According to a new report by the Digital Entertainment Group (DEG), the continued growth of the home entertainment market, fueled by streaming, has lead to an industry that is now nearly 8 times the size of the cinema market.
The DEG reports that, while home entertainment was already experiencing a steady rise, the pandemic caused a surge that still hasn’t ceased. In 2017, revenue from home entertainment was double of the US box office. That changed to over triple the box office by 2021, then five times larger in 2023.
While revenue from US theaters grew by 5.8% from 2024 to 2025, home entertainment continues to widen its lead.
“Overall US consumer spending across digital and physical home entertainment formats in 2025 was $62.2 billion, a 17.4 percent increase from the almost $53 billion that consumers spent in 2024, driven by continued strong gains in subscription streaming with an assist from digital transactions early in the year,” reports the DEG.
