News

Digital Content Creation market to grow to $4.3 billion in 2012

Changing market dynamics on all fronts offer new opportunities and several pitfalls as well.

Robert Dow

TIBURON, CA—April 10, 2007—Jon Peddie Research announces the
release of the 2007 Digital Content Creation Report. This year’s report
includes sections on 3D Modeling and Animation, 2D Animation, Digital Video,
Graphics and Imaging, and Audio.

The digital content creation market has seen a healthy
period of growth. The total DCC market grew 16% from $2.6 billion to reach more
than $3 billion in 2006. The fastest growing segments in the future will be
interactive development and video as the web offers new distribution networks
and new programming approaches such as AJAX to enable small, compelling
applications to be developed that extend the power of individual websites.

DCC2007
JPR expects to see the total
Digital Content Creation market reach $4.8 billion in 2012. (Source: JPR)

“We are seeing big shifts in the digital content creation
market. For example, there have been game-changing moves by Adobe with the
acquisition of Macromedia and Serious Magic, Autodesk’s acquisition of Alias
and Colorfront, and Google’s acquisition of Sketchup and YouTube. The landscape
is changing right in front of us all. It’s all good, but companies are going to
have to be nimble to adapt,” says Kathleen Maher, Senior Analyst at Jon Peddie
Research and author of the DCC Report.

For the short term the outlook looks good for all segments
in digital content creation. There are exciting prospects for consumer products
and for a growing mainstream of professional products. Some challenges remain
ahead, most notably for the graphics and imaging market. The growth of digital
cameras and the growing understanding among consumers of the potential of
digital photos and video have contributed to overall growth, but in the case of
digital photography, free tools are becoming available for the limited amount
of editing consumers generally perform (adjust, crop, post/email). Video is
more complicated and thus is not easily boiled down to a few processes. In
addition, new avenues of distribution such as media players, YouTube, MySpace,
etc., are helping spur interest in consumer video editing. In the future,
however, instant video-editing tools have the potential to confuse the market
for traditional vendors.

The professional market overall is being defined by a move
away from proprietary systems toward mainstream, desktop-based systems. Most
companies selling professional DCC tools are trying to adjust to this trend
because there is an obvious positive side: As tools become more accessible in
price and ease of use, there are more people who can take advantage of them.