As consumers were forced inside during much of the second quarter of 2020, they found solace through digital entertainment, with purchases and rentals growing by 54% during the period, according to a preliminary digital video purchases and rentals report from the Digital Entertainment Group.
For the first half of the year, sales and rentals of digital entertainment exceeded $3 billion, representing a 34% growth rate, according to the report.
In the second quarter, spending increased 57% on electronic sell through (EST) and 50% on video on demand (VOD).
During the first six months of the year, U.S. consumer spending for digital and physical home entertainment formats was $15.1 billion, representing a 26% increase from the $12 billion consumers spent in the same period a year earlier.
Among other highlights from the preliminary report:
- Consumer demand for theatrical releases continued to grow, with numerous wide release movies coming early to the home. Spending on theatrical EST was up 48% in the second quarter and 26% in the first half.
- Spending on theatrical VOD rose 73% for the second quarter and 55% for the first half.
- Television spending rose 120% for VOD and 72% on EST in the second quarter.
- VOD delivered via the internet rose 76% in the second quarter and 56% in the first half as service options continue to proliferate.
- Following years of double-digit declines, spending on DVDs was off just 6% in the second quarter, as consumers opted for DVDs under $10 – those in the $6 range were particularly popular.