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Streaming Video Spending to Rise by Double Digits This Year

The DVD market is in decline

June 6, 2016 | Advertising & Marketing | Video

Research and consulting firm Strategy Analytics projects consumer spending on streaming services will surpass spending on DVD purchases this year—long before the demise of the DVD market.

US Consumer Spending on Video, by Format, 2016 (billions and % change)

According to the forecast, spending on streaming services will go up by 22% this year compared to 2015. Consumers will spend $6.62 billion on services like Amazon Prime, Hulu and Netflix.

In stark contrast to the streaming market, DVD spending—including sales and rentals—will decline, a trend that’s been reported across the pond as well. The DVD purchase market, including Blu-ray, is expected to see 7% less in spending this year, while rentals will decline by 10%.

Digital Video View Share Among US Digital Video Viewers, by Device and Service Type, March-Nov 2015 (% of total)

The digital video download market will see mixed results. Spending on rentals is expected to drop even as purchases rise by 17%. The market is only about a third the size of the streaming market, however.

It’s clear that streaming services are tops in the home video market these days. But what device is most popular to view this content on? In February 2016, RealityMine broke out those numbers. Of the digital video viewers surveyed, 80% said they viewed content from their subscription streaming service on TV, followed by mobile (58%) and desktop or laptop (42%).

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