Digital Lifescapes

Local Advertising Gaining Mobile Momentum

2009-11-07T08:41:00.011-06:00

eMarketer reports that beginning this year, Piper Jaffray anticipates that local online advertising spending will outpace the national spend within the U.S. marketplace.

In 2008, national and local ad spending levels were equal. But while the research firm projects a drop in national online ad spending for 2009, local is expected to increase by 5 percent.

Over the next five years, Piper Jaffray predicts a compound annual growth rate (CAGR) of 9 percent for local online ad dollars, compared with 4 percent for national Internet spending.

Borrell Associates, on the other hand, forecasts only a 2.9 percent CAGR for local online ad spending over the next five years. Borrell puts spending at $16.4 billion in 2013, compared with $19.18 billion for Piper Jaffray.

While Borrell believes the local online ad market is approaching saturation, Piper Jaffray indicates in its report that small businesses will begin to catch up with consumers online, bringing significant growth to the local online sector and moving local dollars from offline to the Web.

Piper Jaffray considers lead generation the primary goal of local advertising, and suggests that mobile device use presents a major opportunity for savvy marketers.

With online search the preferred method to find local business infornation, and consumers highly connected to their mobile phones, especially during the weekends, they predict huge growth in mobile search spending through 2012.

Local-centric digital marketing companies will play a key role in bringing small businesses into mobile advertising, according to the report. Small businesses need to understand that mobile phones and public Wi-Fi hotspots can be an effective source of new sales leads -- similar to utilizing traditional online promotions.

Top 3 Consumer Desires for Broadband CPE

2009-11-06T06:50:00.006-06:00

The top three important factors U.S. consumers cited in their purchasing decisions of Broadband Customer Premise Equipment (CPE) were speed, security, and Wi-Fi wireless range, according to the latest market study by In-Stat.

The least important features were product brand, followed by "green" environmental friendliness. Meaning, it's a typical commodity consumer electronics product category.

"While companies are marketing their "green" equipment features, the message doesn't appear to be resonating with consumers," says Joyce Putscher, In-Stat analyst. "Consumers want performance and security."

It's not clear from the survey result if In-Stat asked about ease-of-use preferences, since poor device configuration design is often cited in prior consumer surveys of broadband CPE.

The research also reveals that while 2008 was the slowest total global broadband (CPE) market growth of the decade, 2009 will be even slower. Fortunately, select segments of the market are performing better in 2009 than the overall market.

These include VoIP-enabled routers and DSL CPE, cable gateways, and Fiber-to-the-Home (FTTH) gateways and Optical Network Terminals (ONTs), and Fixed Wireless Broadband CPE.

In-Stat's market study found the following:

- The FTTH CPE segment, which includes ONTs and FTTH Gateways, will see a nearly 20 percent Compound Annual Growth Rate (CAGR) through 2013.

- In-Stat expects global installed PC-based home networks to grow by a little more than 19 percent in 2009, driven by the continued, but slower, rise in the number of residential broadband subscribers, the desire to share that bandwidth, sometimes free network equipment, and the desire to share content.

- The majority of global FWB subscribers are WiMAX. Asia-Pacific has the lead in FWB subscribers and CPE shipments, followed by Europe. In 2011, Asia-Pacific should capture over 50 percent share of the annual FWB CPE shipments.

Server Virtualization Reinvents the Datacenter

2009-11-05T08:07:00.005-06:00

According to the latest study by IDC, 16.5 percent of all new servers shipped in the second quarter of 2009 (2Q09) were virtualized -- an increase from 14.5 percent in 2Q08.

However, actual shipments decreased 21.0 percent year over year to 246,000 physical servers in 2Q09 as customers continue to limit spending on new server hardware relative to last year.

Similarly, worldwide virtualization software revenue declined 18.7 percent year over year in 2Q09 to $344 million. Virtualization licenses did grow quarter over quarter in 2Q09. The server virtualization market continues to shift towards the use of paid hypervisors, with paid virtualization software now running on 60.8 percent of all new server hardware shipments virtualized in 2Q09, an increase over 57.2 percent in 2Q08.

Does this also mean that more enterprise CIOs are out-tasking applications to managed cloud service providers? It's unclear at this time. But, the accelerated move to virtual servers is a significant IT infrastructure trend.

"In the second quarter, IDC observed a number of signs indicating that stability is beginning to take hold in the worldwide server market," said Matt Eastwood, group vice president of Enterprise Platforms at IDC. "The worldwide server installed base has aged significantly and virtual machine densities on these systems have increased sharply over the past year."

As a result, the market is poised for the beginning of a significant infrastructure refresh cycle in the months ahead. IDC believes that virtualization will be a cornerstone technology as medium and large enterprise organizations around the globe accelerate the need for more dynamic and converged infrastructure designed to support the business needs of the next economic cycle.

"Server virtualization has forever changed how customers manage their datacenters," said Michelle Bailey, research vice president of Datacenter Trends at IDC. "Virtualization First is now the default approach for new server deployments at most enterprise IT organizations and is quickly becoming the foundational platform for cloud computing initiatives among service providers."

