Home entertainment is booming and accounted for 79% of the global video entertainment market that reached almost $100 billion in 2021. The theatrical market accounted for just 21%.
Video entertainment in 2021
In 2021, the market for video entertainment bounced back to pre-covid levels. In the intermediate period, the theatrical market got decimated while the home entertainment market expanded rapidly, driven by streaming.
We need look no further back than 2016 to find a reality where the theatrical market was bigger than the home entertainment market globally. At that time, it seemed almost unimaginable that new blockbuster movies could premiere on streaming services. Netflix had released its first original movie, Beasts of No Nation, the year prior.
- "In 2021, the digital market accounted for 72 percent of the combined theatrical and home/mobile entertainment market, down from 75 percent in 2020. The theatrical market (21%) and the physical market (7%) made up the rest," wrote Motion Picture Association in its annual Theme report.
In 2020 and 2021, movie theaters around the world were forced to stay closed for weeks or even months.
Graph: MPA Theme report 2021. MPA has revised past years' figures
Streaming services continue to enjoy healthy growth around the world, which has affected sales of DVD and Blu-ray discs negatively. The global market for physical discs declined from $20 billion in 2015 to $6.5 billion in 2021.
After a tough pandemic that has changed the industry, MPA is now optimistic about the future.
- "Over the last two years, the pandemic has impacted almost every aspect of our daily lives, generating new and unexpected challenges. The film, television, and streaming industry has not been immune, and in many ways, we are still navigating this new reality. But, as the Motion Picture Association commemorates our 100th anniversary this year, I have a renewed sense of optimism," said Charles H. Rivkin, Chairman and CEO og MPA. "In short, 2021 marked the onset of our industry’s rapid rebound."
When including pay TV (cable, satellite, terrestrial, IP) the global market reaches almost $330 billion dollars annually. A good portion of that relates to sports rights.
Graph: MPA Theme report 2021
- Source: MPA
