This is part of a five part series:
1/The Rise Of The Digital Entertainment Market
2/After The Bubble: A Market Shift
3/The Digital Entertainment Evolution
4/Winners And Losers
5/Why Does The Digital Entertainment Evolution Matter?
Digital Entertainment is creating a significant disruption within the industry. Although society’s demand for entertainment and leisure services will continue to grow, the users’ perceptions [...]
Digital Entertainment is creating a significant disruption within the industry. Although society’s demand for entertainment and leisure services will continue to grow, the users’ perceptions of value, the types of services that are relevant, and the methods of consumption will continue to ride the wave of change that has already begun. These shifts and changes mean that companies attempting to succeed in the Digital Entertainment space need to flexibly evolve their underlying business models to capture new methods for capitalization of content.
Disruptive change introduces significant threats to those already involved in the market, but also presents significant opportunities to those who can find and implement the services of the future. There is no doubt that in an industry already worth US$1.4 trillion that will continue to outgrow GDP there are going to be some very big winners.
Whoever says that storage, hardware and bandwidth are ridiculously cheap by now should try and scale (and keep operating) cloud storage for 500k+ users – or roughly $23k per month for me. While economies of scale benefit ad-based business models, they also exponentially grow your storage costs – in the worst case for things no
Germany is determined to have 75 per cent of all German households receive broadband speeds of at least 50 Mbps by 2014. Germany also heavily pushes DTT, 3G, 4G. Will 4G deliver 50 Mbps? And if not, what business model and usage scenarios under these circumstances will allow 50 Mbps fixed access for 75% of
Average ad revenue in the US per subscriber per year will be…. tada: $4.86. And that’s in 2013. So even if Carriers would get 100% of this – which they won’t – 40 cents per month additional revenue is not really the biggest opportunity. But there’s more to the game.
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