Online paid entertainment revenue to surge

December 5, 2006 at 4:59 am Leave a comment

Candy (Hong Kong) writes:


According to a new report Digital Lifestyles: 2006 Outlook (by Park Associates) US consumer spending on online entertainment, including on-demand gaming, music, and video services, will grow by 260% in the next five years, from US$2.6 billion to $9 billion. 

This increase is driven by broadband usage and innovations in digital entertainment platforms and content services by providers such as Movielink, Apple iTunes who seek to expand their influence by offering more integrated networked solutions to end users.   Amongst the different forms of online entertainment measured, gaming takes up the largest share.  Internet-enabled video game consoles (from Microsoft, Sony and Nintendo), increased broadband adoption in new parts of the world, and better online functionality are all set to spark an online gaming explosion around the globe that could hit $13 billion by 2011, according to video game researchers in DFC Intelligence. 

Clearly in-game advertising, product placement etc. across multiple gaming platforms can help marketers reach a devoted audience.  It can deliver time-sensitive messages to audiences in a more targeted and engaging way.

In an industry that is seeing the effectiveness of television ads diminished by the gradual widespread of digital video recorders like TiVo, in-game advertising may represent the wave of the future and a more promising way to connect with the coveted and fluid young and affluent segments.  

Entry filed under: media general.

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