Consumers now spend more than one-half of their day with media, according to the latest market study by Ipsos. Furthermore, consumer media consumption has increased by an hour per day over the last 2 years -- resulting from an additional 40 minutes of time spent online since 2009.
This significant rise in media consumption is being driven by the adoption of next generation digital media devices and distribution services that enable mobility, multi-tasking, consumer-control and improved experiences.
The Ipsos study focused on key trends. As an example, over the past two years, ownership of laptop computers has grown, while ownership of desktop computers has decreased.
More consumers are trading in their single-utility mobile phones for web-enabled smartphones -- now owned by 24 percent of consumers. Cell phone ownership has fallen from 81 to 65 percent since 2009. In fact, smartphone owners spend 30 minutes more a day multi-tasking with media compared to non-smartphone owners. Top smartphone activities include social network interaction and gaming.
As these devices become more ubiquitous, consumers find additional means of accessing video content. Live television still represents the lions share of hours viewed (78 percent). However, non-traditional (DVR, VOD and online video) methods of accessing TV content are increasing -- accounting for almost one-quarter of TV viewing and growing.
Ipsos says there's a shift in the media mix during American Primetime (8:00 to 11:00pm). TV and online are still the primary activities during Primetime, but online has grown to nearly one-third of the TV/online activity mix. Over half of the population is visiting Facebook or MySpace every day, and visitors are spending almost a half hour on the social network sites.
"Today's consumer is benefiting from a media ecosystem with better content, media access, and technology," says Ned Greenberg, VP of Syndicated Services at Ipsos. "They can be more in control of their media experiences than ever before -- through time shifting, place shifting and their own context planning."
Conducted biannually among 7,000 U.S. online consumers 13-74, the Ipsos study uses a single-source online eDiary measurement instrument and a detailed media experience survey.
Thursday, September 30, 2010
Wednesday, September 29, 2010
Digital Hybrid STB Market to Quadruple by 2014
With Internet Protocol (IP) connectivity becoming a standard feature in most consumer electronics (CE) devices with a screen, the television and associated media industries -- in particular, the incumbent pay-TV service providers -- are attempting to fully understand the disruptive impact on their core business.
Hybrid set-top boxes (STB), that utilize both broadcast and broadband connectivity, could be vital tools that enable network broadcasters and pay-TV service operators to compete with low-cost high-value over-the-top (OTT) video offerings, such as Netflix and LOVEFiLM, according to the latest market study by In-Stat.
"When Apple began supporting applications on their Apple iPhone, a whole new industry was created with about half a million apps now available worldwide," says Gerry Kaufhold, Principal Analyst.
Now, with a multitude of connected TV devices moving into the market, Internet Video is becoming the new must-have service. TV programs may eventually become apps themselves to provide a direct-to-consumer engagement with titles, brands and ultimately with advertisers.
However, a more likely scenario, hybrid STBs could also be used to totally by-pass the incumbent pay-TV distributors, as some major content producers discover that they could use their established brand awareness to go directly to consumers with OTT video offerings -- at potentially much higher profit margins.
In-Stat's market research findings include:
- Western Europe will be the world's hotbed for development of hybrid applications and services with over 70 companies joining the Hybrid Broadcast Broadband initiative.
- Digital Terrestrial Hybrid STBs will more than quadruple in volume from 2010 to 2014.
- Over 2.7 million Hybrid STBs will be in use in Eastern Europe by 2014.
Hybrid set-top boxes (STB), that utilize both broadcast and broadband connectivity, could be vital tools that enable network broadcasters and pay-TV service operators to compete with low-cost high-value over-the-top (OTT) video offerings, such as Netflix and LOVEFiLM, according to the latest market study by In-Stat.
"When Apple began supporting applications on their Apple iPhone, a whole new industry was created with about half a million apps now available worldwide," says Gerry Kaufhold, Principal Analyst.
Now, with a multitude of connected TV devices moving into the market, Internet Video is becoming the new must-have service. TV programs may eventually become apps themselves to provide a direct-to-consumer engagement with titles, brands and ultimately with advertisers.
However, a more likely scenario, hybrid STBs could also be used to totally by-pass the incumbent pay-TV distributors, as some major content producers discover that they could use their established brand awareness to go directly to consumers with OTT video offerings -- at potentially much higher profit margins.
In-Stat's market research findings include:
- Western Europe will be the world's hotbed for development of hybrid applications and services with over 70 companies joining the Hybrid Broadcast Broadband initiative.
- Digital Terrestrial Hybrid STBs will more than quadruple in volume from 2010 to 2014.
- Over 2.7 million Hybrid STBs will be in use in Eastern Europe by 2014.
Tuesday, September 28, 2010
Free Wi-Fi Access Growth Limits VAS Market
The wireless hotspot market continues to experience strong growth in deployed venues and usage, driven by broadband service providers embracing Wi-Fi both as a competitive differentiator and an enhancement to their core access services.
Despite the continued growth, the underlying hotspot business model has been in a continuous state of definition and development over the past decade, and remains a primary uncertainty in the future, according to the latest market study by In-Stat.
"We are a decade into the introduction of hotspot services and the market is still working out the revenue model," says Amy Cravens, Market Analyst at In-Stat.
Initially the market was based on pay-as-you-go revenues, with providers hoping it would evolve into ongoing subscriptions and corporate accounts.
However, there has always been a free access component -- as branded hotspot venues like McDonald's and Starbucks have made free access pervasive -- it's now uncertain if this activity may lead to a customer resistance to pay for new value added services (VAS).
In-Stat's market study found the following:
- Their consumer survey identified security concerns as the top barrier to hotspot usage. Other top concerns are service availability and costs.
- Annual venue growth is expected to remain strong over the next several years, but will begin to slow in later forecast years.
- Europe will account for 40 percent of worldwide Wi-Fi venues in 2010.
- By 2012, handhelds are anticipated to account for half of hotspot connects.
- Europe and North America are the largest hotspot markets based on usage (annual connects).
- On a per location basis, airport hotspot usage dwarfs all other venues with several thousand connects per month.
Despite the continued growth, the underlying hotspot business model has been in a continuous state of definition and development over the past decade, and remains a primary uncertainty in the future, according to the latest market study by In-Stat.
"We are a decade into the introduction of hotspot services and the market is still working out the revenue model," says Amy Cravens, Market Analyst at In-Stat.
Initially the market was based on pay-as-you-go revenues, with providers hoping it would evolve into ongoing subscriptions and corporate accounts.
However, there has always been a free access component -- as branded hotspot venues like McDonald's and Starbucks have made free access pervasive -- it's now uncertain if this activity may lead to a customer resistance to pay for new value added services (VAS).
In-Stat's market study found the following:
- Their consumer survey identified security concerns as the top barrier to hotspot usage. Other top concerns are service availability and costs.
- Annual venue growth is expected to remain strong over the next several years, but will begin to slow in later forecast years.
- Europe will account for 40 percent of worldwide Wi-Fi venues in 2010.
- By 2012, handhelds are anticipated to account for half of hotspot connects.
- Europe and North America are the largest hotspot markets based on usage (annual connects).
- On a per location basis, airport hotspot usage dwarfs all other venues with several thousand connects per month.
Monday, September 27, 2010
TV Everywhere Launch Fuels Transcoder Demand
Pay-TV service providers and other commercial users are expected to purchase multi-format transcoding equipment for their planned or evolving TV Everywhere video delivery services, according to the latest market study by In-Stat.
Transcoder technology is vital to online video content delivery and mobile video distribution, contributing to the market that will grow to nearly $300 million by 2014.
In-Stat believes the market growth is likely to drive acquisitions among the competitive vendors.
"The transcoder market is mostly comprised of small vendors that were formed to serve a particular segment," says Michelle Abraham, Principal Analyst.
In-Stat expects that some small vendors will be acquired by larger companies in the next few years in order to round out a company’s product portfolio.
In-Stat's market study found the following:
- While North America will be the largest region for live transcoders in the future, EMEA and Asia will experience growth as well.
- Worldwide revenues from enterprise-class multi-format transcoders will grow to $297 million in 2014.
- Multi-format transcoders must adapt the content to accommodate multiple different codecs, network bandwidth characteristics, and device screen sizes and resolutions.
Transcoder technology is vital to online video content delivery and mobile video distribution, contributing to the market that will grow to nearly $300 million by 2014.
In-Stat believes the market growth is likely to drive acquisitions among the competitive vendors.
"The transcoder market is mostly comprised of small vendors that were formed to serve a particular segment," says Michelle Abraham, Principal Analyst.
In-Stat expects that some small vendors will be acquired by larger companies in the next few years in order to round out a company’s product portfolio.
In-Stat's market study found the following:
- While North America will be the largest region for live transcoders in the future, EMEA and Asia will experience growth as well.
- Worldwide revenues from enterprise-class multi-format transcoders will grow to $297 million in 2014.
- Multi-format transcoders must adapt the content to accommodate multiple different codecs, network bandwidth characteristics, and device screen sizes and resolutions.
