Growth of Home Entertainment Sector

RECENT NEWS
Forbes  Jun 21  Comment 
One of 2014's best films, The Grand Budapest Hotel, makes its way to Blu-ray, DVD, and Digital-HD this week. And to honor the occasion, Fox unveiled an incredible reproduction of the hotel itself -- comprised entirely of LEGOs. The fact of a LEGO...
Benzinga  Jun 11  Comment 
Montage Technology Group Limited (Nasdaq: MONT) ("Montage" or "Montage Technology" or the "Company"), a global fabless provider of analog and mixed-signal semiconductor solutions addressing the home entertainment and cloud computing markets,...
Cloud Computing  Jun 4  Comment 
QNAP, Inc. unveiled its next generation NAS designed for both SOHO and home entertainment aficionados, the TS-x51 along with an industry-first private cloud computing capability feature at COMPUTEX 2014. read more
guardian.co.uk  Apr 30  Comment 
Bluetooth specialist disappoints with first quarter figures and short term outlook Chipmaker CSR has seen its shares fall nearly 6% after a revenues dropped by nearly a quarter. The bluetooth specialist wants to concentrate on higher margin areas...
Benzinga  Apr 28  Comment 
As part of its continued growth and diversification in the music and audio lifestyle arena, Gibson Brands, Inc. (www.gibson.com) today announced that it has signed an agreement with Royal Philips (NYSE: PHG, AEX: PHIA) to acquire WOOX Innovations,...
DailyFinance  Apr 25  Comment 
Time Warner Cable customers now have instant access to the hilarious Universal Studios Home Entertainment animated film, The Nut Job, On Demand. Go nuts for this hilarious family adventure about a mischievous squirrel (Will...
DailyFinance  Apr 11  Comment 
OTTAWA, ONTARIO -- (Marketwired) -- 04/11/14 -- Editors Note: There are photos associated with this release. Roxio today announced the availability of Toast® DVD on the Mac App Store. Toast® DVD makes it simple to burn standard and high...
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 
Amazon.com 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...




 
TOP CONTRIBUTORS


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.
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki