Digital Lifescapes

The hotel and multi-dwelling unit (MDU) markets (apartments and condos) will provide a significant growth opportunity to the IPTV market, according to the latest market study by In-Stat. IPTV will offer growth opportunities to service providers serving high density environments like apartments, and will serve as a differentiator for properties that make it available. The market for IPTV services to high density deployments such as apartments will exceed $6 billion worldwide by 2013. The hotel market is more difficult in the short term as the economic downturn makes securing the capital necessary to support deployments more challenging than in the MDU segment. Bookings and revenues are down. Thus hotels may be less willing to finance network upgrades to support IPTV in the near term. "Deploying IPTV in the MDU market is a good bet for service providers," says Amy Cravens, In-Stat analyst. "Deploying IPTV in high density environments offers significant cost savings compare

Infonetics Research recently released the latest (4Q08) edition of its IPTV and Switched Digital Video Equipment, Services, and Subscribers report. With service providers around the world countering decreasing revenue by cutting capex, one would assume video equipment providers will be hit just as hard as their network equipment colleagues. However, that won't be the case in 2009. Encoder providers like Harmonic, Tandberg (Ericsson), and Motorola will see a continued upside in revenue this year as they benefit from the HD race currently going on in North America and soon to expand to Western Europe and parts of Asia. Infonetics' quarterly IPTV and switched digital video report provides worldwide and regional market share, market size, analysis, and forecasts through 2013 for telco IPTV and cable IPTV and SDV equipment, including pure and hybrid IP set-top boxes, integrated digital headend platforms, VoD and streaming content servers, HD and SD IP video encoders, IPTV middleware

Having just read Paul Gillin's latest book entitled " Secrets of Social Media Marketing " I'm reflecting on the future of the marketing profession, relative to my own past and recent experiences. In praise of the book's contents, Larry Weber says "Paul Gillin has written a master map for enterprises to succeed in the era of customer conversation and customer control." In contrast I believe, and with all due respect to Mr. Weber, while it's apparent that much of what is applied as the fundamental principles of marketing doesn't work today -- and is proven to be ineffectual, in so many ways -- the path to success is currently unclear for many marketers. Granted, that assessment must be very unsettling to anyone approving the marketing budget for their organization. No matter, it would be foolish to deny the results of the body of knowledge and associated case studies that Paul Gillin compiled to outline the themes in his book. Embracing c

The Diffusion Group released new data suggesting that the appeal of widget-enabled TV and video systems will be far greater than many expect. As well, the range of widget-based applications demanded by consumers will quickly eclipse the basic information push apps to be featured on the first wave of widget-enabled TVs and video platforms. "TDG strongly believes that the introduction of widget-based apps into the TV environment will be the tipping point for Internet-enabled TV," noted Michael Greeson, president of TDG. In support of this argument, TDG points to data collected during a January 2009 survey of adult broadband users in the U.S. which quantified an unusually high value perception of TV-based widgets. According to TDG's research, 76 percent of consumers believe having a widget toolbar on their primary TV would be valuable (48 percent "somewhat valuable" and 28 percent "extremely valuable") with only 13 percent being neutral and 11 percent ne

According to ComScore, the number of people using a mobile device to access news and information on the Internet has reached a groundswell. Among the U.S. user base of 63.2 million people who accessed news and information on their mobile devices in January 2009, 22.4 million (35 percent) did so daily -- more than double the size of the market last year. Does this mean that the U.S. market has caught up to the advanced mobile market leaders in Asia-Pacific and Europe? Hardly. It's all relative progress. But a good sign, regardless. "Over the course of the past year, we have seen use of mobile Internet evolve from an occasional activity to being a daily part of people's lives," observed Mark Donovan, senior vice president, mobile, comScore. This underscores the growing importance of the mobile medium as consumers become more reliant on their mobile devices to access time-sensitive and utilitarian information. "Social networking and blogging have emerged as very pop

