US subscription streaming revenue growth down more than 10 points in Q1

U.S. subscription streaming revenue grew 16.9% to $6.93 billion in the first quarter, representing a significant slowdown from the 27.2% expansion that the streaming industry SVOD experienced during the same period of the first three months of 2021, according to figures from the media company released by Digital Entertainment Group (DEG).

DEG’s indicator of an overall deceleration in growth comes after Netflix, the largest SVOD service in the US and globally, reported a global revenue increase of just 9.8% in the first quarter compared to 24.2% in the first quarter of 2021.

And there have been other indicators that Netflix’s slowdown isn’t an anomaly in the video business.

Disney, for example, saw only 15% growth in average revenue per subscriber for Disney Plus operations in the United States and Canada for the period from January 1 to April 2. Disney also said that Hulu’s SVOD business, extracting revenue from Hulu+ Live TV vMVPD, has shrunk 4% in its second fiscal quarter.

DEG said its SVOD data comes from Omdia, a division of research conglomerate Informa.

For its part, DEG has its roots in measuring the sales of home video products by studios. And physical media (i.e. DVDs and Blu-rays) continued to fade in the first quarter, with sales down nearly 19% to $388.5 million. They turned down a 25% clip a year ago. Rentals of these records fell 17% to $196.1 million.

The VOD business continues to slide along with overall pay-TV distribution, down 10.8% to $501.1 million in the first quarter. But “electronic sales” — movie sales from digital transactional channels operated by companies like Google, Apple and Amazon — rose 6.7% year-over-year to 643.6 million. dollars.

At a time when COVID-19 restrictions are easing and many US consumers are spending less time in their living rooms, here’s some good news for the video industry:

Overall “home entertainment” spending rose 10.9% in the quarter to nearly $8.7 billion, DEG said, representing a small acceleration in growth. year on year (it had increased by 10% last year).

Digital Entertainment Group

(Image credit: Digital Entertainment Group)