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Convergence, Digital Media and Multi-Play

According to a new global market study by Research and Markets, the media market is on the verge of massive changes. With the convergence of telecoms, media and IT, the combination points to the arrival of an emerging digital media marketplace.

DSL and cable based-broadband networks are rapidly moving into multi-play models, delivering voice, data and video services. Broadband TV (IPTV), Digital and Personal Video Recorders (DVR or PVR) and Video-on-Demand (VoD), are a few of the prominent services which promise fresh opportunities for emerging digital media companies.

Key Highlights of the report include:

- The consumer electronics market is pushing for changes driven by plasma screens and DVRs; thus increasing market demand for more and better entertainment services. This industry will continue to profit from new developments in 2006.

- New digital-based broadcasters are rapidly moving into the areas of broadband and telecommunications. Broadband TV (IPTV) could double the amount of revenue attained from the top 25 percent of broadband users.

- In 2005, there were around 350 million cable TV subscriber households worldwide. By 2008, video streaming technology will be mainstream and fully integrated into any broadband service. The global market for VoD will grow to over 350 million households by 2010.

- Changes in the telecommunication and media markets are being forced upon the industry by the emerging Internet companies such as Google, eBay/Skype, Yahoo!, Vonage, AOL, MSN, and Amazon. They are breaking down the old business models in the industry which are mainly built around monopolistic market structures.

- At the heart of a digital home is the technical concept known as the Media Centre. By 2015 90 percent of all households in the developed market will have a home media centre. Cable TV operators, telcos, consumer electronics and IT companies are all vying for the Media Centre business. Progress in this market will continue to evolve with more mass market developments expected from 2008 onwards.

- Despite some governments mandating digital TV in its various forms, there is little evidence of a rush by consumers to buy it. Instead they are more interested in new Internet video service providers, and their pay-per-view or on-demand services.

- Cable and satellite TV services are rapidly becoming digital. Digital Terrestrial TV has been slower to make progress due to a lack of global standards.

- Video-based services on broadband and interactive digital TV networks are becoming whole new areas for advertising opportunities. Personalised media and one-to-one communication will be the predominant advertising mode, using digital media.

- SMS took the world by surprise and Mobile TV is following in its footsteps. It combines two of the most widespread communication media. It is becoming available in selected markets during 2006 and will reach mass market by 2008.

- The development of broadband has seen the implementation of interactive TV initiatives. The UK is a leader in this market, with the BBC arguably the best iTV broadcaster in the world. Interactive TV and other enhanced television products will generate billions of dollars in advertising and commerce worldwide.

- In a converged telecommunication and media environment, the focus will move toward content and applications, and this will require a change in marketing strategies. Telcos, ISPs and all BSPs must move on from their techno-driven approach to marketing.

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