Report: Digital Media Revenues Top Filmed Entertainment

BOSTON, December 18: For
the first time, revenues from digital media will top those generated by filmed
entertainment (including movie theaters and home video) in 2008, according a
study by Strategy Analytics.

Global Media &
Entertainment Market Forecast, 2004—2012 reveals that worldwide revenues from media and
entertainment—TV and film, music, games and advertising—will top
$845 billion this year. Of that amount, $90 billion will come from online and
mobile channels, with $83.1 billion coming from filmed entertainment.

Plus, total revenues from
all online channels will grow on average at 18 percent annually until 2012,
while revenues from traditional media channels will increase by just 3 percent.
Overall, the industry will experience a 5.8-percent year-on-year growth this
year, slowing to 4.5 percent next year.

Martin Olausson, the
director of digital media research at Strategy Analytics, said, "The fact
that digital media revenues now exceed those from movie theaters and home video
supports the large online investments made by most major media companies."

David Mercer, the VP of
digital consumer practice, added: "Like most industries, the media sector
faces a challenging 2009. However, while revenues from traditional routes to
market stagnate, digital business models still provide the growth opportunities
that are vital to the industry's future prosperity."

—By Mansha Daswani