Overview
The Group’s strategy is based on attractive long-term dynamics in the entertainment content distribution markets:
- strong market growth is expected with external research forecasting global revenues increasing in all the Group’s key markets and territories
- the distribution channels to market are evolving from physical to digital which supports the Group’s strategy to put content ownership at the heart of the Group’s investment plans
- the Group currently operates in the UK, Canada and USA, but plans to expand into new territories in the future as it develops it’s multi-territory strategy
- the Group operates primarily in the filmed entertainment and recorded music markets.
Filmed Entertainment
The filmed entertainment market consists of consumer’s
- box office spending for theatrical motion pictures
- spending on rental, both in stores and online
- buying home video products on DVD, both in retail stores and online
- purchasing video products digitally via download
- selling filmed entertainment content to TV broadcasters
The global filmed entertainment market is forecast to grow over the next five years. The key growth drivers include
- the improvement in the theatre going experience through the advent of digital
- the growth of the high-definition DVD market with improved picture and sound quality, through the increase in sales of digital and HD ready TVs and DVD players
- the expansion of demand for TV content from TV broadcasters, as premium subscription models expand and more channels are added
- VOD and digital sales of product as these channels in the market expand
Recorded Music
The recorded music market consists of consumer spending on album and single sound recordings and music videos distributed in traditional formats and sold in record stores, including compact discs. It also includes licensed digital distribution as well as mobile music. Global spending on recorded music is forecast to expand over the next five years driven primarily by mobile music and licensed digital distribution which is steadily replacing the physical market.