Saturday, September 25, 2010
Content Marketing: Paid, Owned and Earned Media
There are three kinds of content marketing -- paid, owned and earned media. Paid media is advertising inserted next to another publisher's content; owned media is brand-created content; and earned media is when an independent publisher provides content about a product or service.
"Each medium offers distinct advantages, and it is important that all work together," said David Hallerman, eMarketer senior analyst. "The best approach is holistic, where each channel supports the others, as when paid advertising produces earned word-of-mouth, which stimulates traffic to owned microsites."
While online marketing is primarily direct-response focused, the trend toward more brand-focused spending is clear. By 2014 nearly 42 percent of online advertising budgets in the U.S. will be spent on branding.
Within the display ad sector, the focus on branding also comes through. Spending on online video advertising will rise faster than display spending as a whole, while substantial budget will go to banner advertising.
Video and banners, along with search engine marketing, make up the major paid-media online formats. Company websites and blogs, along with in-house email lists, provide the owned component, where marketers have complete control over messages and can offer content that fulfills their overall goals.
And, while word-of-mouth has always been a key driver of purchase decisions, earned media also has new importance with the rise of social media applications.
"The mix of techniques required and the advantages marketers get from paid, owned and earned is far greater online than offline," said Hallerman.
"They must learn to construct campaigns that rely on all three types of media to engage with consumers and amplify brand messages. Paid, owned and earned media all contribute to the whole and to one another."
Friday, September 24, 2010
Wi-Fi Success Paves the Way for Super Wi-Fi
Wi-Fi has achieved consumer electronics device ubiquity, according to the latest market study by In-Stat. The number of applications and devices where Wi-Fi technology is integrated continues to expand.
Not only is Wi-Fi now in nearly every smartphone sold, but the wireless connectivity technology is in almost every handheld game, tablet, netbook or notebook computer sold.
Now, include new wireless network applications such as automotive, digital cameras, E-readers, Blu-ray and personal video recorders -- plus, new medical and industrial applications -- and with every type of device, there is likely a Wi-Fi chipset inside.
As a result, it should come as no surprise that In-Stat's latest forecast for Wi-Fi chipsets will pass one billion units shipped annually by 2012.
"Overall the Wi-Fi chip business has never looked stronger," says Allen Nogee, Principal Analyst at In-Stat.
While traditional products like routers, wireless access points, and business gateways are not growing at past rates, many new markets for Wi-Fi chipsets have emerged that more than off-set these slowdowns. Cellular phone handsets alone will account for almost $2 billion worth of Wi-Fi chip revenue.
Meanwhile, this week the FCC adopted rules for the development of "Super Wi-Fi" applications.
In-Stat's market study highlights include:
- While the notebook PCs once was the market for most Wi-Fi chipsets, mobile handsets have now passed notebook PCs.
- Most Wi-Fi chipsets currently support the 802.11n standard. However, the 802.11ac and 802.11ad standards will eventually become the predominant technology.
- Devices with the largest revenue growth rate over the next five years will include mobile Internet devices, automotive applications, E-readers, and DVD or Blu-Ray players.
- Wi-Fi chipsets for notebook computers and mobile handsets are each expected to have revenue of over $1 billion in 2015.
Not only is Wi-Fi now in nearly every smartphone sold, but the wireless connectivity technology is in almost every handheld game, tablet, netbook or notebook computer sold.
Now, include new wireless network applications such as automotive, digital cameras, E-readers, Blu-ray and personal video recorders -- plus, new medical and industrial applications -- and with every type of device, there is likely a Wi-Fi chipset inside.
As a result, it should come as no surprise that In-Stat's latest forecast for Wi-Fi chipsets will pass one billion units shipped annually by 2012.
"Overall the Wi-Fi chip business has never looked stronger," says Allen Nogee, Principal Analyst at In-Stat.
While traditional products like routers, wireless access points, and business gateways are not growing at past rates, many new markets for Wi-Fi chipsets have emerged that more than off-set these slowdowns. Cellular phone handsets alone will account for almost $2 billion worth of Wi-Fi chip revenue.
Meanwhile, this week the FCC adopted rules for the development of "Super Wi-Fi" applications.
In-Stat's market study highlights include:
- While the notebook PCs once was the market for most Wi-Fi chipsets, mobile handsets have now passed notebook PCs.
- Most Wi-Fi chipsets currently support the 802.11n standard. However, the 802.11ac and 802.11ad standards will eventually become the predominant technology.
- Devices with the largest revenue growth rate over the next five years will include mobile Internet devices, automotive applications, E-readers, and DVD or Blu-Ray players.
- Wi-Fi chipsets for notebook computers and mobile handsets are each expected to have revenue of over $1 billion in 2015.
Thursday, September 23, 2010
Status Report: State of the Broadband Nation
According to the latest market study by Point Topic, in the third week of July 2010 the world passed a significant broadband milestone -- half a billion lines are now installed in households and businesses globally.
It's only taken 11 years to get to half a billion fixed broadband lines. It has brought the world closer together. Improved health and education standards and ushered in a new era of research, data-sharing and cooperation.
"Finland recently took a significant step, by making broadband a legal right for its citizens, towards an entirely interconnected world. The benefits the global population will reap from the continued spread of broadband and the services and opportunities presented to them are legion. The next 11 years are set to be as exciting as the last with at least another half billion broadband lines due to be added," says Oliver Johnson, CEO of Point Topic.
At the end of June 2010 there were 498 million broadband lines and the internet service providers are collectively adding just over 1 million new lines a week at the moment.
The U.S. was the birthplace of the internet. Established in the 1960's the forerunner of today's network, Arpanet, was created to connect computer terminals and applied early packet switching technology.
"The first message over the new network was sent just two months before man first landed on the moon," says Johnson. The network grew quickly and by the early 80's was in widespread use amongst academics, researchers and in government.
Point Topic started counting broadband fixed lines in 1998, by the end of the 20th century there were 1.3 million lines in use mostly in the U.S. and Canada and dominated by broadband delivered over co-axial cable.
Driven by geographic challenges, the Cable TV companies were laying cable throughout America from shortly after World War II. By the 90's when cable modems started to appear there was an existing high speed network in place.
"The advent of Asynchronous Digital Subscriber Lines (ADSL) in the 90's was the starting gun for mass deployment and uptake worldwide -- as it made use of the almost ubiquitous telephone network," says Johnson.
This meant broadband growth could now be a reality almost everywhere in the world.
21st Century Economic Development Enabler
"The U.S. was overtaken by China as the leading broadband market, in terms of subscriber numbers, at the end of 2007 and this marks the shift from the first phase of broadband deployment dominated by Europe and North America to the developing world -- and the next stage in the story of broadband," says Johnson.
The key markets in growth terms in the next decade will be countries with relatively low broadband penetration and very large populations.
It's not a major surprise that China is top of the list. A quarter of the world's fixed broadband lines are already there and despite the income disparities we expect penetration to keep growing. Major growth will also be seen in India, Brazil, Russia, Mexico, Vietnam and the Philippines to name only the leading nations.
"It is difficult to avoid hyperbole. The internet and broadband have transformed the world and will continue to do so. By 2020 there will be fixed and mobile broadband available to almost the entire population of the planet and we've only just started to realize the benefits the first wave of deployment has brought. An exciting time to be alive," concludes Johnson.
The Ongoing Storyline >> Broadband Nation Update
Wednesday, September 22, 2010
Upside for Wireless HD Video-Enabled Devices
According to the latest market study by In-Stat, there are significant price and performance issues that need to be overcome before device manufacturers fully adopt wireless high-definition (HD) technology.
In fact, these technologies are likely several years away from reaching the mainstream consumer electronics (CE) and PC markets.
But that doesn't mean you can't experience it today, says In-Stat. Consumer electronics manufacturers like LG Electronics, Mitsubishi, Panasonic, Sharp, and Sony are already offering devices that are including wireless HD.
"Although slow progress best describes the fate of wireless HD chip vendors in 2010, the five-year outlook is for a robust triple-digit annual growth rate," says Brian O'Rourke, Principal Analyst at In-Stat.
Most semiconductor players pursuing this space apparently plan to move out from HDTV to other CE devices -- such as TV set-top boxes, blu-ray players and recorders, or digital cameras.
In-stat's market study findings include:
- The number of wireless HD video-enabled device shipments will rise from the current levels to approach 13 million by 2014.
- Alternative video transmission technologies, WHDI, WirelessHD, and WiGig, are vying for a dominant position. Among the differentiating factors are whole-home range, price and performance, single source, and time-to-market issues.
- Strong competitive technologies include various flavors of Wi-Fi, Intel's Wireless Display (WiDi) initiative, and Sony's TransferJet.
- WirelessHD is championed by chipmaker SiBeam and backed by NEC, Panasonic, Samsung, Sony, Toshiba, and LG.
- WHDI (backed by AMIMON) and WirelessHD device shipments will grow at triple-digit annual percentage rates through 2014.
- WiGig Alliance members include: Broadcom, Dell, Intel, LG Electronics, Microsoft, NEC, Nokia, NXP, Panasonic, and Samsung.
