August 8, 2014
The U.S. video entertainment market — including pay TV, box office, Blu-ray, DVD, video-on-demand, and paid-for online video — is getting ready to reach an all-time high. According to a new report from researcher Futuresource Consulting, the market is expected to make $123 billion in retail value in 2015. Futuresource notes that the video market reached $120 billion in 2013, a 2 percent increase over the previous year. Per household spending on video in the U.S. is the highest in the world.
“At $120 billion, this approximates to an average of $1,000 being spent on video entertainment by every U.S. household,” says David Sidebottom, senior market analyst for Futuresource. “This is by far the highest in the world, and significantly higher than any European country.”
According to the report, the U.S. spends more on digital video than the rest of the world combined.
“Futuresource claims that the U.S. video market commands a unique position on the world stage because of its exhaustive array of viewing options and the strong cultural tendency to adopt and integrate new technology quickly and seamlessly,” reports Digital Trends.
“Pay TV is dominating the overall video market at more than $90 billion, around 75 percent of total consumer spend,” explains Sidebottom, “and although cord-cutting is generally over-hyped, the minority of snippers and shavers is having an impact on the bottom line.”
Futuresource forecasts that by next year, digital video and box office will exceed “spending on hardcopy discs like Blu-rays for the first time, as a result of market saturation and declining retail space in the packaged video market, as well as the flourishing growth in consumption of content via subscription VOD services, including services like Netflix,” notes Digital Trends.
“The packaged video market, although in decline, will still exceed $10 billion in retail value at the end of 2014 according to Futuresource figures, taking second position behind subscription Pay TV,” adds the press release.