Technology | Media | Telecommunications

Wednesday, February 17, 2010

Digital Home Entertainment Worth $233 Billion

Three sectors of the digital entertainment ecosystem -- device manufacturers and retailers, content producers, and service providers -- have much different visions of the home entertainment future, according to the latest market study by In-Stat.

Each industry sector will continue to try to mold the future to its advantage.

"In the TV and video ecosystem, operators and media companies want to avoid what happened in digital music, where Apple dominates the digital music ecosystem," says Keith Nissen, In-Stat analyst.

As Web-to-TV initiatives accelerate, pay TV operators TV-Everywhere concepts must deliver more than just TV content on a PC screen. It must deliver a complimentary web-based video experience to any screen. Meanwhile, media companies must balance existing distribution channels with new over-the-top (OTT) opportunities.

In-Stat's market study found the following:

- Exclusive live sports and TV events are a key competitive advantage for pay-TV operators.

- Device manufacturers and retailers have bet heavily on the adoption of Blu-ray technology, which has been slow to take hold.

- High value content will migrate to premium channels, benefiting pay-TV subscription revenue.

- Video content on the Internet, or Over-the-Top Video (OTT) video services, will be a net positive for content producers that correctly navigate the rapidly changing distribution channels and business models.

- The value of the home digital entertainment market in the U.S. will total $233 billion by 2013.