Piracy, OTT and free apps reducing entertainment product ownership
Editor ©RapidTVNews | 09-12-2011 Ongoing “woes” in the entertainment market are continuing largely as a result of consumer reluctance to spend with entertainment retailers, new research from Companiesandmarkets has found.
The analyst believes that the UK home entertainment market peaked in 2008 at £7.7 and since then has continuously declined. It calculates that the market will be worth £6.1 billion in 2011 and that it will decline even further 1.8% in 2012.
Attempting to explain the decline, the research blamed an unholy trinity of piracy; free access to streaming services, with Spotify, Grooveshark, YouTube and the BBC iPlayer cited; and access to free apps and casual online games has reduced the value consumers attach to the ownership of entertainment products.
Going forward, Companiesandmarkets predicts that 21.4% of UK entertainment sales will occur digitally in 2011 as a result of growing broadband penetration, faster connection speeds, increased use of mobile internet and greater online connectivity of devices such as TVs, tablets and games consoles.