U.S. Household Spend On TV & Film Set To Fall Over Next Five Years, Will Be Overtaken By Norway – Report

New research has predicted that 2023 will be the final year American consumer’s spend on TV and film rises before hitting a steady decline over the coming years.

According to an Ampere Analysis report, U.S. spend on video services – encompassing streamers, pay-TV and theatrical – will decline by 8% between 2023 and 2027, leaving the figure just above the $1000 per household mark. This represents a decline of $90 per household by 2027.

Annual bills for video content peaked at $1,146 per household in the U.S. in 2022 with a post-pandemic bounce-back in theatrical expenditure and an 18% year-on-year increase in streaming spend to $374 per household per year, Ampere said. But the research predicted 2023 will see this streamer growth slowing while the impact of cord-cutting leads to “the beginning of a slow decline in annual average household expenditure on TV.”

Meanwhile, consumer spend in Western Europe will rise by 11%. Norwegian households are set to hit a major landmark in 2025 by overtaking the U.S. on TV and film spend, by around $50 per household.

All major Western European households are set to increase spend on TV and film over the coming five years, according to Ampere, with the U.S. the only nation spotlighted by the research forecast to fall. Spend in the UK, Germany, France, Spain and Italy will all shoot upwards, although each nation will still be below the U.S. in 2027.

Maria Dunleavey, a Senior Analyst at Ampere, said recent moves from streamers to focus on hybrid tiers and ad services represents “one approach” to compensating for the downward pressure in the U.S., but pay-TV spend in Europe is more stable than the U.S. and streaming continues to expand.

“For U.S. groups, capitalizing on this international growth is increasingly key given the pressures on domestic income,” added Dunleavey. “Spend on video has finally hit its limit for U.S. households.”