Just like video killed the radio star and DVDs killed the VHS, history is repeating itself yet again with the battle between DVDs/Blu Rays and digital entertainment.
As the Home Entertainment Market goes, it can be divided into two formats:
The physical format has been witnessing a continuous decline over the past five years. This is because of the continuous reduction in the prices of DVDs and BDs has contributed to a decline in market revenue. The market for DVDs has matured worldwide and is being replaced by the distribution of digital channels. The BD market is growing rapidly, but is unable to compensate for the loss in revenue of DVDs.
On the other hand, the digital format is expected to thrive over the next few years thanks to benefits like better picture quality, low cost, and direct access through TV. Digital entertainment does not require any physical material to store the content. OTT and streaming services can be directly accessed over the internet and VOD is accessed through TV subscription providers.
The popularity of digital entertainment is propelling Home Entertainment Market growth at a CAGR of just under 4 percent from 2013-2018.
In fact, digital entertainment is gaining so much steam that in our Home Entertainment Market report, our analysts have forecasted market shares to look something like this:
Although our report’s forecast period ends in 2018, TechNavio analysts are certain that by 2019, digital entertainment will overthrow the physical format as the market leader.
During the 2013-2018 period, the digital entertainment segment is expected to grow at a CAGR of over 21 percent, while the physical segment faces a declining CAGR of (3.36) percent.
Further, the OTT/Streaming segment is the fastest growing segment in the Global Home Entertainment market. Leading players like Netflix and Hulu are upgrading their content and are innovating with newer business models.
With the availability of various subscription options and premium content, the demand for OTT subscription services has increased over the past few years. This segment is expected to lead the growth of the overall market during the forecast period.
