While world wide box office results hit a new record of over $42 Billion in 2019, home entertainment spending rose 8.4% over 2018 to $25.2 Billion, due to an increase in consumer spending for subscription streaming, digital movie sales and digital movie rentals.
Digital Entertainment Group reports that folks spent $15.9 Billion on subscription streaming (Netflix, Amazon Prime, et al.) which now equals 63% of all home entertainment spending, up 23.7% from 2018. Digital movie sales totaled $2.6 Billion and digital movie rentals were up 9%. Sales of DVDs continued to slip 9.4% from 2018 to $5.9 Billion. Netflix’s legacy DVD rentals collected only $301 Million. Still a nice chunk of change.
So, contrary to the conventional wisdom, the increase in platforms has not decreased theater revenue, although fewer films (e.g., superheroes) and fewer film studios (e.g., Disney) are getting larger chunks of the box office take.