Online Entertainment - US

Published by: Mintel International Group Ltd.

Published: Oct. 1, 2008

Table of Contents

Scope and Themes

What you need to know

Definition

Data sources

Sales data

Consumer survey data

Abbreviations and terms

Abbreviations

Terms

Executive Summary

Explosive growth in a new market

Audio dominates, but video is gaining

Expected shift from paid to advertising models

A mix of different business models

Web entertainment slowly takes over

Tie social networks to the retail experience

Telling our collective story online

Market Size and Forecast

Key points

Fast growth in an emerging market

More room to expand

The mobile opportunity

Figure 1: Total U.S. sales and forecast of online audio and video, at current prices, 2005-11

Figure 2: Total U.S. sales and forecast of online audio and video, at inflation-adjusted prices, 2002-12

Competitive Context

Broadcast media and movies

Figure 3: U.S. revenues for broadcast media advertising and movies, 2003 and 2007

Traditional physical media

Figure 4: Audio: physical unit sales and revenues, 2002-07

Figure 5: U.S. DVD and VHS video sales and rentals, 2002-08

New forms of physical media

Segment Performance

Key points

Explosive growth for video

The future’s in advertising

Figure 6: U.S. sales and forecast of online audio and video, at current prices, by segment, 2005-12

Figure 7: U.S. sales of online audio and video, by segment, 2006 and 2008

Segment Performance—Online Audio

Key points

Strong but slowing growth

Paid models outpace advertising

New competitors for iTunes

Figure 8: U.S. sales and forecast of online audio, at current prices, 2005-12

Figure 9: Online audio revenues, by segment, 2005-08

Segment Performance—Online Video

Key points

Surging growth for a new sector

Key usability issues need to be resolved

Potential for advertising

Figure 10: U.S. sales and forecast of online video, at current prices, 2005-12

Figure 11: Online video revenues, by segment, 2005-08

Market Drivers

The digital revolution

Figure 12: U.S. penetration of leading media technologies, 2005 and 2007

Growth of broadband

Figure 13: U.S. households with broadband and dial-up internet access, 2003-07

Regulatory, copyright and DRM issues

The economic crisis

Figure 14: Consumer sentiment index, 2001-08

Leading Companies

Key points

Overview

Figure 15: Top 10 streaming audio sites, by unique visitors, March 2008

Figure 16: Top 10 streaming video sites, by unique visitors, July 2008

Company profiles

Figure 17: Overview of leading online audio and video companies

Amazon

iTunes

Netflix

Pandora

Rhapsody

YouTube

Innovation and Innovators

Current TV

imeem

RemoTV

Advertising and Promotion

Overview

Television advertising

Apple iTunes

Figure 18: Apple iTunes television ad, 2008

MySpace

Figure 19: MySpace television ad, 2008

Netflix

Figure 20: Netflix television ad, 2008

Rhapsody/Verizon

Figure 21: Verizon/Rhapsody television ad, 2008

Usage

Online music usage

Figure 22: Trended purchase incidence of music downloads, by gender, age, household income and race/Hispanic origin, 2005 and 2008

Figure 23: Average number of music downloads purchased, by gender, age, household income and race/Hispanic origin, 2005 and 2008

Figure 24: Number of audio downloads during the last month, by type, by gender, age, household income and race/Hispanic origin, June 2008

Online video usage

Figure 25: Usage of free online video, by gender, age, household income and race/Hispanic origin, June 2008

Figure 26: Usage of paid online video, by type, by gender, age, household income and race/Hispanic origin, June 2008

Figure 27: Level of free video usage during the past month, by gender, age, household income and race/Hispanic origin, June 2008

Spending

Online audio spending

Figure 28: Average spending on online audio over the past month, by gender, age, household income and race/Hispanic origin, June 2008

Online video spending

Figure 29: Average spending on online video, by type, and estimated future spending, by gender, age, household income and race/Hispanic origin, June 2008

Content Genres

Online audio genres

Figure 30: Online audio genres downloaded or listened to, by gender, June 2008

Figure 31: Online audio genres downloaded or listened to, by age, June 2008

Figure 32: Online audio genres downloaded or listened to, by race/Hispanic origin, June 2008

Online video genres

Figure 33: Online video genres consumed, by gender, June 2008

Figure 34: Online video genres consumed, by age, June 2008

Figure 35: Online video genres consumed, by race/Hispanic origin, June 2008

Attitudes and Behavior

Attitudes towards the internet and entertainment

Figure 36: Trended attitudes towards the internet and entertainment, 2003-08

Attitudes towards video and technology

Figure 37: Attitudes towards video and technology, by gender, June 2008

Figure 38: Attitudes towards video and technology, by age, June 2008

Figure 39: Attitudes towards video and technology, by household income, June 2008

Figure 40: Attitudes towards video and technology, by race/Hispanic origin, June 2008

Online audio usage behavior

Figure 41: Online audio usage behavior, by gender, June 2008

Figure 42: Online audio usage behavior, by age, June 2008

Online video usage behavior

Figure 43: Online video usage behavior, by gender, June 2008

Figure 44: Online video usage behavior, by age, June 2008

Figure 45: Online video usage behavior, by race/Hispanic origin, June 2008

Teens

Usage

Figure 46: Average number of music downloads purchased by teens, by gender, age, race/Hispanic origin and gender/age, 2007

Figure 47: Incidence and number of free audio downloads by teens, by gender and race/Hispanic origin, June 2008

Figure 48: Incidence of free video streaming and downloads and hours spent by teens, by gender and race/Hispanic origin, June 2008

Content genres

Figure 49: Audio and video content genres downloaded/listened to by teens, June 2008

Appendix: Other Useful Consumer Tables

PC vs. handheld usage of online audio/video

Figure 63: Usage of online audio on PCs and handheld devices, June 2008

Figure 64: Usage of online audio during last month on PCs and handheld devices, June 2008

Figure 65: Usage of online video on PCs and handheld devices, June 2008

Figure 66: Usage of online video during last month on PCs and handheld devices, June 2008

Attitudes and behavior

Figure 67: Online audio usage behavior, by household income, June 2008

Figure 68: Online video usage behavior, by household income, June 2008

Appendix: Trade Associations

Abstract

The digital revolution has led to a paradigm shift in how people communicate and consume content. In this new environment, the audio and video content industries have been completely transformed. Consumers can now immediately download or stream an incredibly broad range of multimedia content from their homes, in many instances for free. In this report, Mintel examines the emerging sectors of online audio and video, including key industry players; market drivers and trends; and consumer behavior and attitudes in order to determine the business models and strategies most likely to succeed going forward.

Specifically, this report discusses:

• Market size, segmentation and growth trends
• How paid download-, content subscription-, rental- and ad-supported-business models compare
• What important factors will shape this emerging sector, including the spread of digital tools and technologies, the rise of broadband connections and the current overall economy
• How consumers chose media and entertainment based on need in a very competitive market

Get Full Details About This Report >>

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 250,000 market research reports, company profiles and country profiles from over 650 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.