The U.S. home video market declined again last year as more people turned to subscription streaming services such as Netflix for their home entertainment needs, providing further evidence of rapid shifts in consumer behavior that has put pressure on Hollywood studios.
Revenue from sales and rentals of movies and TV shows totaled $12 billion in 2016, down 7 percent from the previous year, according to data released Jan. 6 by trade organization Digital Entertainment Group.
Meanwhile, subscription streaming continued its torrid growth last year, surging nearly 23 percent to $6.23 billion in consumer spending, the group said.
The declines in home video sales have squeezed Hollywood studios that once counted the in-home market as a key driver of profits, adding to broader concerns about the health of a movie industry that has suffered from long-term stagnation in theater attendance. The box office hit a record $11.37 billion in the U.S. and Canada last year, but that was largely driven by an increase in ticket prices rather than attendance gains.