In fact, these technologies are likely several years away from reaching the mainstream consumer electronics (CE) and PC markets.
But that doesn't mean you can't experience it today, says In-Stat. Consumer electronics manufacturers like LG Electronics, Mitsubishi, Panasonic, Sharp, and Sony are already offering devices that are including wireless HD.
"Although slow progress best describes the fate of wireless HD chip vendors in 2010, the five-year outlook is for a robust triple-digit annual growth rate," says Brian O'Rourke, Principal Analyst at In-Stat.
Most semiconductor players pursuing this space apparently plan to move out from HDTV to other CE devices -- such as TV set-top boxes, blu-ray players and recorders, or digital cameras.
In-stat's market study findings include:
- The number of wireless HD video-enabled device shipments will rise from the current levels to approach 13 million by 2014.
- Alternative video transmission technologies, WHDI, WirelessHD, and WiGig, are vying for a dominant position. Among the differentiating factors are whole-home range, price and performance, single source, and time-to-market issues.
- Strong competitive technologies include various flavors of Wi-Fi, Intel's Wireless Display (WiDi) initiative, and Sony's TransferJet.
- WirelessHD is championed by chipmaker SiBeam and backed by NEC, Panasonic, Samsung, Sony, Toshiba, and LG.
- WHDI (backed by AMIMON) and WirelessHD device shipments will grow at triple-digit annual percentage rates through 2014.
- WiGig Alliance members include: Broadcom, Dell, Intel, LG Electronics, Microsoft, NEC, Nokia, NXP, Panasonic, and Samsung.
Tuesday, September 21, 2010
Mobile Broadband Routers are Primed for Growth
In 2015, shipments of fixed wireless terminals (FWT) and cellular routers will total nearly 13 million, according to the latest market study by ABI Research.
Their research included market analysis for industrial terminals, business gateways, telephony adaptors -- all relatively mature markets showing stable modest growth -- and the newest market segment, mobile broadband routers, which will contribute the greatest increase in shipments.
"While they share underlying technologies, these devices or applications perform different roles and are used in diverse environments," says M2M practice director Sam Lucero.
Industrial terminals, as machine-to-machine devices, benefit from the growing business and government interest in telemetry and telematics. Business gateways now offer viable alternatives to DSL-based services and are increasingly used in remote branch offices.
Telephony adaptors connect local analog voice phone systems to the world via a cellular network -- the Chinese government is particularly interested in their use to extend telephony services to rural areas.
ABI Principal analyst Jeff Orr adds, "Mobile broadband routers allowing multiple devices to connect from anywhere may be found in both consumer and business contexts. Businesses are already familiar with wired business continuity and redundancy methods. Now devices have grown wings, becoming mobile broadband routers. This segment is starting from practically zero, and its top is not yet in sight."
To reach full market potential, ABI recommends that:
- Cellular embedded module vendors should seek new application opportunities in other FWT and M2M market segments.
- Business gateway vendors should focus on data connectivity rather than voice connectivity.
- Developers of mobile broadband hotspot routers must understand early-adopter markets.
- Industrial terminal vendors should offer platforms that include cloud computing software delivery models.
- Mobile network operators should reconsider how pervasive Wi-Fi technology enables new subscribers and welcomes multi-device users.
- FWT and cellular broadband router vendors should consider entry into the business gateway market.
Their research included market analysis for industrial terminals, business gateways, telephony adaptors -- all relatively mature markets showing stable modest growth -- and the newest market segment, mobile broadband routers, which will contribute the greatest increase in shipments.
"While they share underlying technologies, these devices or applications perform different roles and are used in diverse environments," says M2M practice director Sam Lucero.
Industrial terminals, as machine-to-machine devices, benefit from the growing business and government interest in telemetry and telematics. Business gateways now offer viable alternatives to DSL-based services and are increasingly used in remote branch offices.
Telephony adaptors connect local analog voice phone systems to the world via a cellular network -- the Chinese government is particularly interested in their use to extend telephony services to rural areas.
ABI Principal analyst Jeff Orr adds, "Mobile broadband routers allowing multiple devices to connect from anywhere may be found in both consumer and business contexts. Businesses are already familiar with wired business continuity and redundancy methods. Now devices have grown wings, becoming mobile broadband routers. This segment is starting from practically zero, and its top is not yet in sight."
To reach full market potential, ABI recommends that:
- Cellular embedded module vendors should seek new application opportunities in other FWT and M2M market segments.
- Business gateway vendors should focus on data connectivity rather than voice connectivity.
- Developers of mobile broadband hotspot routers must understand early-adopter markets.
- Industrial terminal vendors should offer platforms that include cloud computing software delivery models.
- Mobile network operators should reconsider how pervasive Wi-Fi technology enables new subscribers and welcomes multi-device users.
- FWT and cellular broadband router vendors should consider entry into the business gateway market.
Monday, September 20, 2010
53.4 Million People in U.S. Now Own Smartphones
comScore released data on key trends in the U.S. mobile phone services industry -- during the three month average period ending July 2010, compared to the preceding three-month average.
The report ranked the leading mobile original equipment manufacturers (OEMs) and smartphone operating system (OS) platforms in the U.S., according to their share of current mobile subscribers age 13 and older, and reviewed the most popular activities and content accessed via the subscriber's primary mobile phone.
The July report found Samsung to be the top handset manufacturer overall with 23.1 percent market share -- while RIM led among smartphone platforms with 39.9 percent market share.
234 million Americans ages 13 and older used mobile devices. Device manufacturer Samsung ranked as the top OEM with 23.1 percent of U.S. mobile subscribers, up one percentage point from the preceding three month period.
LG ranked second with 21.2 percent share, followed by Motorola (19.8 percent share), RIM (9.0 percent share, up 0.6 percentage points) and Nokia (7.8 percent share).
53.4 million people in the U.S. owned smartphones during the three months ending in July, up 11 percent from the corresponding April period. RIM was the leading mobile smartphone platform in the U.S. with 39.3 percent share of U.S. smartphone subscribers, followed by Apple with 23.8 percent share.
Google saw significant growth during the period, rising 5.0 percentage points to capture 17.0 percent of smartphone subscribers. Microsoft accounted for 11.8 percent of Smartphone subscribers, while Palm rounded out the top five with 4.9 percent. Despite losing share to Google Android, most smartphone platforms continue to gain subscribers as the smartphone market overall continues to grow.
In July, 2 out of 3 U.S. mobile subscribers used text messaging on their mobile device, up 1.4 percentage points versus the prior three month period, while browsers were used by 33.6 percent of U.S. mobile subscribers (up 2.5 percentage points).
Subscribers who used downloaded applications comprised 31.4 percent of the mobile audience, representing an increase of 1.6 percentage points from the previous period. Accessing of social networking sites or blogs increased 1.9 percentage points, representing 21.8 percent of mobile subscribers.
The report ranked the leading mobile original equipment manufacturers (OEMs) and smartphone operating system (OS) platforms in the U.S., according to their share of current mobile subscribers age 13 and older, and reviewed the most popular activities and content accessed via the subscriber's primary mobile phone.
The July report found Samsung to be the top handset manufacturer overall with 23.1 percent market share -- while RIM led among smartphone platforms with 39.9 percent market share.
234 million Americans ages 13 and older used mobile devices. Device manufacturer Samsung ranked as the top OEM with 23.1 percent of U.S. mobile subscribers, up one percentage point from the preceding three month period.
LG ranked second with 21.2 percent share, followed by Motorola (19.8 percent share), RIM (9.0 percent share, up 0.6 percentage points) and Nokia (7.8 percent share).
53.4 million people in the U.S. owned smartphones during the three months ending in July, up 11 percent from the corresponding April period. RIM was the leading mobile smartphone platform in the U.S. with 39.3 percent share of U.S. smartphone subscribers, followed by Apple with 23.8 percent share.
Google saw significant growth during the period, rising 5.0 percentage points to capture 17.0 percent of smartphone subscribers. Microsoft accounted for 11.8 percent of Smartphone subscribers, while Palm rounded out the top five with 4.9 percent. Despite losing share to Google Android, most smartphone platforms continue to gain subscribers as the smartphone market overall continues to grow.
In July, 2 out of 3 U.S. mobile subscribers used text messaging on their mobile device, up 1.4 percentage points versus the prior three month period, while browsers were used by 33.6 percent of U.S. mobile subscribers (up 2.5 percentage points).
Subscribers who used downloaded applications comprised 31.4 percent of the mobile audience, representing an increase of 1.6 percentage points from the previous period. Accessing of social networking sites or blogs increased 1.9 percentage points, representing 21.8 percent of mobile subscribers.
Saturday, September 18, 2010
Smartphone Apps Usage Attracts U.S. Marketers
Mobile phone penetration within the U.S. market is estimated by eMarketer at nearly 80 percent in 2010. Moreover, the American mobile service subscriber market potential has now reached a critical mass of active users that are increasingly receptive to marketing messages.