Additionally, growth in emerging regions is accelerating as the economic downturn limits the ability of organizations to raise capital. The next phase in virtualization will require a reinvention of IT policies and procedures and continued adoption of automation tools will be key as virtual machine densities rise and IT managers find themselves facing virtual server sprawl issues.

Upside for Wireless Broadband USB Modem

2009-11-04T07:47:00.005-06:00

The majority of cellular broadband modems purchased as add-ons to portable and mobile wireless computing devices have traditionally been bought by businesses -- to equip their mobile workforces.

However, according to a new market study by ABI Research, in 2010 51 percent of these modems -- mostly in the USB adapter form factor -- will ship into the consumer segment. By 2014 that percentage is expected to rise to 63 percent.

"The decline in mobile broadband modem sales to business and the rapid growth of the consumer segment have several causes," says senior analyst Jeff Orr.

The overall economic climate has put a crimp in business spending and lengthened equipment replacement cycles. At the same time the explosion in consumer demand for mobility, fueled in large part by the popularity of netbooks, has pushed up consumer interest.

The popularity of the USB form factor, which has all but eclipsed the older PCMCIA and CardBus formats, has also influenced consumer adoption with its compact size and ease of installation. In some markets, declining modem prices have also boosted sales.

Although new mobile computing products will increasingly feature embedded modem modules, penetration will remain slow in the near-term.

ABI believes that in 2009 less than 5 percent of laptops and netbooks have embedded modems. However over the long-term, the attachment rates will reach significant levels. In 2014, 48 percent of laptops and netbooks shipping will include 3G or 4G data connectivity.

Another factor will shape the market in the mid-term, says Orr. "In 2011 and 2012 we will see the first significant nationwide access to mobile WiMAX and LTE networks in multiple geographic regions. That will create demand to upgrade to compatible modems, breathing new life into the market."

European Digital Terrestrial TV STB Demand

2009-11-03T20:51:00.008-06:00

While the global recession has dampened growth in new digital set top box (STB) deployments in 2009, the market potential still remains a tremendous opportunity for STB equipment vendors, according the the latest study by In-Stat.

From 2001 to 2008, the overall digital set top box market grew from 37 million units in 2001 to nearly 190 million units in 2008. Growth turned mixed across STB markets in 2009, with cable set top box shipments declining, while satellite, IP and digital terrestrial segments continued to see some unit growth.

"Looking forward, the transition from Standard Definition (SD) to High Definition (HD) set top boxes will continue to provide STB vendors a solid growth opportunity," says Mike Paxton, In-Stat analyst. "The integration of Personal Video Recording (PVR) capability is also creating growth opportunities."

The big unknown factor is still the growth of over-the-top (OTT) Internet video service adoption and the effect on hybrid STB demand, combined with the further integration of wired and wireless broadband interfaces directly into consumer digital television sets.

In-Stat's market study found the following:

- Worldwide digital set top box product revenue was $18 billion in 2008.

- IP STB shipments to Telco TV service providers are slowing down as Telco TV subscriber growth matures and moderates.

- 2009 is a year of transition for digital terrestrial (DTT) set top boxes. The completion of the analog switch-off in the U.S. occurred in June, 2009. This created a substantial bubble of DTT shipments in 2008 and early 2009, but U.S. DTT STB shipments will likely plummet in 2010.

- It's anticipated that the growth in DTT shipments to Europe will partially offset the declining U.S. STB sales.

China, India Capture Mobile Handset Growth

2009-11-02T20:22:00.004-06:00

Emerging markets now account for over two thirds of all mobile phone handset shipments -- with China and India leading the growth -- according to the latest market study by Futuresource Consulting.

"The global handset market will decline by around 3 percent in 2009, with consumers and businesses alike keeping hold of their handsets for longer," says David Sidebottom, Digital Media Consultant at Futuresource Consulting.

"However, China and India continue to buck the global trend, and our forecasts show year-end growth in both these countries, giving them a combined share of almost 30 percent of the total global handset market by the end of the year, compared to just 20 percent in 2006.

The USA has also performed better than anticipated, bolstered by strong smartphone and pre-pay sales. Conversely, Japan has been severely hit this year, largely due to new pricing regulations. The UK market has been one of the hardest hit, with the mid-range sector taking the greatest decline.

However, despite the poor start to the year, many markets across the globe are now seeing signs of recovery, which will help alleviate the extent of this year's decline.

The U.S. and the UK have seen a groundswell of smartphone sales this year, accounting for around 30 percent of handsets sold and the iPhone has been instrumental in changing consumer perceptions of the market, not only in terms of its business models, design, simplicity and content, but also through promoting a software-based solution rather than one based purely upon the hardware.

BBC Canvas Adoption, Assuming it Survives

2009-10-31T12:21:00.011-05:00

The latest market study from Screen Digest focuses on the prospects for a project Canvas-type venture in the UK. Screen Digest believes that a hybrid open IPTV platform -- such as that proposed by the BBC and its partners -- will attain some degree of consumer adoption.

