Growth of Home Entertainment Sector

Forbes  Mar 24  Comment 
This week brings The Hunger Games: Mockingjay Part 2 to home entertainment, as the Blu-ray and DVD hit shelves alongside a four-film box set filled with hours of special features and deleted scenes. Yesterday I brought you my interview with the...
New York Times  Jan 6  Comment 
Disc sales dropped 12 percent last year, the Digital Entertainment Group reported, but streaming was up almost 25 percent.
Forbes  Dec 17  Comment 
This week sees the Blu-ray and DVD release of Mission: Impossible - Rogue Nation, the fifth film in star Tom Cruise’s adrenaline-fueled action franchise that continues to do huge business at the box office and on home entertainment. The series...
Benzinga  Sep 10  Comment 
Dolby Laboratories, Inc. (NYSE: DLB) and Sony Pictures Home Entertainment (SPHE) today announced plans to use the new Dolby Vision™ mastering process for the release of 4K Ultra HD titles by a variety of home entertainment distribution partners,...  Aug 12  Comment 
Paramount Home Media Distribution and Highlight extend distribution agreement DGAP-News: Highlight Communications AG / Key word(s): Agreement Paramount Home Media Distribution and Highlight extend distribution agreement 12.08.2015 /...
MarketWatch  Aug 6  Comment 
Shares of Lions Gate Entertainment Corp. fell 6% on Thursday after the company reported first-quarter 2016 earnings with net income of $40.7 million, or 26 cents per share, compared with $43.3 million, or 30 cents per share in the same period a...
Forbes  Aug 5  Comment 
Epson has today announced a new series of LCD home entertainment projectors aimed at the value end of the projection market.
Forbes  Jul 8  Comment 
A new Paramount deal sees the window between theatrical releases and home entertainment shrink even more. What does this mean for North American cinema?
Benzinga  Jun 11  Comment 
Redbox today announced a new agreement with 20th Century Fox Home Entertainment, maintaining a 28-day window on Blu-ray Disc® and DVD titles through June 30, 2017. Redbox Logo "We look forward to working with Fox to utilize our digital...
TechCrunch  May 28  Comment 
 Google’s Chromecast is a quiet little media secret agent turning the search giant into a big time home entertainment player. All told, users of Cast-enabled software have hit the little button to put their small-screen content up on the big...


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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