As the mobile space becomes more important for U.S. marketer's efforts, they must keep pace with the changing scene, according to the latest eMarketer assessment.
"As feature phones give way to smartphones and tablet devices, mobility is taking on new dimensions," said Noah Elkin, eMarketer senior analyst.
The ability to create, share and consume more multimedia content translates into increased user engagement on mobile devices. It also means enhanced opportunities for marketers to reach out to potential customers via this additional mobile digital media exposure.
These new mobile marketing opportunities are being driven by the rise of smartphone adoption.
The percentage of U.S. consumers thinking about buying a smartphone has doubled since the beginning of 2008, according to ChangeWave Research, and Nielsen expects smartphones to be in the hands of half of U.S. mobile users by the end of Q3 2011.
As mobile handsets evolve, so do content consumption and usage patterns. As a result, mobile phone service providers and their marketing or content partners have transitioned to a focus on data services.
Furthermore, social networks are becoming the primary way mobile users exchange information. According to comScore, use of social networking applications increased by 240 percent between April 2009 and April 2010.
With social network users adopting various forms of mobile content, according to Edison Research and Arbitron, the growth in mobile apps also suggests further increases in content consumption -- and the need to pay for that content either through user fees or sponsor advertising.
Friday, September 17, 2010
Why the e-Reader Market Share is Still Growing
Last year, purpose-built new e-readers were one of the most popular devices in the consumer electronics (CE) marketplace. Today, there is still plenty of consumer interest surrounding the e-reader market.
However, the industry analysts are forecasting ongoing price erosion, targeted competition from the Apple iPad, and the continued overall sustainability of the standalone e-reader shipment growth.
Therefore, despite the potential impact that the tablet PC market may have on the standalone e-reader market, e-reader shipments will grow from 12 million units by the end of this year, to 35 million in 2014, according to the latest market study by In-Stat.
"Tablet PC shipments are taking off, fueled in particular by the Apple iPad introduction. Yet, there will still be a revenue opportunity for e-reader suppliers and OEMs since tablet PCs and e-readers target different consumers," says Stephanie Ethier, Senior Analyst, In-Stat.
Standalone e-readers will address the needs of avid readers, to whom the reading experience is central to their product selection criteria. In contrast, tablets are better suited for consumers who prefer a stronger multimedia experience, and only light reading.
In-Stat's latest market study found the following:
- E-reader price points will continue to fall over the remainder of 2010, with a $99 model likely available in time for the upcoming holiday season.
- Tablet unit shipments will reach approximately 58 million in 2014.
- Among the semiconductor devices used in e-readers, the processor ASP will be the most resilient over the forecast period, only declining 18 percent from 2009 to 2014. Despite significant increases in NAND Flash densities, the dollar value of Flash declines 60 percent over the same period.
- The semiconductor total addressable market for e-reader suppliers will exceed one billion dollars in 2011.
However, the industry analysts are forecasting ongoing price erosion, targeted competition from the Apple iPad, and the continued overall sustainability of the standalone e-reader shipment growth.
Therefore, despite the potential impact that the tablet PC market may have on the standalone e-reader market, e-reader shipments will grow from 12 million units by the end of this year, to 35 million in 2014, according to the latest market study by In-Stat.
"Tablet PC shipments are taking off, fueled in particular by the Apple iPad introduction. Yet, there will still be a revenue opportunity for e-reader suppliers and OEMs since tablet PCs and e-readers target different consumers," says Stephanie Ethier, Senior Analyst, In-Stat.
Standalone e-readers will address the needs of avid readers, to whom the reading experience is central to their product selection criteria. In contrast, tablets are better suited for consumers who prefer a stronger multimedia experience, and only light reading.
In-Stat's latest market study found the following:
- E-reader price points will continue to fall over the remainder of 2010, with a $99 model likely available in time for the upcoming holiday season.
- Tablet unit shipments will reach approximately 58 million in 2014.
- Among the semiconductor devices used in e-readers, the processor ASP will be the most resilient over the forecast period, only declining 18 percent from 2009 to 2014. Despite significant increases in NAND Flash densities, the dollar value of Flash declines 60 percent over the same period.
- The semiconductor total addressable market for e-reader suppliers will exceed one billion dollars in 2011.
Thursday, September 16, 2010
Social Media Marketing: more Ads to be Avoided
Social media offers marketers a new channel to potentially engage their prospective customers, but does not replace the reach and trust found with more traditional media channels -- such as broadcast TV and radio -- according to the latest market study by Vision Critical.
They have examined the growing use of online social networks, which they believe reveals several key implications for marketers. Their reported findings were based on three waves of research and more than 10,000 interviews with respondents in the United States, Britain and Canada. The key findings from the Vision Critical study include:
Trust Remains an Issue on Social Networks
Across the three countries, seven-in-ten respondents who use social networks on a daily basis are concerned about their privacy. Less than one-in-six expressed trust in online social networks, forums and blogs -- compared to one third for radio, television and online news.
The implication: about two-thirds of those surveyed don't trust marketer's traditional advertising messages on any media source (social or traditional).
Social Networkers are Open to Advertising
Despite a general lack of trust and ongoing privacy concerns, almost three-in-five respondents say they are receptive to advertising on social networks. One third believe that credible and trustworthy engagement can lead them to make better purchasing decisions. Nearly one-quarter indicate they have purchased a product as a result of seeing something influential on a social network site.
The Challenge for Marketers
More than half of social networkers say they primarily trust recommendations from family and friends. Therefore, social media marketing efforts are most likely to deliver trust and impact when they resonate with friends and family and result in influential recommendations -- perhaps followed by coupons or special offers.
"Our ongoing research across these three countries suggests that while consumers have very real concerns about the trustworthiness of online social networks, this emerging medium can still be a fertile ground for marketers and advertisers in terms of brand building, product marketing and advertising," says Matt Kleinschmit, Vision Critical's Senior Vice President of Media.
Marketers who want to use social media need to earn their way into the meaningful conversation between family and friends, as these groups deliver much higher levels of trust and credibility than advertising on any media -- social or traditional.
According to the Vision Critical assessment, people use online networks to stay in touch with those few individuals that they trust and care about the most: their close friends and family. These social connections drive the social networking phenomenon, and marketers must recognize that learning about products and services is secondary to the pursuit of social outreach with friends and family.
Without a meaningful connection to friends and family, marketing messages on social networking sites will merely become "more advertising to be avoided" -- that's apparently the main take-away from the their study findings.
They have examined the growing use of online social networks, which they believe reveals several key implications for marketers. Their reported findings were based on three waves of research and more than 10,000 interviews with respondents in the United States, Britain and Canada. The key findings from the Vision Critical study include:
Trust Remains an Issue on Social Networks
Across the three countries, seven-in-ten respondents who use social networks on a daily basis are concerned about their privacy. Less than one-in-six expressed trust in online social networks, forums and blogs -- compared to one third for radio, television and online news.
The implication: about two-thirds of those surveyed don't trust marketer's traditional advertising messages on any media source (social or traditional).
Social Networkers are Open to Advertising
Despite a general lack of trust and ongoing privacy concerns, almost three-in-five respondents say they are receptive to advertising on social networks. One third believe that credible and trustworthy engagement can lead them to make better purchasing decisions. Nearly one-quarter indicate they have purchased a product as a result of seeing something influential on a social network site.
The Challenge for Marketers
More than half of social networkers say they primarily trust recommendations from family and friends. Therefore, social media marketing efforts are most likely to deliver trust and impact when they resonate with friends and family and result in influential recommendations -- perhaps followed by coupons or special offers.
"Our ongoing research across these three countries suggests that while consumers have very real concerns about the trustworthiness of online social networks, this emerging medium can still be a fertile ground for marketers and advertisers in terms of brand building, product marketing and advertising," says Matt Kleinschmit, Vision Critical's Senior Vice President of Media.
Marketers who want to use social media need to earn their way into the meaningful conversation between family and friends, as these groups deliver much higher levels of trust and credibility than advertising on any media -- social or traditional.
According to the Vision Critical assessment, people use online networks to stay in touch with those few individuals that they trust and care about the most: their close friends and family. These social connections drive the social networking phenomenon, and marketers must recognize that learning about products and services is secondary to the pursuit of social outreach with friends and family.
Without a meaningful connection to friends and family, marketing messages on social networking sites will merely become "more advertising to be avoided" -- that's apparently the main take-away from the their study findings.
Wednesday, September 15, 2010
UPnP and DLNA Benefits for Home Networking
The Digital Living Network Alliance (DLNA) and UPnP (Universal Plug and Play) are two industry standards that enable consumer electronic (CE) devices to easily connect for data sharing, communications, and video entertainment applications. However, most mainstream consumers are unaware of the apparent benefits.
Despite the current low consumer awareness of these standards, shipments of DLNA-enabled devices will surpass a billion units by 2014, up from several hundred million in 2009, according to the latest market study by In-Stat.
Over 85 million DLNA-enabled Blu-Ray players and recorders will ship in 2014. The fastest growth is expected in the photo-frames product category. While less than 1 million units shipped in 2009, In-Stat expects over 33 million DLNA-enabled digital photo frames to ship in 2014.
