Skip to main content

Game Consoles to Upset the Pay-TV Market

According to a market study by TDG, game consoles such as Microsoft's Xbox 360 and Sony's PS3 are evolving into multimedia gateways with various non-gaming media applications.

Armed with the growing video libraries of Xbox LIVE and the Playstation Network, these consoles can deliver on-demand video services with content similar to local cable, satellite or telco Pay-TV operators.

Though similar efforts have failed -- largely because they relied on consumers to buy yet another set-top box -- the business model and the timing seem to favor the game console-based approach.

"There is a bit of a value vacuum developing around today's Pay-TV offerings," noted Colin Dixon, TDG's practice manager for broadband media and report co-author.

Rising dissatisfaction with service value, the lack of flexibility implicit in tiered strategies, and a growing interest in watching online video on the TV have combined to create a unique opportunity for alternative video services.

Microsoft and Sony know that today's console gamers are perfectly suited for new TV offerings.

The segment is dominated by males between the ages of 18 and 35 -- a prized advertising demographic -- with little sense of loyalty to their local cable or telephone company.

They are also heavy viewers of online video and open to spending money for online digital media. Simply stated, console vendors are well positioned for success in the Over the Top (OTT) media distribution space because (1) their gaming audience already owns the enabling device, and (2) they are highly likely to already have a relationship with the vendor.

Findings from TDG's new report includes:

- By 2012, approximately 190 million households will use a next-generation game console.

- 80 percent of these households, or 148 million, will have this console connected to the Internet.

- 75 percent of connected-console households, more than 110 million, will use game console-based video services at least a couple times each week.

Popular posts from this blog

Demand for Quantum Computing as a Service

The enterprise demand for quantum computing is still in its early stages, growing slowly. As the technology becomes more usable, we may see demand evolve beyond scientific applications. The global quantum computing market is forecast to grow from $1.1 billion in 2022 to $7.6 billion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). That's a five-year compound annual growth rate (CAGR) of 48.1 percent. The forecast includes base Quantum Computing as a Service, as well as enabling and adjacent Quantum Computing as a Service. However, this updated forecast is considerably lower than IDC's previous quantum computing forecast, which was published in 2021, due to lower demand globally. Quantum Computing Market Development In the interim, customer spend for quantum computing has been negatively impacted by several factors, including: slower than expected advances in quantum hardware development, which have delayed potential return on inve

AI Semiconductor Revenue will Reach $119.4B

The Chief Information Officer (CIO) and/or the Chief Technology Officer (CTO) will guide Generative AI initiatives within the large enterprise C-Suite. They may already have the technical expertise and experience to understand the capabilities and limitations of Gen AI. They also have the authority and budget to make the necessary investments in infrastructure and talent to support Gen AI initiatives. Enterprise AI infrastructure is proven to be expensive to build, operate and maintain. That's why public cloud service provider solutions are often used for new AI use cases. AI Semiconductor Market Development Semiconductors designed to execute Artificial Intelligence (AI) workloads will represent a $53.4 billion revenue opportunity for the global semiconductor industry in 2023, an increase of 20.9 percent from 2022, according to the latest worldwide market study by Gartner. "The developments in generative AI and the increasing use of a wide range AI-based applications in data c

Global Public Cloud Spending to Reach $1.35T

Most digital transformation is enabled by cloud solutions. Worldwide spending on public cloud services is forecast to reach $1.35 trillion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). Although annual spending growth is expected to slow slightly over the 2023-2027 forecast period, the market is forecast to achieve a five-year compound annual growth rate (CAGR) of 19.9 percent. "Cloud now dominates tech spending across infrastructure, platforms, and applications," said Eileen Smith, vice president at IDC . Public Cloud Services Market Development IDC believes that most organizations have adopted the public cloud as a cost-effective platform for hosting enterprise applications, and for developing and deploying customer-facing solutions. Looking forward, the cloud computing model remains well positioned to serve customer needs for innovation in application development and deployment -- including as data, artificial intelligence