Demand is growing for internet-delivered entertainment, and eventually, so to will the revenues it will generate for entertainment companies. But it will require a reversal of the current trend under which per-unit value is decreasing.
The study comes from Ernst & Young, which surveyed CFOs at 75 companies in the biz.
E&Y said pricing for internet content has been eroding since 2006, with a 25% decrease expected when it has all the facts and figures in for 2009.
Nonetheless, it seems clear to the researchers there that demand will continue to increase, and that eventually media companies will be able to figure out bundling strategies and pricing that will allow the industry to finally start benefitting from a presence on the internet platform.
RBR-TVBR observation: It doesn’t take a rocket scientist to see that the future – and indeed, the present – requires a significant web presence for almost all businesses of any type. Somebody somewhere is going to figure out how to monetize web-based entertainment, and the best pieces of pie will go to those companies already there with a plate and a fork, ready to dig in.