New SVOD releases impact transactional video revenue in the US

New Ideas in MarketingEssential news for marketers, summarised by YouGov
November 15, 2021, 10:24 AM UTC

According to Digital Entertainment Group (DEG), US home entertainment spending increased dramatically during the lockdown as individuals searched for new content.

The study found that the approach of enticing new SVOD consumers with the first-day release of new movies has “devastated” the transactional video industry in the US. Home spending on entertainment increased 9.5% to $7.96 billion in Q3 2021 compared to $6.20 billion in Q3 2020.

With many Hollywood studios releasing new movies on SVODs, streaming services like Netflix, Disney+, and HBO Max saw a 16.9% increase in spending to reach $6.4 billion in Q3 2021. However, this resulted in downwards trends for transactional video revenue.

Physical disc sales dropped 11% in Q3 2020 to $430 million, while disc rentals declined 12%. Digital video transactions followed a similar pattern, with digital sales dropping 14% and digital rentals falling 15%.

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