The $750 billion converged living room
A plateau approaches
These five categories of consumer electronics devices are closely related in that they are currently the five largest by dollar value, and each plays a key role in entertainment and media consumption. It is important to note that these categories are not facing a drop in sales, but merely a slowing of growth. Also, our prediction only extends to 2018: there may well be new developments that could cause the market for any or all of these devices to grow rapidly again after that date.
The years from 2000-2014 were a period of extreme turbulence, with nearly all aspects of the living room going digital and getting connected. Sometimes this led to profound changes in usage, such as watching TV with a second screen in our hands. The music industry and video rental industries were transformed, probably permanently. On the other hand, other behaviors didn’t change much. Minutes of traditional TV viewing have remained about the same, even with the number of people paying for traditional TV growing over the same time frame worldwide.
The living room’s digital upgrade is now nearing completion, and it appears that peak disruption may have passed with no clear winner, except for the consumer, whose need for entertainment and media is now better served than ever.
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