US$300 Billion Digital Living Service and Product Revenues by 2010

December 31, 2006 The dot.crash is now a distant memory and the internet juggernaut appears destined for ubiquity and becoming an integral part of the lives of all humans given a few decades. A hint at just how big digital living revenues will become came last week with the release of a new study entitled "Digital Living 2006 Forecasts." The report details how rapid consumer adoption of Internet and mobile services will boost U.S. spending in digital living services and products to nearly US$300 billion by 2010. With forecasts and analyses on more than 50 digital lifestyle categories, the report forecasts a steady rise in U.S. household spending for these advanced products and services over the next five years.

"Recent investment and developments in such services as broadband access and television, including the shift to digital and IP delivery of communications and entertainment services, have given rise to a host of new digital living products and services," said Kurt Scherf, vice president and principal analyst with Parks Associates. "As we close the first decade of this century, the companies and service providers that can build strong links between access, content, and end-user platforms will capture a substantial share of this multibillion dollar industry."

"Digital Living 2006 Forecasts" reveals that revenues for digital entertainment services - including gaming, music, and on-demand video - will be among the strongest-growing categories over the next five years. The influx of these services will in turn drive the sale of media centralization and distribution solutions in U.S. households. Between 2006 and 2010, revenues from media servers will grow 140%, and the number of connected entertainment solutions will increase substantially during the same time period. By 2010, more than 30 million households will have a network that bridges numerous products and extends the entertainment experience to multiple rooms in the home.

"Digital Living 2006 Forecasts" provides five-year U.S. household forecasts across five broadband product and service categories: Broadband & Communications, PC/CE Digital Media Platforms, On-demand Entertainment Services, Home Security, and Home Control. Within these five categories are forecasts for more than 50 subcategories of individual products and services, including multichannel television subscriptions (cable, satellite, and telco TV), households with home networks (data, multimedia, and entertainment), and subscribers of bundled services. Home controls and home security revenues include projections for new housing growth and forecasts for both hardware and labor. The project features a comprehensive report with analyst commentary and interactive forecast models that provide in-depth explanation of the methodology for each category.

"Digital Living 2006 Forecasts" is available through Parks Associates' Client Service program.

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