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2018 Year End DEG Report

Lee Stewart
01-08-2019, 01:28 PM
Consumer spending on home entertainment hit a new record in 2018, buoyed by subscription streaming as well as transactional video-on-demand (TVOD), DEG: The Digital Entertainment Group announced Jan. 8.

Total consumer spending on home entertainment during the year shot up to an estimated $23.3 billion, up 11.5% from total consumer spending in 2017, the DEG said, noting that figures are preliminary. Final numbers will be issued in early February.

As expected, subscription streaming chiefly through Netflix, Amazon Prime Video and Hulu led the way, with a 30% year-over-year gain to $12.9 billion.

Consumers spent an estimated $2.46 billion on digital purchases of movies, TV shows and other content, up 14.4% from what they spent in 2017.

They spent another $2.09 billion to stream movies on demand, the electronic equivalent of renting a DVD or Blu-ray Disc, up 6.2% from the prior year.

Total spending on TVOD, the DEG estimates, came in at $4.55 billion, a healthy 10.5% spike from TVOD spending in 2017.

Total disc sales continued to fall, despite the growing popularity of 4K Ultra HD Blu-ray, with consumer spending on physical media in 2018 coming in at an estimated $4.03 billion, a 14.6% drop from the prior year.

In the fourth quarter, home entertainment spending was particularly strong, with an overall gain of 13% to $6.3 billion.

Subscription streaming the fourth quarter was up 30% to an estimated $3.49 billion, while EST rose 20.2% to $664 million and on-demand streaming was up 21.8% to nearly $517 million.

Combined consumer spending on DVDs and Blu-ray Discs in the fourth quarter of 2018 was $1.24 billion, down 14.8% from the fourth quarter of 2017.

Sales of 4K UHD content rose 70% during the year and 46% in the fourth quarter. The number of 4K Ultra HD Blu-ray titles available in the market grew to 445 titles, with another 682 4K titles available digitally.

The box-office performance of films released in the year rose nearly 15%.

Among the best-selling film titles released on 4K for the home in 2018 were: Justice League (Warner Bros.), Ready Player One (Warner Bros.), Mission: Impossible Fallout (Paramount), Jurassic World: Fallen Kingdom (Universal Pictures), Deadpool 2 (Twentieth Century Fox) and Avengers: Infinity War (Walt Disney Studios).

4K UHD TV penetration rose 61% over the year-earlier period, to 48 million households, DEG says. Also during the year, penetration of 4K-capable player devices (game consoles and set-top boxes) rose 66%, to 13 million homes.

https://www.mediaplaynews.com/streaming-tvod-fuel-consumer-spending-on-home-entertainment-to-record-heights/