Competing Business Models for the Future of Digital Entertainment

Posted by at 11:03 am on February 19, 2010

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, reports 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’ opportunities.”

Recent research by In-Stat 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.

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