Abstract
The "big change" coming to the market for Conumser-Oriented Digital Electronic Entertainment markets throughout the world is the up take of non-traditional TV delivery services and the tremendous growth of the DVD-based "packaged goods" business. DVD players are becoming ubiquitous and DVD discs are selling like hotcakes.
New digital delivery services are not likely to supplant the DVD business, but, rather, bring digital entertainment to people by adding either convenience, or accessibility that compliment what the "packaged goods" can provide. Eventually, much of todays digital video entertainment will be available on cell phones, but, in the meantime, its instructive to look at how a basic parameter (TV households) are becoming more accepting of alternative delivery systems. We believe that there are about 120 million TV households in the top five major European markets, and about 51% get their TV services from Cable, Satellite, Digital Terrestrial or Broadband TV services. By 2009, we expect that this percentage will top 78.6%. We expect the market for DVD sales and rentals to continue to show strong growth, up to nearly $17 Billion (US) during 2009.
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