Parks Says High-End Entertainment Business to Double in Next Five Years
Research group, Parks and Associates is out with a study that predicts the booming home theater and home entertainment business will continue to grow at a rapid rate for the next five years. The report suggests that the high-end entertainment industry is likely to see 100 percent growth over the next five years based in part on PC convergence.
Wireless technologies also factor heavily into the growth of the high-end AV industry, especially in overseas markets where homes aren’t as easy to retrofit. Currently, the high-end home theater and home entertainment market is driven by new construction home projects as well as home renovations. Parks, in predicting that despite the currently well-hyped “sub-prime” mortgage crisis and a slowing in the U.S. housing market, the surge in wireless technology will power high-end home theater, specifically for the wealthy, toward additional growth for the next half of a decade.
Home theater has boomed since the rise in popularity of VHS in the late 1970s, and has had a steady growth curve for thirty years. Peaks in the curve came with the advent of the Compact Disc in the early 1980s and even more so with the rise of the DVD in 1997. HDTV has been the hot ticket for most of the last decade with an assist going to satellite television and improved digital cable systems for providing volumes of content to the increasingly flat and increasingly affordable HDTV market. Wireless isn’t truly ready for prime time in the world of home theater, but it is close. Most high-end homes have a wireless network of some sort, and with players like Steven Jobs and Apple looking for you to download lower resolution (720p) HD movies from their online stores, we are only weeks away from the content and the distribution many are looking for in their homes (without any holes going into the drywall). The question is: with Apple pushing an inferior video product at 720p resolution when Blu-ray packs a much higher resolution 1080p picture, will consumers sell out quality again, as they did with the iPod, for convenience?
by: Jerry Del Colliano