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U.S. Digital Entertainment Market to Hit $233 Billion by 2013

17 Feb, 2010 By: John Latchem

A report by research firm In-Stat, “Competing Business Models for the Future of Digital Entertainment,” concludes the value of the home digital entertainment market in the United States will total $233 billion by 2013.

As a result the various sectors of the digital entertainment ecosystem — device manufacturers and retailers, content producers and service providers — are taking different approaches 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,” said In-Stat analyst Keith Nissen. “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’ opportunities.”

Such over-the-top Internet video content will be a net positive for content producers that correctly navigate the rapidly changing distribution channels and business models, the report concludes.

The report also shows that exclusive live sports and TV events are a key competitive advantage for pay-TV operators, with high-value content migrating to premium channels, further benefiting pay-TV subscription revenue.

Technologically, device manufacturers and retailers have a lot invested on the adoption of Blu-ray technology, which In-Stat found to be slow to take hold.

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