At the end of 2008, only 11 percent of worldwide wireless subscriptions were on the 3G mobile standard. However, by the end of 2013, the percentage of 3G and 4G subscriptions will reach 30 percent, according to the latest study by In-Stat. Apparently, this growth trend is already reflected in fourth quarter 2008 wireless infrastructure contract awards. WiMAX will now likely compete -- to some degree -- over the next couple of years with the rise of HSPA and LTE. In-Stat expects mobile WiMAX to be attractive in developing countries and remote locations in which fixed broadband networks are not yet deployed. It is still unknown whether or not mobile WiMAX will be competitive in locations with existing 3G cellular and fixed broadband networks. "Based on contract awards, WiMAX deployments are remaining resilient in the face of the economic slowdown, although some operators are slowing the deployment rate" says Daryl Schoolar, In-Stat analyst. The current WiMAX equipment vendors,

The global market for mobile broadband advanced last year, driving major increases in data subscribers and revenues, and will play an increasingly central role in the success of the industry, according to the latest study by Informa Telecoms & Media. "Mobile broadband has become one of the key growth engines for the mobile industry, with 186 million mobile broadband subscribers worldwide at the end of 2008, up 84 percent from 101 million at end-2007," says Mike Roberts, Principal Analyst at Informa Telecoms & Media. By 2013 mobile broadband subscribers will represent almost one-third of total mobile subscribers worldwide. The mobile broadband uptake was triggered by the combination of widespread mobile broadband network coverage, appealing devices such as USB modems and the iPhone 3G, and competitive flat-rate tariffs. Flat-rate mobile broadband services with widespread coverage and new devices such as USB modems and the iPhone 3G are a runaway success, and have made

The global financial crisis could endanger many large Digital Terrestrial TV (DTT) deployment projects, which require large amounts of financed capital, according to the latest market study by In-Stat. This setback could cause major delays in DTT conversion programs worldwide, with consumers purchasing fewer Set Top Boxes (STB) as a result. "Another scenario, however, is more upbeat for the STB market," says Gerry Kaufhold, In-Stat analyst. The economic slowdown could spur governments to fund the DTT transition at an accelerated rate to stimulate the economy. By auctioning off the analog spectrum, governments would receive income. Hopefully, converting analog spectrum for other uses, such a license-free metro area wireless broadband, will also spur new innovation and opportunity. In-Stat's market study found the following: - Total DTT STB unit shipments will peak at 44 million in 2009. - Standard Definition (SD) DTT set top box unit shipments will peak in 2011. - The

As the South by Southwest Festival of 2009 comes to an end, let's acknowledge the open unConference events -- as people from all over the world connected together and joined their Indie Music or Independent Film "community of interest" while in Austin, Texas. I've launched the GeoBrava Media project, in celebration of all the independent talent that stays true to their art-form -- passionately creating new digital media content -- regardless that their work is considered unCommercial by the legacy big-media companies. Free and Open Distribution Models The rise of the unLabel music production and open distribution model is a revolt in response to the traditional record label's business practices. Ditto, with the rise of the unStudio video production and open distribution phenomenon. A multitude of social media networking sites are creating the new open marketplace online, where the vast market supply is freely exposed to the awaiting eclectic market demand. The

As tough times force many people to spend less -- and to be pickier about what they do buy -- online Search is becoming ever more important to marketers. "The recession is driving marketers to concentrate on gaining new business, even more than on customer retention objectives," says David Hallerman, eMarketer senior analyst. "Search is the ultimate online acquisition tool, and therefore is positioned to do relatively well in this economy." The four basic search options are paid search, contextual advertising, paid inclusion -- all three are types of advertising -- and Search Engine Optimization (SEO). All four options will experience increased spending through 2013. By then eMarketer estimates total U.S. search marketing outlays will surpass $23 billion. While paid search traditionally has received the attention and money, as they seek to acquire new customers, marketers are now increasingly turning to SEO. There are key differences between paid search and SEO. &qu

According to the latest market study by The Diffusion Group (TDG), the number of global broadband households will near 440 million by 2010 and top 1.2 billion by 2030. During that same time, the number of broadband-enabled home networks will grow from 150 million in 2010 (34 percent) to more than 1.0 billion in 2030 (83 percent of broadband homes). With that required infrastructure in place, the opportunity for broadband-enabled services, especially online video, will grow dramatically. TDG's study points to a confluence of network-enabled applications and services that will occur within the next 10 years which will drive the diffusion of home networks and network-enabled media applications. According to TDG, video delivery over the Internet is a primary part of this future. By 2020, virtually every broadband-enabled home will have a multitude of network-connected video platforms. Though the pace at which this occurs will vary by region, its inevitability is unquestionable. Key tre

