Games vs. Music vs. Movies
Thursday, November 5th, 2009So, out of the three, who would you think comes out on top for growth and sales? Could it be music? After all with most phones having some way to get MP3s onto them nowadays it’s easy to get music on the move. Or is it movies for the same reason – movie player integration into a lot of smartphones? The gaming market is huge but is it widespread enough to take the ‘Media Backbone’ title? Well let’s take a look at some figures…
I’m going to run with a couple of reports for industry growth for 2006 over 2007 just to give us a look at how things stand and also using the US for sales figures as there is a few more people over there buying media. Let’s start with 2007; The Entertainment Software Association announced in January 2008 that total sales for 2007 were $18.85 billion with $9.5billion of that from games revenue (to include console and PC games) and $9.35 billion spent on consoles; big numbers I think you’ll agree, a 28.4% growth up on the previous year.
The music industry didn’t have such a good 2007 with sales in the US only reaching a mere $10.3 million – a fraction of the gaming industry, almost ‘chump change’, that’s to include a 75% of physical sales with the rest lending to digital downloads. These figures also include music video formats. An estimated 10% decrease from 2006.
The industry, on paper, seems very lack lustre, I personally love listening to music but do I buy a lot of albums these days? Nope! Spotify, You Tube and such programs allow me to have a huge music collection without spending a penny. Sure on occasion I’ve paid 99p for 24 hours without ads but I can’t remember the last time I bought a physical copy of any music. Perhaps if the music industry unified its selling prices throughout the world more people would buy them, I mean if all CD’s were a fiver I for one would no doubt buy 2 maybe 3 a week. CD’s range from £8 right up to £15 dependant on retailer yet the same CD can be sold halfway around the world in less fortunate countries for £3 – its exactly the same copy but people in certain countries aren’t considered quite so well off. I feel the music industry has been shooting itself in the foot for sometime…
So what about movies? Surely sales from this particular media will challenge the gaming industry? Big titles in 2007 like Ghost Rider, Wild Hogs, 300, Blades Of Glory, Spider-Man 3, Shrek The Third, Pirates Of The Carribean: At Worlds End, Oceans Thirteen, Surfs Up, Ratatouille, The Transformers, Harry Potter and the Order of the Phoenix, The Simpsons Movie, No Country For Old Men, Enchanted, I Am Legend – the hitlist just keeps on rolling! Sadly the figures still fall short; $9.66 billion reported for the year, almost half the gaming industry figure. A growth of 1.8% up on 2006.
Is there a logical explanation for this? Has the advent of HD and Blu ray destroyed cinema ticket sales or is it that cinemas are just pricing themselves out of the market? The cost for a family of 4 is in the region of £30 to go and watch a new movie at the cinema, then obviously there’s popcorn and a drink so you’re looking at around £40 for a night at the cinema! The cost of a new DVD movie these days is a mere £12 with a new Blu Ray movie coming in at around £20, both very much cheaper than a night at the cinema and you can watch it more than once.
The games industry, on the other hand, is booming! This has to be down to the more successful developers truly knowing not only the target audience and what they want but to also unify prices as best as they can. PC and Wii games will normally cost no more than £30, Xbox 360 and PS3 games around £40 and the handheld market games usually come in at around £25 so there’s rarely a surprise at the checkout with games. I’ve often gone to the counter to buy a CD and been stunned that its £15! I suppose one argument could be that movies are half the price of games but in defence of this, movies rarely have the appeal to be played more than 10 times but games on the other hand can be played for much longer. What can we draw from this then? Is piracy that rife that it’s causing the music and movie industry to suffer so greatly? If that were the case the games industry would be suffering too? Games are the most expensive media out of the 3 so why doesn’t piracy seem to be affecting the games industry? Perhaps it doesn’t come down to price…
So finally legislation is to be put in place to stop repeat piracy offenders but is it enough? Lord Mandelson believes so…
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