In the era of mobile and social media, when people are more fascinated towards digital aspect of life, vendors from Digital information and Entertainment industry can’t expect anything better than this; $2.1 Trillion in 2011 and forecasted to reach $2.8 Trillion by 2015. Essentially, such growth is expected due to diversified offerings by vendor across multiple consumer spending segments. This will make Vendor earn revenue across the full ecosystem and allow them take legacy services to transform to newer products and services.
According to a new research report from Gartner, consumers are poised to expand $2.1 trillion globally on digital information and entertainment products this year. In 2010, the said industry settled down with $2.0 trillion of market of which largest contribution – 62% – was for communications subscription-based access and usage services. The $1.2 trillion included mobile, voice, data services, video and online gaming.
However, $600 billion – 28% of 2010 market – was accounted from electronic devices, PCs and stationary entertainment equipment. Content and Software market relatively had only $200 billion – 10% of overall market – contribution in 2010. This was mainly driven by Video contents, pay TV subscriptions allocated to licensing fees, PC and gaming software, digital music and books, and purchases from mobile apps stores.
Vendors choosing to diversify into other consumer spending segments can benefit from the fact that consumers are increasingly using alternative services that will move their spending from one segment to the other, such as fixed voice to mobile voice and landline broadband to mobile broadband etc. All of these alternative services provide business opportunities that would replace or would be in addition to legacy products and services, thus enabling a vendor to pursue the consumers’ spending in more than one segment.
“The three key technology areas that will offer the best opportunity for vendors during the next three years are: wireless broadband, which will enable constant connectivity; location-based services (LBS), which will personalize and take advantage of the constant connected state; and operating systems, which are the foundation for integration applications that can bring it all together” Mikako Kitagawa, principal research analyst at Gartner, said.
Detail 10 pages report Titled as “Market Trends: Diversification Trends Capture More of Consumer Technology Spending” is available on Gartner website at $2,495. You can follow this link to grab a copy of this.