Home entertainment includes components such as TV and several other premium level content in both electronic as well as physical format from which the revenue for this market is generated. The revenues come from rental, sell and subscription models. Further, consumers as well as advertisements are the sources for revenues.

The consumer electronics industry has undergone a significant change during the last decade and innovative entertainment solutions such as digital set-top box, home theater systems, media players such as Blu-ray players, and digital video recorder have made their entry into the market.

Home theatre systems have gained significant demand among the consumers during the recent years. This is due to the growing income levels of the population around the globe and the desire to spend more on entertainment solutions. Home theater products include various components such as sound and display systems, media players, storage devices and theater-in-a-box systems.

Theater-in-box systems consist of various channels such as 5.1 channel, 6.1 channel, 7.1 channel, 9.1 channel. There is a constant increase in the number of stores selling large-sized televisions with high screen resolution, projectors and home theatre systems. With continuous improvements in the quality of equipment, consumers can enjoy an exclusive movie theater experience in the comfort of their own homes. There is also a growing trend of offering video playback feature in the home theatre systems.

A majority of consumers are now keen to socialize more at home, both with families as well as friends. Rising prices for movie tickets has also led to consumers looking for home entertainment solutions. This trend has consequently persuaded the consumers that investing in home cinema and speaker systems by making it valuable as they require creating a cinematic experience at home. One of the major factors driving growth of home theatre market is the continued emergence of demand for home theatre systems from consumers in regions such as China, Brazil and India.

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There is an increasing demand for Blu-Ray’s high-definition (HD) playback system that gives the advanced home theater experience. The companies operating in this market are placing new standards for enhancing the value in the consumer electronics goods as well as offering excellent customer service. There is a growing trend of offering connectivity feature with home theatre systems, which is further expected tyo drive the growth of this market during the coming years. A key challenge for home theatre systems is the increasing preference of a segment of consumers for mobile devices, as many spend more time over smartphones and laptops for entertainment purposes.

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