Digital Media Revenues Exceed Filmed Entertainment

Digital Media Grabs 10% Share of $845Bn Global Media and Entertainment Business in 2008

Boston, MA - 17 December 2008 - Global revenues from digital media will exceed revenue generated by filmed entertainment - movie theaters and home video combined - for the first time in 2008, according to new research from Strategy Analytics. The report, "Global Media & Entertainment Market Forecast, 2004 - 2012," predicts that total worldwide revenues from media and entertainment - including television & filmed entertainment, recorded music, games software and advertising - will exceed $845 billion this year, with more than 10%, or $90.0 billion, coming from online and mobile channels. In comparison, the global filmed entertainment market will generate $83.1 billion in revenues this year.

The research concludes that total revenues from all online channels will grow on average at 18% annually until 2012, while revenues from traditional media channels will grow at only 3% a year over the same time period. The industry as a whole will experience growth of 5.8% in 2008, but this will decline to 4.5% in 2009 as a result of global economic conditions.

Martin Olausson, Director of Digital Media Research at Strategy Analytics, said, "The fact that digital media revenues now exceed those from movie theaters and home video supports the large online investments made by most major media companies."

David Mercer, VP Digital Consumer Practice, noted, "Like most industries, the media sector faces a challenging 2009. However, while revenues from traditional routes to market stagnate, digital business models still provide the growth opportunities that are vital to the industry's future prosperity."

The report covers 25 traditional and online market segments, including TV advertising, public service broadcasting, pay television, filmed entertainment, sell-through video, video rentals and subscriptions, online advertising, search and classifieds, video games software, multiplayer and online games, music CDs and online music. It quantifies demand in revenues and unit volumes, and by the key regions of North America, Europe, APAC, CALA and ROW.


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