Disney, Microsoft and Intel Likely to Win as Entertainment Moves On-Line
SCOTTSDALE, Ariz., March 31, 2004 -
Hollywood's current, profitable packaged goods business model will soon be feeling the effects from on-line services, reports In-Stat/MDR (http://www.instat.com). The high-tech market research firm finds that, with on-line services charging $4 for a movie, an across-the-board decline in retail selling prices for DVDs is definitely possible. Disney, Microsoft and Intel are positioned to benefit the most.
“For the past 20 years, the Hollywood movie studios, and the professional video programming industry, have benefited greatly by the tremendous growth of their published media business,” says Gerry Kaufhold, a Principal Analyst with In-Stat/MDR. “However, by the end of 2008, In-Stat/MDR expects that over 280 million consumers will have equipment to make their own media, and over 247 million will be connected to Broadband connections. Even if only a few percent use on-line services, the impact on packaged goods will be great.”
In-Stat/MDR has also found that:
Disney's MovieBeam service uses innovative PUSH technology to deliver Movies-on-Demand at low cost.
Microsoft's Windows Media Division has coverage of all key areas.
Intel's mobile technology will make laptop computers portable entertainment systems.
Additionally, small companies that are poised to provide disruptive technologies or business models include Akimbo, Euclid Discoveries, Synacor, and thePlatform.
PCs with TV Tuners will grow at 50.6% CAGR from 2004 to 2008.
Asia is likely to be the strongest market with regards to use of personal content items, accounting for 34.0% share in 2008, and Europe will be a strong number two market.
Recent In-Stat research, Picking Winners in On-Line Entertainment: Disney, Microsoft & Intel (#IN0401551CM), provides a breakthrough look at the rise of Personal Digital Media Recorders and broadband service connections, and explains the bold claim that “content” will be pushed out to in-home recording devices, instead of being watched “live.” The report provides geographic forecasts for eight categories of consumer-oriented digital media products that will be in use through 2008, as well as geographic forecasts for the number of premium and basic broadband connections that will be in use through 2008. The report provides In-Stat/MDR’s analysis of how Disney’s Moviebeam service provides a “look into the future” of movies-on-demand, and discusses how important initiatives from Intel and Microsoft position them to drive this market forward.
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