Mobile service providers in Central and Eastern Europe will increase their annual service revenues by more than 30 percent to $77 billion in 2013, according to the latest market study by Informa Telecoms & Media. As the rise in voice revenues levels off from 2011, overall growth will be driven by a doubling in the value of data revenues which will reach $23.4 billion in 2013. Growth will be primarily driven by continued expansion of the mobile subscription base, which will increase almost 20 percenet, from 447 million at end-2008 to 534 million at end-2013. Growth will also be fuelled by the increasing tendency for people to maintain two or more SIM cards in active use -- in some cases buying the second for a mobile broadband connection. Annual mobile data revenues in Central and Eastern Europe will increase 107 percent from $11.3 billion in 2008 to $23.4 billion in 2013. As a result, the proportion of revenue generated by data is forecast to increase by more than half, from 19.4 p

Many traditional Technology, Media and Telecom (TMT) companies are seeing their business models rapidly erode as communication services, news, information and entertainment content all shift to the Internet. For most telecommunication service providers and media companies, fundamental core business survival is now at stake, according to the latest market study by In-Stat. These legacy organizations must do more than simply adding functions, such as links to social networking sites, micro-blog messaging, chat rooms, and user comments or feedback. While these functions may help marketing and customer retention efforts, they do not represent a meaningful Web 2.0 business model. "Web 2.0 business models encompass an ecosystem of partnerships, designed to leverage both internal and external knowledge and assets" says Keith Nissen, In-Stat analyst. End to end ownership of the entire business model is a lost cause. Telecom operators, media companies and others that are directly aff

The online social networking experience is moving to the television screen -- driven by a young audience interested in video features such as multi-player games, chat, and content discovery. This trend will help increase U.S. advertising spending in social media to almost $3 billion by 2013, according to Parks Associates. The international research firm's market study finds over one-fourth of broadband users ages 18-24 are interested in social media features on the TV. Key applications include multiplayer gaming, in-program chat, and most watched lists. At the same time, 23 percent of U.S. broadband households want to view content from sites like YouTube and Flickr on their TVs. "For younger consumers in particular, their appetite for social experiences don't end on the computer screen but are enhanced via their access on TVs and mobile phones," said Kurt Scherf , vice president, principal analyst, Parks Associates. "This expansion of social media has implication

The digital signage market in the United States -- including hardware, software, installation, and maintenance services -- is expected to grow by about 33 percent in 2009, according to a new market study by ABI Research. This latest forecast factors in the likely declines due to the recessionary economic environment, showing a healthy growth rate despite the current uncertain financial conditions. There are several reasons for the positive outlook. Most traditional advertising media are losing their appeal. Consequently, digital signage has emerged as a potential way to deliver highly customized and targeted messaging in a variety of public locations. And in a fast-changing world, the ability digital signage to be updated in real-time is a significant benefit. Retail, education, hospitality and corporate communication are apparently the first verticals deploying digital signage. Adoption is also encouraged by improvements to a display's appearance, the generally falling prices of e

According to IDC, worldwide IT spending on cloud services will grow almost threefold, reaching $42 billion, by 2012. As the cloud computing model offers an efficient way for businesses to acquire and use IT, IDC expects its adoption to be amplified by the cost-cutting needs of most organizations today. In a recent IDC survey conducted with 696 IT executives and CIOs across Asia-Pacific excluding Japan (APEJ) to gather their views, understanding, current usage and planned usage of cloud computing, it was found that 11 percent of the respondents are already using cloud-based solutions. A further 41 percent of the respondents indicated that they are either evaluating cloud solutions for use in their businesses, or already piloting cloud solutions. When asked about their opinion of the current state of cloud computing, 17 percent of the respondents stated that although cloud computing is very promising, there are currently not enough services available to make it compelling. For IT vendors

