Global Digital Media - Entertainment a Key Online Activity

• Publication date: May 2012
• Report size: 136 pages

BuddeComm’s annual publication Global Digital Media – Entertainment a Key Online Activity, gives the latest insights into the popular online entertainment sector. The report includes broad statistical information and insights into internet media trends with a focus on the key sectors of video media, social networking, digital music and online gaming and gambling. It provides insight into the impact on traditional media, the importance ...

BuddeComm’s annual publication Global Digital Media – Entertainment a Key Online Activity, gives the latest insights into the popular online entertainment sector. The report includes broad statistical information and insights into internet media trends with a focus on the key sectors of video media, social networking, digital music and online gaming and gambling.

It provides insight into the impact on traditional media, the importance of advertising to the online sector 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.

As we have been predicting for several years, the future of the digital media is very much revolving around video-based services. Video applications over broadband have emerged over the last few years as Internet media companies and content producers seek to exploit the added speed and capacity of broadband infrastructure. The killer application on these networks is video based communication, often produced by users themselves.

Users want to share their interests with like-minded people and this is creating an enormous number of niche markets – many based simply on free sharing, others on small charges, while others are managed by commercial organisations, earning their revenues from advertising and marketing activities.
In 2012 social networks are aggressively positioning their sites as a link between consumers and merchants. Both fixed and mobile social networks now tend to market themselves as a tool for merchants to connect with consumers and promote brands – rather than just as services for connecting friends.
Facebook remains the global social media leader and while it has managed to capture the largest share of the market in recent years, the industry is not sitting still and new social networks continue to emerge that aim to improve upon the originals models or introduce new concepts, such a Foursquare, Instagram and Pinterest.
In addition, online gaming, particularly social gaming is becoming increasingly popular. Facebook is well positioned in this area too, offering popular games such as Zynga’s Farmville and Words with Friends. Cloud-gaming is emerging with the launch of BT’s OnLive service.

The trend towards digital music continues unabated and now accounts for over 30% of global music revenues. While Apple iTunes remains an industry leader; it now operates in a more competitive environment with Spotify, Deezer, Grooveshark and Amazon online music just some of the players vying for position. Using cloud services to store and listen to music is another growing cloud trend.

Market Highlights

Online video, also known as web TV, already makes up the largest component of global Internet traffic.
The next phase of growth for online video involves consumers accessing Over-the-Top (OTT) via other devices such as Smart TVs, connected TVs and online game consoles.
Google retains global online video dominance with over 40% of videos viewed via YouTube worldwide.
Internet video viewing is beginning to mimic traditional TV with Blinkx and Burst Media partnering to offer specific Internet “channels” or websites offering videos (and advertising) aimed at target audiences.
As online entertainment and media operate in a virtual environment, this sector is seen as a prime area for benefiting from cloud computing developments.

Seven Latin American countries are among the world’s top thirty in terms of Facebook users.
Twitter usage increases twenty-fold in South Africa in 2011.
The internet plays a significant part in the lives of vast numbers of people across the Asia-Pacific. The young and tech-savvy of the region spend vast amounts of time online in their pursuit of digital media entertainment.
In Australia the mobile wagering market is experiencing nearly 400% growth.
New Zealand will see 2.1 million consumers spend around NZ$2.4 billion online in 2012.This report is essential reading for those needing high level strategic information and insights on global the online entertainment sector.

