MarketingVOX: The latest technologies and digital services are rekindling interest in media.
And as big players like Apple and telecoms expand product offerings and increase competitiveness, they are largely contributing to the hype, according to “Media Trends 2007,” a study from SNL Kagan, reports MarketingCharts.
“Content owners and distributors are using digital to reach new audiences and boost revenues, while cable MSOs have made significant gains in the phone and high speed data arenas,” said Deana Myers, SNL Kagan senior analyst.
At the same time, multichannel providers have jumped headfirst into the race for customers by offering on-demand and high-definition games.
The drive to provide “supply” is in sync with entertainment demand, with consumers spending a record amount on media – about 1.85 percent of the average US annual income, according to SNL Kagan:
Among other highlights from the Media Trends 2007 report:
- TV broadcasters enjoyed higher-than-expected political advertising revenues and gains from all top 10 TV ad categories in 2006. Online and retransmission could prove to be lucrative growth areas over the next decade.
- SNL Kagan estimates the pay-per-view and video-on-demand industry at about $2.8 billion in 2006 and expects it to grow to $8.9 billion by 2017. The most growth is expected from the VOD segment, projected to reach nearly $5.5 billion by 2017 from $1 billion in 2007.
- Basic cable commanded an impressive 63.5 percent viewing share in 2006 versus 39 percent for the broadcast networks.
- US wireless subscriptions grew more than 12 percent in 2006, reaching 233 million at year-end. Total industry ARPU is expected to grow at an inflation-paced CAGR of 1.5 percent over the next 10 years.
About the study: “Media Trends” is an annual survey and compendium of key facts, figures and viewpoints for media segments, including broadcast TV and radio stations, cable MSOs, cable networks, consumer entertainment, DBS, internet, motion pictures, newspapers, pay networks, PPV/VOD/DVRs, telco video, TV programming, home video, and wireless.
Related stories:
- Microsoft, Verizon Gunning for Apple Marketshare with New Hardware Releases
- Media Companies Sneak Around Carrier Deck, Aim for Nokia’s N95
- JWT Survey: Madison Avenue, Main Street Don’t Quite Intersect
