Digital now revenue backbone of home entertainmentWednesday, October 1st, 2014
Digital Now Revenue Backbone of Home Entertainment, Says IHS at PEVE Entertainment Business Conference
- Digital purchases to grow 75 percent between 2013 and 2017; Six major film studios attend day one of IHS PEVE Entertainment Business event in London
LONDON, UK — Growth in digital subscriptions, rentals and purchases will hold total consumer revenue from traditional home entertainment sources steady, according to new analysis released at the PEVE Entertainment Business conference, held by IHS Inc. (NYSE: IHS), the leading global source of critical information and insight.
“As physical rentals and purchases decline, the home entertainment revenue stream will rely more and more on the growth potential of the digital space,” Dan Cryan, senior director of digital media at IHS Technology, said.
According to IHS Technology research, digital purchases are set to grow by 75 percent between 2013 and 2017. In terms of worldwide consumer revenue, IHS forecasts that digital movie purchases will reach the two billion dollar mark by 2018.
Unlocking of global market opportunities
“We are seeing major services looking to tap into the global market for growth,” Cryan said. “Google Play movies are now available in Central Asia and Korea and iTunes is extending its reach into Egypt, Saudi Arabia, Oman, South Africa and Mozambique.”
The best practice for selling digital movies now involves multiple content types.
“The digital content store page is changing,” Cryan said. “Now you can pre-order sound tracks and previous movies. But if stores can extend the kinds of content types offered and include content, such as Apps, they are likes to see increased sales.”
About the IHS PEVE Entertainment Business conference
The 22nd annual PEVE Entertainment Business conference takes place at the British Museum in London from 30 September to 1 October and welcomes executives from the top six studios. The event reflects the rapidly changing dynamics of the film and TV markets. Its sole focus is on the future of the entertainment business.