Despite the threat of Internet piracy, US video spending is set to top $123 billion in 2015 - that's $1,000 every year per household!
Data from Futuresource Consulting predicts that U.S. video entertainment spending will exceeds $123 billion in 2015.
Video entertainment spending includes everything from pay TV, to SVOD and packaged media sales and still appears to be doing very well, despite the ongoing efforts by studios to paint Internet piracy as a potential fatal threat to the industry.
"At $120 billion, this approximates to an average of $1,000 being spent on video entertainment by every U.S. household," said David Sidebottom, senior market analyst for Futuresource Consulting. "This is by far the highest in the world, and significantly higher than any European country."
Video spending is currently dominated by pay television, which accounts for 75% of spending. The dominance of cable shows just how far subscription VOD firms like Netflix have to go before they can be seen as a genuine competitor, and a threat, to cable firms like Comcast and Time Warner Cable.
However, digital sales are catching up quickly to packaged media sales, not just in this report but also previous reports. Futuresource predicts that digital sales will exceed packaged media sales for the first time in 2015. The slide in disc sales, possibly due to market saturation, should also see movie box office revenue surpassing it during the same period.
"As in many other markets, packaged video is becoming increasingly driven by new-release product, with catalog suffering due to market saturation, declining retail space and the growth in video consumption on subscription VOD services," says Sidebottom.