Home Theater

Vision Shopsters: The Future of Digital Home Entertainment: Key trends and drivers shaping devices, content and services

Despite the economic slowdown of recent years, digital home entertainment looks set to evolve and grow significantly over the next five years. The convergence of technologies and platforms, lifestyle trends, a growing need for mobility, and technological advances are all combining to fundamentally change the ways in which consumers interact with digital content. In turn, these trends and ‘meta-themes’ are forcing broadcasters, media agencies and conglomerates, service providers, device and consumer electronics manufacturers, and communications operators to rethink the value chain and restructure their business models. In the future digital home, content will be king, and consumers will expect to be able to access synchronized content and digital content libraries instantaneously on a range of connected devices, in a variety of locations.
The consumption of digital entertainment content is being driven by the rapid transition to online and mobile platforms, on which consumers of tomorrow will expect the ability to watch broadcast TV, access video content on-demand, personalize Internet radio stations to suit their own preferences, play games, and store media collections, whether inside or outside the home – this concept of the ‘porous home’ will be a defining feature of the future of digital home entertainment. This report analyzes the trends, technologies and business models of the enablers and providers of digital content. Furthermore, it defines six ‘Meta-themes’ that can be used as a template for defining and considering the future shape and growth of the digital home entertainment market. These six meta-themes are then applied to each of three main digital home entertainment markets: TV and video; Music and audio content; and Gaming.

Key features of this report

• Defines six ‘Meta-themes’ that can be used to define the future shape and evolution of the digital home entertainment market.
• Applies each meta-theme to analyze and forecast the future evolution of three sub-markets of the digital home entertainment market, namely: TV & Video; Music & audio; and Gaming.
• Provides market sizing and opportunity statistics for consumer electronics manufacturers.
• Provides forecasts for the growth of the IPTV, DTT, cable and satellite TV markets.
• Explains how new entrants to the market are already disrupting traditional business models of content providers and media publishers, and how they can respond and adapt to the changing conditions.
• Offers in-depth analysis of the future of the gaming market.
• Explains and analyzes the concept of the ‘Porous home’.

Scope of this report

• Understand how six main ‘meta-themes’ can help to analyze and forecast the future of the digital home entertainment .
• Gain insight into how changing lifestyle and media consumption trends will impact the future shape and growth of the market.
• Understand the drivers and inhibitors that are shaping the evolution of the digital home entertainment market.
• Gain insight into the future technology roadmaps for TV sets, and gaming consoles.
• Understand how the cloud will impact the future of the digital home.

Key Market Issues

• The economic downturn and it’s impact on sales of consumer electronics devices over the next few years.
• The increasing convergence of devices, services and content delivery platforms.
• The impact of emerging technology platforms for the delivery of TV and video, music and gaming content.
• The impact of the cloud on technological evolution in the future digital home.
• Changing consumer lifestyles and how this alters preferences in how they consume media.
• How vendors and service providers can differentiate themselves in a crowded and converged marketplace.
• Certain devices are becoming ‘content hubs’ for digital home entertainment.

Key findings from this report

a) The future of digital home entertainment can be defined and analyzed using six key ‘meta-themes’. All of these themes interrelate with each other, but the key ones are convergence and specialization.
b) Around 45% of mobile Internet users are expected to be in Asia-Pacific by 2014 .
c) The CAGR for mobile music over the period 2009-2013 is forecast to be 38%, almost double that for the online channel.
e) The number of households receiving digital TV globally is expected to grow from just over 211m in 2009 to reach 274m by 2012. Satellite and cable will remain the two largest delivery platforms for digital TV between now and 2012, however, IPTV will grow the fastest.
f) The VOD market is expected to generate almost $9bn in revenues in 2012.

Key questions answered

a) Which technology platform for delivering TV content in future represents the largest market opportunity?
b) How will the cloud shape the evolution of the digital home entertainment market?
c) Will consumers pay for digital content in future?
d) What are the six meta-themes that can be used to forecast the evolution of the market?
e) How can vendors and service providers create new market opportunities and attract new consumers?
f) What role will mobile devices have in the future digital home?

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