Asking the audience: Interactivity in home entertainment

The report considers what opportunities iDVD offers to rights holders and publishers, and notes the threats to development. It also profiles the market's pioneers and key players in the iDVD space, in addition to identifying potential entrants.

Looking ahead, the report examines the enhanced interactivity offered by hi def formats Blu-ray Disc and HD DVD, and speculates how the new features might be harnessed for interactive game titles. The report also assesses the potential for distributing interactive content digitally in a video-on-demand (VoD) environment.

Key findings include

• The market for iDVD has emerged quicker in the UK than in the rest of Europe. The number of titles released in the UK more than quadrupled in 2006 with close to 150 titles being released compared with around 35 titles in 2005
• Distributors have identified the fourth quarter as an ideal period in which to release iDVD product as it allows them to tap into heightened interest in family games and the gifting market. In the UK, 84% of iDVD sales between Q3 2005 and Q3 2006 occurred in Q4 2005
• Product is often tied to an existing brand, with more than three quarters of titles released in the UK based on a licence. Game shows are the most common source for UK iDVD titles and accounted for half of all sales in the period examined
• Right holders are increasingly recognising that iDVD offers content owners an opportunity to extend their brands
• However, the categorisation of iDVD has been inconsistent with retailers unsure how to position the product in-store – especially in mainland Europe – and this is hampering development of the sector
• Nevertheless, retailers are enthusiastic about iDVD thanks to its premium price point, something they are keen to sustain in order to preserve their profits as margins shrink for standard DVD
• There is potential to expand the interactive video platform with the enhanced features offered by hi-def formats Blu-ray Disc and HD DVD