Report: Streaming services push media spending surge

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Much of that spending increase was focused on audio/video streaming and gaming soft- and hardware. The global spend hit $2.01 trillion for 2020. Prior to 2020, consumer media spending was increasing at a rate of about 3% per year. For 2021, the experts believe growth will continue at about a 6% YoY increase.

“PQ Media expects the growth of consumer spending on media content and technology will begin to decelerate markedly in 2022 and 2023, as many of the pandemic-driven forces that sparked the atypical end-user spending splurge in 2020 begin to fade in the second half of 2021, as the COVID-19 vaccine rolls out worldwide, adult workers begin returning to office buildings and children start repopulating physical schools,” said PQ Media CEO Patrick Quinn.

Other interesting findings from the report include:

• Digital content devices were responsible for about $440 billion of the consumer media spend
• Digital content subscriptions increased 20% YoY
• 71% of consumer media spending is now for digital content

The medium that didn’t benefit from the increase in spending – traditional film/home video spending. For this category, spending was down about 46% YoY because of the shutdown of movie theatres and the fact that many people weren’t willing to spend $30 to ‘rent’ a new release film at home. According to Quinn, traditional film/video spending will likely never return to it’s pre-2020 levels.

“While we expect to see an uptick in the growth of in-theater movie ticket sales in 2021 and 2022, albeit versus extremely deflated comps in 2020 and 2021 – PQ Media believes that physical movie ticket spending, as well as the entire film & home DVD category, will never again reach the high water mark of nearly $85 billion in 2019,” Quinn said.

More data from PQ Media’s Global Consumer Spending on Media report can be accessed here.

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ABOUT THE AUTHOR

Kristina Knight is a freelance writer based in Ohio, United States. She began her career in radio and television broadcasting, focusing her energies on health and business reporting. After six years in the industry, Kristina branched out on her own. Since 2001, her articles have appeared in Family Delegate, Credit Union Business, FaithandValues.com and with Threshold Media.