eMarketer estimates there were about 116 million U.S. user-generated content consumers in 2008, along with 82.5 million content creators. Both numbers are forecast to climb significantly by 2013. Clearly, today's marketer must understand the various activities that constitute digital content creation and consumption. And, to appreciate the complexities of the content ecosystem. But, is it really possible to describe a quantum leap in culture by simply applying new persona labels? In a 2008 Forrester Research attempted to segment user-generated content participants into the following groups: Creators : Those who make social content go. Critics : Those who respond to content via reviews, comments, forums. Collectors : Those who aggregate and organize content using RSS feeds, tags and voting sites. Joiners : Those who gather around social communities. Spectators : Those who consume user-generated content but do not respond to it publicly. Inactives : Those who neither create nor consu

Visited by over two-thirds of the global online population, member communities -- which includes both social networks and blogs -- has become the fourth most popular online category, ahead of personal email. It is growing twice as fast as any of the other four largest sectors (search, portals, PC software and email), according to the latest Nielsen market study. About 67 percent of the global online population already accesses member community sites, and their increasing adoption show no sign of slowing. Social networking will continue to alter not just the global online landscape, but the consumer experience at large. According to the Nielsen report, Facebook is visited monthly by three in every 10 people online across the nine markets in which Nielsen tracks social networking use. However, Orkut in Brazil has the largest domestic online reach (70 percent) of any social network in these markets. The report provides insights into the changing size and composition of the global social n

The U.S. household spending on pay-TV, broadband, and mobile phone services will be about the same for most consumers, but about 15 percent apparently intend to cut back. That's likely subject to a change in their employment status, of course. As a result, In-Stat estimates that consumer spending across these three service segments could see nearly a $5 billion decrease during the next 12 months. Yet their recent survey reveals that broadband service is among the most integral parts of people lives. Why? Over 66 million consumers across demographic categories are using the Internet while watching television. I call this just-in-case TV viewing. Leave the TV on, volume lowered, periodically scanning channels -- in the hope that something engaging appears. Meanwhile, TV advertisers still pay a premium for this media. Truly amazing. "Some male age groups had 40 to 50 percent of respondents using a PC while watching TV, and about 30 percent of females under the age of 40 are also

Informa Telecoms & Media expects the Mobile Content and Services market to generate over $340 billion in end-user service revenues in 2013, up from around $183 billion in 2008. The two most significant service categories for revenues in 2008 were mobile messaging and mobile Internet, which together contributed over 80 percent of the total revenues. In recent years, many new players have emerged in the mobile content and services value chain and numerous merger, acquisition, and partnership activities have taken place. The traditional players have been joined by a slew of new companies and a significant list of players from other markets including the likes of Google and Apple. It is these companies that present the most credible threat to mobile operators and to the degree of control and influence they have over mobile subscribers. "In the coming years, the area that will see the most activity and will make or break many players in the mobile content and services value chain i

Infonetics Research released the fourth quarter (4Q08) edition of its Mobile Infrastructure and Subscribers report this week. Infonetics' quarterly report provides worldwide and regional market size, market share, analysis, and forecasts through 2013. "The large majority of mobile operators have healthy balance sheets, so the global economic turmoil roiling many markets is not likely to have a significant impact on the mobile network infrastructure market, with a few exceptions in hard-hit regions mainly due to currency devaluation" said Stephane Teral, Infonetics Research. Traffic growth remains unabated and many networks are fairly loaded. China is in the midst of massive 3G rollouts, and India will soon follow, fueling the market in 2009. Infonetics market study found the following: - The worldwide mobile network infrastructure equipment market grew 6 percent to $50.8 billion in 2008 over 2007, and will continue to grow in 2009 and 2010. - Currency appreciation is havi

There once was a time when a few big media companies ruled over the news and entertainment industry. All was calm, as long as everyone in a position of power agreed to play by the same dysfunctional rules. Access to the legacy content distribution ecosystem was tightly controlled and longstanding restraint of trade barriers were successful in ensuring that most attempts at innovation never saw the light of day. Tactics like pay-for-play payola schemes were able to perpetuate the content scarcity model that fueled the industry's efforts to limit and manipulate what was considered popular (pop), and how it was going to be marketed to the awaiting mass-media audience. The macroeconomic theory of supply and demand can not reach its full potential in a closed marketplace model that restricts access to the chosen few participants. However, the oligopoly regime of legacy big media companies loathed any notion of creating an open market. Re-Booting the Media Business Model Make no mis

