Movie and wireless content downloads were key issues at the Digit...

to a real boon for Hollywood, albeit one that’s at least 5 years away, speakers said. Yankee Group analyst Michael Goodman estimated the current installed U.S. base of broadband homes at 22 million. He said at current growth rates, the number of broadband homes in the U.S. would surpass those with dial- up Internet access by 2006. That, Goodman said, should increase Internet movie distribution to 7 million authorized downloads annually by 2007, generating $750 million in yearly revenue. But Sam Bloom, Blockbuster vp-business development, questioned Hollywood’s current and long-term enthusiasm for Internet distribution. “The studio economy right now doesn’t favor new technologies for film distribution,” Bloom said. The wireless industry is looking to Asia and Europe to spot trends that could foretell what forms of mobile entertainment content might trigger a business explosion in N. America. The biggest source of excitement for the mobile entertainment industry in the U.S. seems centered on games, most of which are offered as downloads for $3.50-$4.50. One Sony Digital Entertainment executive responsible for wireless services said many in his industry were encouraged that it was casual, not hard core, gamers who were driving the mobile gaming market. Michael Gallelli, dir. of content acquisition at T- Mobile, said games constituted a more attractive business model because they commanded higher average price points compared with other content options, such as downloadable ring-tones.