Internet shakes up the CE industry causing categories to rise and fall

Published on Tue, 12/04/2011, 12:53:20

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By Keri Algar

SYDNEY, NSW: The IbisWorld report, which endeavours to pick the top five categories in decline and in growth for 2011, has placed wired telecommunication carriers at the top of the poor performers list, up from third earlier in the year, due to the uptake of mobile communication.

“With consumers increasingly opting for unwired options that allow cost-saving benefits – such as eradicating line rental expenses – IbisWorld forecasts industry revenue will drop by 8.1 per cent ($943.30 million) in 2011,” said the report.

Telco resellers will also feel the pinch as competitive new comers such as iiNet and TPG muscle their way into the market. Overall the reseller industry is expected to experience a 5.4 per cent fall in revenue.

Internet streaming and digital media have eclipsed optical media for user choice, so for recorded media manufacturing and publishing, of which CD and DVD sales account for 63.5 per cent of industry revenue, the impact is significant. The category is expected to lose 2.1 per cent in revenue.

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But on the bright side for the CE retailer and coming in at number two of the top five industries to boom are video games. This has largely been driven by growth in the female market, according to the report, as non traditional devices such as the Nintendo Wii and Xbox Kinect appeal. It is expected to grow by almost 12 per cent, representing a change of $433.8 million.
 




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