While some lament the abundance of streaming services, it’s clear they’re not going anywhere – at least if the data provided by Digital Entertainment Group (DEG) is any indication.
According to DEG, streaming spending in the United States rose 21% in the first six months of 2021 to $ 12.2 billion, and 17% in the second quarter to $ 6.3 billion. The growth comes despite the strong second quarter of last year, in which most U.S. consumers were tightly quarantined under COVID-19 restrictions – and video streaming usage increased as a result. This is also because these same restrictions have significantly slowed down the production of new original content, mainly leaving a service’s existing library as the only content available.
DEG says the growth is in part due to the many services launched over the past year, such as Apple TV +, Disney +, Peacock, HBO Max, discovery + and Paramount +.
Overall, DEG said the US “home entertainment” industry grew sales 5% to $ 15.7 billion in the first half of 2021, which includes subscription streaming, TV VOD pay, digital rental and sale of movies and television shows; and physical (ie DVD and Blu-ray) distribution of programming.
Studies last year predicted “subscription fatigue” as more services were launched and consumers grew tired of consuming content digitally, but obviously this is not the case. In last year’s edition of Deloitte’s Digital Media Trends, Deloitte found that subscription fatigue can increase, turning customers away from SVODs as options increase.
However, another report this year, courtesy of Parks Associates, found that 46% of U.S. homes with high-speed internet connections subscribed to four or more streaming services. This more than doubles the number by 22% from last year and dwarf numbers from previous years – and the consumers in question don’t seem to be abandoning their services anytime soon.