Report: Digital media will eventually deliver

Ernst & Young survey forecasts significant rise in revenue

A report on digital media says businesses tied to the Internet and mobile-device distribution eventually will throw off impressive revenue despite slow progress so far.

Ernst & Young surveyed CFOs from 75 media and entertainment companies on the subject. A related report circulated Thursday suggests a significant rise in digital revenue is only a matter of time.

"As the demand for digitally delivered entertainment continues to increase significantly, CFOs feel optimistic about revenue potential," the consultancy's John Nendick wrote.

The financial executives "agreed that the industry must determine if and how much they can bundle media content and then settle on appropriate pricing," the firm said.

Until then, robust revenue will remain elusive, with the entertainment industry likely to mark a collective decline this year, Ernst said.

"The average per-unit price of video and music content will decrease by almost 25% from the per-unit price in 2009," the firm estimated. "This would be on the heels of the 55% decrease of the price of music and the 12% decrease of the price of video between 2006 and 2009."
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