More than 60% of households report improved or stable financial situations compared to six months ago, according to Futuresource Consulting's latest 'Living With Digital' international consumer research.
After a period of economic uncertainty, consumers are reassessing their entertainment budgets, leading to increased discretionary spending. This shift presents fresh opportunities for the entertainment sector, including higher attendance at cinemas, increased digital content rentals and purchases, and reduced subscription service cancellations. However, the industry must actively compete to capture consumer attention.
In 2024, the box office faced challenges due to a limited release slate, a residual effect of the previous year's Hollywood strikes. Despite this, momentum is building for 2025, with more non-cinema-goers planning to return. The 26-to-45 age group remains the most committed, while the 46-to-65 demographic requires targeted efforts to re-engage.
Digital entertainment is also experiencing growth, particularly in premium transactions where new releases become available digitally shortly after theatrical debuts. Engagement with premium digital content has climbed to 40%, an eight-percentage-point increase year-on-year. The UK and USA lead in premium adoption, with Canada showing the sharpest growth. This trend suggests that better promotion and visibility of premium releases could further boost engagement.
While subscription-based streaming services remain strong, signs of market saturation are emerging. In the UK and Germany, households subscribe to an average of 3.3 and 2.7 services, respectively. Retention has become more critical than acquisition, as consumers solidify around one or two core subscriptions and cycle through others based on content availability. Tiered pricing models, including ad-supported, standard, premium, and bundled offerings, are helping to extend consumer spending while keeping services within budget.
Entertainment companies are at an inflection point. With financial pressures easing, consumers are ready to spend but demand clear value. The industry must focus on retaining cinema-goers, particularly younger audiences, and ensuring streaming platforms become essential in household budgets. Additionally, strategic premium pricing and enhanced content visibility will be vital in capturing the next phase of consumer spending.