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The entertainment market is undergoing a massive transformation, and the latest data only confirms this. In the USA, home entertainment is now nearly eight times bigger than cinemas, which just a few years ago seemed unrealistic. Streaming, digital rentals, and subscriptions have completely changed the way films and series are consumed. The pandemic merely accelerated this trend, but the growth continues to this day. Cinemas are indeed bouncing back slightly, but they are still far behind what is happening in viewers' homes.
Streaming drives massive growth
According to industry data, spending on home entertainment in the USA reached around 62 billion dollars by 2025, while cinemas generated only about 8 billion. This shows the scale of the change that has occurred in recent years. Platforms such as Netflix, Amazon (Prime Video) or Disney (Disney+) are attracting millions of users and continually expanding their catalogues. At the same time, physical media, such as DVDs and Blu-rays, continue to lose significance.
Cinemas are losing out, but they're not disappearing
Although cinemas have recorded a slight year-on-year increase, their revenues are still significantly lower than before the pandemic. For comparison, back in 2018, the cinema market in the USA was much stronger, but today it cannot compete with the convenience and availability of streaming. Viewers are increasingly choosing to watch at home, where they have a greater selection and no time constraints. At the same time, the industry is starting to experiment with new content formats that don't even make it to cinemas.
Home entertainment has completely taken over the market, and it seems that the era of cinema dominance is over. Streaming has not only changed the rules of the game but has also permanently changed viewers' habits.
source: flatpanelshd.com, DEG
