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Entries in The Road Ahead (18)

Sunday
Dec042011

Internet TV Growth Propels Revenue for Online VoD

Source: In-Stat Press Release

According to In-Stat research, 17 million US households currently own a connected TV, and ownership of streaming media players has nearly doubled since the end of 2010.  Yet only a fraction of consumers that own an Internet-capable TV device actually connects it to the Internet to become over-the-top (OTT) video consumers.  Despite this hurdle, the growing base of OTT-Video-capable US households is propelling the revenue for online video-on-demand (VoD) and electronic-sell-through (EST) to double by 2015.

“OTT video is continuing to grow, overcoming the barriers of low device connect rates and cumbersome user interfaces,” says Keith Nissen, Research Director.  “Even stronger growth of I-VOD and EST video services is possible if device manufacturers and digital retailers can put together a simpler, plug-n-play solution for getting online video to the TV (web-to-TV).  The proliferation of tablets is also contributing to OTT growth.”

Some of the other factors affecting the OTT video market:

  • Streaming video transactions will reach just under 1 billion in 2010.
  • Netflix and other S-VOD suppliers are shifting to a more TV-centric model and will soon be competing directly with HBO, Showtime, and Starz.
  • The collaborative and competitive models among physical and digital retailers, content owners, and pay TV operators are shifting rapidly as players in the ecosystem grapple with the evolving mix of physical versus digital channels, EST, pay-TV, OTT, and subscription VoD.
Sunday
Dec042011

Comcast, Time Warner and Bright House Sell Spectrum to Verizon for $3.6B

Source: Comcast Press Release

SpectrumCo, LLC, a joint venture between Comcast Corporation, Time Warner Cable, and Bright House Networks, announced it has entered into an agreement pursuant to which Verizon Wireless will acquire its 122 Advanced Wireless Services spectrum licenses covering 259 million POPs for $3.6 billion.  Comcast owns 63.6% of SpectrumCo and will receive approximately $2.3 billion from the sale.  Time Warner Cable owns 31.2% of SpectrumCo and will receive approximately $1.1 billion.  Bright House Networks owns 5.3% of SpectrumCo and will receive approximately $189 million

The companies also announced that they have entered into several agreements, providing for the sale of various products and services.  Through these agreements, the cable companies, on the one hand, and Verizon Wireless, on the other, will become agents to sell one another's products and, over time, the cable companies will have the option of selling Verizon Wireless' service on a wholesale basis.  Additionally, the cable companies and Verizon Wireless have formed an innovation technology joint venture for the development of technology to better integrate wireline and wireless products and services.

SpectrumCo's sale and transfer of its advanced wireless spectrum to Verizon Wireless is subject to approval by the Federal Communications Commission and review under the Hart-Scott Rodino Act and other customary conditions. 

Wednesday
Nov302011

Video Calling to Surpass 380 Million Active Users by 2015

Source: In-Stat Press Release

Video calling is expected to experience significant growth. New NPD In-Stat research forecasts the total number of active video calling users will surpass 380 million in 2015, a monumental increase from 63 million in 2010.

Key analysis includes:

  • PC video calling will continue to account for the majority of video calling minutes throughout the forecast period.
  • Skype is the market leader in video calling solutions across screen types: PC, mobile, and TV.
  • Integration with other applications, particularly social networking, will be a significant market driver.
  • Active usage rates vary significantly across screen types.
Tuesday
Nov222011

WiFi Bandwidth Use Forecast to More than Double in Next Four Years

Source: IGR Press Release

iGR's new research study, "U.S. Home Broadband & WiFi Usage Forecast, 2011-2015," quantifies the bandwidth used in the typical U.S. home and the bandwidth used on WiFi devices.

iGR forecast that for the heaviest users of WiFi in the home (those in the 'extreme' category), total bandwidth used is expected to increase from more than 390 GB per month in 2011 to nearly 440 GB per month in 2015. iGR forecasts that WiFi will increase from 55 percent of the total bandwidth used in 2011 to more than 75 percent in 2015. This high level of data consumption is driven principally by demand for video, both streamed and downloaded. 

iGR's new report also finds that:   

  • Older consumers are the least likely to use WiFi.
  • Middle-aged consumers are more likely to use WiFi in airports, hotels. These are likely to be business travelers.
  • Smartphone ownership tends to drive more WiFi usage -- conversely, consumers who do not have smartphones are least likely to use WiFi.
  • Consumers with smartphones are more likely to use WiFi in various locations. Everything that applies to smartphone users also applies to WiFi use: for example, they tend to be in their 20s, 30s or 40s; they tend to be employed or, in some cases, in school; they tend to have reported annual household incomes that are above the U.S. median.
  • Tablet users, by default, are the most likely to use WiFi in any given location. As discussed in other iGR research studies, tablet users are almost always smartphone users.
Thursday
Nov172011

Emerging Markets Key to FTTH Growth for Vendors

Source: Pyramid Press Release

FTTH accounted for 11 percent of total broadband lines in 2011. FTTH deployments have slowed in developed markets in the 2009-2011 period, but increased focus on service marketing combined with strong momentum in emerging markets have led to substantial growth in FTTH subscribers, according to Ozgur Aytar, Research Director and Pyramid's Practice Leader for Broadband and Media and Consultant behind Pyramid's new Fiber in the Last Mile Insight Pack.