"Including DLNA in Windows 7 is a key market driver," says Norm Bogen, In-Stat analyst.
However, adoption of UPnP and DLNA is broader than just PCs. Handsets and digital televisions join PCs as the product segments that will see significant increases in total annual DLNA shipments over the next 5 years.
In-Stat's market study found the following:
- Handsets, PCs, and digital televisions will account for 74 percent of the DLNA market.
- Devices that act as digital home media servers -- including PCs, storage, routers, and gateways -- are the largest category of UPnP device shipments.
- Consumer awareness of DLNA home networking benefits are still very low. Only 6 percent of In-Stat survey respondents were very or somewhat familiar with the CE standard.
Despite the current low consumer awareness of these standards, shipments of DLNA-enabled devices will surpass a billion units by 2014, up from several hundred million in 2009, according to the latest market study by In-Stat.
Over 85 million DLNA-enabled Blu-Ray players and recorders will ship in 2014. The fastest growth is expected in the photo-frames product category. While less than 1 million units shipped in 2009, In-Stat expects over 33 million DLNA-enabled digital photo frames to ship in 2014.
"Including DLNA in Windows 7 is a key market driver," says Norm Bogen, In-Stat analyst.
However, adoption of UPnP and DLNA is broader than just PCs. Handsets and digital televisions join PCs as the product segments that will see significant increases in total annual DLNA shipments over the next 5 years.
In-Stat's market study found the following:
- Handsets, PCs, and digital televisions will account for 74 percent of the DLNA market.
- Devices that act as digital home media servers -- including PCs, storage, routers, and gateways -- are the largest category of UPnP device shipments.
- Consumer awareness of DLNA home networking benefits are still very low. Only 6 percent of In-Stat survey respondents were very or somewhat familiar with the CE standard.
Tuesday, September 14, 2010
Upside Opportunity for WiMAX Mobile 4G Services
According to the latest market projections from ABI Research, the number of subscribers to mobile WiMAX services will approach 59 million in 2015.
That represents a positive forecast, given recent economic conditions. Although, ABI analyst Xavier Ortiz says "WiMAX growth has not been as early or as strong as many would have hoped several years ago."
The factors impeding WiMAX's upside opportunities haven't been technological, he says, but economic and psychological.
"The recession certainly played a role, making investors wary and delaying some deployments. On top of that, delays in the formation of the new Clearwire have constrained the rest of the ecosystem to some degree, from subscribers to devices and chipsets."
Subscriber growth and base station shipments go hand in hand, and despite uncertainty among many operators as to which mobile 4G platform -- WiMAX or TD-LTE -- to choose, ABI's forecasts see WiMAX base station shipments continuing to grow through the current 2015 forecast period.
Depending on the particular vendor, much of the hardware in a WiMAX base station may be re-usable for TD-LTE.
Service providers adopting WiMAX but interested in upgrading their networks have been choosing those infrastructure vendors that can offer the options of staying with WiMAX (moving towards 802.16m) or moving towards TD-LTE.
The majority of the market for WiMAX base stations during 2009 was divided between four major vendors. In terms of market share Alvarion is the leader, followed quite closely by Samsung.
NSN and Huawei hold third and fourth place shares, followed by ZTE and NEC at fifth and sixth place. The remainder of the market is shared among other smaller vendors.
That represents a positive forecast, given recent economic conditions. Although, ABI analyst Xavier Ortiz says "WiMAX growth has not been as early or as strong as many would have hoped several years ago."
The factors impeding WiMAX's upside opportunities haven't been technological, he says, but economic and psychological.
"The recession certainly played a role, making investors wary and delaying some deployments. On top of that, delays in the formation of the new Clearwire have constrained the rest of the ecosystem to some degree, from subscribers to devices and chipsets."
Subscriber growth and base station shipments go hand in hand, and despite uncertainty among many operators as to which mobile 4G platform -- WiMAX or TD-LTE -- to choose, ABI's forecasts see WiMAX base station shipments continuing to grow through the current 2015 forecast period.
Depending on the particular vendor, much of the hardware in a WiMAX base station may be re-usable for TD-LTE.
Service providers adopting WiMAX but interested in upgrading their networks have been choosing those infrastructure vendors that can offer the options of staying with WiMAX (moving towards 802.16m) or moving towards TD-LTE.
The majority of the market for WiMAX base stations during 2009 was divided between four major vendors. In terms of market share Alvarion is the leader, followed quite closely by Samsung.
NSN and Huawei hold third and fourth place shares, followed by ZTE and NEC at fifth and sixth place. The remainder of the market is shared among other smaller vendors.
Monday, September 13, 2010
Mobile TV will be Popular in Developing Markets
The last few years have been anticlimactic for subscription mobile TV services, as optimistic marketing plans never came to fruition and several early service provider deployments were shut down.
However, In-Stat now anticipates a recovery in 2010, particularly in the Asia-Pacific region where cellular mobile TV subscriptions, which are frequently delivered over 3G networks, will reach nearly 95 million by 2014.
"Getting mobile subscribers to pay for TV services on their mobile devices has been daunting as users have clearly gravitated to free broadcast or Internet-based content on their phones," according to Frank Dickson, VP Research for In-Stat.
As a result, pay mobile TV results have been very disappointing, relegating cellular mobile TV to a niche service for early-adopters. However, niche services in cellular can still drive huge revenue.
As 3G subscribers grow, the total potential market for mobile TV providers could result in impressive market gains. For example, MobiTV subscriber growth and daily viewership for its mobile media service grew 49 percent from 2008 to 2009, for services priced at $9.99 a month in the U.S. market.
In-Stat's market study found the following:
- Cellular mobile TV subscribers will generate over $15 billion in subscription revenue by 2014.
- Asia-Pacific will drive mobile TV subscriptions, primarily in India and China.
- Latin America will see subscription growth of 800 percent in digital mobile subscribers in 2010.
- Mobile TV broadcasting standards remain fragmented by geographic region worldwide, with CMMB, ISDB-T (1seg), ATSC-M/H, DVB-H, MediafloFLO and DMB all experiencing limited deployments.
However, In-Stat now anticipates a recovery in 2010, particularly in the Asia-Pacific region where cellular mobile TV subscriptions, which are frequently delivered over 3G networks, will reach nearly 95 million by 2014.
"Getting mobile subscribers to pay for TV services on their mobile devices has been daunting as users have clearly gravitated to free broadcast or Internet-based content on their phones," according to Frank Dickson, VP Research for In-Stat.
As a result, pay mobile TV results have been very disappointing, relegating cellular mobile TV to a niche service for early-adopters. However, niche services in cellular can still drive huge revenue.
As 3G subscribers grow, the total potential market for mobile TV providers could result in impressive market gains. For example, MobiTV subscriber growth and daily viewership for its mobile media service grew 49 percent from 2008 to 2009, for services priced at $9.99 a month in the U.S. market.
In-Stat's market study found the following:
- Cellular mobile TV subscribers will generate over $15 billion in subscription revenue by 2014.
- Asia-Pacific will drive mobile TV subscriptions, primarily in India and China.
- Latin America will see subscription growth of 800 percent in digital mobile subscribers in 2010.
- Mobile TV broadcasting standards remain fragmented by geographic region worldwide, with CMMB, ISDB-T (1seg), ATSC-M/H, DVB-H, MediafloFLO and DMB all experiencing limited deployments.
Saturday, September 11, 2010
Young Americans are Viewing Less Live TV
eMarketer reports that traditional television broadcasters in the U.S. must respond to a growing trend. As TV program time-shifting and online over-the-top (OTT) video viewing have both increased in importance, there's been a corresponding decrease in interest with "live" broadcast TV.
Furthermore, the TV set isn't the focal point that it used to be in America. According to a report from market researcher Morpace, nearly three in five U.S. consumers watch at least some video on a device other than a television.
Morpace found that today only 52 percent of the total TV viewing time consisted of watching live TV. However, among younger adults ages 18 to 34, that proportion fell further to 41 percent.
Adults 55 and older watched live TV almost two-thirds of the time. But, Gen Xers and younger American baby-boomers were evenly split between live TV and several time-shifting methods.
Online OTT was the most popular alternative to live TV, with about half of consumers using some online source for viewing video content, and a further 23 percent using a streaming video service -- such as the one offered by Netflix.
Adults ages 18 to 34 were more likely to use either online video format than older consumers -- though their consumption of video from DVDs or DVRs was somewhat similar.
Moreover, a February 2010 study by Retrevo found adults under 25 were heavily involved in online video viewing, with 29 percent saying they watched all or most of their TV on the web.
eMarketer now estimates that about 85 percent of 18-to-34-year-old internet users watch online video at least once a month, but that includes both long-form professional content like television shows as well as short user-generated clips.
Among older internet users, usage penetration is much lower -- fewer than 44 percent of 55- to 64-year-olds and fewer than 26 percent of seniors 65 and older watch online video monthly.
