Growth of Home Entertainment Sector

Forbes  May 25  Comment 
Everyone talks like Warner's DC Comics superhero films are in crisis and failing, but the box office and home entertainment numbers tell a different story.
The Hindu Business Line  May 24  Comment 
Epson recently launched new home projector models in India. In the home entertainment segment, these projectors offer a good visual fix for those who have the space and the money for them. We ask Prav...
The Hindu Business Line  May 10  Comment 
Epson’s EH-TW6700 is a good addition to your home entertainment kit
Forbes  Apr 19  Comment 
Overall, the ZD9 stands out as the best Android TV and one of the best TVs and home entertainment solutions in the industry.
Wall Street Journal  Jan 30  Comment 
Sony said it would write down nearly $1 billion on its film and TV studio, primarily due to continuing declines in home entertainment spending on items like DVDs.
TechCrunch  Jan 16  Comment 
 The $199 device (or $299 for a larger version with a built-in 500GB hard drive) has big ambitions: Nvidia wants Shield TV to be not only the only streaming TV box you need, but also a gaming console, a smart home device and a personal digital...
DailyFinance  Dec 28  Comment 
Filed under: Finance, Industry In business as in life, imitation is the sincerest form of flattery. Alibaba, Amazon's China-based ecommerce rival, is planning to spend more than $7 billion on its entertainment division over the next three...
Forbes  Dec 1  Comment 
With a hugely successful 2016 at the box office, Warner Bros. is looking at the potential of home entertainment and television to propel it into 2017.
Forbes  Sep 1  Comment 
This Friday, Captain America: Civil War releases in Digital-HD format, and audiences have a unique opportunity for an exclusive experience that could redefine the home entertainment experience. Marvel has partnered with iTunes to provide a vast...


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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