Digital Downloads, Streaming and VOD Continue Significant Growth

By Rob Scott
October 25, 2012

Digital downloads, subscription streaming and video on demand grew from $1.3 billion in 2007 to $5.5 billion this year.
According to new research from Mintel, these digital formats will grow even faster over the next five years, resulting in a tenfold increase over 2007-2017.
DVDs are still alive in movie rentals. Mintel notes that nearly one-third of online consumers rented discs in the past 30 days.
“We’re not going to see DVDs disappear in the next five years. There will still be people who have DVD players and will still have DVDs within five years,” predicts Mintel analyst Billy Hulkower. “Unless you’re buying a DVD to buy a DVD, you could just buy the digital movie.”
Streaming services including Netflix and Amazon Instant Video are gaining in popularity. Mintel notes that one-quarter of respondents used online streaming over the past 30 days and 22 percent used video on demand.
“Once you start using a digital store for your purchasing, it’s sort of addictive to have that one-click access to content,” Hulkower says. “People are acclimated to immediate access to content. There’s a movie you want to see, you click a button and it’s there.”

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