Video market movement.(market outlook)(Brief Article)

The digital video market has been enormously affected by the downturn in the economy since 2000, which has led to a decline in advertising and capital expenditures. However, toward the end of 2003, the economy, at least the part of the economy that affects the entertainment business, started to turn around. As a result, advertising revenues are increasing, new markets are taking shape, and capital expenditures are again picking tip, driven in no small part by increased interest from consumers worldwide in high-definition digital television.

As the accompanying chart from Jon Peddie Research shows, the industry will experience a continued increase in advertising and capital expenditures through 2006. There are several reasons for this growth. First, the transition to digital technologies is gaining speed within studios as companies transition to an end-to-end digital process. ...