WebProNews

Worldwide revenues from digital media will surpass revenue generated by movie theaters and home video combined for the first time in 2008, according to new research from Strategy Analytics.

The report, "Global Media & Entertainment Market Forecast, 2004-2012," predicts that global revenues from media and entertainment will exceed $845 billion this year, with more than 10 percent, or $90 billion, coming from online and mobile channels.

In comparison, the worldwide filmed entertainment market will generate $83.1 billion in revenues this year.

Martin Olausson, Director of Digital Media Research at Strategy Analytics, said, "The fact that digital media revenues now exceed those from movie theaters and home video supports the large online investments made by most major media companies."

The research concludes that total revenues from all online channels will grow on average of 18 percent annually until 2012, while revenues from traditional media channels will grow at only 3 percent a year over the same time period.

"Like most industries, the media sector faces a challenging 2009," said David Mercer, VP Digital Consumer Practice.

"However, while revenues from traditional routes to market stagnate, digital business models still provide the growth opportunities that are vital to the industry's future prosperity."