Digital Entertainment : The End is Near

Filed in archive Analysis , Business , Industry on August 9, 2007

If the music biz thinks its declining business will get easier, it's dead wrong. To the contrary, it's a harbinger for the rest of the digital entertainment sector.

That's the conclusion of The Diffusion Group (TDG), a digital home researcher. TDG expects digital home entertainment expenses to level off and rapidly decline after 2012, the result of increased price competition and commoditization.

"The majority of digital home entertainment service revenue will continue to be controlled by 'clustered' service providers such as Comcast and Verizon," said Dr. Predrag Filipovic, author and director of TDG's Digital Home Solutions group. "Although consumers will have more choice in terms of the providers they use for specific entertainment services, only a small share of the revenue and profit pool will shift to alternative or non-facility-based providers."

I've been banging that drum for years and agree.

Disclaimer - I used to work for TDG.