2011 Global Digital Media - Online Sector Entertains the World

Publication Overview

This annual report offers a wealth of information on the global online entertainment sector. The report includes analyses, statistics and trends. The report provides valuable insight into the key trends occurring worldwide and unique regional perspectives on the markets of North America, Latin America, Europe, Middle East, Africa and Asia Pacific.

Subjects covered include:

  • Key Internet Media Trends;
  • Insights into Internet Media leaders Google and Facebook;
  • Key Social Network and Gaming Trends;
  • Key Online Video Media Trends;
  • Key Online Entertainment Services;
  • Digital Marketing and Advertising Trends;
  • Insights into Impact on Traditional Media;
  • Insights into Impact of Cloud Computing;
  • Regional Insights and Statistics.

Researcher:- Kylie Wansink
Current publication date:- May 2011 (4th Edition)
Next publication date:- May 2012

Executive Summary

Online entertainment a key driver to internet use

Online entertainment has become a hugely popular area and every day, internet users around the globe log in for purely entertainment purposes. From updating social networks, watching online videos and participating in games and gambling; the online platform now offers an enormous range of services.

Online video in particular has become recognised as a powerful format for both communicating online and providing an enhanced online experience. Online video is being used by many different industries for advertising, marketing, entertainment, demonstration and communication purposes. The success of Google’s YouTube service, based on user-generated videos, has been well documented and in 2011 YouTube continues to dominate in terms of viewers and streaming. YouTube is also seeking to expand its services beyond only user-generated videos by forming partnerships with online movie content providers.

Other business models have emerged and are proving successful, particularly for online movies and TV shows. Hulu is a prime example of this and Netflix, operating in North America, is also gaining prominence. In 2011 we also saw social networks begin to offer online Video-On-Demand (VoD) services via a partnership between Facebook and Warner Bros. Whole new distribution channels for on-demand videos are opening up and the success of these partnerships will be closely watched by the industry.

As indicated above, Facebook, which began as a social communication tool, is fast expanding its offerings and has become a true competitive threat to Google. Social media is becoming integrated with many service offerings such as e-commerce, unified messaging and online gaming. Facebook is well positioned in the social gaming area too, offering popular games such as Zynga’s Farmville via both online and mobile channels.

Advertising is still the key source of revenue for online entertainment providers and around 15% of overall worldwide advertising spending will be directed towards digital media channels. While the economic downturn initially impacted upon the growth of overall advertising spending; in 2011 there are signs of recovery with online advertising continuing to grow and the ever popular TV advertising rebounding.

The rise of digital media channels has placed much pressure upon the traditional media and entertainment outlets in recent years. This, combined with an economic downturn, has led to much unrest in the media sector. The digital media companies are the clear leaders however, but to a certain extent there will be parallel developments: one driven by Digital TV, using the traditional broadcasting networks; and one driven by broadband using new fixed and mobile telecoms infrastructure.

The success of Digital Media companies can be partly attributed to their willingness to compete in many different markets and implement new innovations. Companies like Google, Microsoft, Amazon, Facebook, Apple, Twitter, and so on are continually looking for other opportunities from developments in mobility, e-commerce, home media centres, social media, online VoD and infrastructure. As online entertainment is based on a virtual environment, it is expected that cloud computing technology will become a useful infrastructure tool for the future.

Examples of key insights:

  • Online video media is a growth area and in 2011 Hulu has over 300 advertisers using its service.
  • There is a growing movement to combat music piracy and illegal online downloading services.
  • Nearly 30% of music sales globally are now sold through digital channels.
  • Facebook continues to expand upon its service offerings and has become a true competitor to Google.
  • In 2011 social networking is the most popular online activity worldwide followed by online gaming.
  • In the Middle East, a rapidly growing broadband user base offers a digital media market ripe for development. Recent events in the region highlight the role and impact potential of social digital media in the region.
  • Ranked 22nd worldwide, Egypt has Africa's largest Facebook community, growing at over 100% per year.
  • Latin America is a growing market for video game development. Argentina is home to the Latin Interactive Network (LIN), a leading online games publisher, and to the Three Melons, a game studio that develops online and iPhone games.

Note: all $ are US$ unless stated otherwise.

BuddeComm’s new report, Global Digital Media – Online Sector Entertains the World, gives the latest insights into the online entertainment sector. It explores key issues and opportunities and provides analyses, statistics, forecasts and trends. The report includes broad statistical information and insights into internet media trend. It explores the digital media leaders such as Google and Facebook as well as social networking and gaming trends; online video media and digital advertising. It provides insight into the impact on traditional media and emerging trends like cloud computing. The report also includes a unique perspective into how the online entertainment sector is unfolding differently around the world by incorporating regional overviews written by BuddeComm’s senior analysts.