According to Portio Research, mobile phone entertainment services have come a long way since their introduction in the form of mono-ringtones in the late nineties, with operators today delivering diverse services such as streaming audio and video, and multi-player games across high speed networks on to advanced handsets. In 2008, mobile entertainment services -- including mobile music, mobile games and mobile video services -- generated worldwide revenues of nearly $24 billion, and this figure is set to rise to a market value of $47.2 billion by end-2013. Mobile music continues to be the dominant component of the mobile entertainment services pie, however, within mobile music, ringtones -- the pioneering first entertainment service -- have gradually given way to advanced services, such as ringback tones, streaming audio and full-track downloads. Worldwide mobile music revenue stood at $11.7 billion at the end of 2008 and is forecast to hit $19.2 billion at the end of 2013. Mobile games

The sharp global economic meltdown which began in late 2007 is now affecting consumer and IT spending in a very significant way. The semiconductor market, which was one of the first industries to be affected, remains in a state of fluid turbulence. Semiconductors are an integral part of almost every electronic device and the broad base declines in units shipped resulting from deteriorating demand and expectations for continued weakness going forward has driven a lower outlook for the industry this year. Following a slight revenue decline of 2 percent in 2008, primarily due to a very weak fourth quarter, the worldwide semiconductor market will not recover until 2010. In fact, IDC expects a further revenue decline of 22 percent in 2009, due to double digit declines in unit shipments of key system markets, low utilization rates, and price erosion. This abrupt slowdown will not only affect the U.S. and Europe, but also Japan and the overall Asia/Pacific regions. IDC's Worldwide Semicon

By 2013, Smartphones will double their share of all mobile phones to about 20 percent, according to the latest market study by In-Stat. Global smartphone growth this year will be strong globally, but even stronger in the evolving U.S. market. "Strong demand is being driven by device manufacturers leveraging open OS device to re-invent the mobile phone experience," says Frank Dickson, Vice President, Mobile Internet Group. "New and prospective smartphone buyers are drawn to new mobile applications, even though the median number of applications downloaded for all platforms -- including the Apple iPhone -- is relatively modest-below five applications per user for each platform." This research is part of In-Stat's Cellular Devices service, which provides analysis of the worldwide cellular phone market space. In addition to reporting on current and expected future worldwide handset sales, Cellular Devices provides topical coverage of the leading industry trends. This

At the CES 2009 event, earlier this year, there was no shortage of iPod accessory makers, cell phone case manufactures and companies making add-on solutions for every gadget you can imagine. As the proud owner of a new 4th generation Apple iPod nano -- a gift from a family member -- I was on the lookout for useful accessories that would improve my mp-3 player usage experience. That said, two products caught my attention. The nano player is small and thin, and it looks really delicate -- it's the kind of item that would be easy to damage, especially if dropped on a hard surface. Clearly, there's lots of ways to protect this little device from harm, and I chose the Impact Series case from OtterBox . This thin, skin-like design that's made from silicon rubber provides protection against bump and shock to your device. The nano controls and connector slot are all accessible through the case, and the inner corners are designed to dissipate impact away from your music player. I r

Consumer use of free online gaming sites are more popular than ever. And, that usage could be a new upside revenue opportunity for advertisers. Gaming web sites racked up 27 percent more unique visits and 42 percent more total playing time in December 2008 than in December 2007, according to comScore. Overall Internet traffic grew only 4 percent over the same period. comScore's measurements highlight the ongoing shift from high-cost, console-based gaming toward free, browser-based alternatives. In 2008 MTV Networks surveyed free online gamers regarding the types of advertising they were willing to accept in exchange for playing such games. Banner ads and advertiser-sponsored games got the highest responses, at 47 and 42 percent, respectively. comScore also found that the total number of display ad views in the online gaming category grew 29 percent from November 2007 to November 2008, to 8.6 billion. This increase is attributed primarily to the growing number of advertising-exposed

