U.S. Home Entertainment Spending Rose 11.5% In 2018 To $23.3B, DEG Says

Warner Bros.

Overall home entertainment spending by U.S. consumers climbed 11.5% in 2018 to a record $23.3 billion, according to the Digital Entertainment Group, an industry consortium.

Announcing the preliminary annual figures during CES, the DEG noted an especially strong fourth quarter, when spending increased 13% to $6.3 billion. With physical sales and rentals of DVD and Blu-ray discs continue to slide, electronic sell-through for films made up a lot of the shortfall, increasing 23% for the year, though EST for TV titles declined 5%. Despite the gains from electronic sales, when combined with packaged goods, total EST for all film and TV releases fell 5.5% to about $6.5 billion.

Citing figures from IHS Markit, the DEG estimated the total market for subscription video on demand services totaled $12.9 billion, up a healthy 30% from 2017.

Total revenue from 4K UHD content grew 70% for the year as high-end equipment continues to penetrate the overall marketplace. The DEG revealed the percentage increase and not reveal total revenue numbers given the still-modest the number of 4K UHD titles in the marketplace: 445 4K UHD Blu-ray titles and another 682 4K titles available digitally. The group said best-selling film titles released on 4K for the home in 2018 included Ready Player One and Justice League from Warner Bros.; Mission: Impossible – Fallout from Paramount; Jurassic World: Fallen Kingdom from Universal; Deadpool 2 from Fox; and Avengers: Infinity War from Disney.

There are now 48 million households with 4K UHD televisions, up 61% from 2017, the DEG reported, plus another 13 million homes with 4K UHD game consoles and set-top boxes, an increase of 66% from a year ago.

Figures for 2018 will be finalized once hardware manufacturers and other electronics retailers release full results for the fourth quarter, the DGA said.

This article was printed from https://deadline.com/2019/01/u-s-home-entertainment-spending-rose-11-5-in-2018-to-23-3b-deg-says-1202531292/