Abstract
Overview
This report provides a valuable overview of trends and developments for the
global online entertainment sector. The report analyses the key market
segments and issues impacting upon this sector; the major players; emerging
trends and the importance of advertising. It explores key issues and
opportunities and provides analyses, statistics, forecasts and trends.
Subjects include:
- Insights into the competitive online entertainment environment;
- Social network and gaming insights;
- Online video and web TV insights;
- Key online entertainment segment insights;
- Advertising and marketing in the digital age;
- Insights into the impact on traditional media;
- Regional overview of online entertainment industry.
Key developments:
There are a number of key areas the Internet Media companies are focusing
including developments in mobile and enhancing fixed online services. Revenues
generated from advertising are still of key importance to this sector.
Internet advertising expected to grow by around 18% in 2012. Microsoft is
revitalising its online advertising offerings via partnerships. Purchasing and
accessing online music has been very popular for a number of years and was one
of the key drivers behind the early developments in digital media; while the
digital music sector continues to grow; video streaming is beginning to
overtake music downloading over fixed and mobile networks. Online gaming is
one of the most popular online activities after social networking.
Examples of companies mentioned in this report:
Google; Facebook; MySpace; News Corp; Microsoft; Amazon, Apple; Hulu; Netflix;
Baidu.
Executive Summary
BuddeComm's annual publication Global Digital Media - Entertainment a Key
Online Activity, gives the latest insights into the popular online
entertainment sector. The report includes broad statistical information and
insights into internet media trends with a focus on the key sectors of video
media, social networking, digital music and online gaming and gambling.
It provides insight into the impact on traditional media, the importance of
advertising to the online sector and emerging trends like cloud computing. The
report also includes a unique perspective into how the online entertainment
sector is unfolding differently around the world by incorporating regional
overviews written by BuddeComm's senior analysts.
As we have been predicting for several years, the future of the digital media
is very much revolving around video-based services. Video applications over
broadband have emerged over the last few years as Internet media companies and
content producers seek to exploit the added speed and capacity of broadband
infrastructure. The killer application on these networks is video based
communication, often produced by users themselves.
Users want to share their interests with like-minded people and this is
creating an enormous number of niche markets - many based simply on free
sharing, others on small charges, while others are managed by commercial
organisations, earning their revenues from advertising and marketing
activities.
In 2012 social networks are aggressively positioning their sites as a link
between consumers and merchants. Both fixed and mobile social networks now
tend to market themselves as a tool for merchants to connect with consumers
and promote brands - rather than just as services for connecting friends.
Facebook remains the global social media leader and while it has managed to
capture the largest share of the market in recent years, the industry is not
sitting still and new social networks continue to emerge that aim to improve
upon the originals models or introduce new concepts, such a Foursquare,
Instagram and Pinterest.
In addition, online gaming, particularly social gaming is becoming
increasingly popular. Facebook is well positioned in this area too, offering
popular games such as Zynga's Farmville and Words with Friends. Cloud-gaming
is emerging with the launch of BT's OnLive service.
The trend towards digital music continues unabated and now accounts for over
30% of global music revenues. While Apple iTunes remains an industry leader;
it now operates in a more competitive environment with Spotify, Deezer,
Grooveshark and Amazon online music just some of the players vying for
position. Using cloud services to store and listen to music is another growing
cloud trend.
Market Highlights
- Online video, also known as web TV, already makes up the largest component
of global Internet traffic.
- The next phase of growth for online video involves consumers accessing
Over-the-Top (OTT) via other devices such as Smart TVs, connected TVs and
online game consoles.
- Google retains global online video dominance with over 40% of videos
viewed via YouTube worldwide.
- Internet video viewing is beginning to mimic traditional TV with Blinkx
and Burst Media partnering to offer specific Internet “channels”
or websites offering videos (and advertising) aimed at target audiences.
- As online entertainment and media operate in a virtual environment, this
sector is seen as a prime area for benefiting from cloud computing
developments.
- Seven Latin American countries are among the world's top thirty in terms
of Facebook users.
- Twitter usage increases twenty-fold in South Africa in 2011.
- The internet plays a significant part in the lives of vast numbers of
people across the Asia-Pacific. The young and tech-savvy of the region spend
vast amounts of time online in their pursuit of digital media entertainment.
- In Australia the mobile wagering market is experiencing nearly 400% growth.
- New Zealand will see 2.1 million consumers spend around NZ$2.4 billion
online in 2012.
This report is essential reading for those needing high level strategic
information and insights on global the online entertainment sector.