ComScore reported the results of the first study of its cross-media panel of PC and mobile Internet users in the U.S., finding that light PC Internet users are 30 percent more likely than heavy PC Internet users to use their mobile devices to access Internet content. In total, 42 million people used their mobile devices in October 2008 to access news and information content on the Internet, an increase of 57 percent from October 2007. The study found that 15.2 percent of light PC Internet users accessed news and information on their mobile device at least once per week, compared to a lower 11.7 percent of heavy PC Internet users. For the purposes of this study, comScore defined heavy PC Internet users as those who viewed, on average, 6,701 pages in the month, and light users as those who viewed, on average, 1,104 pages in the month. Twenty percent of PC Internet users in the cross-media panel were classified as heavy users, and accounted for 43 percent of overall page views, while 50

One day the mobile phone could replace other forms of payment, by storing electronic cash and enabling convenient electronic transactions. Yet so far there's been little evidence that the consumer has embraced this new paradigm, despite the availability of mobile payment and banking services in most markets worldwide. However, according to Informa Telecoms and Media this day is getting closer. They forecast that in 2013 almost 300 billion transactions, worth more than $860 billion, will be conducted using a mobile phone -- a twelve-fold increase in gross global transaction values in just five years. "The mobile payments and banking market has evolved considerably over the last two years. Major industry initiatives led by the GSMA and significant commitments to the market from major financial services and telecoms leaders have changed the dynamics of this market," says John Darnbrough, Associate, Informa Telecoms & Media. At last there is real evidence of demand for th

Consumers will buy in excess of 100 million Blu-ray discs (BD) across the USA, Western Europe and Japan this year, with reductions in BD player prices continuing to fuel interest in packaged HD video content, according to the latest study by Futuresource Consulting. "In the USA, BD has moved from early adopter phase through to early majority, with the format gaining real traction in the marketplace," says Mai Hoang, Senior Market Analyst at Futuresource Consulting. Last year in the U.S. alone, BD video retail sales increased by 320 percent to 24 million units -- and momentum will continue in 2009, with over 80 million disc sales forecast. Although the uptake of BD in Western Europe is still at the early adopter stage, it continues to gather momentum. Consumer video retail sales reached nine million units last year, and further healthy growth is expected in 2009. The UK is the largest market for BD in Western Europe. With sales of more than 3.5 million units in 2008, it repres

Infonetics Research has released the fourth quarter (4Q08) edition of its Service Provider Routers and Switches report. A key indicator of recent capital expense investment decisions, and the associated market outlook. At the tail end of a great 2008, we saw the effects of carrier cautiousness in the service provider router and switch market, as IP edge and core routers, carrier Ethernet switches, and multiservice ATM switches were all down sequentially in the fourth quarter, normally a strong quarter for this market. The good news is that IP edge and core routers are up year-over-year and as compared to the fourth quarter of 2007, indicating the general trend is also up. Still, the down fourth quarter is a bellwether, and Infonetics expects a slight dip in the overall market in 2009 before resuming growth in 2010. Other highlights from the Infonetics study include: - The worldwide service provider router and switch market grew 15 percent in 2008 over 2007 to $12.8 billion, but decline

Mobile WiMAX will outpace LTE based wireless broadband networks over the next few years due to its head start on deployments, according to the latest market study by In-Stat. Mobile WiMAX already has commercial deployments, while LTE won't be commercially available until late 2009 -- or even later. However In-Stat believes WiMAX and LTE will take very different paths. "Most of the operators looking to deploy WiMAX come to it from the fixed network space. These operators are looking to use WiMAX as an enhanced DSL service. Enhanced DSL will combine both the fixed broadband service with some form of nomadic coverage," says Daryl Schoolar, In-Stat analyst. Most of the early operators supporting LTE come from the mobile space. These operators want to use LTE to increase capacity and peak rates on their existing mobile networks. In-Stat's market study found the following: - HSPA may turn into 802.16e WiMAX's true competitor, with HSPA Evolved allowing WCDMA operators t