Data in this report is the latest available at the time of preparation and may not be for the current year.

Table of Contents

  • 1. Google and Global Internet Media Insights
    • 1.1 Introduction and analysis
    • 1.2 Internet media companies
    • 1.3 Key trends for digital media companies
      • 1.3.1 Overview of media company activities
      • 1.3.2 Search services
      • 1.3.3 Digital media advertising
      • 1.3.4 Mobile sector
      • 1.3.5 Home media centres/networking
      • 1.3.6 The Virtual MSO
      • 1.3.7 Cloud computing
      • 1.3.8 Are Google, Microsoft and Apple the next utilities in telecoms?
      • 1.3.9 The developing markets – focus on China
    • 1.4 Google
      • 1.4.1 Google, Apple and Microsoft in the battle of the giants
      • 1.4.2 Google puts its weight behind FttH
      • 1.4.3 Google’s other significant activities
    • 1.5 Other issues
      • 1.5.1 Copyright
      • 1.5.2 Internet media bypassing the telcos
      • 1.5.3 White spaces
  • 2. Global Social Networks and Online Gaming Trends
    • 2.1 Social networks market summary
      • 2.1.1 Mobile social networking
    • 2.2 Social networks market insights
      • 2.2.1 Social media after the financial crisis
      • 2.2.2 Emerging social media trends
    • 2.3 Brief case studies
      • 2.3.1 Facebook
      • 2.3.2 MySpace
      • 2.3.3 Twitter
      • 2.3.4 LinkedIn
      • 2.3.5 Wikimedia/Wikipedia
    • 2.4 Online and mobile gaming market
      • 2.4.1 Online gaming
      • 2.4.2 Mobile gaming
      • 2.4.3 Virtual worlds and social gaming
      • 2.4.4 Online gambling
      • 2.4.5 Mobile gambling
      • 2.4.6 In-game advertising
  • 3. Global Online Video Media Trends
    • 3.1 The power of online video media
      • 3.1.1 Introduction
      • 3.1.2 Online video media versus IPTV
      • 3.1.3 Advantages of online video media
    • 3.2 Killer applications
      • 3.2.1 Personal video
      • 3.2.2 Video conferencing and telepresence
      • 3.2.3 Video iPods
      • 3.2.4 Internet Video-On-Demand (iVoD)
    • 3.3 Delivery trends
      • 3.3.1 Streaming content into the home
      • 3.3.2 Video Content Delivery Network (CDN) services
      • 3.3.3 Geo-blocking
    • 3.4 Online video media statistics and forecasts
    • 3.5 Background: video streaming and P2P
      • 3.5.1 Streaming video
      • 3.5.2 Peer-to-Peer (P2P) networks
    • 3.6 Conclusion: The future of video in telecoms
  • 4. Other Key Online Entertainment Services
    • 4.1 Digital media and entertainment
      • 4.1.1 Digital media and entertainment services
      • 4.1.2 Demand for faster networks
      • 4.1.3 Unlimited bandwidth is disrupting infrastructure models
      • 4.1.4 Other general trends
    • 4.2 Key online entertainment services
      • 4.2.1 Adult services
      • 4.2.2 Online dating
      • 4.2.3 Music
    • 4.3 Digital Rights Management (DRM)
  • 5. Online Advertising and Marketing Trends
    • 5.1 Market summary
    • 5.2 Market insights
      • 5.2.1 Consumers will lead the way
      • 5.2.2 Changes in internet advertising
      • 5.2.3 Mobile advertising
      • 5.2.4 Mobile Location-Based Advertising (MLBA)
      • 5.2.5 TV advertising
      • 5.2.6 Hulu
    • 5.3 Key online advertising categories
      • 5.3.1 In-game advertising
      • 5.3.2 Social media advertising
      • 5.3.3 Online video advertising
      • 5.3.4 Online search advertising
  • 6. Impact on Traditional Media
    • 6.1 Market summary
    • 6.2 Market insights
      • 6.2.1 From calls to applications
      • 6.2.2 Expect delays and roadblocks
      • 6.2.3 Fragmentation, consolidation, mergers and acquisitions
      • 6.2.4 Where are the new opportunities?
      • 6.2.5 Think international
      • 6.2.6 Media and Telco's adapting business to the new Digital Economy
    • 6.3 Whatever happened to media convergence?
      • 6.3.1 Convergence substitution
      • 6.3.2 New business models for media content required
    • 6.4 Media companies need to disaggregate and rebuild
    • 6.5 TV broadcasters
      • 6.5.1 Making progress
      • 6.5.2 DVR and advertising
    • 6.6 Radio broadcasters
      • 6.6.1 Digital radio
    • 6.7 Newspaper publishers
