To Fulfill the Promise of the Digital Living Room, Hollywood Must Adapt Its Business Models, According to BearingPoints Khan
McLean, Va., March 29, 2005While the Digital Living Room ecosystem evolves as on-demand television, film and games become more available, entertainment companies must adapt their business models to capitalize on the tremendous opportunities the digital revolution will provide, according to Shahid Khan, a Managing Director with BearingPoint, Inc. (NYSE:BE), one of the worlds largest business consulting and systems integration firms.
The Digital Living Room or Digital Home concept is real and is here to stay, but currently it is just too cumbersome and expensive for consumers, said Khan. Hollywood should not let history repeat itself by resisting the development of this new distribution channel, as it did with cable, pay-per-view and video. As we have seen, each new channel eventually provides significant revenue streams to these companies and reasonable rates for consumers.
In the Digital Home revolution, instead of resisting change, Hollywood should take the lead and define the rules. Entertainment companies should work with all the players in the digital entertainment ecosystem, namely, consumer electronics manufacturers, content packaging companies, enabling technology players, as well as cable and satellite companies, to define the digital entertainment value chain, each players role, and how much of the overall revenue pie it shares, added Khan.
Khan will join leading industry experts March 30, to discuss this issue and related topics during the Digital Hollywood Spring panel, Hollywood and the Digital Home: How Technology and Content Establish the Next Level of Consumer Entertainment Experience, at the Loews Santa Monica Beach Hotel in Los Angeles. The session will include leaders of the digital entertainment revolution providing new insights on how to gain digital market share.
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