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Home entertainment spending rose 5% to $20.5 billion in 2017 as U.S. consumers showed their growing affinity for streaming services.
Spending on subscription video on demand services such as Netflix, Hulu and Amazon Prime reached $9.5 billion last year, a 31% increase from a year ago, according to the DEG’s Year-End 2017 Home Entertainment Report. Electronic sell-through — that is, purchases of movie downloads — reached $2.2 billion for the year, up nearly 6% from the prior year.
Including streaming, total digital sales rose nearly 20% in 2017 compared to the previous year.
The DEG noted that while consumers clearly love the ease and flexibility of VOD services, they still love to collect movies. The industry’s challenge is to figure out how to give consumer access to premium content earlier.
Sales of DVDs continued their secular decline, falling 14% to $4.7 billion. Kiosk and video rentals are also off.
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Disney dominated home entertainment sales, as well as the box office. The studio claimed five of the top 10 bestselling titles of the year: Moana, Rogue One: A Star Wars Story, Beauty and the Beast, Guardians of the Galaxy Vol. 2 and Doctor Strange.
The year’s other top titles were Wonder Woman (Warner Bros. Home Entertainment), Trolls (DreamWorks Animation, Twentieth Century Fox Home Entertainment), Sing (Universal Pictures Home Entertainment), Fantastic Beasts and Where to Find Them (Warner Bros. Home Entertainment) and Logan (Twentieth Century Fox Home Entertainment).
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