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, according to In-Stat.
“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 Keith Nissen, In-Stat analyst, in a statement.
In-Stat’s research entitled "Competing Business Models for the Future of Digital Entertainment" 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 (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.