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ENTERTAINMENT
201 EXPECTATIONS
   1
ENTERTAINMENT | 201 EXPECTATIONS
                   1


Hope Boonshaft
Executive Vice President and General Manager,
Southern California
hope.boonshaft@hillandknowlton.com




201 NOW TRENDING
   1:                                                                   3D will continue to be a factor that studios consider when
Expect to see an intense focus on products and services geared          green-lighting a film, as it is better quality to shoot in 3D than to
to the way today’s consumers want to view entertainment, for            transfer it from 2D to 3D. 3DTV for the home will be a big push
example, the introduction of a slew of new tablets and smart            for CE manufacturers, who hope that studios will release as many
phones with expanded capabilities and applications. Another key         3D discs as possible, giving consumers a reason to buy these
trend is the ability to digitally connect the home with all personal    new sets.
devices. While Apple and Google have been trying to capture the
market to connect the Internet to the TV, many CE manufacturers
and service providers will partner with the studios and enter the       CORPORATE IMPLICATIONS
marketplace.                                                            With marketing costs skyrocketing, studios will need to continue
                                                                        to consider remaking old films and building franchises. They will
Sales of Blu-ray discs and players will outpace traditional DVDs        also need to offer more VOD, as the battle of “windows” (at what
and players. With their Wi-Fi capabilities and ability to copy and      point after theatrical opening content is available for purchase,
download additional film material online, Blu-ray players are seen      rent or download) continues.
as the gateway to the digital future for consuming entertainment.
On the broadcast and cable side, Video on Demand (VOD) will             Service providers, such as telcos, satellite companies and cable
take a front seat as studios will be pushed to offer VOD as an          operators, will need to make strategic alliances with CE manufac-
alternative to buying or renting physical discs. Kiosks that offer      turers to meet consumers’ growing demand to view entertain-
DVD and Blu-ray disc rentals for as low as one dollar a night will      ment anytime, anyplace and on any device. New and existing
be another key factor in consumers’ viewing decisions. Despite          content delivery companies, such as Hulu, will have to determine
popular belief, physical discs will be available for the next decade    whether to base access to content on ad sales or on subscrip-
even with the escalation of digital delivery growth.                    tions. Finally, until there is more 3D cable and broadcast content,
                                                                        as well as 3D Blu-ray discs and players, on the market, CE
Consumers will be split as to quality versus convenience. Conve-        manufacturers will have to make a big push to sell 3DTVs.
nience will remain key, but if consumers encounter problems with
streaming, downloading or playing content, they will quickly
                                                                        Hope Boonshaft, based in Los Angeles, leads H&K’s entertainment
abandon it. The true die-hards will stick with quality and go for the
                                                                        practice.
rental or purchase of Blu-ray discs. Another trend will be the
storage of the content purchased via download. The digital locker,
or “the cloud” as some call it, will become more front and center
for consumers to store their content in a place that is not
connected to their personal computer. This will ease fears of
losing one’s own content in the event of a computer crash.

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Entertainment 2011 Expectations

  • 2. ENTERTAINMENT | 201 EXPECTATIONS 1 Hope Boonshaft Executive Vice President and General Manager, Southern California hope.boonshaft@hillandknowlton.com 201 NOW TRENDING 1: 3D will continue to be a factor that studios consider when Expect to see an intense focus on products and services geared green-lighting a film, as it is better quality to shoot in 3D than to to the way today’s consumers want to view entertainment, for transfer it from 2D to 3D. 3DTV for the home will be a big push example, the introduction of a slew of new tablets and smart for CE manufacturers, who hope that studios will release as many phones with expanded capabilities and applications. Another key 3D discs as possible, giving consumers a reason to buy these trend is the ability to digitally connect the home with all personal new sets. devices. While Apple and Google have been trying to capture the market to connect the Internet to the TV, many CE manufacturers and service providers will partner with the studios and enter the CORPORATE IMPLICATIONS marketplace. With marketing costs skyrocketing, studios will need to continue to consider remaking old films and building franchises. They will Sales of Blu-ray discs and players will outpace traditional DVDs also need to offer more VOD, as the battle of “windows” (at what and players. With their Wi-Fi capabilities and ability to copy and point after theatrical opening content is available for purchase, download additional film material online, Blu-ray players are seen rent or download) continues. as the gateway to the digital future for consuming entertainment. On the broadcast and cable side, Video on Demand (VOD) will Service providers, such as telcos, satellite companies and cable take a front seat as studios will be pushed to offer VOD as an operators, will need to make strategic alliances with CE manufac- alternative to buying or renting physical discs. Kiosks that offer turers to meet consumers’ growing demand to view entertain- DVD and Blu-ray disc rentals for as low as one dollar a night will ment anytime, anyplace and on any device. New and existing be another key factor in consumers’ viewing decisions. Despite content delivery companies, such as Hulu, will have to determine popular belief, physical discs will be available for the next decade whether to base access to content on ad sales or on subscrip- even with the escalation of digital delivery growth. tions. Finally, until there is more 3D cable and broadcast content, as well as 3D Blu-ray discs and players, on the market, CE Consumers will be split as to quality versus convenience. Conve- manufacturers will have to make a big push to sell 3DTVs. nience will remain key, but if consumers encounter problems with streaming, downloading or playing content, they will quickly Hope Boonshaft, based in Los Angeles, leads H&K’s entertainment abandon it. The true die-hards will stick with quality and go for the practice. rental or purchase of Blu-ray discs. Another trend will be the storage of the content purchased via download. The digital locker, or “the cloud” as some call it, will become more front and center for consumers to store their content in a place that is not connected to their personal computer. This will ease fears of losing one’s own content in the event of a computer crash.