US Q3 consumer home entertainment spending hits $7.3bn | Media Analysis | Business
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In its preliminary Third Quarter 2020 Home Entertainment Report, the Digital Entertainment Group (DEG ) has found that US consumers spent $7.3 billion to watch films and TV shows, an almost 18% increase over the same period a year earlier.
yellowstone 12Nov2020
The study was compiled by DEG members, tracking sources and retail input and found that in the first nine months of 2020, overall US consumer spending across digital and physical home entertainment formats was $22.2 billion, a 23% increase from what consumers spent in the same period a year earlier.

Looking at drivers for the growth, the survey found that during the third quarter, demand was particularly strong across internet-delivered rental platforms (iVOD), with spending rising 25% during the third quarter, and 46% year-to-date. Consumer spending on theatrical titles through iVOD rose 23% on an annual basis during the quarter and 45% for the first three quarters of the year. Growth in the number of consumer transactions was even higher than the growth in spending, which was limited by lower average transaction prices for catalogue tiles, versus new releases.

One key trend was that growth was not particularly halted by Covid-19. DEG found that when new releases slowed as a result of production halts and theatre closures during the pandemic, consumers shifted their viewing to a broad variety of content including catalogue movies and TV shows.

The Third Quarter 2020 Home Entertainment Report also found  that for the first nine months of 2020, total consumer spending on digital formats (including EST, VOD and subscription streaming) was strong, rising 34% from the same period in 2019, to almost $20 billion, while subscription streaming climbed 39% compared with the same time in 2019. SVOD revenues were $5.516 billion for the quarter alone and $15.59 billion for the nine months, both up 38% year-on-year.  Digital purchase (EST) and rental (VOD) transactions were up 20% year to date, over the same period last year.

Among the top titles purchased and rented in the third quarter were all three seasons of Yellowstone (Paramount - pictured), Trolls World Tour (Universal), The Tax Collector (RLJ Entertainment), Bill & Ted Face the Music (Orion), The King of Staten Island (Universal), Force of Nature (Lionsgate), Sonic the Hedgehog (Paramount), Schitt’s Creek Season 6 (CBS), Harry Potter and the Sorcerer’s Stone (Warner Bros.) and Harry Potter and the Chamber of Secrets (Warner Bros.).