It’s an over-the-top video world and it’s got the revenue to prove it.
Global home entertainment consumer spending increased by 16% in 2018 to reach $55.7 billion from $48 billion in 2017, according to new data from the Motion Picture Association of America. The growth was driven by digital home entertainment, with U.S. digital spending increasing by 24% and international digital spending increasing by 34%. Since 2014, digital spending has increased 170% globally.
Much of the spending was driven by subscription streaming video services such as Netflix, Hulu and Amazon Prime Video, in addition to sales and rental of digital movies and TV shows.
Globally, the number of subscriptions to online video services reached 613 million, an up 27% from 2017. Subscriptions to online video services surpassed cable subscriptions for the first time in 2018.
The number of SVOD subscribers in the U.S. increased 17% to 186.9 million, according to the MPAA.
“More than 80% of U.S. adults watch movies and TV shows via traditional services, while more than 70% watch via online subscription services,” read the report.
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In 2018, overall spending on home entertainment in the U.S. increased to $23.3 billion, up 12% over 2017. Americans now spend 52% of their media time on a digital platform.
Indeed, global sales of DVD, Blu-ray Disc and 4K UHD Blu-ray content fell 14% to $7.3 billion from $8.4 billion in 2017. Domestic packaged media revenue declined 15% to $5.8 billion from $6.8 billion.
The MPAA, citing data from DEG: The Digital Entertainment Group and IHS Markit, found that when subtracting SVOD revenue from the equation, transactional revenue in the U.S. from packaged and digital media, video stores, kiosks, digital sellthrough and transactional VOD dropped 5% to $10 billion from $10.5 billion in 2017.
Citing The-Numbers.com, the MPAA report listed Walt Disney Studios Home Entertainment’s Black Panther as the top-selling disc in 2018. (The NPD Group’s VideoScan tracking service has ranked Disney’s Avengers: Infinity War as the top-selling disc of last year.)
Sony Pictures Home Entertainment’s Jumanji: Welcome to the Jungle was listed as the top-rental title, citing comScore.
Meanwhile, box office ticket revenue in the U.S. — driven by Black Panther and Incredibles 2 — climbed 7% to a record $11.9 billion from $11.1 billion in 2017.
“In today’s dynamic marketplace, stories come to life for audiences in theaters, at home, and on the go,” Charles Rivkin, CEO of the MPAA, said in a statement. “Our companies continue to deliver content where, when, and how audiences want it – and the numbers released today speak volumes.”