Dan Cryan, Senior Analyst at Screen Digest says "The BBC track record of building markets with Freeview and the iPlayer has been a well-documented success. There is every reason to think that if a Canvas-type proposition is approved, with the full promotional impetus of the BBC behind it, it will reach at least 3.5 million homes by 2014."

Given recent events at the BBC Board of Governors, however, "if" Canvas is deemed within the public interest apparently remains very much an undecided issue.

Such a platform is both a threat and an opportunity to pay-TV operators. On the one hand giving them wider distribution potential for their content, and on the other hand giving content owners a potential route to bypass traditional pay-TV service providers and go direct to the consumer.

A Canvas-type proposition will offer an alternative, neutrally-branded distribution platform offering linear TV channels, video on demand and web-based applications. Ultimately, it will rival IPTV, cable and satellite and will be separate from the existing Freeview, Freesat and BT Vision offerings.

Despite the support of powerful project partners, Screen Digest believes that a Canvas-type proposition has a number of obstacles to address -- set top boxes will be expensive and the timing may coincide uncomfortably for UK consumers with the launch of HD Freeview.

Hyper-Competitive French Telecoms Market

2009-10-30T17:38:00.005-05:00

By 2014, more consumers in France will subscribe to a triple-play service offer -- as broadband service providers invest in fiber-optic infrastructure to stay competitive, according to the latest market study by Pyramid Research.

Pyramid offers an insightful profile of the country's converged telecommunications, media, and technology (TMT) sectors. Their report provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and adoption of technologies, such as WiMax, IPTV, and VoIP.

"Pyramid forecasts that 30 percent of households in France will subscribe to a triple-play offer by the end of 2009, a number we expect to increase to almost 50 percent by 2014," says Jan ten Sythoff, EMEA Manager at Pyramid Research.

"Pyramid expects quad-play adoption to gradually increase to make up 3 percent of households by 2014," he adds.

Fixed-mobile convergence will become an increasingly important competitive focus over the next couple of years.

"On the fixed side, investments into fiber will be key to maintaining a strong position in the fixed broadband sector; the development of Fiber-to-the-Home is a key issue, and ARCEP, the regulator, is promoting cooperation in order to drive FTTH coverage," Sythoff, says.

On the mobile side, competition will increase with the launch of the fourth network, as well as increasing numbers of MVNOs. Pay-TV competition has intensified with the entry of DSL and fiber operators, as content offers and packages are a key differentiator in triple-play bundles.

"Orange has also started selling satellite TV as part of its triple-play packages, in order to provide nationwide TV coverage, not possible through its DSL network," Sythoff explains. "Cable operator Numericable is investing in fiber technology, and we therefore expect cable subscriptions to decline."

Mobile Data Service Price-Leader Examples

2009-10-29T17:02:00.001-05:00

In a global comparison of mobile data service pricing, ABI Research found the Netherlands, France and Singapore to have among the lowest prices for mobile broadband plans.

In France, an "unlimited" download plan costs just over $15 per month. Government regulators in other countries can learn from this hyper-competitive telecom services market that has become the envy of consumers the world over.

"ABI Research expects the price of mobile data to fall in emerging regions where network capacity is still under-used," says ABI Research analyst Bhavya Khanna.

However, in developed markets with high levels of smartphone penetration, operators will have to rethink their current pricing strategies of high or unlimited data download plans, as data usage has grown exponentially.

Some countries have already seen the introduction of innovative pricing plans, including pricing by time rather than data downloaded. For example, mobile data plans in Italy and the Philippines allow for unlimited downloads, but with a limited amount of available time per month.

Vendors must also ensure that their price plans remain transparent and fair. Consumers and watchdogs have complained about excessive and uncapped data costs for users who unknowingly exceed their allotted maximum download limit.

This can be mitigated by the use of data caps above which users cannot continue downloading, or through informative advertising detailing the number of web pages or online videos represented by a given data package.

ABI Research tracks mobile data pricing for both handset use and USB modem across 27 countries worldwide. The database includes information about data pricing plans by carrier, as well as a cross country comparison of the lowest cost plan for downloading 3GB of data.

Substantial Upside for Mobile Enterprise Apps

2009-10-28T17:10:00.003-05:00

Informa Telecoms & Media forecasts that mobile enterprise revenues are to reach $92.6bn with over 479 million subscribers by 2014, making this a strong growth area for vendors, service providers and content providers.

According to Informa's latest market assessment, mobile enterprise is forecast to generate 24 percent of total mobile data service revenues by 2014, representing a potentially strong revenue generation opportunity for key players.

Traditionally, cellular operators have tried but failed to capture this market and Informa's report highlights the importance of developing strategies to maximize these new revenue streams.

"One of the key drivers of this growth, is cellular operator interest in new service segments including the SME and Soho sector, the opportunities created by mobile convergence, growth in end user outsourcing and software as services (SaaS). These factors will be magnified in the short term by the impact of the global economic downturn," says Paul Merry, Senior Analyst at Informa.

