TV’s slice of pie will grow

Households spending more on home entertainment

TV will continue to dominate future global home entertainment spending, according to new research from Informa Telecoms and Media.

The world’s households spent an average of $182.40 on home entertainment in 2005. This number will rise to $225 by 2010, for an average increase of 4.7% for every year since 2000.

In 2000, TV accounted for 44% of the combined revenues of the four main entertainment sectors, ahead of film, music and games, with 24%, 23% and 9% respectively.

Informa predicts that by 2010, TV will take 53% of the total, followed by film with 19%, music with 15% and games with 13%. TV’s dominance is attributed to the growth of digital channels.

Not surprisingly, the sector forecast to suffer most is recorded music.

“Availability of free music via P2P has given users the opportunity to have their cake and eat it,” said Simon Dyson, author of Digital Home Entertainment: Future Consumer Spending Habits. “Rather than replace one home entertainment category with another, P2P users have been able to reduce spending on music while at the same time spend more on another category.”

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