Friday, September 10, 2010
Tablets Growing at 123.6 Percent through 2014
Despite the current global economic conditions, mobile computing devices continue to see surging demand -- resulting from sleeker designs, new form factors, and pent-up business demand.
Mobile computing devices -- including tablets, netbooks, smartbooks and notebook PCs -- will grow at a 19.1 percent CAGR through 2014 and account for over 400 million units, according to the latest market study by In-Stat.
"While there will be a battle for the lower-end Internet-centric devices like tablets and netbooks, notebooks will continue to be the overall demand driver as consumers focus on lighter and lower-cost PCs and businesses continue to transition to mainstream and high-performance mobile platforms," says Jim McGregor, Chief Technology Strategist at In-Stat.
In addition, demand for mobile computing is coming from both developing and industrialized regions.
In-Stat's market study found the following:
- Tablets will record the highest CAGR of 123.6 percent through 2014.
- Notebook shipments will reach 291 million units in 2014 and account for 52 percent of the computing market.
- Asia-Pacific will lead all regions in growth, surpassing 36 percent of the total market in 2014.
Mobile computing devices -- including tablets, netbooks, smartbooks and notebook PCs -- will grow at a 19.1 percent CAGR through 2014 and account for over 400 million units, according to the latest market study by In-Stat.
"While there will be a battle for the lower-end Internet-centric devices like tablets and netbooks, notebooks will continue to be the overall demand driver as consumers focus on lighter and lower-cost PCs and businesses continue to transition to mainstream and high-performance mobile platforms," says Jim McGregor, Chief Technology Strategist at In-Stat.
In addition, demand for mobile computing is coming from both developing and industrialized regions.
In-Stat's market study found the following:
- Tablets will record the highest CAGR of 123.6 percent through 2014.
- Notebook shipments will reach 291 million units in 2014 and account for 52 percent of the computing market.
- Asia-Pacific will lead all regions in growth, surpassing 36 percent of the total market in 2014.
Thursday, September 09, 2010
Cellular Modems for Mobile Broadband Services
According to the latest market study by ABI Research, the global total of mobile broadband subscribers is projected to surpass 1.5 billion by 2015.
"While the majority of subscribers connect to the mobile Internet via their smartphones, a number do so via their modem-enabled iPads, netbooks and laptops," says ABI Research principal analyst Jeff Orr.
Mobile operators are starting to see burgeoning revenue growth in mobile broadband services. The cellular modems used to connect Internet services to mobile devices are, therefore, gaining in popularity.
Cellular modems come in a variety of form-factors such as PC Cards, USB modems, internal Mini-Cards and mobile hotspot routers. USB modem dongles are the most common devices offered by the mobile network operators.
Mobile broadband dongles provide several advantages. They are easy to carry and flexible to use, so it is very convenient for users to maintain Internet access when they are away from home or office.
The latest products show improved speed and form-factors.
Huawei's E583C, which also doubles as a portable hotspot, is one example. It can provide 7.2 Mbps downstream and 5.76 Mbps upstream. It weighs just 90 grams and up to five devices can be connected via Wi-Fi.
Products supporting HSPA+ networks can provide download speeds up to 21.1 Mbps.
"At present, most modems on the market support GSM, GPRS, EDGE or HSDPA network technologies, according to ABI research associate Khin Sandi Lynn. "There is also a growing selection of wireless modems supporting 4G technologies."
Among the new wireless modems launched this year, Sierra Wireless's Aircard 250U and Franklin Wireless's U600 are USB modems that support 4G data access using mobile WiMAX.
Green Packet, Intel and Motorola also provide WiMAX modems for PCs. While the competing LTE air interface protocol has yet to go commercial on any scale, vendors are already jockeying for position. Huawei has launched its E398 USB modem, which is compatible with LTE, UMTS and GSM protocols.
"While the majority of subscribers connect to the mobile Internet via their smartphones, a number do so via their modem-enabled iPads, netbooks and laptops," says ABI Research principal analyst Jeff Orr.
Mobile operators are starting to see burgeoning revenue growth in mobile broadband services. The cellular modems used to connect Internet services to mobile devices are, therefore, gaining in popularity.
Cellular modems come in a variety of form-factors such as PC Cards, USB modems, internal Mini-Cards and mobile hotspot routers. USB modem dongles are the most common devices offered by the mobile network operators.
Mobile broadband dongles provide several advantages. They are easy to carry and flexible to use, so it is very convenient for users to maintain Internet access when they are away from home or office.
The latest products show improved speed and form-factors.
Huawei's E583C, which also doubles as a portable hotspot, is one example. It can provide 7.2 Mbps downstream and 5.76 Mbps upstream. It weighs just 90 grams and up to five devices can be connected via Wi-Fi.
Products supporting HSPA+ networks can provide download speeds up to 21.1 Mbps.
"At present, most modems on the market support GSM, GPRS, EDGE or HSDPA network technologies, according to ABI research associate Khin Sandi Lynn. "There is also a growing selection of wireless modems supporting 4G technologies."
Among the new wireless modems launched this year, Sierra Wireless's Aircard 250U and Franklin Wireless's U600 are USB modems that support 4G data access using mobile WiMAX.
Green Packet, Intel and Motorola also provide WiMAX modems for PCs. While the competing LTE air interface protocol has yet to go commercial on any scale, vendors are already jockeying for position. Huawei has launched its E398 USB modem, which is compatible with LTE, UMTS and GSM protocols.
Wednesday, September 08, 2010
Digital TV Service Choice for British Consumers
Louise Kavanagh, Managing Director of Apogee, has studied the competitive market environment as the UK approaches the final months of the digital television service switchover.
"We now have a more complete picture of the intersection between the alternative delivery systems for linear, digital and interactive TV services and there are significant gaps -- particularly in broadband roll-out. Our estimates show that the consumers choice of what to watch and how will be restricted for up to seven and a half million households in Britain," says Kavanagh.
Estimates from the analysis Apogee has done put the number of households without access to the primary DTT channels at over four million today.
This number is coming down as the digital TV switchover continues. But, it is predicted that there will still be some households in Britain unable to receive both PSB1 and PSB2 at the end of 2012.
There are other platforms that allow viewers to access interactive digital content. Satellite, cable and high-speed broadband are available in many parts of the country.
Analysis of the intersection between the availability of DTT and high-speed Internet access, with data from Point Topic, reveals some interesting national statistics.
- At least 3.1 million households will rely solely on digital terrestrial or satellite delivery for their TV at the end of 2012.
- 7.6 million households will only be able to get high-definition (HD) live or streamed programs via digital terrestrial or satellite at the end of 2012.
- 90,000 households will not have access to many digital terrestrial channels and won't be able to get TV over the Internet by the end of 2012. For a full service their only choice will be satellite TV offerings.
The UK audience now has more choice than ever before, but availability will be varied based upon the location. Even for those out of reach of the full digital experience they will still have an expanded set of TV service options.
At the end of the last decade the whole UK was in essence a captive audience for broadcast TV. However, consumers now shift between platforms, time-shift content on a regular basis and have access to an increased range of programming or other entertainment options.
"In an ever more competitive marketplace the struggle to get a message in front of as many people as you can as cost effectively as you can is complicated. With complication comes opportunity though, at least for those that manage to navigate the digital intersection" says Kavanagh.
"We now have a more complete picture of the intersection between the alternative delivery systems for linear, digital and interactive TV services and there are significant gaps -- particularly in broadband roll-out. Our estimates show that the consumers choice of what to watch and how will be restricted for up to seven and a half million households in Britain," says Kavanagh.
Estimates from the analysis Apogee has done put the number of households without access to the primary DTT channels at over four million today.
This number is coming down as the digital TV switchover continues. But, it is predicted that there will still be some households in Britain unable to receive both PSB1 and PSB2 at the end of 2012.
There are other platforms that allow viewers to access interactive digital content. Satellite, cable and high-speed broadband are available in many parts of the country.
Analysis of the intersection between the availability of DTT and high-speed Internet access, with data from Point Topic, reveals some interesting national statistics.
- At least 3.1 million households will rely solely on digital terrestrial or satellite delivery for their TV at the end of 2012.
- 7.6 million households will only be able to get high-definition (HD) live or streamed programs via digital terrestrial or satellite at the end of 2012.
- 90,000 households will not have access to many digital terrestrial channels and won't be able to get TV over the Internet by the end of 2012. For a full service their only choice will be satellite TV offerings.
The UK audience now has more choice than ever before, but availability will be varied based upon the location. Even for those out of reach of the full digital experience they will still have an expanded set of TV service options.
At the end of the last decade the whole UK was in essence a captive audience for broadcast TV. However, consumers now shift between platforms, time-shift content on a regular basis and have access to an increased range of programming or other entertainment options.
"In an ever more competitive marketplace the struggle to get a message in front of as many people as you can as cost effectively as you can is complicated. With complication comes opportunity though, at least for those that manage to navigate the digital intersection" says Kavanagh.
