Home entertainment market inches upwards for second straight year
Parent Category: News | 17-01-2014
Preliminary estimates of the US home entertainment market from IHS Technology has revealed that spending on films and TV shows barely budged between the end of 2013 and 2014.
The analyst found that annual growth was up just 1% to $18.3 billion by the end of 2013, driven by modest growth in pay-TV and video-on-demand (VOD) along with strong increases in online sales, rentals and subscriptions. Pay-TV revenue grew by 1%, Internet sales increased by 39%, rentals up 40% and subscriptions expanded by 31%. IHS noted that this is the second straight year of 30% growth for the digital home entertainment categories that now make up more than one-third of the market.
Even though the average monthly US consumer spending on physical video rental and purchasing dropped to $8.95 in 2013, down from $9.87 in 2012, US consumers spent more on transactional home entertainment, including VOD combined with electronic purchase, rental and subscription via the Internet. Transactional spending increased to $13.94 per month in 2013, up from $13.88 in 2012.
“While 2013 was another record year for the theatrical box office, that didn’t translate into an increase in disc sales and rentals, given the ticket returns and resulting video success of last year’s hits including The Avengers and The Hunger Games,” said IHS senior analyst, US videm, Michael Arrington.
“While many factors have contributed to the nearly decade-long fall in US consumer video disc spending since the market peaked at $21.9 billion in 2004, one long-term issue is consumers’ rising interest in alternative diversions, including streaming digital video, video games, mobile devices and apps, and Internet offerings like YouTube.”