Report: Video, wireless to keep making money
Wireless broadband, even at today’s modest megabit-per-second data rates, is on a pace to rake in $34.7 billion in 2008, and may grow to more than $113 billion in 2018, according to new projections from SNL Kagan.
Video, music and the Internet – entertainment services – should continue to be prosperous.
The research operation lumps PPV, VOD and DVR together; it projects movie revenues on pay-per-view and VOD will increase to $4.6 billion by 2018, from $1.6 billion in 2008, a compound annual growth rate of 10.8 percent.
Even during a financial downturn, Kagan noted, history proves that consumers will continue to spend on entertainment.
The research organization thinks that movie theaters will be the main beneficiary, with domestic revenues having reached a record gross of $9.67 billion in 2007.
New and emerging media, most notably wireless data services, are revolutionizing how consumers access entertainment. According to SNL Kagan, mobile video/TV, music and games comprise 9.6 percent of total U.S. data revenues for 2007, or $2.4 billion. SNL Kagan projects revenues for the three mobile-entertainment categories to grow exponentially over the next decade, with a compound annual growth rate of 18.6 percent for video/TV, 12.2 percent for music and 10.9 percent for games.
SNL Kagan also projects that Internet advertising revenue will grow from approximately $21 billion in 2007 to $76 billion in 2018.
The new report, called Media Trends 2008, is now available from SNL Kagan.
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