Movie streaming and downloads will reportedly overtake the box office as the biggest contributor to total film revenue in 2017, Digital Spy said.
Revenue from on-demand streaming services like Netflix and Amazon Instant Video will surpass DVD and Blu-ray sales in 2016, before outstripping cinema the following year.
According to a study by PricewaterhouseCoopers (PwC), revenue from streaming services will reach $17bn by 2018, which is double the $8.5bn the sector is currently generating.
However, PwC's Cindy McKenzie added that the company expect a 16% increase in box office ticket sales over the next five years, explaining: "People still want to go to the movies, especially the big tent-pole films."
She added that the cheap and efficient distribution of digital media is a financial bonus: "The amount of money that you're making per transaction may not be the same, but it is cheaper to distribute things digitally."
Meanwhile, Netflix has reported a 24% increase in revenue in the first quarter of 2014.