity,” the DEG reported.
The DEG reported it is now tracking sales and rentals of premium-window digital releases, which typically fetch a higher price.
Consumer spending on DVD, Blu-ray Disc and 4K Ultra HD purchases in the first quarter of 2022 fell nearly 19% to an estimated $388.5 million, from $479.3 million, while disc rentals were down nearly 17% to $196.1 million, from $236 million in the first quarter of 2021.
Among the first quarter’s best-performing titles across transactional formats were American Underdog, Dog, Dune, Encanto, Ghostbusters: Afterlife, House of Gucci, No Time to Die, Sing 2, Spider-Man: No Way Home, Venom: Let There Be Carnage and Yellowstone: Season 4.