digital

Digital entertainment: the future

Consider these illuminating figures from a new study about our media consumption habits by the British consultancy Understanding and Solutions: within the next five years, 50 per cent more of our disposable income will go towards entertainment purchases, everything from movie tickets to music downloads. Put in monetary terms, by 2011, consumers around the world will spend $422 billion (£211 billion) on purchases like a night out at the cinema, video games and cable TV, up from $260 billion in 2005. Our appetite for entertainment content, in monetary terms, is expected to grow at a compound annual growth rate of eight per cent – that is nearly three times faster than Britain’s GDP growth. What will we be spending it all on? The mobile and online sectors will be the fastest growing segments as a new generation of kitted-out mobile phones hit the market (think the Apple iPhone and Nokia’s N95) and as more and more people invest in a broadband connection and those connections speeds continue to increase. The money spent on mobile and online entertainment content will grow 30 per cent and 41 per cent, respectively, per sector between 2005 and 2011. Combined, expenditures on the two markets will be $65 billion (£32.5 billion) four years out. David Sidebottom, an analyst at Understanding and Solutions, says the hot new applications will be downloading full-length music tracks and music videos on mobiles, plus TV broadcasts over mobiles. “We see consumers paying subscriptions of between $5 and $10 per month for mobile TV services,” he says, particularly for those consumers who want to watch football matches on the go, tune into news programmes while waiting for the bus or watch the daytime soaps on the sly from the boss. In all, the mobile TV market, which is miniscule today, could be worth $20 billion (£10 billion) annually by 2011, Sidebottom predicts. Online, the big draws will be music and gaming, which will account for a combined $22 billion in 2007, with video download services growing quickly as well. What has hurt the nascent movie download sector in general is the small, but growing, selection carried by the likes of iTunes and LOVEFiLM, and the bother of having to download massive movie files over a home broadband connection. These issues should be resolved in the coming years to give the market a nudge. Similarly, Sidebottom believes the frustrating incompatibility issues between music download services will substantially improve, boosting the music download market too. Read page two.

Published on 05 July 2007

Local TV repairs and services

07-07-2011