      • 6.7.1 Newspaper publishers under pressure
      • 6.7.2 An interesting venture: Journalism Online
      • 6.7.3 The rise of online news paywalls
      • 6.7.4 Murdoch’s denial a death knell for publishers
      • 6.7.5 Digital e-readers
      • 6.7.6 Brand is key in online media
    • 6.8 The video and DVD rental companies
      • 6.8.1 The end of the video store?
      • 6.8.2 DVD rental companies
      • 6.8.3 Interest grows for Video-On-Demand opportunities
    • 6.9 The anomaly of the mass media
      • 6.9.1 Analysis of media trends
  • 7. Key Cloud Computing Trends
    • 7.1 What is cloud computing (CC) and what can it be used for?
    • 7.2 Cloud Computing (CC) is about business transformation
    • 7.3 Software as a service
    • 7.4 Cloud Computing (CC) = big business
    • 7.5 Recent trends
      • 7.5.1 GFC slows down cloud computing developments
      • 7.5.2 Cloud services drive data centre markets
      • 7.5.3 Mobile Cloud Computing
      • 7.5.4 Cloud Computing for media and entertainment sectors
    • 7.6 Case study: Cloud Computing in China and Japan
      • 7.6.1 China
      • 7.6.2 Japan
    • 7.7 Background information
      • 7.7.1 Cloud Computing generates huge interest
      • 7.7.2 Cloud Computing requires business strategies
      • 7.7.3 Cloud Computing in the trans-sector context
  • 8. Regional Overviews
    • 8.1 North America
      • 8.1.1 Overview
    • 8.2 Latin America
      • 8.2.1 Social networking
      • 8.2.2 Online gaming
      • 8.2.3 Broadband TV (IPTV)
    • 8.3 Europe
      • 8.3.1 European online advertising
      • 8.3.2 Europe moving to an online advertising model
      • 8.3.3 Cloud computing
    • 8.4 Africa
      • 8.4.1 Overview
      • 8.4.2 Online video media
      • 8.4.3 Digital social media
      • 8.4.4 Online advertising
      • 8.4.5 Online gambling
      • 8.4.6 Google and Yahoo in Africa
    • 8.5 Middle East
      • 8.5.1 Overview
      • 8.5.2 Social networking - Facebook and the local competition
      • 8.5.3 Maktoob’s success
      • 8.5.4 Jordan’s online successes
      • 8.5.5 Gaming
      • 8.5.6 Movies, TV and music – Rotana Group predominates
      • 8.5.7 Online advertising and marketing
    • 8.6 Asia
      • 8.6.1 Overview
      • 8.6.2 Advertising and marketing in selected Asian markets
      • 8.6.3 E-Entertainment in China
      • 8.6.4 Search engines
      • 8.6.5 Google in Asia
    • 8.7 Pacific Region
      • 8.7.1 Australia
      • 8.7.2 New Zealand
  • 9. Glossary of Abbreviations
  • Table 1 – Visitors to top ten web properties worldwide – 2008; 2009; 2010
  • Table 2 – Worldwide search engine market share –Q1 2010; 2011
  • Table 3 – Worldwide advertising spending- all mediums – 2008 - 2012
  • Table 4 – Worldwide online advertising spending – 2007 - 2012
  • Table 5 – Google advertising revenue – 2009; 2010
  • Table 6 – Worldwide smart phone operating systems by market share – 2007 - 2010
  • Table 7 – Time spent online in social networks by top 10 countries – 2010
  • Table 8 – Worldwide market share of mobile social network users – 2008; 2013
  • Table 9 – Top 5 countries using Facebook by unique monthly users – 2010
  • Table 10 – Unique monthly users globally – Facebook versus MySpace – 2009 - 2010
  • Table 11 – Worldwide online gambling revenue – 1997; 2001; 2004; 2006; 2008, 2010
  • Table 12 – Total value of bets placed via mobile gambling worldwide – 2006; 2010; 2015
  • Table 13 – Subscribers to Netflix – 2010; Q1 2011
  • Table 14 – Worldwide revenue from online video – 2008; 2012
  • Table 15 – Online video streams – top online video properties in the US – various months - 2007; 2009; 2010
  • Table 16 – Worldwide broadband subscribers and annual change – 2005 - 2011
  • Table 17 – Worldwide internet users – 2000 - 2011
  • Table 18 – Worldwide digital music revenue – 2007 - 2010
  • Table 19 – Most popular forms of online advertising
  • Table 20 – Western Europe mobile ad spending – 2009 - 2012
  • Table 21 –Asia-Pacific mobile ad spending – 2009 - 2012
  • Table 22 – Growth of Hulu video streams – various months – 2008 - 2010
  • Table 23 – Worldwide in-game advertising spending – 2007 - 2009; 2013
