Facts and Figures for Understanding Market Trends in Digital Content Industry


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Media industry trends for 2008

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Facts and Figures for Understanding Market Trends in Digital Content Industry

  1. 1. Facts and Figures for Understanding Market Trends in Digital Content Industry Timo Argillander Digital Media Finland Barcelona, 27.3.2008
  2. 2. About the Study <ul><li>The goal of the study was to collect market data from public sources to help companies in understanding the business environment </li></ul><ul><li>The study was implemented in December 2007 </li></ul>
  3. 3. Media and Entertainment Industry <ul><li>Market volume (Pricewaterhousecoopers) </li></ul><ul><ul><li>2006: 1500 bn$ </li></ul></ul><ul><ul><li>2011: 2000 bn$ </li></ul></ul><ul><ul><li>annual growth 6,4% </li></ul></ul>
  4. 4. Television Industry <ul><li>Television industry 2006: 340 bn$ (Ofcom) </li></ul><ul><ul><li>annual growth 7,2% </li></ul></ul><ul><ul><li>subscription revenue share 40% </li></ul></ul><ul><li>Cable TV business volume (SNL Kagan) </li></ul><ul><ul><li>2006: 72 bn$ </li></ul></ul><ul><ul><li>2011: 109 bn$ </li></ul></ul><ul><li>Home entertainment total market (TV, movies, music, games) (Informa) </li></ul><ul><ul><li>2006: 262 bn$ (TV share 43%) </li></ul></ul><ul><ul><li>2010: 328 bn$ (TV share 53%) </li></ul></ul>
  5. 5. The Biggest Media Companies <ul><li>Time Warner 44,8 bn$ </li></ul><ul><li>Walt Disney 34,3 bn$ </li></ul><ul><li>Bertelsmann 28,6 bn$ </li></ul><ul><li>News Corp. 25,3 bn$ </li></ul><ul><li>(2006 revenues; Fortune 500, Bertelsmann annual report) </li></ul>
  6. 6. Other Media Related Companies <ul><li>General Electric 168,3 </li></ul><ul><ul><li>NBC Universal share 16,2 </li></ul></ul><ul><li>NTT 98,3* </li></ul><ul><li>Sony 75,4 </li></ul><ul><ul><li>games and movies 21,8 % 16,4 </li></ul></ul><ul><li>Vodafone 64,5 </li></ul><ul><li>Nokia 60,9 </li></ul><ul><li>Microsoft 44,3 </li></ul><ul><li>Vivendi 29,7 </li></ul><ul><li>Apple 19,3 </li></ul><ul><li>Google 10,6 </li></ul><ul><li>BBC 8,7* </li></ul><ul><li>Mediaset 5,5 </li></ul><ul><li>(Revenues 2006 in bn$; * = different accounting period) </li></ul>
  7. 7. Media Industry Mergers and Acquisitions
  8. 8. Media Industry Mergers and Acquisitions
  9. 9. Advertising ZenithOptimedia
  10. 10. Games Industry <ul><li>Industry volume in 2006 w/o hardware 25,5 bn$ (Games Investor) </li></ul><ul><ul><li>Retail channel 19 bn$ </li></ul></ul><ul><ul><li>Online sales 5,5 bn$ </li></ul></ul><ul><li>Industry volume incl. hardware (Neogames) </li></ul><ul><ul><li>2004: 25,5 bn$ (35% hardware, 65% games) </li></ul></ul><ul><ul><li>2009: 54,4 bn$ </li></ul></ul>
  11. 11. Games Industry <ul><li>Some demographic data (Games Investor) </li></ul><ul><ul><li>43% of all gamers are female </li></ul></ul><ul><ul><li>20% of console gamers are female </li></ul></ul><ul><ul><li>72% of all gamers are over 18 yrs old </li></ul></ul><ul><ul><li>19% of all gamers are over 50 yrs old </li></ul></ul><ul><li>Mobile games market volume (Juniper) </li></ul><ul><ul><li>2007: 5 bn$ </li></ul></ul><ul><ul><li>2009: 10 bn$ </li></ul></ul><ul><ul><li>2012: 16 bn$ </li></ul></ul><ul><li>In 2007, 7,2% of all mobile users were playing mobile games </li></ul>
  12. 12. Games Consoles console cumulative shipments 9/07, million units Nintendo Gameboy 119 Sony PS2 115 Sony PS 103 Game Boy Advance 80 Nintendo DS/Lite 54 Microsoft Xbox 25 Sony PSP 25 Nintendo Gamecube 22 Nintendo Wii 13 Microsoft Xbox 360 12 Sony PS3 5
  13. 13. Mobile Users <ul><li>In 2012, one mobile user out of three will be using mobile internet (Juniper) </li></ul><ul><li>In 2007 there were about 100 broadband-capable mobile networks in operation globally </li></ul><ul><ul><li>(Broadband-capable mobile networks: HSPA and EV-DO networks) </li></ul></ul>
