Entertainment’s field of streams
Thank Captain Phasma (left) from “Star Wars: The Force Awakens” for giving a blast to 2016 streaming revenue. Americans spent 22.6 percent more on subscription video streaming services like Netflix in 2016 compared with the prior year, helping the entire home entertainment business eke out a 1.4 percent annual gain, according to industry statistics out Friday.
In all, Americans spent $6.2 billion on video streaming subscriptions in 2016, according to a report from the Digital Entertainment Group.
Streaming subscriptions are the second-largest home entertainment category — behind only purchases of DVDs and digital movies. But with its rapid growth — thanks in part to Hulu, Amazon and YouTube entering the sector — it is poised to become America’s favorite form of home entertainment.
Total spending on digital home entertainment rose to $10.3 billion in 2016, according to the DEG. The US box office sold $11.8 billion in tickets, the group said.
The subscription videoon-demand market is set to grow with new services coming online.
DEG’s numbers don’t even include Amazon Prime Video because it is bundled gratis with Amazon’s free shipping membership program.
Netflix raised its prices last year, and so the increase reflects both new subs and more dollars spent by existing subs.
Not surprisingly, DVD sales fell almost 10 percent, contributing less revenue to movie studio coffers than subscription streaming services for the first time.
DVD sales fell 12 percent in 2015.
So-called “sell-thru packaged goods” or DVDs sold in stores, for example, were $5.49 billion for the year.
The kiosk business fell 17 percent, to $547.57 million, accelerating from a 2.9 percent decline in 2015.
Video-on-demand revenue — movies and TV shows bought through iTunes or the local cable system and other services — rose 5.5 percent, to $2 billion.
That segment had showed declines in the year prior but bounced back to growth after Tinseltown recorded a record-breaking box office take.
The top titles, according to DEG, were “Star Wars: The Force Awakens,” “Deadpool” and “Zootopia.”