US budget spending on TV and films to fall in next five years, overtaken by Norway – report

New research has predicted that 2023 will be the last year in which US consumer spending on television and film will increase before gradually declining over the next few years.

According to a report by Ampere Analysis, US spending on video services — including streamers, pay TV and movies — will decline 8% between 2023 and 2027, taking the figure to just over $1,000 per household. This corresponds to a decrease of $90 per household in 2027.

Annual video content bills will peak in 2022 in the U.S., with post-pandemic theatrical spending rising 18% to $374 per household per year and streaming spending up 18% to $374 per household per year to $1,146 per household, Ampere said . However, the study predicted that streamer growth will slow through 2023, while the impact of cable cuts will lead to “the beginning of a slow decline in average annual household television spending.”

Meanwhile, consumer spending in Western Europe rose by 11%. Norwegian households will reach a major milestone in 2025 by overtaking the US in TV and film spending at around US$50 per household.

According to Ampere, all large Western European households will spend more on television and film in the next five years. Spending in the UK, Germany, France, Spain and Italy will all increase, although each country will still underperform the US in 2027.

Maria Dunleavey, a senior analyst at Ampere, said streamers’ recent moves to focus on hybrid tiers and ad services represent “one approach” to offset downward pressure in the US, but pay-TV spending is more stable in Europe than in the USA. and streaming will be further expanded.

“With domestic revenues under pressure, it is increasingly important for US corporations to capitalize on this international growth,” Dunleavey added. “Video spending has finally reached its limit for US households.”