Digital Media Trends to Watch Changes in Content Consumption Joe Bates Director of Research Consumer Electronics Association 4 th Annual Digital Media.

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Presentation transcript:

Digital Media Trends to Watch Changes in Content Consumption Joe Bates Director of Research Consumer Electronics Association 4 th Annual Digital Media Conference June 22, 2007

Agenda About CEA Trend #1: Disruptive Distribution Trend #2: Greater Consumer Control / Choice Trend #3: Greater Realism Trend #4: Greater Connectivity Trend #5: Greater Portability Presentation URL / Contact Info NOTE: All 2006 figures are estimates, all 2007 and beyond are projected

More than 2,100 members Top 20 Trade Association Represents entire range of consumer technologies More than $140 billion in annual U.S. sales by members CEA Market Research 300 consumer research studies Sales data and forecasting program Research Library Economic Insights About CEA

Disruptive Distribution

Physical Media Music? Digital Media Video? Physical Media Music? Digital Media Video? Purchasing Usage The Shifting Media Continuum

OVERALL Late Mass Early Mass Early Adopters Late Adopters Base: All Online US Households Video Download vs. Physical DVD

Fewer restrictions with physical media Afraid something may happen to the digital file Physical copy easier to share with friends/family Want to immediately play without any hassle Like in-person shopping experience Like to display collection of DVDs or CDs Reasons for Preferring Physical Media

Greater Consumer Choices & Control

Digital Recording Options

FREE Streaming Network Shows Amazon Video iTunes Video Vongo CinemaNow MovieLink Xbox Live Google/You Tube Bebo Emerging Home Services

Desired Activities Using Home TV

Satellite Radio Satellite Video (vehicle) HD Radio Mobile TV (over the air) Courtesy XM Satellite Radio Emerging On The Go Services

Greater Realism

High Definition Standard Definition The Shift to HDTV

Combined HW/SW Revenues of $13 Billion in 2006 PS2, XBOX, Game Cube Launch Xbox 360, PS3, Wii Launch The Era of HD Gaming

*Includes only component based HD-DVD and Blu-Ray players Packaged HD Movies

Greater Connectivity

Wide area connections (WiMax, WiFi/Hotspots, Cell, Broadband, SlingMedia) Local area connections (Ethernet, WiFi, HDMI) Personal networks (RF, Bluetooth, OE integration) Connecting services (VOIP, vlogs, blogs, social networks) Growth of Networks

The Need for Speed

Present Future Desktop PC Laptop PC Television DVR Media Server Appliances Security System Products Connected to Internet

Greater Portability

14% 38% 46% 58% 74% 80% Millions of Unit Shipments w/ Percent Video Playback % 38% 46% 58% 74% 80% Portable MP3 Growth

Desktop PC Laptops/Notebooks Portable Computing

Base: Online adults who own a portable entertainment device (+15) (+8) (+5) (-18) (+20) (+1) (+11) (+1) (+35) (+13) Future Portable Entertainment Uses

Thank You!