MaxxoMedia Digital Media and Entertainment Trends

Advergaming Statistics

The Interactive Advertising Bureau, in association with the Games Committee, has introduced the first in a series of papers that outlines a detailed overview of the various game platforms, primarily “console” and “personal computer (PC) online.” Subsequent reports are expected to address audience demographics, behavior, and best practices.

Video Games have emerged as a main-stream entertainment medium that generates worldwide revenues of about $25 billion in hardware and software sales. Surpassing box office revenues, movie rentals, book and music sales, Video Game revenues reached $12 billion in the US in 2006.

DFC Intelligence estimates that:

• Over 40% of households have a video game console system
• Over 120 million people play video or computer games in the U.S.
• Personal Computer Gamers are expected to reach 80 million in 2007 and up to 99 million in 2012
• Console/Online gamers is expected to reach 6.9 million in 2007 and up to 18.5 million by 2012

The integration of online games across all hardware platforms has resulted in the emergence of advertising as a significant revenue driver for the games industry. Analyst predictions vary, but they all point to big numbers. Parks Associates believes overall game-related ad spending will grow from $370 million in 2006 to more than $2 billion by 2012.

In-game advertising expenditure is widely expected to accelerate the fastest. Parks Associates predicts it will amount to more than $800 million in spending by 2012, a conservative figure compared to Yankee Group’s prediction that global in-game advertising spending will reach $971 million by 20113.

Projections for increased revenues could be well justified based on the results from a recently released study conducted by Nielsen Entertainment on behalf of Microsoft-owned in-game advertising specialist Massive Inc.. The research showed that:

• Average brand familiarity increased by 64% due to in-game ads on Massive’s network. The study also found
• Average brand rating increased by 37%,
• Average purchase consideration increased by 41%,
• Average ad recall increased by 41% and
• Average ad rating increased by 69%.

This medium represents an opportunity for advertisers, however it is somewhat fragmented and can be difficult to navigate, says the report. Advertising opportunities may vary from platform to platform, and certainly demographics will vary based on platform and game type. A basic understanding of the game platforms and available advertising formats is an important piece of mastering the Interactive landscape.

Generally, advertising opportunities are either in-game or around-game and can be further described as “environment” or “immersive.” Around-Game ads are displayed in conjunction with, or alongside a game while in-game ads are elements of the game itself whether by display or interactive in nature.

Typically, web-based games are played within a “traditional” website environment where ad units can be displayed around the game window during game play. On the other hand PC-based downloadable games are typically housed in an HTML environment and are played in full-screen mode.

Advertising can be displayed both before and after gameplay, in the launch and exit windows, with digital video ads running while the game is loading. This format also allows for game patching, digital rights management, and commerce.

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Posted in What's New | No Comments »

PWC Global Entertainment and Media Outlook

Price Waterhouse Coopers has released their Global Entertainment and Media Outlook: 2006-2010 book.

• In depth global analyses and 5-year growth projections for 14 industry segments
• Covering every major region - US, Europe, Middle East, Africa (EMEA), Asia Pacific, Latin America, and Canada
• A single point of reference for top-level comparative data for the industry
• All the information industry executives need to stay ahead of the curve — right on their desk or PC

Here are some facts and figures excerpted from the publication.

Filmed Entertainment

The filmed entertainment market consists of consumer box office spending for theatrical motion pictures plus spending on renting and purchasing home video products in both DVD and VHS formats. It also includes online film rental subscription services, such as those whereby DVDs are delivered via overnight mail, and streaming services, whereby films are downloaded via a broadband Internet connection. The figures do not include music videos (which are counted in the Recorded Music chapter), or video-on-demand (VOD), or pay-per-view (PPV), or movie distribution by cable, satellite, or telephone companies (which are covered in the TV Distribution chapter).

A sampling of global facts and forecasts:

• “U.S. box office growth will average 4.3 percent compounded annually during the next five years from a weak 2005, taking total box office spending from $9.0 billion in 2005 to $11.1 billion in 2010. However, admissions in 2010 will remain below the levels achieved during 2002-04.”

• “In EMEA online subscription services and video streaming services are entering the market. Together they will reach $2.2 billion by 2010 from only $216 million in 2005, averaging 59.1 percent growth compounded annually.”

• “In Asia Pacific high-definition video and reduced piracy will stimulate the sell-through market. We project sell-through spending to grow at a 6.2 percent compound annual rate to $6.2 billion in 2010 from $4.6 billion in 2005.”

• “Countries in Latin America are supporting local production through various subsidy programs. As the experience of 2004-05 indicates, the success of local films can have a dramatic impact on the overall market.”

