Spending on movie downloads and video streaming subscriptions in the U.S. will surpass purchases and rentals of DVDs for the first time this year, according to a report from PricewaterhouseCooopers.
Electronic home-video revenue will climb 13% to $9.5 billion this year, while physical sales drop to $7.8 billion, the consulting firm said. By 2017, the electronic revenue will reach $12 billion, at which point it will exceed the U.S. film box office, according to the report.
The accounting firm's annual outlook for media and entertainment shows that while overall spending will continue to climb, technological shifts in the way content is delivered are creating winners and losers.
Music streaming, for example, will overtake the still relatively new business of digital purchases of songs by 2018. Digital revenue will account for 45% of all spending on books by that date.
Global media and entertainment revenue is predicted to rise at a 5.1% annual rate through 2019, reaching $2.23 trillion, the company said.
~ Bloomberg News ~