Recently the video entertainment market in the U.S. which includes pay-TV, box office profits, packaged home video, video-on-demand, and online paid video has had a hard go of it. After a 2 percent decrease in 2012, the market has made slow movement in terms of growth, but nevertheless looks on track to reach a peak of $123 billion next year– the biggest year yet.

What this means is that an average of $1,000 is being spent by each and every household in the U.S. on video entertainment. Quite a high number when you put it like that.

“Diving into the detail, Pay-TV is dominating the overall video market at more than $90 billion, around 75 percent of total consumer spend,” says David Sidebottom, Senior Market Analyst at Futuresource Consulting, “and although cord-cutting is generally over-hyped, the minority of snippers and shavers is having an impact on the bottom line.

Sidebottom says that the digital video marketing is seeing solid growth, making up for those cordcutters. That segment was up 25 perccent last year due in major part to Netflix.


Source: Futuresource