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Streaming Set to Overtake DVD Revenues–and Box Office Take

Streaming Set to Overtake DVD Revenues--and Box Office Take

Streaming service Netflix is booming with a revenue surge of 24% last quarter (a reported $1.57 billion) and 40 million U.S. and 22 million more international subscribers. That’s one key reason why downloads and streaming of movies and video content will finally, for the first time, exceed revenues from buying and renting DVDs. Thus it’s no surprise that Netflix stock has been rising— ahead of media behemoths like CBS and Viacom. 

In its shareholders letter, Netflix cited its burgeoning roster of original programs, from “House of Cards” to new series “Unbreakable Kimmy Schmidt” and “Bloodline.”

According to PricewaterhouseCoopers’ annual report for media and entertainment, global media and entertainment revenue should rise at a 5.1 percent annual rate through 2019, reaching $2.23 trillion, with particular growth in China and Latin America, which are building theaters at a fast clip. While Hollywood studio releases will continue to dominate, most growth will come from local production. 

U.S. movie downloads and video streaming subscriptions could jump as much as 13% to $9.5 billion in 2015; meanwhile the sales and rentals of DVDs will continue to decline, to $7.8 billion. Streaming will be a $12 billion industry by 2017–that’s more than annual domestic ticket sales at movie theaters, which have yet to crack $11 billion.   

Also ahead, per PricewaterhouseCoopers, music streaming will overtake the digital purchases of songs by 2018, when in the book business, digital revenue will account for 45 percent.  

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This is fascinating, though not unexpected. What I’m waiting for is when streaming/downloads of individual movies (not monthly subscription fees) surpass DVD revenue. Those Netflix dollars are great for Netflix, but do they find their way to the filmmakers? That’s the breakdown I’d like to see. Looking forward to the day where consumer habits lead moviegoers directly to the filmmaker’s own web site, or at least to sites like VHX or Vimeo on Demand, so a purchase can more readily benefit the filmmaker along with the distributor.


@Savin: You should pay attention to… the title.


@Gary: You should pay attention to the text.

"Streaming will be a $12 billion industry by 2017–that’s more than annual domestic ticket sales at movie theaters, which have yet to crack $11 billion."

She clearly talks about domestic streaming revenue and domestic ticket sales. Now from a US site perspective is logical they are fucusing on their domestic revenues. Also with Netflix, Amazon etc based in the US, with most subscribers there, the US market is the most substantial right now, so, again, is logical to focus on the US streaming/ticket sales.


Buttt your facts are wrong. Global ticket sales are $37B, not $10B. You must’ve meant domestic, but then again why only look at part of the pie?

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