Despite ongoing concerns about consumer spending, the streaming industry experienced significant growth in the first half of 2024.
According to the Digital Entertainment Group (DEG), revenue from subscription streaming services increased by 27.1%, reaching nearly $22.9 billion, up from $18 billion in the same period in 2023.
The DEG report, backed by Hollywood studios, indicated that overall consumer spending on movies and television shows, both at home and on the go, climbed to almost $25.4 billion in the first six months of 2024. This marks a more than 22% increase compared to the $20.8 billion spent in the first half of 2023. For the second quarter alone, year-over-year growth was 21.2%, totaling nearly $12.8 billion.
The growth in streaming revenue was attributed to the continued expansion of subscription services, which have attracted new subscribers through targeted content, professional sports offerings, flexible pricing, and the introduction of ad-supported tiers. In the second quarter of 2024, consumer spending on subscription streaming alone surpassed $11.5 billion, reflecting more than a 27% increase.
Ad-supported video on demand (AVOD) and free ad-supported streaming TV (FAST) content also contributed significantly to the industry’s financial performance.
According to estimates from Omdia, these services generated approximately $5.4 billion in advertising revenue during Q2 2024. This represents a 51% increase compared to the previous year and contrasts sharply with the 5.5% decline in ad revenue reported for the second quarter of 2023.
However, not all segments of the market performed as well. Box office revenue from titles released for home viewing in the first half of 2024 was nearly 20% lower than in 2023, leading to decreased spending on transactional formats such as digital purchases and rentals. The decline was partly due to the absence of major releases like 2023’s The Super Mario Bros. Movie, which had a substantial impact on last year’s numbers.
In the physical media market, sales of DVDs, Blu-rays, and 4K UHD Blu-rays continued to fall, with a 28.5% drop in the second quarter and a 22.2% decline in the first half of the year. New releases drove much of this decline, while catalog titles performed better, with only a 2% decrease, indicating some stability in the market. Collectible disc formats, particularly SteelBooks and 4K UHD Blu-ray catalog titles, saw strong demand, with sales up 44% and 16%, respectively.