Tuesday, September 07, 2010
3GPP Mobile Broadband Subscriber Growth
3GPP mobile broadband technology (UMTS-HSPA) grew by 11.9 million new subscriptions, of the total (net) 16.3 million mobile subscriptions added in the second quarter 2010 throughout the Americas, according to the latest report from 3G Americas.
3GPP represented 73 percent of the total (net) new connections in the mobile industry in North, Central and South America in the second quarter.
"The Americas was the world's fastest-growing region for UMTS-HSPA subscriptions in the year ending June 2010 and helped the technology break through the half-billion milestone to reach 535 million subscriptions worldwide during the second quarter, representing 11 percent of total global mobile subscriptions, up from 9 percent in the second quarter of 2009," said Mike Roberts, Principal Analyst at Informa Telecoms & Media.
Only GSM and UMTS-HSPA realized new subscription gains in the Western Hemisphere during the second quarter. GSM added close to 7 million new connections, while UMTS-HSPA added 11.9 million new connections, for a total of 18.8 million new connections.
Other technologies showed a net loss of nearly 1.8 million customers in the region.
Total 3GPP subscriptions (GSM-HSPA) in the Western Hemisphere reached 636 million as of June 2010 and captured 75 percent share of market, rising a percentage point from the first quarter of 2010. In the second quarter alone, there were 18.8 million new GSM-HSPA subscriptions reported in the Western Hemisphere.
Overall, there were 78.2 million new GSM-HSPA subscriptions added in the Western Hemisphere from June 2009 to June 2010.
In the 12 months ending June 2010, there were 38 million new UMTS-HSPA 3GPP mobile broadband connections for a total of nearly 86.3 million 3G subscribers, which represented 79 percent growth in the region on 70 commercial UMTS-HSPA mobile networks.
At the second quarter of this year, there were nearly 4.5 billion 3GPP connections worldwide, with 3GPP mobile broadband subscriptions well past the half billion point at 535.5 million UMTS-HSPA connections -- a number that continues to grow and represents 11 percent of all mobile subscriptions.
3GPP represented 73 percent of the total (net) new connections in the mobile industry in North, Central and South America in the second quarter.
"The Americas was the world's fastest-growing region for UMTS-HSPA subscriptions in the year ending June 2010 and helped the technology break through the half-billion milestone to reach 535 million subscriptions worldwide during the second quarter, representing 11 percent of total global mobile subscriptions, up from 9 percent in the second quarter of 2009," said Mike Roberts, Principal Analyst at Informa Telecoms & Media.
Only GSM and UMTS-HSPA realized new subscription gains in the Western Hemisphere during the second quarter. GSM added close to 7 million new connections, while UMTS-HSPA added 11.9 million new connections, for a total of 18.8 million new connections.
Other technologies showed a net loss of nearly 1.8 million customers in the region.
Total 3GPP subscriptions (GSM-HSPA) in the Western Hemisphere reached 636 million as of June 2010 and captured 75 percent share of market, rising a percentage point from the first quarter of 2010. In the second quarter alone, there were 18.8 million new GSM-HSPA subscriptions reported in the Western Hemisphere.
Overall, there were 78.2 million new GSM-HSPA subscriptions added in the Western Hemisphere from June 2009 to June 2010.
In the 12 months ending June 2010, there were 38 million new UMTS-HSPA 3GPP mobile broadband connections for a total of nearly 86.3 million 3G subscribers, which represented 79 percent growth in the region on 70 commercial UMTS-HSPA mobile networks.
At the second quarter of this year, there were nearly 4.5 billion 3GPP connections worldwide, with 3GPP mobile broadband subscriptions well past the half billion point at 535.5 million UMTS-HSPA connections -- a number that continues to grow and represents 11 percent of all mobile subscriptions.
Monday, September 06, 2010
Profiling OTT Video Consumer Needs & Wants
Strategy Analytics recently conducted in-depth interviews across five countries with early-adopters who already use over-the-top (OTT) video services with their television sets. This group accesses OTT video content via a variety of methods.
Some own new connected TVs, BluRay players or gaming consoles. Others have purchased digital media center PCs or purpose-built low-cost digital video players. Despite this diversity, the market study found that people's needs an wants are often surprisingly similar.
The study also uncovered that while saving money is a deciding factor for consumers (especially in Spain or China), the majority are also using OTT video services as a way of increasing the variety of content available to them -- providing greater convenience and flexibility.
According to the Strategy Analytics assessment, OTT video typically supplements broadcast TV viewing. Broadcast TV and OTT content serve different purposes. Watching broadcast TV is likely to be considered a social activity, including others. In contrast, OTT video is more often associated with personal interests.
The study also found that when observing these consumers in their homes that attention levels for broadcast TV are generally much lower, when compared with OTT video consumption.
Finding interesting content is considered the biggest frustration for consumers. Most are willing to pay to be able to find all of their favorite content in one place. The research results also suggests that strong demand exists for access to international content.
The study participants crave personalization -- placing a much greater emphasis on the relevance of the content to their individual tastes. Therefore, many choose to watch their preferred shows via Video on Demand (VoD) services. Meaning, they select OTT content more carefully and seek guidance.
Meaningful content suggestions based on other consumer reviews -- or referrals from friends -- is of the highest value, while recommendations automatically generated (by recommendation engines) are also considered valuable.
Consumers want fewer and smaller device controllers in their living rooms. Yet, they don't believe that typical universal remote controls are the solution. A simplified remote control -- designed specifically for OTT consumption -- will likely be vital to driving video service adoption.
Some own new connected TVs, BluRay players or gaming consoles. Others have purchased digital media center PCs or purpose-built low-cost digital video players. Despite this diversity, the market study found that people's needs an wants are often surprisingly similar.
The study also uncovered that while saving money is a deciding factor for consumers (especially in Spain or China), the majority are also using OTT video services as a way of increasing the variety of content available to them -- providing greater convenience and flexibility.
According to the Strategy Analytics assessment, OTT video typically supplements broadcast TV viewing. Broadcast TV and OTT content serve different purposes. Watching broadcast TV is likely to be considered a social activity, including others. In contrast, OTT video is more often associated with personal interests.
The study also found that when observing these consumers in their homes that attention levels for broadcast TV are generally much lower, when compared with OTT video consumption.
Finding interesting content is considered the biggest frustration for consumers. Most are willing to pay to be able to find all of their favorite content in one place. The research results also suggests that strong demand exists for access to international content.
The study participants crave personalization -- placing a much greater emphasis on the relevance of the content to their individual tastes. Therefore, many choose to watch their preferred shows via Video on Demand (VoD) services. Meaning, they select OTT content more carefully and seek guidance.
Meaningful content suggestions based on other consumer reviews -- or referrals from friends -- is of the highest value, while recommendations automatically generated (by recommendation engines) are also considered valuable.
Consumers want fewer and smaller device controllers in their living rooms. Yet, they don't believe that typical universal remote controls are the solution. A simplified remote control -- designed specifically for OTT consumption -- will likely be vital to driving video service adoption.
Saturday, September 04, 2010
Mobile Multimedia Content Consumption Growth
An eMarketer report predicts U.S. mobile content revenues will rise from less than $1.15 billion in 2009 to more than $3.53 billion in 2014 -- at a compound annual growth rate (CAGR) of nearly 20 percent.
"The continuing advance of smart devices and the growing ubiquity of mobile broadband networks mean that consumers have to make fewer compromises when it comes to the consumption of games, music and video," said Noah Elkin, eMarketer senior analyst.
An improved user experience, and the ability to access an ever-expanding variety of multimedia content from cloud services, will attract many new mobile content consumers in the next five years.
The fastest growth will come from mobile music, which starts from the smallest base and will move from a market focused on ringtones to one where mobile broadband enabled users pay to access full-length songs from the cloud.
Games are the most popular mobile activity in number of users, and there is a growing emphasis on monetizing such content through downloads and advertising -- rather than shipping phones with games pre-installed.
The mobile video audience will increase threefold between 2009 and 2014, with the steady improvement of devices, the increase in mobile broadband availability and the emergence of over-the-top (OTT) viewing options outside the mobile carrier networks.
These factors will help boost revenue growth to a CAGR of more than 25 percent from 2009 to 2014.
"Platform integration is vital for the growth of mobile content," said Elkin. "The decade ahead heralds a wholesale shift in the content consumption experience. Consumers will expect games, music and video to be available on demand or via subscription on TVs, mobile and PC."
Friday, September 03, 2010
Mobile Marketing and Geo-Targeted Campaigns
Location-based retailer advertising is evolving. However, according to the latest market study by ABI Research, businesses are now being primed to spend $1.8 billion on this emerging category by 2015 -- as part of overall mobile marketing budgets.
"It's still early days and there's no single right approach to location-based advertising," says ABI practice director, Neil Strother. "This remains a very fragmented market that is full of experimentation."
Nonetheless, the options are becoming more clearly defined. Location-based ads are enabled by three sets of technologies -- GPS, Wi-Fi, and mobile phone network Cell-ID.
According to ABI's assessment, the most successful campaigns use a mix of some or all of these technologies -- depending on the product or service, the region, the consumers, and the location accuracy required.
