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By: Samuel Hary
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Broadband infiltration has a directly proportionate relationship with the online entertainment market. Ovum-RHK forecasts that the global online entertainment market will grow at a 24% CAGR between 2004 and 2009.

As broadband continues to shape the entertainment market, relatively new internet companies too have started competing with the established players. Ovum-RHK contends that broadband connectivity is already a key driver for online games, video (e.g. IP TV and video on demand), as well as music, but has still not been able to capture the gambling and adult entertainment segment. However, Ovum-RHK believes these two latter segments, already established and very lucrative online, will also benefit from broadband distribution through the introduction of new high-quality digital features.

Online entertainment market has infact started eating into the share of the traditional entertainment market, which is still estimated at half a trillion dollars globally. Online gambling, online adult entertainment and online games already are multibillion-dollar markets. Video is expected to reach the $1.3 billion mark by 2006, and music by 2007. With such tremendous growth forecasts, online entertainment vendors should get all geared up for stiflingly competitive times ahead.

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