June 2009 Digital Entertainment Meets Social Media Paul Verna, Senior Analyst
[email protected] Executive Summary: Three pillars of the entertainment industry—music, movies and video games—are facing disruptive changes that are prompting them to explore opportunities in digital distribution, digital marketing and social media. 103969 Key eMarketer Numbers — Digital Entertainment The recorded music industry is the most beleaguered of all. Knocked off balance by the emergence of the MP3 in the late $4.56 billion US digital music spending in 2013, up from $3.00 billion in 2009 1990s, it has not recovered since. CD sales are plummeting and 82.6% US digital music spending as a percent of total US digital revenues are not picking up the slack.The industry faces recorded music spending in 2013, up from 41.0% in 2009 an uncertain future as it grasps at alternative business models. $5.52 billion Total US recorded music spending in 2013, down from $7.31 billion in 2009 The film business is facing problems of its own, but it is $2.65 billion US online advertising spending by MPAA-member fundamentally healthier.A period of sustained growth in film studios and their subsidiaries in 2013, up Hollywood’ s two core businesses—box-office receipts and from $1.24 billion in 2009 DVD sales/rentals—has stopped and new physical and digital 14.2% Percent of film studio advertising budgets spent online in 2013, up from 7.7% in 2009 formats have not taken a solid place in the revenue mix. $681 million US in-game advertising spending in 2013, up from $443 million in 2009 The video game industry has escaped much of this trouble.