INTRODUCTION
STUDY GOALS AND OBJECTIVES
BCC's goal in conducting this study was to explore the different factors affecting the industries directly related to entertainment technology. Our key objective was to present a comprehensive analysis of the current entertainment technology market categories and market trends, market drivers and inhibitors, and the size and growth of identified entertainment technology categories.
In considering entertainment technology as a whole business, professionals in entertainment-oriented businesses can see how their product offerings fit into the bigger landscape of technology-driven entertainment as a whole. This knowledge can help with product placement, market penetration, and better and more focused marketing in general. BCC Research used real revenue numbers to measure the global market value of the different entertainment-technology-related products that we present in this report.
REASONS FOR DOING THIS STUDY
Entertainment technology evolves whenever there is a significant innovation in a related technology. This symbiotic evolution is not in any way improper, but rather that one valid solution to a technical challenge frequently yields multiple derivations and variations on the theme. In general, entertainment technology is an intellectual property-savvy industry with companies regularly filing patents for at least their core technologies. By examining patents centrally related to entertainment technology, professionals either currently engaged in the industry or considering expanding into the entertainment market can gain a better understanding of the current industry stakeholders and their relative strengths and potential “green space” opportunities for new technology or products.
Entertainment is big business and, increasingly in a fast-paced world, consumers are turning to technology-driven entertainment. Entertainment technology is rapidly evolving in a multitude of different areas. Although the underlying intention of entertainment technology is to amuse and distract the consumer, the business side of this industry takes its creativity very seriously. Research and development budgets are enormous for this industry compared to many others.
Although some products never break into the black once they are offered on the market, product successes happen with amazing rapidity and for the time that a product is considered the latest greatest thing, consumers will clear a store’s shelves in hours or even minutes for the most popular products during key gift-giving seasons like Christmas.
INTENDED AUDIENCE
We have compiled a study of entertainment technology organized by category. Market segment financial numbers were based on real reported revenue and estimations and forecasts use conventional statistical estimation and forecasting algorithms and techniques.
Although entertainment technology is a largely consumer-driven market, marketing and advertising are unusually critical as well. Successful companies in this industry are well versed in market trends and consumer behavior because no company can afford a multimillion dollar loss because its chief competitor came out with a more popular product that it could have known about before scheduling its own million-dollar product offering.
There are consumer safety regulations that affect most products in entertainment technology, and this report briefly explores consumer safety and other relevant global regulations.
This study will be of particular interest to professionals associated with innovative companies in the entertainment technology industry. While entertainment technology has been in existence since well before the beginning of the information age, entertainment technology as a whole is not considered together. If consumers who enjoy technology are considered as a whole, examining the broad spectrum of technology entertainment options is not only sensible but forward-thinking and proactive for professionals in the industry. If the “Widget” is an enormous Christmas hit one year, derivative or knock-off companies are bound to introduce a lower-cost and frequently lower-quality “Wydgette” to capitalize on consumers’ appreciation of the Widget and to benefit from consumer purchasing behavior without having to absorb the enormous expenditure of market research and product placement. Looking at categorized market patterns and trends can help companies not only with their relatively short-term stratagem but also in understanding the patterns of the industry as a whole.
SCOPE OF REPORT
The scope of this study encompasses seven identified categories of entertainment technology: technology toys and gadgets, home theater equipment, multifunctional personal devices, consumer imaging technology, in-vehicle entertainment technology, paid online entertainment, and programmed entertainment devices.
BCC analyzed the industry on a worldwide basis, from a market and product perspective as well as a technology perspective. Regulations in the U.S. and global markets were also examined to identify product introduction and product safety regulatory issues for stakeholders and potential stakeholders in this industry.
METHODOLOGY
BCC presents an analysis, across the entire entertainment technology market based on reported revenue dollars and units shipped as reported to the Securities and Exchange Commission (SEC) and/or other governmental agencies. We also analyze data gathered from various research sources via the Internet, including large databases such as the United States Patent Office (USPTO) databases of U.S. patents and patent applications, Micropatent’s searchable databases for U.S. and international patents and other intellectual property (IP) issues, and the searchable database available on the Internet from the European Patent Office for world and U.S. patents and patent applications.
INFORMATION SOURCES
BCC interviewed primary sources from many different stakeholder companies in the entertainment technology industry and analyzed public documents, SEC filings, corporate white papers, and other technical documentation for several dozen U.S. and international companies directly involved in manufacturing, distributing, and utilizing entertainment technology.
Additionally, BCC analyzed 1,187 design and utility patents filed in the U.S. and throughout the world on entertainment-related technology inventions.
ABOUT THE AUTHOR
Jordan Sheridan is a technology analyst and writer with more than 20 years of experience who specializes in technology and intellectual property strategies and develops IP documentation and analysis studies for Fortune 100 companies, with particular emphasis on IT technology and algorithmically-based inventions. Sheridan’s publications for BCC Research include RFID: Technology, Applications, and Market Potential (IAS020A); The Global Market for Energy Management Information Systems (EGY052A); Technologies for Air Pollution Monitoring, Prevention, & Control (IAS001G); Artificial Sensing: Technologies and Emerging Markets (IAS021A); Advanced Materials for Sensors (AVM058A); Active, Controlled and Intelligence Packaging for Foods and Beverages (FOD038B); Emergency Response Technologies: Global Markets (SAS014A); and Process Spectroscopy Market and Technology Update (IAS008C).
Report ID:IFT067A, Published: July 2008, Analyst: Jordan Sheridan