  14. 14. Mobile Users <ul><li>2007 mobile handset sales 1,1 billion units (Gartner) </li></ul><ul><li>2007 multimedia-capable mobile handset sales 300 million units (Multimedia Intelligence) </li></ul><ul><li>Mobile entertainment market in 2010: 47.5 bn$ (Juniper) </li></ul>
  15. 15. Mobile Content Usage M:Metrics
  16. 16. Location Based Services <ul><li>LBS services market in 2007: 1,5 bn$ (Berg Insight) </li></ul><ul><li>LBS services market in 2012: 6 bn$ (Strategy Analytics) </li></ul><ul><li>Personal navigation device shipments (ABI Research) </li></ul><ul><ul><li>2007: 29 million units </li></ul></ul><ul><ul><li>2012: 80 million units </li></ul></ul>
  17. 17. Mobile TV <ul><li>Mobile TV revenues (Screen Digest) </li></ul><ul><ul><li>2007: 0,4 bn$ </li></ul></ul><ul><ul><li>2011: 4,4 bn$ </li></ul></ul><ul><li>2011 revenue split by market (Screen Digest) </li></ul><ul><ul><li>Northern America 43,5% </li></ul></ul><ul><ul><li>Europe 40,5% </li></ul></ul><ul><ul><li>Asia 17% </li></ul></ul><ul><li>In 2006, mobile broadcast networks were in operation in six countries, in 2008 in 18 countries (Screen Digest) </li></ul><ul><li>In 2007 there are globally 25 million mobile TV users, in 2011 140 million (Screen Digest) </li></ul>
  18. 18. IPTV <ul><li>Number of IPTV households (Informa) </li></ul><ul><ul><li>2007: 10,6 million </li></ul></ul><ul><ul><li>2012: 38,4 million </li></ul></ul><ul><li>IPTV revenues (Informa) </li></ul><ul><ul><li>2006: 1,5 bn$ </li></ul></ul><ul><ul><li>2012: 14,7 bn$ (13,6 bn$ subscriptions, 1,1 bn$ video-on-demand) </li></ul></ul>
  19. 19. On-line Videos <ul><li>Market volume (Strategy Analytics) </li></ul><ul><ul><li>2007: 1,5 bn$ </li></ul></ul><ul><ul><li>2010: 5,9 bn$ </li></ul></ul><ul><li>On-line video related advertising business volume in 2012: 7 bn$ (Forrester) </li></ul>
  20. 20. Music <ul><li>IFPI’s statistics 2006: </li></ul><ul><ul><li>Recorded music market: 31 bn$ (decline 5%) </li></ul></ul><ul><ul><li>Music publishing market: 6-7 bn$ (growth 2-4%) </li></ul></ul><ul><ul><li>Live music market: 17 bn$ (growth 16%) </li></ul></ul><ul><li>Digital music market 2006: 2 bn$ (IFPI) </li></ul><ul><li>Digital music market 2010: 10,7 bn$ (In-Stat) </li></ul>
  21. 21. User-generated Content <ul><li>UGC-related business volume in 2011: 13,2 bn$ (Informa) </li></ul><ul><li>Number of bloggers has stagnated to the level of 100 million people. For the time being, there are 200 million ex-bloggers. (Gartner) </li></ul>
  22. 22. Findings (1/2) <ul><li>Television is the most used and in economic terms the most important media; its position is still getting stronger </li></ul><ul><li>Big media companies are investing in digital services, digital services are starting to play a role revenue-wise, too </li></ul><ul><li>Digital services move from niche services to mainstream </li></ul><ul><li>The growth in broadband connections foster digital services business growth </li></ul><ul><li>Mobile broadband is starting to take off, however content services are rare </li></ul>
  23. 23. Findings (2/2) <ul><li>Digital services grow on all markets, China has become a major market </li></ul><ul><li>In the games industry the average age of the customers is growing and the number of female gamers is becoming bigger </li></ul><ul><li>User-generated content is still gaining more importance and also business volume </li></ul><ul><li>Community services are driven by technology rather than media companies </li></ul><ul><li>New technologies bring new business models </li></ul><ul><li>Mobile TV has potential, but there hasn’t been success yet </li></ul>
  24. 24. Comparing Some Figures Figures bn$. For rough comparison only due to different data sources!
  25. 25. Thank You!