Thursday, December 27, 2007

Analyst Predicts Death Of The DVD And Media Metric Mayhem

The Next Google will solve this media metric mayhem because it will be able to collect data, second-by-second, from all services/devices connected to the broadband pipe and deliver relevant advertising to ANY display.

CDs are dying, are DVDs next?

Michael Nathanson, analyst for Bernstein Research, is predicting the demise of the DVD as the dominant vehicle for consumer video. His prediction comes as DVD sales are down more than 4% for the year according to data from Nielsen VideoScan.

Perhaps a more pressing problem for the movie industry is consumers' increasing preference for watching movies through Video on Demand (VoD) services.

Another development of note to Nathanson is the popularity of game consoles. “Media investors take note,” he writes. “As if we don’t have enough to worry about already, the growth of next generation video gaming poses a new and legitimate risk to traditional media consumption on many fronts.”

“The rising interest of next-generation gaming presents traditional media with a basic core problem - my kids (and millions of other kids) are now opting to play their Wiis rather than watch TV,” he writes.

“While the TV viewing data does not bore this out, the observational evidence is obvious (to me)…the level of consumer interactivity and engagement that these next-generation game platforms offer fulfills my children in a way that TV cannot. And while I am not complaining about that, the media analyst in me winces about this future generation’s use of traditional media.”

Want to know who is the Next Google?

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