The Digital Entertainment Group has released its 2020 Digital Media Entertainment Mid-Year Report compiled from DEG members, tracking sources and retailer feedback

Consumers spent more than $1.5 billion on digital entertainment transactions via electronic sales (EST) and video-on-demand (VOD) in the second quarter of 2020, a 54% increase over the same period a year earlier, as consumers across the country continued to take refuge at home. during the COVID-19 pandemic. Stay-at-home orders were launched in the United States from the end of the first quarter, fueling consumer demand for digital entertainment which remained strong throughout the first half. For the first half as a whole, consumer spending on digital entertainment transactions reached nearly $3 billion, an increase of 34%.

During the second quarter, transactional demand was strong across both buy and rent models, with spend increasing 57% on EST and 50% on VOD**. In the first half of the year, EST and VOD each increased by 33%.

Overall US consumer spending on digital and physical home entertainment formats in the first six months of 2020 was $15.1 billion, a 26% increase from the $12 billion spent by consumers during the same period a year earlier.

Among the highlights of the second quarter and the first half of 2020:

• For the first six months of 2020, total consumer spending on digital formats (including EST, VOD and subscription streaming) was strong, increasing by 37% compared to the same period in 2019, while subscription streaming alone also grew by 37%.

• Consumer demand for theatrical releases continued to grow strongly across all digital formats, as many blockbuster films arrived in homes early. Spending on theatrical EST increased 48% in the second quarter and 26% in the first half. Spending on VOD in theaters increased by 73% in the second quarter and by 55% in the first half.

Theatrical catalog titles showed particularly strong growth, with EST and VOD spending on these titles up 66% in the second quarter.

The TV category also saw robust growth, with spending up 120% on VOD and 72% on EST in the second quarter.

Internet VOD grew 76% in the second quarter and 56% in the first half as service options continued to proliferate and were adopted by consumers.

Consumer interest in DVDs revived, slowing the disc format’s decline. After years of double-digit declines, DVD spending fell just 6% year-over-year in the second quarter. Wallet-conscious consumers embraced products with prices below $10, and the sub-$6 movie catalog was particularly in high demand, posting 3% year-over-year growth in the second quarter.

Top Q2 titles include Bad Boys for Life, Star Wars: The Rise of Skywalker, Sonic the Hedgehog, Harley Quinn: Birds of Prey, Jumanji: The Next Level, Bloodshot (2020), 1917, Dolittle and The Call of the Wild (2020).

DEG will present the 2020 Digital Media Mid-Year Report at the DEG Expo Online on Thursday, August 20 at 10:30 a.m. PT. Media and analysts are welcome. Click here for more information or to register.

*Please note that these figures are preliminary. Final figures will be available in early September. Please contact DEG for an updated version.

**VOD spend does not include premium video on demand (PVOD). The inclusion of PVOD would increase total consumer spending on digital.


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