Demo Memo's Cheryl Russell takes a closer look at the explosive growth in annual household spending on streamed and downloaded video, which grew 26-fold between 2005 and 2014— jumping from $0.68 to $17.80.

According to the Consumer Expenditure Survey, in 2005, just 0.4% of households bought streamed and downloaded video during an average quarter. By 2010, that figure jumped to 1.4%, and by 2014, it had soared to 13.1%.

To see where this trend is going, compare spending on streamed and downloaded video to spending on cable and satellite television service—which streaming and downloading are in the process of replacing. During an average quarter of 2014, 70% of households spent on cable or satellite television service, devoting an annual average of $723 to the service. Explosive growth in household spending on streamed and downloaded video is likely to continue.

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