News

Digital Content Creation (DCC) Market to See Growth on Several Fronts, Says Jon Peddie Research

2005 seen to be a transitional year reflecting a new generation of digital content creators

Robert Dow

Tiburon, Calif.—August 11, 2005 — Jon Peddie Research
today announced the release of its 2005 version of the Digital Content
Creation Report. Featuring new approaches to industry analysis and interpretation,
the 2005 report looks at the DCC market from the point of view of six
market segments: 3D Modeling and Animation, Digital Video, Graphics/Digital
Imaging, DVD Authoring, Desktop Publishing/Vector Graphics, and Interactive
Authoring. The report provides market revenues, market share for key
companies, industry trends, user base information, and information forecasts
to 2010. This year the report also breaks out the consumer markets and
professional markets.

The DCC Report is among JPR’s most successful reports—giving those who work in the creative industries and the vendors serving
these markets a picture of the products available and the trends affecting
them.

The Digital Content Creation (DCC) market reached $2.9 billion in 2004.
JPR predicts the market will grow 8% to reach $3.2 billion in 2005.
2005 is a transitional year marking the wind-down of a game console
generation, widespread cost cutting of content creation software, and
the rise of a consumer base of digital content creators.

For the near future, the Digital Video and 3D Modeling and Animation
markets are showing the most promise of growth. The Graphics and Digital
Imaging market is the largest segment of the market and is expected
to reach $842.54 million in 2005. However, the graphics and digital
imaging market is undergoing the most change as consumers discover digital
photography and editing. New products at low prices are challenging
the incumbents. And, at the same time, consumers are creating new market
segments such as online print sites, special interest sites such as
My.Space and blogs, and digital scrap-booking.

DCC segments
The DCC market reached almost $3 billion in
2004 and it is expected to reach $3.2 billion in 2005. JPR’s
DCC Report breaks out the DCC market according to the above
segments. While Graphics/Digital Imaging holds the largest share
of the DCC market, the Digital Video market is growing rapidly
with a healthy professional base.

“The Digital Content Creation market is going to be affected by several
inflection points at once including the introduction of new operating
systems from Microsoft and Apple, new game console platforms, and more
powerful processors with mainstream price tags,” said analyst Kathleen
Maher. “The period between 2006 and 2007 is going to see many markets
growing and evolving. At the same time, as the acquisition of Pinnacle
by Avid and the acquisition of Kaydara by Alias indicates, the pace
of consolidation is also going to pick up as market directions become
clear in a variety of areas including home entertainment, gaming, film
and video, and web applications.”