Entertainment spending rebounds as confidence grows: new consumer research

After years of economic uncertainty, consumers are feeling more financially stable, and it’s changing how they spend on entertainment. More than 60% of households now report feeling better off or no change compared to just six months ago, according to Futuresource Consulting’s latest Living With Digital international consumer research.  

The study, carried out across France, Germany, UK, USA, Canada, Italy and Spain, shows that renewed confidence is lifting discretionary spending and creating fresh opportunities for the entertainment sector. 

“Households are reassessing their entertainment budgets,” says James Duvall, Principal Analyst, Futuresource Consulting. “With more economic confidence comes the potential for higher disposable income. This bolsters the likelihood of consumers visiting the cinema more often, renting or even purchasing content outright and being less likely to churn from a subscription service. However, there is a catch. The entertainment industry can’t just wait for the money to arrive, it still needs to compete and capture those eyeballs.” 

Cinema struggles in 2024, but 2025 brings newfound optimism 

In 2024, the box office was still feeling the aftershocks of the previous year’s Hollywood strikes. A muted release slate kept attendance lower than expected, but Futuresource notes that momentum is now building for 2025.  

More non-cinema-goers are planning to return, signalling a potential resurgence. The 26-to-45 age group remains the most committed, and is over-indexing across all major markets, while the 46-to-65 group is still proving the hardest to win back. While re-engaging with older audiences will require focused efforts, and direct targeting to instigate action, this latest round of Futuresource research shows that appetites for theatrical experiences remains strong.  

Premium transactions gain ground in digital entertainment 

Streaming continues to dominate, yet digital purchases and rentals are also on the rise, particularly in the Premium pricing tier where new releases hit digital just weeks after theatrical debuts.  

Engagement with transactional content in its “Premium window” has climbed to 40%, an eight-percentage-point increase year-on-year. The UK and USA lead in premium adoption, while Canada has seen the sharpest growth.  

“Increased awareness has been a key driver of the growing engagement with Premium,” says Anastasia Budash, Lead Analyst, Futuresource Consulting. “Those who already transact digitally have the highest Premium usage at 77%. This all points towards the idea that better category promotion and overall premium release visibility could push engagement further.” 

Streaming growth slows as consumers settle on core services 

Subscription-based streaming remains strong, but signs of saturation are emerging. In the UK and Germany, the average number of services per household has increased to 3.3 and 2.7, respectively, yet the ceiling on how many services consumers are willing to pay for appears to have been reached.  

As a result, retention is now more critical than acquisition, as households solidify around 1-2 core subscriptions while cycling 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. 

Capturing the next phase of consumer spend 

“Entertainment companies are at an inflection point,” says Duvall. “With financial pressures easing, consumers are ready to spend, but only where they see clear enjoyment value. In a divergent world, the industry is competing with a wide array of entertainment pursuits.  

“For the box office, keeping cinema-goers engaged, particularly among younger audiences, will be crucial. In streaming, retention must take priority, ensuring platforms become essential rather than expendable in household budgets. In addition, the industry needs premium pricing strategies that are optimised and consistent across markets to maximise adoption.  

“It’s the brands that adapt to the new entertainment environment and the shifting consumer behaviours that will be best positioned to capitalise on this next exciting phase of growth." 

About Futuresource Consulting

Futuresource Consulting, established in the 1980s, is a leading research and consulting firm specialising in global market analysis, forecasts and strategic insights. With a deep understanding of emerging trends and technologies, Futuresource helps businesses navigate complex markets and make informed decisions. 

To learn more about Futuresource Consulting’s Living With Digital research or to make a purchase, please contact Imad at imad.sarwar@futuresource-hq.com or learn more here. 

Press Contact: Nicola Finn, Marketing Manager, Futuresource Consulting, nicola.finn@futuresource-hq.com  

About the author

James Duvall

James Duvall joined Futuresource as the Principal Analyst for Entertainment in November 2022. He is responsible for the delivery of all consumer research and projects across Home Entertainment, covering over twenty regions for Futuresource’s Video Insight reports, the bi-annual Living with Digital survey, and the bi-annual Music Streaming report. Before Futuresource, James spent six years leading the insight and research programme at the British Association of Screen Entertainment and the Digital Entertainment Group International (DEGI), building upon his wealth of experience within insight teams for US Studios.