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TMCNet:  AccuStream Research: Digital Audio/Video Download and Subscription Storefronts Tally $12.5 Billion in 2012

[January 11, 2013]

AccuStream Research: Digital Audio/Video Download and Subscription Storefronts Tally $12.5 Billion in 2012

Jan 11, 2013 (Close-Up Media via COMTEX) -- Digital subscription and download media storefront revenue increased 32+ percent in 2012 to $12.5 billion, concluding a ten-year CAGR run of 52.8 percent, detailed a retail sector analytics report by AccuStream Research.

According to a release, the report, Digital Subscription and Download Media Merchandizing 2003 2015 chronicles the market's remarkable ascent from a fledgling $271 million business in 2003, with forecasts carried out through 2015, accompanied by annual storefront, service and content category analytics.

Content verticals span music (subscription streaming, song-play and download stores), movies, television, sports, news and entertainment, with U.S.-based brands and their global operations, plus international services with a domestic presence included.

Music download and streaming businesses combine to lead the total market with a 59.8 percent share, paced by Apple's iTunes and Amazon stores.

Streaming subscription, song-play and radio services (including Pandora, Rhapsody, Slacker, Sony Music Unlimited, Spotify U.S. and others) produced 7 percent of music segment retail volume in 2012.

Movies and television captured a 38.3 percent share, led by Netflix, Hulu Plus and iTunes Video stores.

The subscription video category, exhibiting a 10-year CAGR of 106 percent, has vaulted into prominence, up from a 2.6 percent total share in 2003, and currently forecast to pull ahead of digital music revenue in the 2016 2020 timeframe.

Video services through Coinstar's Redbox subsidiary in partnership with Verizon are set to launch, while Comcast is poised to deploy XfinityStreampix.

Subscription digital sports packages accounted for a 1.63 percent share of the total market in 2012, a category that has grown at a 13 percent CAGR over the past ten years, but also hampered by labor disputes and work stoppages.

Entertainment (primarily Real Networks' SuperPass video service) held a .3 percent share, down from a .4 percent comparable in the prior year.

Digital news subscription services with video as a publishing centerpiece exited the market in 2007, opting to embrace pre/post roll video advertising as the category's principal in-player monetization play.

Further market expansion is indicated, forecast at rates of 28 percent in 2013, 24 percent in 2014 and 21 percent in 2015.

AccuStream Research produces investor grade reports spanning digital video, audio, subscription media services, in-stream and digital video advertising, video advertising networks, mobile advertising networks, CDN and integrated video platforms.

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