Global Online Advertising Industry

1. Internet Media - Competing in many Entertainment Markets
1.1 Internet Media Competition and Diversity
1.1.1 Introduction and analyses
1.1.2 Internet media companies
1.1.3 Key trends for digital media companies
1.1.4 Brief case study: MySpace
1.1.5 Brief case study: News Corp
2. Global Social Networks and Online Gaming
2.1 Key Social Network and Gaming Trends
2.1.1 Social networks market summary
2.1.2 Social networks market insights
2.1.3 Brief case studies
2.1.4 Online and mobile gaming market
2.2 Social Enterprise no longer means philanthropy
2.2.1 Introduction
2.2.2 Building lifelong customer relationships
3. Global Online Video Media and Web TV
3.1 Key Online Video and Web TV Trends
3.1.1 The power of online video media
3.1.2 Killer applications
3.1.3 Brief case studies
3.1.4 Delivery trends
3.1.5 Conclusion: The future of video in telecoms
4. Other Key Online Entertainment Services
4.1 Other Online Entertainment Sectors
4.1.1 Digital media and entertainment
4.1.2 Key online entertainment services
4.1.3 E-commerce converging with entertainment
4.1.4 Digital Rights Management (DRM)
5. Global Online Advertising and Marketing
5.1 Key Online Advertising and Marketing Trends
5.1.1 Market summary
5.1.2 Market insights
5.1.3 Key online advertising categories
6. Impact on Traditional Media
6.1 Key Issues for Traditional Media
6.1.1 Market summary
6.1.2 Market insights
6.1.3 Whatever happened to media convergence?
6.1.4 Media companies need to disaggregate and rebuild
6.1.5 TV broadcasters
6.1.6 Radio broadcasters
6.1.7 Print media/newspaper publishers
6.1.8 The video and DVD rental companies
6.1.9 The anomaly of the mass media
7. Regional Overviews
7.1 North America
7.1.1 Video Media Trends
7.2 Latin America
7.2.1 Social networking
7.2.2 Online gaming
7.2.3 Broadband TV (IPTV)
7.3 Europe
7.3.1 Europe Overview
7.4 Africa
7.4.1 Overview
7.5 Middle East
7.5.1 Overview
7.5.2 Social networking - Facebook and the local competition
7.5.3 Maktoob’s success
7.5.4 Jabbar Internet Group
7.5.5 Jordan’s online successes
7.5.6 Movies, TV and music – Rotana Group predominates
7.5.7 Online advertising and marketing
7.5.8 Video-on-Demand (VoD)
7.6 Asia
7.6.1 Market overview
7.6.2 China
7.6.3 South Korea
7.6.4 Singapore
7.7 Pacific Region
7.7.1 Australia
7.7.2 New Zealand
8. Glossary of Abbreviations
Table 1 – Visitors to top web properties worldwide – 2008; June 2009; May 2011
Table 2 – Worldwide search engine market share – Mid 2011; Feb 2012
Table 3 – Worldwide advertising spending- all mediums – 2008 - 2012
Table 4 – Worldwide online advertising spending – 2007 - 2012
Table 5 – Most popular forms of online advertising
Table 6 – Google total advertising revenue and mobile advertising revenue – 2006 - 2012
Table 7 – Worldwide smart phone operating system market share – 2007 – 2010; Q3 2011
Table 8 – Time spent on online in social networks by top 10 countries – 2010; 2011
Table 9 – Worldwide market share of mobile social network users – 2008; 2012; 2013
Table 10 – Worldwide social network advertising spending – 2008 – 2016
Table 11 – USA social network advertising spending – 2008 - 2009
Table 12 – Visitors to top web properties worldwide – 2008; June 2009; May 2011
Table 13 – Top 10 countries using Facebook – 2012
Table 14 – Total value of bets placed via mobile gambling worldwide – 2006; 2010; 2015
Table 15 – Worldwide in-game advertising spending – 2010; 2013
Table 16 – Global revenue from online video – 2008; 2012
Table 17 – Growth of Hulu video streams – various months – 2008 - 2011
Table 18 – Market share of top Internet VoD providers in the US – mid 2011
Table 19 – Subscribers to Netflix – 2010; Aug 2011; Sept 2011
Table 20 – Online video unique visitors – top online video properties in the US – May 2010; Jan 2011; Sep 2011; Feb 2012
Table 21 – Worldwide Internet users – 2000 - 2012
Table 22 – Worldwide Internet penetration by region – 2009; 2011
Table 23 – Worldwide fixed broadband subscribers and annual change – 2005 - 2012
Table 24 – Worldwide digital music revenue – 2007 - 2011
Table 25 –Worldwide e-commerce revenue – 2009 - 2013
Table 26 – Visitors to top fifteen web properties worldwide – June 2010; March 2011
Table 27 – Worldwide advertising spending- all mediums – 2008 - 2012
Table 28 – Worldwide online advertising spending – 2007 - 2012
