Q2 Consumer Video Spending Slightly Higher

Consumer spending on video entertainment was up 1.7% in the second quarter of this year versus a year ago. The subscription video business is rising and traditional pay TV is falling.

Total video entertainment spending -- from traditional and virtual pay TV services, box-office revenue, videos sales and rentals, and subscription streaming -- was $33 billion in the second quarter of 2018, versus $32.5 billion the year before, according to nScreenMedia.

The biggest video entertainment category -- pay TV companies -- slipped 2% overall to $24 billion from $24.5 billion.

Traditional video revenue of pay services sank $1 billion over the same period from 2017. Virtual MVPDs (multichannel video program distributors) nearly tripled in revenue to nearly $700 million from $250 million.

Subscription video services and box-office revenues posted the biggest gains -- 29% and 25%, respectively.

Subscription rose to $3.2 billion (from $2.4 billion). Netflix posted $1.9 billion in the second quarter -- 60% of the total spending on subscription video. In-theater box office rose to $3.5 billion (from $2.8 billion).

Consumer video sales dropped 12.5% to $1.4 billion (from $1.6 billion); video rentals was 9% lower to $1 billion (from $1.1 billion).



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