Table of Contents
1. Internet Media - Competing in many Entertainment Markets
- 1.1. Internet Media Competition and Diversity
- 1.1.1. Introduction and analyses
- 1.1.2. Internet media companies
- 1.1.3. Key trends for digital media companies
- 1.1.4. Brief case study: MySpace
- 1.1.5. Brief case study: News Corp
2. Global Social Networks and Online Gaming
- 2.1. Key Social Network and Gaming Trends
- 2.1.1. Social networks market summary
- 2.1.2. Social networks market insights
- 2.1.3. Brief case studies
- 2.1.4. Online and mobile gaming market
- 2.2. Social Enterprise no longer means philanthropy
- 2.2.1. Introduction
- 2.2.2. Building lifelong customer relationships
3. Global Online Video Media and Web TV
- 3.1. Key Online Video and Web TV Trends
- 3.1.1. The power of online video media
- 3.1.2. Killer applications
- 3.1.3. Brief case studies
- 3.1.4. Delivery trends
- 3.1.5. Conclusion: The future of video in telecoms
4. Other Key Online Entertainment Services
- 4.1. Other Online Entertainment Sectors
- 4.1.1. Digital media and entertainment
- 4.1.2. Key online entertainment services
- 4.1.3. E-commerce converging with entertainment
- 4.1.4. Digital Rights Management (DRM)
5. Global Online Advertising and Marketing
- 5.1. Key Online Advertising and Marketing Trends
- 5.1.1. Market summary
- 5.1.2. Market insights
- 5.1.3. Key online advertising categories
6. Impact on Traditional Media
- 6.1. Key Issues for Traditional Media
- 6.1.1. Market summary
- 6.1.2. Market insights
- 6.1.3. Whatever happened to media convergence?
- 6.1.4. Media companies need to disaggregate and rebuild
- 6.1.5. TV broadcasters
- 6.1.6. Radio broadcasters
- 6.1.7. Print media/newspaper publishers
- 6.1.8. The video and DVD rental companies
- 6.1.9. The anomaly of the mass media
7. Regional Overviews
- 7.1. North America
- 7.1.1. Video Media Trends
- 7.2. Latin America
- 7.2.1. Social networking
- 7.2.2. Online gaming
- 7.2.3. Broadband TV (IPTV)
- 7.3. Europe
- 7.4. Africa
- 7.5. Middle East
- 7.5.1. Overview
- 7.5.2. Social networking - Facebook and the local competition
- 7.5.3. Maktoob's success
- 7.5.4. Jabbar Internet Group
- 7.5.5. Jordan's online successes
- 7.5.6. Movies, TV and music - Rotana Group predominates
- 7.5.7. Online advertising and marketing
- 7.5.8. Video-on-Demand (VoD)
- 7.6. Asia
- 7.6.1. Market overview
- 7.6.2. China
- 7.6.3. South Korea
- 7.6.4. Singapore
- 7.7. Pacific Region
- 7.7.1. Australia
- 7.7.2. New Zealand
8. Glossary of Abbreviations
LIST OF TABLES:
- Table 1 - Visitors to top web properties worldwide - 2008; June 2009; May
2011
- Table 2 - Worldwide search engine market share - Mid 2011; Feb 2012
- Table 3 - Worldwide advertising spending- all mediums - 2008 - 2012
- Table 4 - Worldwide online advertising spending - 2007 - 2012
- Table 5 - Most popular forms of online advertising
- Table 6 - Google total advertising revenue and mobile advertising revenue
- 2006 - 2012
- Table 7 - Worldwide smart phone operating system market share - 2007 -
2010; Q3 2011
- Table 8 - Time spent on online in social networks by top 10 countries -
2010; 2011
- Table 9 - Worldwide market share of mobile social network users - 2008;
2012; 2013
- Table 10 - Worldwide social network advertising spending - 2008 - 2016
- Table 11 - USA social network advertising spending - 2008 - 2009
- Table 12 - Visitors to top web properties worldwide - 2008; June 2009; May
2011
- Table 13 - Top 10 countries using Facebook - 2012
- Table 14 - Total value of bets placed via mobile gambling worldwide -
2006; 2010; 2015
- Table 15 - Worldwide in-game advertising spending - 2010; 2013
- Table 16 - Global revenue from online video - 2008; 2012
- Table 17 - Growth of Hulu video streams - various months - 2008 - 2011
- Table 18 - Market share of top Internet VoD providers in the US - mid 2011
- Table 19 - Subscribers to Netflix - 2010; Aug 2011; Sept 2011
- Table 20 - Online video unique visitors - top online video properties in
the US - May 2010; Jan 2011; Sep 2011; Feb 2012
- Table 21 - Worldwide Internet users - 2000 - 2012
- Table 22 - Worldwide Internet penetration by region - 2009; 2011
- Table 23 - Worldwide fixed broadband subscribers and annual change - 2005
- 2012
- Table 24 - Worldwide digital music revenue - 2007 - 2011
- Table 25 - Worldwide e-commerce revenue - 2009 - 2013
- Table 26 - Visitors to top fifteen web properties worldwide - June 2010;
March 2011
- Table 27 - Worldwide advertising spending- all mediums - 2008 - 2012
- Table 28 - Worldwide online advertising spending - 2007 - 2012
