Thursday, August 02, 2007

Packaged Media v. Digital Downloading


Great Lakes Media Technology recently attended the Home Media Expo in Las Vegas. The purpose was to examine the future of the entertainment and communications industry. Many in the packaged media industry feel threatened by digital downloading. We are not threatened as we see ourselves as a communications enabler and will invest accordingly as long as we are serving our valuable customers. As we look to invest in the future, we wanted to know where the consumer was headed. We obtained valuable information from not only research experts but also panels of regular entertainment consumers. When asked about the impact of digital downloading, Tom Adams of Adams Media Research said,"Never has a product with so little market share received so much press." His models showed in the video entertainment market, digital downloading represented 8% of the total market. By 2012 both Nielsen and Adams expect digital downloading to capture a max of 12% of the total market. An executive from MovieLink, a leading entertainment download site, discussed many of the quality, security, download time, and marketing pitfalls that they encounter with the service.We came away with the conclusion that the best experience for consumers of media will continue to be delivered on disc for the best experience, and digital downloading is best used as a supplement to the rich disc experience. If you wish to discuss, click discuss!