Mobile enterprise is also seen as a major opportunity for new entrant players from the established enterprise IT sector, according to Merry.

These players are a major challenge to cellular operators having pre-existing relationships with larger corporations and access to their IT departments; they also have substantial expertise in the challenging area of enterprise service development and integration.

"Integration is a major headache for enterprise service providers," Merry states, "with larger companies invariably having pre-existing systems that require incorporation."

The other major party involved in mobile enterprise are device manufacturers, who have identified enterprise services as a valuable service sector which they can develop to drive uptake of smartphone devices.

Players in this sphere include RIM, who through their Blackberry enterprise server (BES) and recently launched App World store, provides the service platform and the services themselves to potential enterprise users.

When Smartphones Reach Market Saturation

2009-10-27T16:52:00.008-05:00

The next mobile phone feature, no matter how cool it's said to be, apparently isn't enough to create meaningful competitive advantage. Consumers demand applications that leverage a combined set of features and improved performance to enhance their user experience, according to the latest market study by In-Stat.

"iPhone's success has been a bellwether driving users expectations for cellphones," says Frank Dickson, In-Stat analyst. "Touch screens and QWERTY keyboards, as well as accelerated adoption of open source operating systems have combined to create an innovation environment not seen in the cellphone market of the past."

However, are we talking exclusively about early-adopters when we describe these scenarios? I'm not an early-adopter of these expensive smartphones, so I have to wonder when the advanced user market reaches total saturation -- in other words, I'm wondering, are we already there?

In-Stat's market study found the following:

-Media features continue to penetrate the market and the rise of social networking has helped drive demand for integrated cameras.

- Survey respondents with MP3 players are up 17.3 percentage points from 2008 and respondents with video recorders are up 26.2 percentage points.

- Trends that arise from looking at survey results from each of the four years of the survey highlight the trends of features such as speakerphones migrating from features that they are willing to pay for" to features that are minimum expectations for a phone.

- Respondents voiced desires for usability improvement on the less complex features like better audio, better connectivity and simpler to use overall.

- According respondents digital cameras, speaker phones and GPS were the top characteristics of the Ideal Phone.

Mobile Handsets Include Augmented Reality

2009-10-26T03:23:00.009-05:00

Augmented Reality (AR), the overlay of graphics onto a video stream or other real-time display, has existed for more than 15 years, with customized applications in industrial automation, theme parks, sports television, military displays, and online marketing.

Recently, an entirely new mass market has opened up in mobile handsets, due to the availability of video cameras, processors, GPS data, compasses, and accelerometers on smartphone handset platforms.

In particular, personal navigation applications for the Apple iPhone and Android platforms have seen strong early adoption, due to the intuitive nature of the real-time display.

According to an ABI Research study, handheld platforms will transform the Augmented Reality ecosystem, with revenue growing from about $6 million in 2008 to more than $350 million in 2014. As advertisers learn to insert tags into navigation displays, mobile advertising revenue will grow slowly, representing a large portion of sectoral revenues in the 2013-2014 timeframe.

"The new capabilities of handset platforms create an explosive opportunity for Augmented Reality technology," explains study author Joe Madden.

Existing technology suppliers will have to adapt, as rapid growth will transform the Augmented Reality ecosystem. Today's customized, direct business-to-business AR supply chain will continue to see incremental growth in military, automotive, and entertainment applications, but those businesses will be overshadowed by the mass-market dynamics of mobile handset application sales and advertising revenue streams.

The study envisions the development of global databases to store a wide variety of geo-tag information. Governments, businesses, and individuals all will contribute information into such databases, so end-users will be able to view information on notable buildings, retail sales, or special events, or simply to mark locations of interest.

Mr. Madden notes that technology advances are still required for Augmented Reality applications to proliferate. GPS location accuracy is not adequate currently for many applications, requiring additional techniques to refine location precision for shopping applications, or for game applications in which virtual objects must be placed precisely on the display near corresponding real objects.

Producing Attractive Self-Published DVD Media

2009-10-25T08:06:00.002-05:00

As I've mentioned before, I find myself experimenting with digital video media more and more, as I discover new ways to use this communication format for multimedia storytelling.

Having started my video editing learning experience with Windows Movie Maker, I've tried a variety of other Non-Linear Editing (NLE) system software, and tinkered with a couple of DVD authoring systems as well.

Most of my creations resulted in online uploads to Youtube, and other Web-based video sharing sites. Being a low-budget self-publisher of video content, my prior efforts to create and duplicate limited numbers of DVDs resulted in unattractive hand-written scribbles on the usual bland silver surface DVD-R discs.

Granted, there are solutions to this problem that include laser engraving the surface of specially designed DVDs, color printing directly onto special matt- or silk-finish discs, or laser printing on adhesive white labels that can be applied to discs.

My preferred choice for quickly producing cost-effective limited quantity DVD projects, is to use pre-colored LightScribe discs or pre-printed designer surface discs.

I've experimented with Verbatim brand discs with excellent results. Their color background DVD-R LightScribe discs -- available in five attractive colors -- are a good choice.

