Anyone waiting for streaming content to become a phase from the past might want to rethink how they’re watching television and movies. Because at least right now, it looks as if streaming is here to stay.
Why? Because it’s making lots of money, of course.
In fact, Americans are spent nearly 23 percent more on subscription services in 2016 than they did the year before, according to the New York Post. That’s $6.2 billion for streaming subscriptions and services from companies like Netflix and Hulu.
It’s still only the second-most popular home entertainment category, according to the Digital Entertainment Group, with DVD and digital movies still leading the way. However, Post reporter Claire Atkinson suggests it could soon become the leader in the overall $10 billion market.
And $10 billion is a lot – especially when movie tickets accounted for just $11.8 million in North America over the past year.
One entertainment market that is suffering is, however, DVD sales. After dropping 12 percent in 2015, the plastic discs of data fell another 10 percent last year. It could soon find its way on the extinct pile like VHS tapes and laser discs, especially if digital streaming content becomes more and more popular.
Netflix, however, isn’t giving up on DVDs.
The company now primarily known for its streaming just launched an app that caters specifically to its DVD customers, a market sector that still includes some 4.3 million subscribers for the company.
But that is an ever-shrinking market for Netflix, which earned $415.9 million in DVD rentals in the most recent quarter reported to investors, while its streaming subscriptions accounted for $3.7 billion.
And that’s just in the United States.
The company also had a chance to boast a new title when it comes to Apple, after it became the highest revenue-generating app on the company’s iTunes Store.
The study did not include Amazon Prime, the newspaper reported, because Amazon bundles that service with its free shipping membership program.
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