According to Gartner, consumers globally spent $2 trillion on digital information and entertainment products and services, and is projected to reach $2.1 trillion by 2011, and $2.8 trillion by 2015.
Spending in 2010 are divided into three types, namely:
– Services, which accounts for 62% ($1.2 trillion) of total spending, was the largest spending segment. This segment was for communications subscription-based access and usage services like mobile and wired voice services, data services, video services such as pay TV, and online gaming.
– Devices, which accounts for 28% ($600 billion) of total spending, is made of consumer electronic devices like mobile devices, PCs, TV sets of game consoles.
– Content, the smallest spending segment, which only accounts for 10% ($200 billion) of the total spending. Contents include video content, TV subscription, digital music or book, as well as apps in various online application stores.
Ms. Mikako Kitagawa, Principal research analyst at Gartner, said vendors are now adopting 2 basic strategies to capture spending, that is, either to concentrate in one segment, or to diversify into other segments. Ms Kitagawa also points out that vendors choosing to diversify can benefit from the fact that consumers are increasing using alternative services that will move their spending from one segment to another.
Gartner identified 3 key areas that will offer the best opportunity for vendors during the next three years, including wireless broadband, location-based services (LBS), and operating systems.