If you're like me, and you have fond memories of the cinema era, then you will really appreciate Verbatim's very unique DigitalMovie DVD media that features a film reel design on the top surface.

The DigitalMovie DVD-R discs offer the best combination of alternatives -- attractive professional design and the convenience of being able to quickly create custom hand-written titles directly on the disc.

Staying with that retro media theme, Verbatim also offers their nostalgic Digital Vinyl CD-R media, designed to look like the 45-rpm single record from a bygone era of the music recording industry.

Armed with these distinctive-looking digital media disc alternatives, and a little creative talent on your part, your next multimedia project -- for business or personal use -- should be an eye-catching contrast to the more typical bland results.

Online Video Sites May Adopt Pay-TV Model

2009-10-24T09:20:00.007-05:00

According to an eMarketer report, an August 2009 survey provides more insightful datapoints for the ongoing debate about consumer interest in paid (rental) versus free (advertiser supported) services that deliver online video.

Digitalsmiths found that more than 70 percent of U.S. Internet users surveyed had watched online video in the past week, and more than one-half had watched online TV programs.

When asked whether they would pay to watch television programs on demand on a computer or mobile device, online video viewers were split. While 22.6 percent of viewers said they were at least somewhat likely to sign up for such a service, more than three in ten claimed they definitely would not.

Online video viewers similarly disagreed on whether they would pay a rental fee to stream movies on demand.

The eMarketer report highlighted this split among online video viewers. Most would prefer to watch video for free, but a significant minority is willing to pay in order to avoid at least some advertising.

That suggests a hybrid model of reduced advertising along with smaller fees -- similar to cable TV.

"Video destinations that offer extensive content in exchange for fewer ads and lower fees would likely attract a large audience," said eMarketer senior analyst David Hallerman. "That, in turn, would create a robust platform for video ads in an uncluttered environment."

Demand for Internet TV Widget Applications

2009-10-23T14:22:00.006-05:00

The Diffusion Group (TDG) has studied a wide variety of widget-based Internet TV applications. TDG's new report "Widgets Gone Wild - Separating Killer Apps from Losers in the Age of Web TV" offers new perspective on this emerging market.

"To date, it has been impossible to introduce Internet applications into the TV environment and make them stick," notes Michael Greeson, TDG founding partner and report author.

"There are a number of culprits involved, ranging from the lack of network-capable TVs and poorly conceived user interfaces, to a genuine lack of consumer interest in the applications offered."

However, a forwarding looking view of the market opportunity paints a very different picture.

Colin Dixon, TDG senior partner and a former member of the Microsoft Web TV team, argues that the age of Internet TV is only now beginning in earnest, having been touted prematurely nearly a decade ago, long before technology and consumer vectors were in alignment.

Today, however, the circumstances are different. "For one, the technologies needed to deliver a rich Internet TV experience are being put in place. Second, today's consumer understands the value that specific Internet applications can bring to their TV experience. Third, a new user interface has emerged that offers an intuitive and easy-to-use means of engaging the web on TV. It is now a question of identifying which specific Internet TV applications are most valued."

TDG's new report includes consumer assessments of 26 different widget-based TV applications covering TV/video, music, photos, on-demand information, social media, interactive advertising, online shopping, and a myriad of other apps now under consideration by CE OEMs and service providers.

Widget applications evaluated in the study include:

- TV and video applications such as access to online TV sites and movie recommendation services.

- Photo and music applications such as TV-based access to Flickr and Pandora.

- Real-time e-commerce (eBay) and interactive advertising for specific TV shows and movies.

- On-demand information such as breaking news, business, weather, sports, and traffic updates.

- Real-time media clipping for ringtones, wallpaper, TV-based instant messaging and access to social networks such as Facebook.

Worldwide Mobile Data Service Revenues

2009-10-22T20:12:00.005-05:00

While the world economic recession has caused hardship for many businesses, it has had little impact on their use of mobile data services, according to the latest market study by ABI Research.

In an update to ABI's study, worldwide mobile data services revenues are expected to increase 17 percent in 2010. Through 2014, mobile data services revenues will grow at a CAGR of 12 percent.

Says practice director Dan Shey, "Company consolidations have forced the remaining workforce to become even more efficient. Mobile data services offer the most options for tailoring services to the needs and work practices of workers in order to increase productivity and business efficiency."

Messaging services will maintain their leadership position for data revenues, fueled by the penetration and growing use of SMS services by business customers worldwide.

Total worldwide messaging revenues from this segment will grow 10 percent through 2014, equaling $48 billion.

Mobile broadband revenues will be highest in North America from 2010 to 2014. However, the greatest share the mobile broadband services wallet will go to mobile business customers in Eastern Europe and the Middle East where in 2014 revenues will grow to 27 and 26 percent of total spending respectively.

Application download revenues will see the greatest growth with Asia Pacific mobile business customers. The highest portion of ARPU spend for these applications will come from business customers in Asia Pacific and Western Europe.

