HYPERtext linking technology and communications

Though both located in the same state, the technology campuses of Silicon Valley and the glittering sidewalks of Hollywood seem about as different as Bill Gates is from Paris Hilton. But as entertainment moves into cyberspace, the two worlds are quickly converging.

The Internet is the greatest vehicle for the distribution of entertainment content ever created, and the rapid advance of processor-driven, digital technology is dramatically changing the landscape of the music, electronic gaming, television and film industries forever. Here are just a few of the areas where the traditional lines between technology and entertainment are beginning to blur:

Celebrities as influencers

Once a sign of geekdom, sporting the latest technology is now another status symbol. Whether or not we like to admit it, we look to celebrities as the arbiters of style, and whatever they wear and whatever they carry quickly become extremely popular in core marketing demographics. This is no less true for Nokia than it is for Prada--a celebrity photographed often enough becomes a walking billboard for a brand.

Playing the Hollywood game

The video game industry is among the fastest-growing, most-profitable businesses in entertainment. Until recently, video game development was left to computer programmers, but with a new generation of game consoles and more realistic graphics, the line between gaming and film is blurring. Movie studios want to create their own games, and video game companies are seeking new Hollywood-style franchises to secure a piece of the $25 billion gaming market that is expected to more than double by 2009.

A thousand devices

With MP3 players and laptops already upending the traditional television and music industry, the next generation of viewing devices surely will start a revolution. TiVo and other similar digital video recorders are worrying the television industry since they challenge traditional advertising revenue stream. But networks and studios that want to thrive in this new age are going to have to become "platform-agnostic" to survive. Technology companies will benefit by developing new and exciting software and electronics that allow listening and viewing from anywhere at anytime.

Making a better picture

High definition may just be the technology that launches a thousand devices, but this is technology still in the early stages of mass adoption. While most Americans have heard of HDTV, many still don't know much about it. Those who experience their first HD moment know that this technology provides such an enhanced viewing experience and that it is just a matter of time before it becomes the standard for all home entertainment. FCC rules will mandate that broadcasters make the switch to HD by 2007. This is technology that will no doubt shake up the entertainment industry, with celebrities worried about clarity that will show every flaw when filmed in HD.

The future convergence of technology and entertainment presents interesting and new opportunities for marketers. For traditional technology companies, being well versed in bits and bytes is no longer enough--adding Variety and The Hollywood Reporter to daily reading lists is fast becoming a requirement. Likewise for entertainment companies, technology no longer just means tech support. As these worlds continue to morph, marketers are well served looking outside of their traditional realms of expertise to prepare for what should prove to be an onslaught of diverse new opportunities. A few ways to do this include:

• Establish some key media contacts covering the entertainment industry
• Develop relationships with executives at all levels of digital content development, from the creative to the technical
• Attend entertainment and technology conferences such as E3Expo or Digital Hollywood to develop relationships with industry insiders on both sides of the fence
• Monitor blog communities and entertainment trade publications
• Educate yourself on new areas of convergence
• Work with PR professionals to determine the best ways for your company to maximize the growing opportunity

¹According to PricewaterhouseCoopers Entertainment and Media Outlook: 2005-2009 (Global Overview).