Since 2011, consumer spending on home entertainment in the U.S. averaged around 18 billion U.S. dollars per year. However The preliminary numbers are in for consumer spending in the U.S. home entertainment business for 2015, and all is not what it may seem. What the DEG: Digital Entertainment Group refers to as “total U.S. home entertainment spending” is up almost 1% to just over $18 billion last year, reversing a 1.8% decline registered in 2014.
According to research published by the (DEG), full-year revenue from the sale of DVDs and Blu-ray Discs declined nearly 11 percent in 2014, to $6.93 billion, while digital spending, which includes subscription streams as well as video-on-demand services, shot up more than 16 percent, to $7.53 billion.Meanwhile the fact that DVD subscribers have been dwindling in US every day is best explained by the fact that DVD sales declined by 15% over the last year, standing at 2.7 million today.
Online Streaming services have sounded the death knell of the DVD industry .In 2015, online subscriptions were estimated to account for almost 50 percent of all movie and TV rentals in the U.S. Together, stores and kiosks held an estimate of 24 percent of the market, showing rental services are losing market share for online services. Netflix meanwhile after seeing consistent growth for the last 8 to 12 quarters is showing signs of stagnating growth as International subscriber growth slowed sharply in the second quarter from the first as the company launched in 130 new markets in January