Table 29 – Most popular forms of online advertising
Table 30 – Western Europe mobile ad spending – 2009 - 2012
Table 31 –Asia-Pacific mobile ad spending – 2009 - 2012
Table 32 – Google advertising revenue – 2006 - 2012
Table 33 – Worldwide smartphone operating systems by market share – 2007 – 2010; Q3 2011
Table 34 – Worldwide in-game advertising spending – 2010; 2013
Table 35 – Worldwide social network advertising spending – 2008 – 2016
Table 36 – USA social network advertising spending – 2008 - 2009
Table 37 – US online advertising revenues - top four portals – 2008 - 2011
Table 38 – Worldwide advertising spend versus online advertising spend – 2009 – 2012
Table 39 – Growth of Hulu video streams – various months – 2008 - 2011
Table 40 – Most popular formats for receiving news in the USA – 2010
Table 41 – Growth of e-reader sales – 2009 - 2013
Table 42 – Facebook users – top 7 countries in Latin America – 2011 - 2012
Table 43 – South African unique monthly users of selected websites – June 2010
Table 44 – Online advertising revenue and annual change in South Africa – 2003; 2006 - 2010
Table 45 – Middle East Facebook penetration – December 2011
Table 46 – Utilisation rate and number of users of different network applications in China – 2009 - 2011
Table 47 – Online gaming revenues – 2004 - 2012
Table 48 – Online gamers users – 2007 - 2011
Table 49 – Online video users – 2007 – 2011
Table 50 – Online music users and utilisation rate – 2007 – 2011
Table 51 – Instant messaging users and utilisation rate – 2007 – 2011
Table 52 – China’s top 15 social networks – March 2011
Table 53 – China’s SNS market share and user loyalty – 2010
Table 54 – China advertising market revenues in major media – 2001, 2010, 2012 (e)
Table 55 – Internet usage rates by service– 2009 - 2011
Table 56 – Main purpose of using the internet – 2009 - 2011
Table 57 – Online versus offline media consumption – 2010
Table 58 – Online game market volume – 2002 - 2008
Table 59 – Digital music market volume – 2003 - 2009
Table 60 – Usage rates by types of social networking service – 2011
Table 61 – Top social networking sites in Australia – 2009 – 2012
Table 62 – Estimated social networking members by major sites in Australia – 2007; 2010 - 2012
Table 63 – Online shoppers in New Zealand – 2006 - 2012
Chart 1 – Worldwide Internet users – 2000 - 2012
Chart 2– Overview of online shoppers versus adult population in New Zealand – 2006 - 2012
Exhibit 1 – Key areas of focus for Internet media companies
Exhibit 2 – Digital advertising cost considerations
Exhibit 3 – Examples of large global advertising groups and subsidiaries
Exhibit 4 – Examples of digital advertising agencies
Exhibit 5 – Top sectors for online advertising spending
Exhibit 6 – Facebook
Exhibit 7 – Foursquare - 2012
Exhibit 8 – Mobile video communication: FaceTime and Google Talk
Exhibit 9 – Twitter usage facts
Exhibit 10 –Linked In - 2012
Exhibit 11 – Examples of key players in gaming industry sectors worldwide
Exhibit 12 – Online gambling in the US
Exhibit 13 – Anarchy Online by Funcom
Exhibit 14 – The new definition of social enterprise
Exhibit 15 – Foursquare - 2012
Exhibit 16 – Peter Drucker on customers
Exhibit 17 – Examples of online VoD sites
Exhibit 18 – Google Android based TV
Exhibit 19 – Equivalence between access modes and traditional audiovisual use
Exhibit 20 – A first for the industry - Tata Communications and Cisco’s telepresence solution
Exhibit 21 – BBC iPlayer and ABC iView
Exhibit 22 – Definition: Content Delivery Networks (CDN)
Exhibit 23 – Examples of popular online dating sites
Exhibit 24 – Examples of key players in gaming industry sectors worldwide
Exhibit 25 – Online gambling in the US
Exhibit 26 – Apple iTunes
Exhibit 27 – Online music sector – key facts
Exhibit 28 – European Commission e-commerce five priorities - 2012
Exhibit 29 – Digital advertising cost considerations
Exhibit 30 – Examples of large global advertising groups and subsidiaries
Exhibit 31 – Examples of digital advertising agencies
Exhibit 32 – Top sectors for online advertising spending
Exhibit 33 – Online ad deal between Google and Yahoo aborted
Exhibit 34 – Anarchy Online by Funcom
Exhibit 35 – Facebook and Nielsen’s marketing alliance
Exhibit 36 – Top social networking sites in New Zealand – 2011 - 2012
Exhibit 37 – Overview of top 5 visited sites in New Zealand – 2011 - 2012