The way that CapGemini analysts see the home entertainment industry, business models are due to change significantly between now and 2013. During the shift, some traditional players may lose market share or go out of business. For example, the annual value of DVD sales is predicted to drop from $13.3 billion in 2008 to $3 billion in 2013. Similarly, the annual rental value of disc rentals is predicted to fall from $6.558 billion to $4.6 billion during the same time period. While these are grim statistics for operators in those specific industries, the technology driving the digital transition across the U.S. is generating opportunity for other business types.

For example, the number of households with pay TV and VOD availability will jump to 64.1 million in 2013 and about 93.2% of households will have broadband Internet access that same year.  As these households reach critical mass, they’ll be accessing their home-based entertainment in new ways.

Households that are accessing content via VOD will be driving more growth in the market and InStat data indicates that by 2013, content providers could tap into an Internet VOD ad market that will be worth as much as $1.865 billion. Similarly, the pay-TV VOD ad market is predicted to reach a market value of $8.558 billion in 2013.

Consumers will be using a mix of Blu-ray players, video game consoles or a PC that acts as a media center to stream data from the Internet to their TVs. As they do so, they’ll be paying more for their content and the advertisers will also be paying content providers for access to consumer attention.

Look for more marketers to begin exploiting this opportunity as consumers spend more on direct download home entertainment services.

[Source: The Digital Entertainment Revolution. In-State and CapGemini. 2010. Web. 20 May 2010]