DTV Sets are Broadband Entertainment Hubs

2009-10-21T20:01:00.000-05:00

With digital television sets (DTVs) supplanting analog models in much of the world, consumer electronics manufacturers are adding new features -- such as Internet connectivity and wireless HD capability to broaden their appeal, according to the latest market study by In-Stat.

"DTVs are competing with computers to be the entertainment hub of the home," says Brian O'Rourke, In-Stat analyst.

TV sets with broadband Internet connectivity are already commercially available in the U.S., Europe, and Japan. Models from Hitachi, LG Electronics, Mitsubishi, Panasonic, Samsung, Sharp, and Sony can connect directly to the Internet without a home computer.

CES 2010 will likely feature a plethora of new TV models, and associated OTT video services.

In-Stat's market study found the following:

- 36 percent of digital TV sets sold in 2013 will be network-enabled.

- DTV Revenue in Asia-Pacific will see a 6.3 percent Compound Annual Growth Rate (CAGR) from 2008 to 2013, the fastest growth among the major regions, except for Rest-of-World.

- DTVs are now the only TVs available in most of North America, Western Europe, and Japan.

- Silicon TV tuners capable of demodulating both analog and digital television signals in a single chipset are beginning to replace Can TV tuners in high-end models.

U.S. PC Market Grew by 2.5 Percent in 3Q09

2009-10-20T21:23:00.005-05:00

Global PC shipments rose 2.3 percent year on year in the third quarter of 2009 (3Q09), according to the latest market study by IDC.

The increase is an important continuation of recovery from year-on-year declines of 6.8 percent in the first quarter and 2.4 percent in the second quarter of this year.

Seeing market growth ahead of the launch of Microsoft's Windows 7 bodes very well for the fourth quarter and next year. All regions except Japan either met or surpassed expectations. Portable PCs continue to account for the majority of volume and growth, with Mini Notebooks are still making a substantial contribution.

"Despite the ongoing mix of gloom and caution on the economic front, the PC market continues to rebound quickly," said Loren Loverde, program director for IDC's Tracker Program.

The competitive landscape, the transition to portables, new and low-power designs, growth in retail and consumer segments, and the impact of falling prices are all reflected in the gains by HP and Acer, as well as overall market growth.

"The continued strength of both the U.S. and worldwide PC business in the face of difficult economic environments underscores the value that both consumer and corporate buyers place on PCs," according to Bob O'Donnell, vice president, Clients and Displays at IDC.

With the forthcoming launch of Windows 7 and expected commercial refresh beginning in 2010, the prospects for future PC market growth are very solid.

The U.S. PC market grew by 2.5 percent compared to the third quarter of 2008. Strong Portables sales were part of a back-to-school season that saw consumers continue to gravitate toward lower-cost Portables. Vendors with a solid retail presence were the main beneficiaries as HP regained the top spot in the U.S. market.

Graphics, Video and Audio App Requirements

2009-10-19T21:13:00.005-05:00

With the increasing use of rich media content, Internet-connected mobile devices need robust multimedia performance enhancements to provide a quality user experience, according to the latest market study by In-Stat.

As a result, graphics, video, and audio requirements are now strategically important to related semiconductor and system design.

"Multimedia features have moved from simple co-processing functions to the forefront of semiconductor and system design," says Jim McGregor In-Stat analyst.

However, there appears to be an alarming trend of fewer in-house and third-party solutions available despite the growth prospects of the mobile market.

In-Stat's market study uncovered the following:

- The total available market (TAM) for Internet-connected devices is projected to grow at a 22.3 percent compound annual growth rate (CAGR) through 2013.

- 91 percent of Internet-connected devices will be using processors with integrated multimedia acceleration, including 72 percent of mobile PCs, by 2013.

- With fewer in-house multimedia solutions and third-party IP providers, ARM, CEVA, and Imagination are poised to benefit the most from increased multimedia functionality in mobile devices.

- Carriers will account for over 60 percent of Internet device unit sales in 2013.

- ARM, CEVA, DMP, Imagination Technologies and Vivente are all offering IP solutions to address the market.

Best Online Video Advertising is None

2009-10-17T19:07:00.007-05:00

eMarketer reports that online video viewership has never been higher, and marketers are eager to reach that audience. However, video viewers apparently dislike advertising. Perhaps marketers should forget about legacy mass-market approaches to viewer engagement, and instead accept that online video isn't at all like traditional TV.

"The audience perspective will also shift as marketers increasingly implement two key concepts," said David Hallerman, eMarketer senior analyst. "It will mean making the length of video ads suitable to the length of content, so that they are not too pushy, and devoting resources to develop high-quality video creative that is well-targeted to the intended online audience."

Marketers still generally shun user-generated video, but the proliferation of short professional content gives them more opportunities for video advertising. Choosing an appropriate amount of advertising for the content and its audience will be key, according to the eMarketer assessment.

"The Internet and TV audience are not one and the same," said Mr. Hallerman. "The Internet audience does not necessarily respond to the same ads in the same way they would after viewing them on TV."

For example, younger people are more comfortable than their older counterparts with online media, which can lead to higher levels of engagement. A drill-down look from Nielsen Online shows that audiences ages 30 and younger are more likely than older viewers to find online video advertising funny, emotionally touching and informative.

