New statistical reports on entertainment spending released by a pair of leading industry associations indicate both global and U.S. home theater enjoyment is on a significant upswing through the first quarter of 2021 — aided, in large part by the global pandemic.

The Digital Entertainment Group (DEG) issued U.S. entertainment industry revenue data Tuesday showing consumer home entertainment spending rose 10% in the first quarter of 2021 to $7.8 billion. That compared to $7.1 billion during the same period in 2020, largely before the impact of the pandemic and its accompanying lock-downs.

The DEG study paralleled the release of the Motion Picture Association’s Theme Report 2020, which showed major growth in the global home entertainment segment for the full year in 2020. At the same time, the MPA said, world wide theatrical spending significantly dropped as the streaming trend accelerated. Combined global theatrical and home entertainment spending in 2020 fell 18% to $80.8 billion from 2019, with the global home/mobile entertainment revenue reaching $68.8 billion last year, up 23%. The numbers, based on Omdia market research, do not include revenue from traditional pay-TV distributors (cable/satellite/telco).

2020 Entertainment Results

The global box office for all films released in 2020 reached $12 billion, down 72% from 2019, as the pandemic took its toll, according to the MPA report.

As for the home and mobile use, the full-year 2020 digital home entertainment market increased 33% in the U.S. and 30% outside the country, from 2019, the MPA said.

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Overall the share of digital delivered content for 2020 was 15% theatrical, 9% physical discs and 76% world wide.

In the U.S. and Canada the box office total for 2020 was $2.2 billion, down 80%, with 240 million tickets sold.

Q1 2021 U.S. Entertainment Results

Source: DEG

According to the DEG’s U.S. sales data for the first quarter of 2021, almost 77% of the period total came from digital streaming. The data was also based in part on Omdia reporting.

U.S. transactional digital sales dropped almost 18% to an estimated $615.8 million, while digital video on demand rentals declined by 26.7% to an estimated $494 million. Premium video on demand (PVoD) revenue was not included.

Combined U.S. Blu-ray Disc and DVD sales reached an estimated $479.3 million, down nearly 25% from the first quarter of 2020, the DEG figures said.

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By Greg Tarr

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