Some of us cannot recall a time in the last 30 years when U.S. consumer spending on video entertainment did not grow. That still appears to be the case.
Home entertainment revenue is expected to show a compound annual growth rate of 9.2 percent from 2019 to 2024, according to Statista.
Of course, home entertainment is a bigger category than video subscriptions. With the growth of over the top video streaming and the decline of linear video subscriptions, some might question whether that trend of ever-higher consumer spending on video content products can be sustained.
Over the past few years, U.S. home entertainment revenue growth has slowed from about 15 percent in 2018 to perhaps 12 percent in 2019, and could dip to perhaps seven percent in 2024, according to Statista. That still represents robust growth for most products in the connectivity business, however.
Video on demand continues to grow, however.
In 2019, U.S. over the top video subscription revenue was about $16.4 billion, according to PwC.
Subscription TV revenue of US$94.6 billion in 2018 will contract at a -2.9 percent CAGR to US$81.8 billion by 2023. Adding back revenue from expected OTT video suggests the overall video subscription business continues to grow, though the recipients of that revenue will change.
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