- Table 29 - Most popular forms of online advertising
- Table 30 - Western Europe mobile ad spending - 2009 - 2012
- Table 31 - Asia-Pacific mobile ad spending - 2009 - 2012
- Table 32 - Google advertising revenue - 2006 - 2012
- Table 33 - Worldwide smartphone operating systems by market share - 2007 -
2010; Q3 2011
- Table 34 - Worldwide in-game advertising spending - 2010; 2013
- Table 35 - Worldwide social network advertising spending - 2008 - 2016
- Table 36 - USA social network advertising spending - 2008 - 2009
- Table 37 - US online advertising revenues - top four portals - 2008 - 2011
- Table 38 - Worldwide advertising spend versus online advertising spend -
2009 - 2012
- Table 39 - Growth of Hulu video streams - various months - 2008 - 2011
- Table 40 - Most popular formats for receiving news in the USA - 2010
- Table 41 - Growth of e-reader sales - 2009 - 2013
- Table 42 - Facebook users - top 7 countries in Latin America - 2011 - 2012
- Table 43 - South African unique monthly users of selected websites - June
2010
- Table 44 - Online advertising revenue and annual change in South Africa -
2003; 2006 - 2010
- Table 45 - Middle East Facebook penetration - December 2011
- Table 46 - Utilisation rate and number of users of different network
applications in China - 2009 - 2011
- Table 47 - Online gaming revenues - 2004 - 2012
- Table 48 - Online gamers users - 2007 - 2011
- Table 49 - Online video users - 2007 - 2011
- Table 50 - Online music users and utilisation rate - 2007 - 2011
- Table 51 - Instant messaging users and utilisation rate - 2007 - 2011
- Table 52 - China's top 15 social networks - March 2011
- Table 53 - China's SNS market share and user loyalty - 2010
- Table 54 - China advertising market revenues in major media - 2001, 2010,
2012 (e)
- Table 55 - Internet usage rates by service - 2009 - 2011
- Table 56 - Main purpose of using the internet - 2009 - 2011
- Table 57 - Online versus offline media consumption - 2010
- Table 58 - Online game market volume - 2002 - 2008
- Table 59 - Digital music market volume - 2003 - 2009
- Table 60 - Usage rates by types of social networking service - 2011
- Table 61 - Top social networking sites in Australia - 2009 - 2012
- Table 62 - Estimated social networking members by major sites in Australia
- 2007; 2010 - 2012
- Table 63 - Online shoppers in New Zealand - 2006 - 2012
LIST OF CHARTS:
- Chart 1 - Worldwide Internet users - 2000 - 2012
- Chart 2 - Overview of online shoppers versus adult population in New
Zealand - 2006 - 2012
LIST OF EXHIBITS:
- Exhibit 1 - Key areas of focus for Internet media companies
- Exhibit 2 - Digital advertising cost considerations
- Exhibit 3 - Examples of large global advertising groups and subsidiaries
- Exhibit 4 - Examples of digital advertising agencies
- Exhibit 5 - Top sectors for online advertising spending
- Exhibit 6 - Facebook
- Exhibit 7 - Foursquare - 2012
- Exhibit 8 - Mobile video communication: FaceTime and Google Talk
- Exhibit 9 - Twitter usage facts
- Exhibit 10 - Linked In - 2012
- Exhibit 11 - Examples of key players in gaming industry sectors worldwide
- Exhibit 12 - Online gambling in the US
- Exhibit 13 - Anarchy Online by Funcom
- Exhibit 14 - The new definition of social enterprise
- Exhibit 15 - Foursquare - 2012
- Exhibit 16 - Peter Drucker on customers
- Exhibit 17 - Examples of online VoD sites
- Exhibit 18 - Google Android based TV
- Exhibit 19 - Equivalence between access modes and traditional audiovisual
use
- Exhibit 20 - A first for the industry - Tata Communications and Cisco's
telepresence solution
- Exhibit 21 - BBC iPlayer and ABC iView
- Exhibit 22 - Definition: Content Delivery Networks (CDN)
- Exhibit 23 - Examples of popular online dating sites
- Exhibit 24 - Examples of key players in gaming industry sectors worldwide
- Exhibit 25 - Online gambling in the US
- Exhibit 26 - Apple iTunes
- Exhibit 27 - Online music sector - key facts
- Exhibit 28 - European Commission e-commerce five priorities - 2012
- Exhibit 29 - Digital advertising cost considerations
- Exhibit 30 - Examples of large global advertising groups and subsidiaries
- Exhibit 31 - Examples of digital advertising agencies
- Exhibit 32 - Top sectors for online advertising spending
- Exhibit 33 - Online ad deal between Google and Yahoo aborted
- Exhibit 34 - Anarchy Online by Funcom
- Exhibit 35 - Facebook and Nielsen's marketing alliance
- Exhibit 36 - Top social networking sites in New Zealand - 2011 - 2012
- Exhibit 37 - Overview of top 5 visited sites in New Zealand - 2011 - 2012