New location-based services are catering to mobile shoppers. Some are check-in services, such as Loopt, Gowalla, Foursquare, and Facebook Places. Others, such as Shopkick, use an iPhone app to reward shoppers just for visiting certain stores.
But, do consumers really want their physical location to be tracked?
"Some might be put off by the Big Brother aspects of this," says Strother. "But, it's really about the value-exchange: if you care about getting discounts or being rewarded for shopping, is the value-exchange high enough so that you'll accept having your whereabouts known to these companies in return for the benefits?"
Strother defines the basic steps for the prospective location-based advertiser, as follows.
Establish your marketing goals. Analyze your customer's mobile and location habits and develop your location approach. Choose location partner(s) and determine the best technologies for your brand. And finally, execute your geo-targeted campaign, measure the results and then refine the process.
"It's still early days and there's no single right approach to location-based advertising," says ABI practice director, Neil Strother. "This remains a very fragmented market that is full of experimentation."
Nonetheless, the options are becoming more clearly defined. Location-based ads are enabled by three sets of technologies -- GPS, Wi-Fi, and mobile phone network Cell-ID.
According to ABI's assessment, the most successful campaigns use a mix of some or all of these technologies -- depending on the product or service, the region, the consumers, and the location accuracy required.
New location-based services are catering to mobile shoppers. Some are check-in services, such as Loopt, Gowalla, Foursquare, and Facebook Places. Others, such as Shopkick, use an iPhone app to reward shoppers just for visiting certain stores.
But, do consumers really want their physical location to be tracked?
"Some might be put off by the Big Brother aspects of this," says Strother. "But, it's really about the value-exchange: if you care about getting discounts or being rewarded for shopping, is the value-exchange high enough so that you'll accept having your whereabouts known to these companies in return for the benefits?"
Strother defines the basic steps for the prospective location-based advertiser, as follows.
Establish your marketing goals. Analyze your customer's mobile and location habits and develop your location approach. Choose location partner(s) and determine the best technologies for your brand. And finally, execute your geo-targeted campaign, measure the results and then refine the process.
Thursday, September 02, 2010
Demand for E-readers, Smartbooks and Tablets
According to Informa Telecoms & Media, sales of smartbooks are expected to rapidly grow from 3.65 million in 2010 to nearly 50 million in 2014, representing over 50 percent of all embedded device sales.
This growth will be driven by a shift away from dedicated devices like e-readers, towards multifunctional portable devices like the iPad and Samsung Galaxy Tab. These smartbooks merge the best features of both smartphones and netbooks -- plus they include always-on connectivity.
"There has been a resurgence of smartbooks particularly in the tablet form, fueled by the launch of the iPad, and we are seeing the same kind of proliferation and interest in tablets now, that we saw two years ago for e-readers" said David McQueen, principal analyst at Informa.
E-readers on the other hand are under threat. Electronic book (e-book) content is now available on most multifunctional devices -- such as mobile phones, tablet computers, netbooks and other portable consumer electronic devices.
Informa expects mobile broadband e-reader sales will peak at 14 million units in 2013, before falling by 7 percent in 2014 as the segment faces increased competition from a wide range of consumer electronic devices -- including cheaper models, like the Kobo and new Kindle WiFi
.
In addition to their multifunctional capabilities, Informa believes that smartbooks are the perfect candidates for distribution via the mobile service operator channel. If smartbooks were simply distributed in the same way as netbooks are today, then some major opportunities would be missed.
These are opportunities to strengthen the operator's mobile broadband proposition, to validate smartbooks as a genuinely new product category and to promote smartbook's adoption.
"Pricing will be crucial to stimulate demand as will customer choice and competition, which is being driven by a number of leading device vendors now readying themselves for the launch of more smartbooks, many of which will undoubtedly verge towards the tablet design with touch screen, WLAN and 3G-connectivity," concluded McQueen.
This growth will be driven by a shift away from dedicated devices like e-readers, towards multifunctional portable devices like the iPad and Samsung Galaxy Tab. These smartbooks merge the best features of both smartphones and netbooks -- plus they include always-on connectivity.
"There has been a resurgence of smartbooks particularly in the tablet form, fueled by the launch of the iPad, and we are seeing the same kind of proliferation and interest in tablets now, that we saw two years ago for e-readers" said David McQueen, principal analyst at Informa.
E-readers on the other hand are under threat. Electronic book (e-book) content is now available on most multifunctional devices -- such as mobile phones, tablet computers, netbooks and other portable consumer electronic devices.
Informa expects mobile broadband e-reader sales will peak at 14 million units in 2013, before falling by 7 percent in 2014 as the segment faces increased competition from a wide range of consumer electronic devices -- including cheaper models, like the Kobo and new Kindle WiFi
.In addition to their multifunctional capabilities, Informa believes that smartbooks are the perfect candidates for distribution via the mobile service operator channel. If smartbooks were simply distributed in the same way as netbooks are today, then some major opportunities would be missed.
These are opportunities to strengthen the operator's mobile broadband proposition, to validate smartbooks as a genuinely new product category and to promote smartbook's adoption.
"Pricing will be crucial to stimulate demand as will customer choice and competition, which is being driven by a number of leading device vendors now readying themselves for the launch of more smartbooks, many of which will undoubtedly verge towards the tablet design with touch screen, WLAN and 3G-connectivity," concluded McQueen.
Wednesday, September 01, 2010
Why CE Manufacturers Crave more TV Apps
A recent Pew Research Center telephone survey was conducted among a nationally representative sample of 2,967 American adults. The latest "Social & Demographic Trends" survey findings were very insightful. Indeed, the shift in consumer behavior would help to explain why some leading companies are preparing to challenge the conventional wisdom that has guided their industry for decades.
According to the Pew poll results, interest in two legacy consumer electronics (CE) devices are fading fast -- the television set and the landline telephone. They're both apparently suffering from a sharp decline in public perception that these devices are "necessities" of life.
In fact, just 42 percent of Americans say they consider the television set to be a necessity, according to this latest nationwide survey. By comparison, last year this figure was 52 percent. And, in 2006 it was 64 percent.
However, the decline has been less severe for the landline telephone. Some 62 percent of Americans say it's a necessity of life, down from 68 percent last year.
But, there's a related trend that's more telling about the likely future demand, or the lack thereof, for landline phone services. More than 47 percent of the public now say that the mobile phone has become a necessity of life, and it's replacing the need for a legacy landline phone.
Even more worrisome for both legacy devices are the attitudes of today's American young adults. Fewer than half (46 percent) of 18- to 29-year-old survey respondents consider the landline phone a necessity of life. Moreover, fewer than three-in-ten (29 percent) say the same about the television set.
What is not clear from the results of this study is the primary reason why people believe that they can do without a TV. Several questions remain unanswered. Are they finding the real-time news information they seek online? Do they prefer viewing video content online because of the reduced advertising? Is it really a decline of interest in the device, or the typical content that American broadcast and pay-TV services offer?
There's one thing that is very clear, however. Whether the need is for a basic television set, a flat-screen television, or traditional pay-TV services, the pattern is the same -- the older the respondent, the more likely the person is to say that these things are still necessities of life.
Perhaps that's why consumer electronics manufacturers, such as Samsung, are attempting to revive the perceived need for TV sets -- by shifting the focus away from a dependency on the usual sources of content distribution and actively encouraging the development of new interactive software applications.
According to the Pew poll results, interest in two legacy consumer electronics (CE) devices are fading fast -- the television set and the landline telephone. They're both apparently suffering from a sharp decline in public perception that these devices are "necessities" of life.
In fact, just 42 percent of Americans say they consider the television set to be a necessity, according to this latest nationwide survey. By comparison, last year this figure was 52 percent. And, in 2006 it was 64 percent.
However, the decline has been less severe for the landline telephone. Some 62 percent of Americans say it's a necessity of life, down from 68 percent last year.
But, there's a related trend that's more telling about the likely future demand, or the lack thereof, for landline phone services. More than 47 percent of the public now say that the mobile phone has become a necessity of life, and it's replacing the need for a legacy landline phone.
Even more worrisome for both legacy devices are the attitudes of today's American young adults. Fewer than half (46 percent) of 18- to 29-year-old survey respondents consider the landline phone a necessity of life. Moreover, fewer than three-in-ten (29 percent) say the same about the television set.
What is not clear from the results of this study is the primary reason why people believe that they can do without a TV. Several questions remain unanswered. Are they finding the real-time news information they seek online? Do they prefer viewing video content online because of the reduced advertising? Is it really a decline of interest in the device, or the typical content that American broadcast and pay-TV services offer?
There's one thing that is very clear, however. Whether the need is for a basic television set, a flat-screen television, or traditional pay-TV services, the pattern is the same -- the older the respondent, the more likely the person is to say that these things are still necessities of life.
Perhaps that's why consumer electronics manufacturers, such as Samsung, are attempting to revive the perceived need for TV sets -- by shifting the focus away from a dependency on the usual sources of content distribution and actively encouraging the development of new interactive software applications.
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