US Video Entertainment Spend to Peak at $123 Billion Next Year: Futuresource Consulting

US Video Entertainment Spend to Peak at $123 Billion Next Year: Futuresource Consulting

LONDON, August 6, 2014 /PRNewswire/ --



The overall US video entertainment market (subscription Pay-TV, box office, packaged
home video, Pay-TV VoD and paid-for online video) continues to grow in low single digits,
reaching $120 billion in 2013 - a 2% increase on 2012 - and is on track to peak at $123
billion in 2015, according to the latest industry report from Futuresource Consulting.



"At $120 billion, this approximates to an average of $1,000 being spent on video
entertainment by every US household," says David Sidebottom, Senior Market Analyst,
Futuresource Consulting. "This is by far the highest in the world, and significantly
higher than any European country."



The US video market commands a unique position on the world stage, driven by an
extensive choice of viewing options and a strong culture of new technology adoption:
digital video spend in the US is larger than the rest of the world combined, yet packaged
sell-through is still only declining in single digits, ensuring relative market stability.



"Diving into the detail, Pay-TV is dominating the overall video market at more than
$90 billion, around 75% of total consumer spend," says Sidebottom, "and although
cord-cutting is generally over-hyped, the minority of snippers and shavers is having an
impact on the bottom line."



"Looking to the digital video market - total Pay-TV VoD and total paid-for online
video combined - we're seeing solid growth, despite the relative maturity when compared to
other countries. Last year it was up 25%, mainly due to electronic sell-through
(EST/download-to-own) and continued SVoD growth, led by Netflix. In particular, EST has
experienced a resurgence with consumer spend growing 43% in 2013, reaching $1.5 billion.
We're going to see this phenomenon roll on through 2014, with Futuresource research
suggesting another 33% growth spurt, which will nudge the market close to $2 billion."



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. However, by 2015 digital video and box office will both exceed
packaged video spend for the first time and will extend the lead out to 2018 and beyond.



"As in many other markets, packaged video is becoming increasingly driven by new
release product, with catalogue suffering due to market saturation, declining retail space
and the growth in video consumption on SVoD services," says Sidebottom.



Box office was relatively steady in 2013 and is expected to show a minor decline in
2014. However, the solid release line-up for 2015 will see box office reach a record $10
billion, as previously mentioned, with a steady and slight decline anticipated beyond
this.



"An unquenchable consumer thirst for entertainment, the extensive choice of delivery
platforms and services now available, and economic recovery are producing the ultimate
stimulus for the US video entertainment market," says Sidebottom.



For more information on the new 43-page USA Video Insights report from Futuresource
Consulting or to make a purchase, visit http://www.futuresource-consulting.com or get
in touch with Andy Watson on +44(0)1582-500-169 or via
andy.watson@futuresource-consulting.com.



Notes
Futuresource Consulting is a specialist research and knowledge-based consulting company,
providing organisations with insight into digital imaging, consumer electronics, education
technology, entertainment media, broadcast, storage media and IT. With a heritage
stretching back to the 1980s, the company delivers in-depth analysis and forecasts on a
global scale, ensuring clients have access to the information that will produce the best
possible results. http://www.futuresource-consulting.com




Futuresource Media Contact
Contact Andy Watson on:
Direct Dial: +44(0)1582-500-169
Email: andy.watson@futuresource-hq.com
Web: http://www.futuresource-consulting.com


Futuresource Consulting


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