Box office sales in the US fell 22% year-over-year in Q3 2024, while DVD and Blu-ray sales dropped 26%, according to the DEG and Omdia.
The shift to subscription streaming services for home entertainment shows no signs of slowing, with a 27% year-over-year increase in Q3 2024 and a 28% rise for the first three quarters of 2024 compared to the same period in 2023, according to Omdia.
Movie rentals (VOD) from platforms such as the Apple TV app and Fandango at Home (Vudu) remained flat, while digital movie sales (EST) fell 15% year-over-year, likely due to a lack of major blockbuster releases during the quarter.
No renaissance for discs or theaters
Despite strong support from collectors of UHD Blu-ray discs, the physical media market continues its steep decline, according to trade association Digital Entertainment Group (DEG).
- "Consumer spending on physical product declined 25.7% for the third quarter and 23.4% year-over-year, at least partially due to the weaker release slate. Being less dependent on the theatrical slate, collectibles ran counter to the trend, however, as 4K UHD catalog releases grew 10% year over year, and titles in Steelbook packaging grew 25%, according to studio insights," said the DEG.
Movie theaters are also struggling, with the box office falling 22% year-over-year in Q3 2024.
Year-to-date, box office revenues are down 21% compared to 2023. Even a strong November-to-December period would be unlikely to lift numbers to match 2023 levels, which were already more than 20% below pre-pandemic figures from 2019.
Home entertainment surges
In the first three quarters of 2024, US home entertainment spending reached $38.63 billion, compared to just $5.46 billion at the box office.
This stark contrast underscores why more movies are being released directly to streaming. The home entertainment market, excluding traditional TV channels, is now seven times larger than the box office.
