One graph shows how the likes of Netflix and Spotify are eating the DVD and CD businesses

It won’t come as a surprise to learn that on demand streaming services are eating into DVD and CD sales.

But one chart from Goldman Sachs shows just how rapid the shifts in the entertainment industry have been over the last 15 years — first, the collapse of the rental business in the early noughties and then the rise of digital since 2007.

Here’s the chart, from Goldman’s recent round-up of its 100 best charts from the year:


The chart shows that streaming services like Netflix, Amazon Prime Video, Spotify, and Deezer now pull in almost as much revenue as physical sales and rentals of DVDs and CDs put together.

That’s a huge shift from just 7 years earlier, when digital spend was a tiny fraction of the overall total and physical sales were worth almost double their total in 2014.

Another interesting insight is that US entertainment spend seems to have peaked in 2004, before declining until 2010 when it reached a fairly stable level. Since then, digital has steadily eaten into the market share of the rental and sale market, rather than raising the spending ceiling for the market.

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