Budgeting, Planning & Forecasting

Budgeting, Planning & Forecasting

June 30, 2011

Spending on Digital Info and Entertainment Products to Touch $2.8 Trillion by 2015: Gartner

Consumers’ global spending on digital information and entertainment products and services will increase to $2.8 trillion by 2015 from $2 trillion in 2010, according to Gartner (News - Alert), a top research firm.

The global consumer spending on digital information and entertainment products and services is forecast to reach $2.1 trillion in 2011.

Vendors are offering a diversified portfolio of products and/or services. This kind of approach is likely to assist them to grab a larger share of the consumer wallet.

Gartner defines consumer wallet spending as the money spent by consumers for digital technology devices and services that are for accessing, consuming and creating content. This wallet is divided into three basic spending types — content, devices and services.

“While a vendor can be a leader in specializing within just one segment of the consumer wallet, there are a mounting number of examples that suggest diversification may be the optimal path forward in the consumer electronics industry,” said Amanda Sabia, principal research analyst at Gartner, in a statement.  

“Vendors that diversify their offerings across multiple consumer spending segments earn revenue across the full ecosystem and take legacy services to transform to newer products and services,” Sabia added.

In 2010, consumers spent $2 trillion on digital information and entertainment products and services. Around 62 percent of the consumer spending was attributed to communications subscription-based access and usage services including mobile and wired voice services; mobile data services, such as SMS/TXT and broadband; fixed broadband services; video services, such as subscriptions to pay TV; and online gaming.

Consumers spent 28 percent of their spent on devices. The $600 billion included consumer electronic devices, such as mobile/handheld devices, PCs and related devices, and stationary entertainment equipment, such as television sets and game consoles, Gartner said.

Recently Gartner also released the findings from its seventh annual Supply Chain Top 25. The goal of the Supply Chain Top 25 research initiative is to raise awareness of the supply chain discipline and how it impacts the business.

According to Gartner, four key themes emerged this year among the leaders, including how they deal with volatility, their approaches to value chain network integration, their focus on sustainable execution and their abilities to orchestrate, a top official at Gartner said.

Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.

Edited by Rich Steeves

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