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!