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Digital Subscription and Download Media Merchandizing 2003 – 2015

  • January 2013
  • -
  • AccuStream Research

Summary

Table of Contents

Seaside, CA. Digital subscription and download media storefront revenue (audio and video) increased 32+% in 2012 to $12.5 billion, concluding a ten-year CAGR run of 52.8%, details a retail sector analytics report by AccuStream Research.

The report, Digital Subscription and Download Media Merchandizing 2003 – 2015 chronicles the market’s remarkable ascent from a fledgling $271 million business in 2003, with forecasts carried out through 2015, accompanied by annual storefront, service and content category analytics.

Content verticals span music (subscription streaming, song-play and download stores), movies, television, sports, news and entertainment, with U. S.-based brands and their global operations, plus international services with a domestic presence included.

Music download and streaming businesses combine to lead the total market with a 59.8% share, paced by Apple’s iTunes and Amazon stores.

Streaming subscription, song-play and radio services (including Pandora, Rhapsody, Slacker, Sony Music Unlimited, Spotify U.S. and others) produced 7% of music segment retail volume in 2012.

Movies and television captured a 38.3% share, led by Netflix, Hulu Plus and iTunes Video stores.

The subscription video category, exhibiting a 10-year CAGR of 106%, has vaulted into prominence, up from a 2.6% total share in 2003, and currently forecast to pull ahead of digital music revenue in the 2016 – 2020 timeframe.

Video services through Coinstar’s Redbox subsidiary in partnership with Verizon are set to launch, while Comcast is poised to deploy XfinityStreampix.

Subscription digital sports packages accounted for a 1.63% share of the total market in 2012, a category that has grown at a 13% CAGR over the past ten years, but also hampered by labor disputes and work stoppages.

Entertainment (primarily Real Networks’ SuperPass video service) held a .3% share, down from a .4% comparable in the prior year.

Digital news subscription services with video as a publishing centerpiece exited the market in 2007, opting to embrace pre/post roll video advertising as the category’s principal in-player monetization play.

Further market expansion is indicated, forecast at rates of 28% in 2013, 24% in 2014 and 21% in 2015.

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