Apple mentioned as leader of the pack in the digital music ecosystem

Feb 18, 2010 11:33 GMT  ·  By

In-Stat is in a position to know that 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, the company reports. In-Stat’s market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Looking at the results of its thorough analysis, In-Stat believes that each industry sector will continue to try to shape the future to gain the upper hand.

“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,” Keith Nissen, In-Stat analyst, says. “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.”

The In-Stat report, Competing Business Models for the Future of Digital Entertainment, includes key findings such as:

- 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) 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 US will total $233 billion by 2013.

In-Stat predicts that, by 2013, the home digital entertainment market in the US will total $233 billion. “Device manufacturers and retailers, content producers, as well as pay-TV service providers are seeking to ensure their piece of the revenue pie,” it outlines. However, it notes, the outcome is still cloudy, due to the ever-changing technology, consumer preference, and conflicting corporate goals. Those eager to learn more can visit In-Stat here.