In 2014, 69% of video game software revenues were generated by digital sales and distribution, compared with 22% in 2008. Revenues from dematerialisation have experienced an average annual growth of 26.8% over the period, compared with 9.7% for revenues from physical sales.
The video entertainment distribution sector is still evolving. Case in point: the pay-TV operators within North America continue to be challenged during the second quarter of 2015, as significant new subscriber losses pose an ongoing threat to their core business model.
Consolidation continues across the key sectors of the digital technology markets within America. According to the latest market study report from PwC, the second quarter (Q2) 2015 deal value reached $76 billion — that’s compared to $39 billion in the first quarter (Q1) 2015.
Linear TV will remain a powerful force for some time: a study found that half pay for a TV subscription and 2.5 hours is devoted to linear TV daily. However, 16-24 year-old now average an hour each day watching online TV, which is a third of their daily TV viewing time.
Recorded music is the most mature segment of mobile entertainment. Given the current spread across competing platforms, it’s clear that online digital distribution is now the core of that industry. And, when offered a choice, fewer people will opt to own copies of music recordings.
Connected TVs – particularly 4K TVs – will be a major driver of fixed IP traffic. The TV set share of network data traffic will increase from 29% in 2015 to 41% by 2020, as the unique characteristics of fixed next-generation internet access networks give telecom operators a new revenue opportunity.
via Analysys Mason
The impact of alternative forms of video entertainment on the traditional pay-TV sector is now very much a global phenomena. What started as a small disruption in North America, with the introduction of Netflix and Hulu service offerings, has evolved into a transformation that reaches far and wide.