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Streaming helped home entertainment consumer spending rise to $25.2 billion last year, according to a new report.
The data suggests streaming continues to play an increasingly important role in the home entertainment industry with each section of the streaming market understood to have significantly generated more revenue in 2019, compared to the year before.
The $25.2 billion amount was reported this week by industry association, DEG: The Digital Entertainment Group, who stated this represents an 8.4 percent increase compared to 2018. While the figure encompasses all of the home entertainment market, the same report explains subscription streaming alone accounted for $15.9 billion. In DEG’s words, subscription streaming “now accounts for 63% of the entire home entertainment market.”
Another indication of the continued rise of streaming is while the home entertainment market overall increased 8.4 percent year over year, the subscription streaming side rose 23.7 percent compared to 2018. According to these results, subscription streaming is driving the home entertainment market at the moment.
All forms of streaming seeing gains
While it is easy to assume the abundance of subscription and live TV streaming services is driving the home entertainment market alone, the data suggests all forms of streaming did well in 2019. For example, the report found that digital movie purchases were up 5.1 percent compared to the year before. Even more impressive, digital rentals saw a year over year increase of 9 percent. Figures, that if correct, highlight it is not only the pay monthly crowd that are continuing to spend more on streaming, but also those accessing video on-demand services, including Google Play, Vudu, and so on. The increases in digital purchases and rentals contrasted the fact that video purchases and rentals overall (digital and physical) were down year over year.
The suggestion that consumers are spending more on streaming each year is not surprising considering much of the industry is moving towards a steaming way of life. The ease of access is likely to be a major driver with consumers having the ability to watch what they want, when they want, and in most cases, at the touch of a button. In addition, the availability of more devices that are capable of streaming is also likely to be playing a significant role. 2019 saw the introduction of even more streaming players and devices and this variety is likely to make it easier for consumers to get more actively involved in streaming.
Irrespective of what the main reasons for the increase in streaming spend are, the data in this report paints a very clear picture that streaming continues to play an important role, both inside and outside the home entertainment market.