• In Canada sell-through growth will average 4.9 percent compounded annually to $3.8 billion, and rentals will be flat at $1.3 billion.”

(more…)

Posted in What's New | No Comments »

Besides Television How is Content Viewed

From KenRadio.com

According to a new study by E-Poll, which focused on the viewing of video content, showed the youth are leading the way, with 26% of males 13-34 frequent viewers of video on devices other than a TV. Teens are by far the most prevalent users of mobile video devices such as iPods and cell phones. The proliferation of user-generated content and expanding viewing platforms makes for a dizzying array of viewing choices. The study of consumers 13+, to see what they are doing with this freedom to choose, found that among those that view video content away from the TV the desktop computer had 75% of the group.

On iPods and cell phones, viewing of video content happens almost anywhere (traveling, school, work outdoors, social events), mostly in the afternoons and evenings. Most watched content includes: music videos, TV programs, movies, videos on websites. Considering television viewers, 13% currently transfer video content from their computer to their TV. In addition:

* Almost half didn’t know it was possible to transfer video to their TV
* About 50% would like this functionality but only 17% would pay $100 or more for a device
* Almost 1/3 would still be interested, even if it required a complicated installation
Over half of those who watch video content online (55%) say they are interested in transferring this to their television sets. New devices to make it easy to transfer from computer to TV are hitting the market. Increased awareness and education will increase the adoption of moving content from computer to TV.

Posted in What's New | No Comments »

All About Mii - creation of a Wii ecosystem

Look, It’s Mii — on Wii!

Nintendo’s Hot System Sparks
Secondary Industry as Users Create
Their Own Characters

By YUKARI IWATANI KANE WSJ.COM
March 16, 2007; Page B1

David Merrill, a 28-year-old graduate student in Somerville, Mass., struggled recently with a popular feature on Nintendo Co.’s Wii videogame console. Try as he might, he just couldn’t get the game character he created, called Mii, to look like himself.

Frustrated, Mr. Merrill turned to the pros. He shelled out $5 to a Web-based service called Mii Station (www.miistation.com), run by a Tokyo entrepreneur, which creates look-alike game characters for Wii based on photos. Three days later, he received a Mii with spiky hair and a really big smile that he says pretty much captured his essence.

“It’s made playing Wii a little more personal,” says Mr. Merrill, adding that he doesn’t have the perspective that graphic artists have to know what facial features to emphasize. “That makes a big difference.”

(more…)

Posted in VideoGames, What's New | No Comments »

The Future of Digital Entertainment by David Wesson

David Wesson is an Internet media-marketing consultant and has worked in the entertainment and advertising industries for the last 15 years in Europe and Australia.

(Article as published in march 2007 issue of Marketing Magazine )

The penetration of broadband and the sophistication of the end-user means that the Internet is no longer seen merely as an information gathering point and purchase space. Today it is as much an entertainment hub and is part of the digital revolution changing the face of entertainment. We look at current trends and initiatives in digital entertainment; how the lounge room/online entertainment space of tomorrow will look and impact on the future of digital entertainment. We also look at the culture of consumer behavior and how the industry will be able to deliver what the consumer wants now and in the future.

Read the full article.

Posted in What's New | No Comments »

Japanese Music File Sharing: a 2007 Update

By: Steve Myers (steve@thetamusic.com) Steve Myers is president and chief enthusiast of Theta Music Technologies, which specializes in the development of music-related software applications.

Over the past few years, I’ve often been asked if file sharing - especially music file sharing - is as widespread in Japan as in the US and Europe. My answer has generally been something along the lines of ‘it certainly exists here, but the number of people doing it is pretty small compared to most other countries.’ In just the past year, though, we’ve seen a sharp increase in action taken by Japanese record industry and copyright organizations to step up efforts against file sharing.

(more…)

Posted in What's New | No Comments »

Anti-Social Networking on the Run

(more…)

Posted in Mobile, What's New | No Comments »

How ATT became ATT all over again

Steven Colbert explains the twists, turns and returns for ATT over the past 35 years.

Posted in What's New | No Comments »

Digital Music Report 2007

IFPI has released a report on the state of Digital Music in 2006. Digital sales now account for around 10% of the music market as record companies experiment and innovate with an array of business models and digital music products, involving hundreds of licensing partners. Get the whole report - Download Key Facts

• Digital music sales estimated to double to around US$2 billion in 2006
• Single track downloads estimated up 89% at 795 million
• Available tracks double to four million, via 500 online services in over 40 countries worldwide
• Portable music players help drive digital music consumption
• New revenue streams and business models emerge
• Lawsuits impact illegal file-sharing, but “gatekeeper” ISPs must act to curb digital piracy

(more…)