Consumers Will Spend 260% More for Internet Entertainment in Five Years

Consumers Will Spend 260% More for Internet Entertainment in Five Years

According to Digital Lifestyles: 2006 Outlook, from Parks Associates, U.S. consumer spending for online entertainment, including on-demand gaming, music and video services, will grow by 260% in the next five years. Driven by broadband usage and innovations in digital entertainment platforms and content services, revenues will grow from $2.4 billion in 2006 to nearly $9 billion in 2010.

Kurt Scherf, vice president and principal analyst, Parks Associates, said "This year will be a watershed for delivering to consumers an array of new entertainment experiences… we'll see significant product and service announcements throughout 2006."

Scherf indicated that the online video market will be active in 2006, as PC and consumer electronics manufacturers seek to expand their influence by offering more integrated networked solutions to end users.

  • The number of worldwide consumer broadband subscribers will grow from 184 million in 2005 to more than 360 million in 2010
  • The number of households worldwide using data networking equipment will grow from approximately 82 million in 2005 to more than 135 million in 2010
  • Worldwide subscribers to IP multichannel video services (IPTV) will grow from approximately five million in 2005 to nearly 70 million in 2010.

For more information about Digital Lifestyles: 2006 Outlook, please go here.

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