Subscription streaming up 32% in 2013, says DEG

Subscription streaming spending in the U.S. rose to $3.2 billion in 2013, according to a Hollywood industry group.
January 15, 2014

Subscription-streaming spending by U.S. consumers rose a sharp 32% to $3.2 billion in 2013, according to the Digital Entertainment Group, a consortium of Hollywood studios and electronics giants that released its preliminary year-end-2013 report earlier this month.

That substantial subscription-streaming increase is not surprising, because 2013 also marked a sea change for subscription streaming: For the first time a streamed series, House of Cards from Netflix, was nominated for a major category Emmy Award, while Hulu, AOL, Crackle and others also made major bets on original streamed series with A-list-Hollywood-level participants and budgets.

Digital sales of movies and TV shows also had a spectacular jump, up 47%, to $1.2 billion.

In another sign of the continuing entertainment transition from bricks-and-mortar to online, disk sales fell 8% to $7.8 billion, while rental revenue fell 5% to $6.1 billion.

Total consumer spending for home entertainment rose to $18.2 billion, up just under 1.0%. According to DEG, “results were boosted by the growing awareness and acceptance of digital services and products offered by both online and brick and mortar retailers.”

DEG describes itself as a Los Angeles-based, industry-funded nonprofit that advocates and promotes the many consumer benefits associated with various home entertainment products, both physical and digital.

Its steering committee includes senior executives from Warner Bros. Worldwide Home Entertainment Distribution, Sony Pictures Home Entertainment, Universal Studios Home Entertainment, Twentieth Century Fox Home Entertainment and Lionsgate.

DEG’s complete year-end report is available here.

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