As entertainment increasingly moves online and older entertainment business models continue to struggle with the concept non-physical media, consumers are beginning to enjoy an unprecedented selection of entertainment options – and on their own schedule.
Market research firm IHS today released a new report estimating that worldwide spending on digital entertainment hit $57 billion last year. This represents a nearly 30% increase in digital sales over the $44 billion seen in 2012. The numbers include all digital media revenue from movies, games, and other apps.
Online movie revenue in particular has seen significant growth over the past year, rising 21% year-over-year to $8 billion. Revenue from mobile games also saw significant growth during 2013, and IHS predicts that the segment could soon rival online movies in the U.S.
Digital spending is, of course, led by the U.S., where consumers have fully embraced tablets and smartphones. Per person, however, the U.S is beaten by South Korea, where a modern broadband infrastructure has enabled a broad marketplace for digital entertainment. South Korean consumers spent more on digital goods per capita last year than any other country surveyed by IHS.
“The US has long been a powerhouse in terms of consumer spend on digital content, but we identified stand-out markets where consumers are not only monetizing better, but still have potential for growth,” said Jack Kent, principal analyst for mobile media at IHS. “These include South Korea, where overall digital spend per capita is much higher than the US, or the UK, which has one of the strongest online music markets.”
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