Further, there is still about a three-to-one split on whether viewers would prefer to see ads or pay to watch ad-free online videos.

Mr. Hallerman suggests content providers would be wise to consider a hybrid model, much like cable TV, where subscription fees support content with fewer ads. But, I'm not convinced that even this approach is a viable solution to the known problem.

Given the reality, why attempt to force people to watch advertising at all? Why not simply create engaging video content that features a product or service, and thereby offer something of meaningful value to people?

Consumer TVs Entering Pro Digital Signage

2009-10-16T08:24:00.008-05:00

According to a Futuresource Consulting market study, the B2B flat panel digital display market has experienced steady growth this year, with the market attaining sales in excess of 400,000 units in Q2 2009.

This represents close to 30 percent year-on-year growth from Q2 2008, underlining the growing acceptance of flat panel product as a viable and ever more affordable technology.

However, this performance also includes consumer TV crossover product, which has been widely adopted in the professional marketplace over the past few years, accounting for over 60 percent of global sales in Q2 this year.

There are arguments and counter arguments for the selection of pro monitors vs. consumer TV products, but ultimately video displays have now become just one element of a wider solution.

"Our research shows the public display application has enjoyed strong year-on-year growth of nearly 40 percent, with digital signage driving flat panel display penetration in almost every application and vertical market," says Chris McIntyre-Brown, Senior Market Analyst at Futuresource.

Retail digital signage has long been seen as the main vertical for flat panel displays -- currently around 45 percent of total public display application sales -- with the obvious attraction of funding the network via advertising revenue.

However, it appears to be the digital signage networks and installations that fail to provide, or even offer, a clear ROI that have suffered -- such as point-of-information or wayfinding installations. After a period of difficult growing pains, the digital signage industry shows signs of maturing beyond infancy to early adolescence.

Securing quality affordable content still remains an issue but this is gradually changing as the industry evolves and the weight of demand drives new initiatives.

Futuresource expects the latent demand built over 2009 to drive strong growth in 2010 reaching 2.4 million units. Systems integration will continue its ascendancy as the lines between AV and IT continue to blur and more emphasis is placed on total solutions.

The challenge for both hardware and software vendors will be how they fit into the new connected age, identifying the most suitable players to partner with, which verticals offer the best opportunities and the most appropriate routes to those markets.

Wi-Fi Starts Cross-Over into Digital TV Sets

2009-10-15T16:18:00.007-05:00

As the number of connected consumer electronics (CE) devices continues to grow, network connectivity becomes a challenge. Home network technologies such as coax and powerline are making inroads, however the latest market study by ABI Research indicates that wireless will remain the dominant method.

Connected consumer electronics devices are an important part of the emerging and quickly growing home media network. Consumers are becoming more comfortable with the idea of delivering audio and video content throughout the home, on a variety of devices.

These devices include HDTVs, video game consoles, networked music receivers, and more. However, as these components are frequently scattered around the home, away from the router, wired connections are often not practical.

As a result, Wi-Fi connections in consumer electronics devices will rise from 113 million in 2008 to more than 285 million by 2012.

"While many consumer electronics devices initially adopted Ethernet connections due to cost and potential wireless connectivity issues, Wi-Fi has become the dominant LAN connection type in several device categories," says digital home practice director Jason Blackwell. "Now we're seeing Wi-Fi making its way more aggressively into components including digital televisions."

As bandwidth-intensive applications such as video streaming have become more commonplace, Wi-Fi has evolved with higher speed technologies such as the 802.11n standard. Ethernet will remain a strong second place technology, as it is often integrated in the silicon and does not add a significant amount to the bill of materials costs.

Over time, powerline, coax, and high-speed wireless connections will show growth in adoption, especially among broadband service providers.

Pay-TV Set Top Boxes Transition to MPEG-4

2009-10-14T15:48:00.006-05:00

The global pay-TV market has been somewhat unpredictable for vendors that supply the key elements of the service delivery infrastructure. After a record-setting year in 2008, worldwide demand for digital cable set top boxes (STB) is falling in 2009, according to the latest market study by In-Stat.

The slowdown in unit shipments and revenue has generally been concentrated in the comparatively advanced cable markets in North America and Western Europe. The market slow-down has been due to reductions in cable operator capital expenditure (CAPEX) budgets brought on by the global economic recession.

Meanwhile, unit shipments to China are projected to set another record in 2009, approaching 20 million units, contributing to a rise in the overall Asia-Pacific market. In addition, increasing demand for digital cable TV services is pushing digital cable set top boxes into new markets in Asia, Latin America, and in Eastern Europe.

"Even with a slight decrease in unit shipments in 2009, the cable set top box market remains both dynamic and robust," says Mike Paxton, In-Stat analyst. "There are some significant technology transitions, including the transition to MPEG-4 and the move toward a hybrid QAM + IP cable set top box that are creating new opportunities for cable set top box vendors."

