Field Reports1 Feb, 2010 By: Jacqueline Renfrow Response
Internet Video on TV and Blu-ray Devices on the Rise
AUSTIN, Texas — IMS Research releases a report revealing that Internet video device shipments will grow globally by 78 percent in 2010. According to the “Market Opportunities for Internet Video to the TV — 2010 edition,” the device categories that will see the most significant growth in the short term are connected to TVs and Blu-ray players.
“With the Blu-ray Disc Association releasing the Blu-ray 3D specification a month ago, and the continued decline in the device category’s average selling price, IMS Research expects consumers to welcome Blu-ray players into their homes,” says Rebecca Kurlak, author of the report. “And, with nearly all Blu-ray players manufactured with IP connectivity enabling access to VOD libraries like Netflix, Amazon, Vudu and CinemaNow, Blu-ray players are more compelling for purchase consideration than they have been since their market debut.”
At the Digital Living Room Conference in December, an announcement was made that 10 percent of all box office sales last year were attributed to 3-D movies. So this growing preference is considered in the IMS Research, and it expects Blu-ray shipments to exceed 28 million devices around the world in 2011.
This report was based on an original IMS Research study conducted in December 2008, which looked at Internet Video household devices. While the 2008 study revealed opportunities in the nascent market, the new study incorporates the latest shipment data and industry trends along with splits versus ad-supported content delivery.
IMS’ forecast projects that 473 million households will have the ability to view Internet video on TV by 2015.
Ad Spending May Be Heading Towards Recovery
CHICAGO — Advertising spending in the United States in 2010 will either show a small gain or slight loss, depending on the forecast, reports AdAge.com. However, all outlets agree that 2009 was the sharpest percentage decline in ad spending since the Great Depression.
According to TNS Media Intelligence, measured media fell 14.7 percent in the first nine months of 2009, and the 100 largest advertisers cut measured media spending by 7.9 percent. Looking at the entire year, 2009 was the fifth time spending has dropped since Ad Age began ranking in 1956. The other years that the 100 Leading National Advertisers’ spending fell were 2008, 2001, 1991 and 1970.
As for what lies ahead, Interpublic Group of Cos.’ Magna says that media firms will only experience a minor recovery, 0.4 percent, and that revenue will be lower in 2015 than in 2000. However, Magna expects a high, single-digit percentage in annual growth in U.S. online advertising for the next five years.
Group M WPP and ZenithOptimedia are not as optimistic, predicting that ad spending will fall 4.3 percent and 2.6 percent respectively in 2010, with perhaps a small recovery in 2011 in the United States. However, ZenithOptimedia forecasts a strong growth in the next few years for event sponsorship and public relations.