  • Table 24 – Worldwide social network advertising spending – 2008 - 2010
  • Table 25 – USA social network advertising spending – 2008 - 2009
  • Table 26 – USA online advertising revenues – top four portals – 2008 - 2011
  • Table 27 – Worldwide advertising spend versus online advertising spend – 2009 - 2012
  • Table 28 – Most popular formats for receiving news in the USA – 2010
  • Table 29 – Online US video usage – Jan 2011
  • Table 30 – Ten largest US social networking sites & forums – May 2011
  • Table 31 – Twitter's reach – top 10 countries in the world
  • Table 32 – Online advertising spend in Europe – 2005 - 2010
  • Table 33 – South African unique monthly users of selected websites – June 2010
  • Table 34 – Online advertising revenue in South Africa – 2003; 2006 - 2009
  • Table 35 – Middle East Facebook penetration – December 2010
  • Table 36 – Middle East Facebook user demographic by age and gender – December 2010
  • Table 37 – China advertising market revenues in major media – 2001; 2010; 2012 (e)
  • Table 38 – Japan advertising expenditures by medium – 2007 - 2010
  • Table 39 – Online activities by percentage of users in China, USA and Japan – 2009
  • Table 40 – Utilisation rate of different network applications in China – 2009 - 2010
  • Table 41 – China – top online companies by application with global comparison – 2010
  • Table 42 – Online gaming revenues in China – 2004 - 2012
  • Table 43 – Online video users in China – 2007 – 2010
  • Table 44 – China’s top 15 social networks – March 2011
  • Table 45 – China’s SNS market share and user loyalty – 2010
  • Table 46 – Market share of online search engines in China – 2005 - 2010
  • Table 47 – Online search advertising market in China – 2005 - 2014
  • Table 48 – Search engine users and utilisation rate in China – 2009 - 2010
  • Table 49 – Top social networking sites in Australia – 2009 - 2011
  • Table 50 – Top social networking sites in New Zealand – 2011
  • Chart 1 – Fastest growing US e-commerce sectors – 2008 - 2010
  • Chart 2 – Top US online video sites statistics – Feb 2011
  • Chart 3 – Amount of online content accessed by Australians – 2010
  • Exhibit 1 – Key areas of focus for internet media companies
  • Exhibit 2 – Definition: Cloud computing
  • Exhibit 3 – Cloud computing generates huge interest
  • Exhibit 4 – Other key historical Google activities – 2006 - 2007
  • Exhibit 5 – The Obama campaign
  • Exhibit 6 – Foursquare
  • Exhibit 7 – Twitter usage facts
  • Exhibit 8 – Examples of key players in gaming industry sectors worldwide
  • Exhibit 9 – Brief company profile – Social game developer – Zynga
  • Exhibit 10 – Examples of online VoD sites
  • Exhibit 11 – Google Android-based TV
  • Exhibit 12 – Equivalence between access modes and traditional audiovisual use
  • Exhibit 13 – Tata Communications and Cisco’s telepresence solution
  • Exhibit 14 – Telepresence for the home market
  • Exhibit 15 – BBC iPlayer and ABC iView
  • Exhibit 16 – Pay-per-view football on the internet
  • Exhibit 17 – Definition: Content Delivery Networks (CDN)
  • Exhibit 18 – The International Webcasting Association (IWA)
  • Exhibit 19 – Examples of popular online dating sites
  • Exhibit 20 – Apple iTunes
  • Exhibit 21 – Online music sector – key statistics
  • Exhibit 22 – Digital advertising cost considerations
  • Exhibit 23 – Examples of large global advertising groups and subsidiaries – 2010
  • Exhibit 24 – Examples of digital advertising agencies
  • Exhibit 25 – Top sectors for online advertising spending
  • Exhibit 26 – Online ad deal between Google and Yahoo aborted
  • Exhibit 27 – Anarchy Online by Funcom
  • Exhibit 28 – Facebook and Nielsen’s marketing alliance
  • Exhibit 29 – Microsoft’s cloud computing business model
  • Exhibit 30 – Amazon Web Services
  • Exhibit 31 – Overview of top 5 New Zealand internet sites – 2011

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Annual Publication Profile

Technologies

Broadband Fixed
Digital Media
Internet

Number of pages 136

Status Archived

Last updated 16 May 2011
Update History

Analyst: Kylie Wansink

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