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The Battle for OTT Video: Redistributing Video Industry Dollars

In-Stat/MDR, Oct 2010, Pages: 38


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The decline of retail video disc sales, on-demand viewing of TV content, and the threat of video cord cutting will force many changes in the video entertainment industry in the years ahead. This research report reviews the economics behind the video entertainment industry today, encompassing theater box office, home video, pay-TV, premium TV channels, broadcast networks, online video, and video disc rentals. 2009 revenue and expense totals for each market segment are presented, highlighting the general profitability of each business model.

Using this as a baseline, three critical market trends are assessed from a revenue and profit standpoint. These market trends include the introduction of Apple’s 99-cent iTunes online TV rentals, replacement of retail DVD/Blu-ray disc sales revenue, and the viability of the pay-TV business model. The research is supported by In-Stat's primary and secondary research data. Based on the research conclusions, five-year forecasts for each video entertainment market segment are presented.

This research report debunks many of the popular myths circulating in the industry with regard to video cord cutting, and the demise of video entertainment business models. It also presents insightful solutions to today’s market challenges.



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