Home Entertainment Spending Grew 6.1% In Q2, If You Include Netflix

Associated Press

Home entertainment spending either increased by 6.1% in Q2, or fell 0.3%, based on data out today from The Digital Entertainment Group (DEG).

The trade group says that consumers spent $4.33 billion in the quarter, up from $4.08 billion in the same period last year.

But DEG includes consumer payments for subscription streaming services led by Netflix — a category that grew 20.6% vs. 2015’s Q2  to $1.5 billion.

Some analysts say that these services, which account for 35% of DEG’s total, artificially inflate the tally: They’re more like premium cable networks, such as HBO — which DEG has never included — than they are to sales and rentals of movies and TV shows.

Without subscription streaming, total spending in the quarter came to $2.83 billion, down from $2.84 billion.

The new DEG numbers show spending on sell-through packaged goods — mostly DVD and Blu-ray discs — increasing 3.0% to $1.20 billion. That’s based on a revision of last year’s number, which was reduced 4.4% to $1.17 billion. DEG says that Blu-ray sales were up 35% from last year.

Electronic sell through was up 8.7% to $466.3 million.

On the rental side, DEG says that brick and mortar stores fell 21.0% to $121.9 million, while spending at kiosks such as the ones run by Redbox dropped 13.1% to $380.0 million.

Total rentals not including VOD were down 15.2% to $643.4 million. If you include the $518.1 million spend on VOD  — a category that grew 7.2% — then they were down 6.5% to $1.16 billion.

This article was printed from https://deadline.com/2016/08/deg-home-entertainment-spending-grew-q2-if-include-netflix-1201798460/