Growth of Home Entertainment Sector

DailyFinance  Apr 7  Comment 
AURORA, IL--(Marketwired - April 07, 2014) - Peerless-AV, in conjunction with WyreStorm, is thrilled to announce a line of industry-first HDBaseT-integrated mount kits. Eliminating the cable clutter of the typical home entertainment system and...
Yahoo  Apr 2  Comment Inc unveiled a $99 video streaming device called Fire TV that the e-commerce company promised would be more powerful and easier to use than rival services by Apple Inc, Google Inc and Roku.
Cloud Computing  Mar 20  Comment 
Samsung Electronics Co., Ltd., the leader in TV technology for 8 years, today announced the availability and pricing of its full 2014 Home Entertainment product lineup, including the immersive U9000 Series of Curved Ultra High...  Mar 12  Comment 
New figures show that three-fifths of Britain's video, video games and music sales are now derived from the internet Growing demand for streaming services such as Netflix and Spotify helped the UK home entertainment sector increase its revenues...
DailyFinance  Mar 10  Comment 
Comcast today announced that it has signed an agreement with Sony Pictures Home Entertainment (SPHE) to sell the studio’s titles through the Xfinity On Demand digital store. In the coming weeks, Xfinity TV customers will be...
Forbes  Feb 22  Comment 
During his previous eight years in the clink, Guzman continued to manage his cartel via cell phone, while enjoying access to booze, women and a home entertainment system.
DailyFinance  Feb 13  Comment 
LOS ANGELES, CA -- (Marketwired) -- 02/13/14 -- In Sync Advertising and Bemis Balkind announced their merger today, forming one full-service integrated entertainment agency effective immediately. Under the name, In Sync Bemis...
New York Times  Jan 16  Comment 
Microsoft wants the Xbox One to be the center of a home’s entertainment universe, providing Skype video calls and playing television shows, music and more.     
Financial Times  Jan 9  Comment 
Film studios’ hopes for a happy ending are revived as consumers embrace new home entertainment format, reversing impact of slumping DVD sales
The Economic Times  Jan 7  Comment 
Sony Pictures Entertainment today said it has appointed Man Jit Singh as President of its home entertainment division.


The technology breakthroughs of the past decade have changed the possibilities for home entertainment, and media firms, technology companies, and consumer retailers have all profited as the industry has grown. The introduction of high-definition visual technology, Video on demand, and increasingly interactive gaming has helped the home entertainment sector become an especially attractive part of consumer electronics. Not only is consumer demand high; home entertainment is a traditionally high-margin industry (especially the lucrative speaker cable sector), and new technology is bringing in even more interest and profit.

In addition to the traditional entertainment-specialized players in the sector, a number of familiar heavyweight tech companies have also been trying to break into the profitable business, chasing a goal of "digital convergence"--the unification of internet, TV/cable service, disk media storage (DVDs, high-def DVDs), hard drive storage, gaming, and audio in one high-use, high-expenditure room of the house. From cable companies, who offer bundle packages of high speed internet, TV, and phone lines in one integrated package, to movie studios, who now release their films in formats for regular TV, high definition, portable devices, and online downloading, firms in this industry are rethinking the applications and synergies of their products.

But for each advancement, there is an existing technology that suffers. Blu-ray may be hot today, but movie rental companies will suffer with the coming switch to digital downloads. CDs have all but disappeared as mp3's and iTunes dominate the market. The effects of breakthroughs can be drastic for existing firms, and the best known brand names today may not be those best positioned to profit tomorrow.

Who's Winning Now in Consumer Electronics

Who Will Benefit in the Future

  • Microsoft (MSFT), Apple (AAPL), and Intel (INTC) are among the giants who are trying to edge into the lucrative home entertainment market. Microsoft has been eyeing industry for a while, and its latest venture is a split effort between the Xbox 360 (HD-DVD playing capabilities) and Windows Vista (Media Center edition). Apple has introduced the Apple TV, which lets users play digital media on LCDs. And Intel has just launched its new Viiv (rhymes with "five") line of processors specifically targeted towards PCs used as media hubs.
  • Circuit City Stores (CC) and Best Buy (BBY) are two retailers with big business in home entertainment electronics, and they will attempt to stay ahead of trends by marketing the latest high end products. Recently, for example, Best Buy decided to market Blu-ray discs prominently as the sole medium for high definition film.
  • Netflix (NFLX) has changed the dvd-rental industry over the past couple years through a direct-mail distribution system and has fended off some very strong competition from Blockbuster (BBI). A partnership with LG Electronics will allow it to provide a set-top box for online distribution.[1] This move positions it in competition with Microsoft (MSFT), Apple (AAPL), and Intel (INTC) for control of the living room computer.

Who's In Trouble as Technology Gets Better

  • Shares of Blockbuster (BBI) have hit an all-time low, as investors see a digital, download-able future for home movie viewing. With on demand, DVR, and downloading, the video store may become obsolete. Blockbuster also has to compete with Netflix in the short term, as the mail-only system is poaching subscribers from Blockbuster's network.
  • Toshiba pioneered HD DVD technology, but throughout 2007 and into 2008 the major production companies, retailers, and rental outlets have publicly announced their support of Blu-ray discs. This does not bode well for Toshiba, which has spent millions marketing its HD DVD products.
  • Music labels will lose more revenues, as CD sales continue to decline and digital music becomes the sole method of consumption for most listeners. Major labels EMI and Warner Music have had recent talks about a merger, but a challenger to the dominance of Apple's iTunes has yet to emerge.
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