In-Stat's market study found the following:

- Global unit shipments of digital cable set top boxes are projected to reach 47 million in 2009, a decrease of 6 percent over 2008.

- Low-cost, digital terminal adapter (DTA) product unit shipments are beginning to have an impact on the cable set top box market in North America, especially in terms of product ASPs.

- While Motorola and Cisco Systems remain the top two cable set top box manufacturers, out of the remaining eight cable set top box manufacturers in the top ten, six of them are from China.

Mixed Upside-Downside of Pay-TV Markets

2009-10-13T07:45:00.006-05:00

By 2014, 84 percent of all pay-TV net additions will come from emerging markets, however a successful pay-TV VoD service in these markets will depend on a variety of factors, according to the latest market study by Pyramid Research.

"By 2014, emerging markets will account for 69 percent of the global subscription total, with 84 percent of all pay-TV net additions coming from these markets," says Dan Locke, Senior Analyst at Pyramid Research.

Almost half of the world's pay-TV subscriptions come from Asia-Pacific, mostly from China and India. The next-largest emerging pay-TV nations are Russia, Egypt, Turkey, and Poland.

Even though most pay-TV subscriptions are found in emerging economies, the revenue opportunity in these markets is considerably smaller than in developed ones, due to significantly lower pay-TV ARPS.

Low incomes make high prices for pay-TV unaffordable for most in developing markets, and free or inexpensive alternatives such as pirated content deters adoption even further. As a result, only 20 percent of pay-TV revenue worldwide comes from emerging markets.

"A successful pay-TV VoD service in an emerging market will depend on a variety of factors, including the network technology and architecture, content availability, consumer demand, and the competitive landscape," explains Locke.

Despite lower attach rates in emerging markets than in the U.S., Pyramid believes sizeable revenue opportunities for VoD and DVR services still await due to the sizeable and largely untapped markets.

The Pyramid report provides explanations, examples, and case studies from a range of markets. These cases highlight best practices that can be emulated to build incremental revenue streams with pay-per-view, NVoD, push VoD, a-la-carte channels, movies on demand, DVR and time-shifted TV, subscription VoD, free VoD, true VoD, and interactive VoD.

The report also includes an update on the status of pay-TV adoption and revenue across emerging markets, setting the stage for an analysis of whether VoD can serve as a viable differentiator to help drive pay-TV demand or whether investments in the service are doomed to fail.

It concludes with VoD and DVR adoption and revenue forecasts covering the world's largest emerging markets measured by pay-TV revenue and adoption -- Brazil, China, India, Mexico, and Russia -- as well as forecasts for the U.S., the largest pay-TV market in the world, and the market most likely to experience a downside from the adoption of over-the-top video.

Mobile VoIP is a Threat to the Legacy Telcos

2009-10-12T07:12:00.003-05:00

Why all the fuss about the Google Voice service? Let me share my perspective. I've been a user since the Grand Central beta launch. It's innovative, a wonderful productivity enhancement tool, easy to configure, and it's free to use with any mobile phone.

So, why don't Telcos use their service delivery platforms to create these new offerings?

In-Stat believes Mobile VoIP could pose a direct threat to service provider voice revenue. The cost to a mobile subscriber for a minute of voice is at the center of the storm with Mobile VoIP promising to fundamentally change mobile voice economics.

The consumer cost of a minute of voice from a wireless operator can be as high as 45 cents. Admittedly, a rate as high as this would be for overage fees above a standard rate plan. Given rate plans, free week-ends, free weeknights, unlimited calling circles and other plan complexities driven by innovative marketing practices, the actual cost per minute to a subscriber is about 5 cents.

According to Kineto, Mobile VoIP will typically use about 30 kbps. Assuming that a person's cellular subscription with a mobile operator provides a 5 gigabyte mobile data cap for which they pay $30 per month, one could talk for roughly 22,222 minutes using Mobile VoIP over their data plan.

That works out to 0.135 cents minute. While using over 20,000 minutes per month isn't realistic, it does point out that Mobile VoIP offers the potential for unlimited voice calls for $30 per month.

In recent research, In-Stat asserted that Mobile VoIP is moving beyond its initial function as a new mechanism to get inexpensive international calls. While Mobile VoIP poses a direct threat to operator voice revenue, it also represents a dynamic new capability that promises numerous applications.

In-Stat projects that by 2013 Mobile VoIP applications will generate annual revenues of $32.2 billion, driven by over 278 million registered users worldwide, with revenue and users associated with Mobile VoIP being distributed among online Mobile VoIP services, 3G-Based Mobile VoIP offerings, and WiMAX/LTE Mobile VoIP offerings.

Applications such as Skype and Vonage have influenced users to think of voice as a data application. The increasing penetration of Wi-Fi in mobile devices was the beach head that Mobile VoIP applications needed. As user habits are being shaped by rich on-line communication experiences, mobile carriers' control over devices and data applications is waning.

Mobile carrier attempts to slow the spread of on-line Mobile VoIP are proving to be a challenge as well. The ominous cloud of packetized voice is on the horizon, and according to the In-Stat assessment, the compelling economics cannot be ignored.