DEG Bows DTC Alliance to ‘Advocate’ for Growing Number of Streaming Services

Home entertainment content spending increased 11.5 percent in 2018 to a record $23.3 billion, reported the Digital Entertainment Group at CES. Spending growth was especially strong in Q4, rising 13.1 percent to $6.3 billion. Subscription VOD streaming was the engine that drove the train, rising 30.1 percent for the year to $12.9 billion. SVOD spending also was up 30.1 percent in Q4 to $3.5 billion. Overall electronic sell-through spending rose 20 percent in Q4 and 14 percent for the year. Overall sales of 4K content increased 70 percent for the year and 46 percent in Q4, said DEG, which estimated the number of Ultra HD Blu-ray titles grew to 445 by year-end, and 682 4K titles were available digitally. Sell-through sales of physical media were down nearly 15 percent for the year and the quarter. In deference to subscription streaming’s growing share of the home entertainment pie -- it was 55 percent of total 2018 spending -- DEG used CES to announce the formation of a DTC Alliance subsidiary geared toward “advocacy” of the direct-to-consumer services that abound and will become more numerous. “Every major media company and TV network” will launch DTC streaming services in the next five years, “representing a significant new chapter in how television and film content is purchased, accessed and consumed,” said DEG. “As DTC streaming currently is a longtail situation with a few high-reach apps and many low-reach services, DEG's DTC Alliance is designed to support direct-to-consumer media services of all sizes to tackle difficult challenges and coordinate voluntary best practices and initiatives.” It expects the alliance will “advocate for the industry by presenting a common front to the commercial community” and help promote “member channels through campaigns aimed at building awareness among consumers.”