This streaming video thing appears to be catching on, if the surge in spending in the past year on subscription services like Netflix is an indication.
Spending by Americans on subscription video streaming services was up 22.6% last year vs. the previous year, according to a story in The New York Post citing a report from the Digital Entertainment Group that came out late last week.
The boom helped the home entertainment business overall manage a modest 1.4% annual gain, the report notes, even with DVD sales falling almost 10% (following a 12% dip in 2015). The report notes that for the first time, DVD sales contributed less to movie studio revenues than did subscription streaming services.
U.S. consumers reportedly spent $6.2 billion on video streaming subscriptions in 2016, while total spending on digital home entertainment rose to $10.3 billion. By comparison, U.S. movie theaters took in $11.8 billion at the box office.
The report notes that the DEG figures exclude Amazon Prime Video, because the company bundles the service with its free shipping membership program.