Digital Lifescapes

Americans like football, MySpace, and text messaging. Canadians like hockey, Facebook, and playing the lottery. What do they have in common? Both can't get enough of the Internet. These are some of the key findings from an Ipsos study that investigated the behaviors, lifestyles and habits of American and Canadian young adults ages 18-34, the emerging market of young consumers. "Bombarded by changing technology and a barrage of marketing messages, North American young adults are living in a culture unlike anything we've seen before," says Paul Lauzon, Senior Vice President with Ipsos Reid. But when it comes to the way Americans and Canadians in the 18-34 year-old age group play, communicate, and use media, it is a sure bet there are cultural differences and nuances marketers need to understand to better reach this audience. When asked about their leisure activity time, Americans and Canadians have a clear affinity for the Internet and television. Young adults in both

Consumer social networks are mainstream applications, so people are now demanding similar applications in the workplace that provide personalized online experiences for creating, publishing, locating, and sharing content internally and externally with colleagues, customers, and partners. If these applications are not provided by an IT organization, IDC observes that employees are bringing them in through their own initiatives. This emerging business need has created a suddenly crowded market of online community software providers aiming to make the business world a more social place. IDC forecasts that the U.S. online community software market will grow from $278.4 million in 2008 to $1.6 billion in 2013 at a CAGR of 41.8 percent. While the U.S. online community software market was not immune to the recession, dominant vendors in this space reported double-digit growth rates in 2008 and higher-than-expected growth in the first half of 2009. Overall, the U.S. online community software

The typical user experience for pay-TV services hasn't changed much over the years. That's all about to change, thanks to much needed innovation from OTT providers. Next-generation Interactive Program Guides (IPG) are finally emerging that help all consumers navigate through a proliferation of video content. As Internet Content and User Generated Content (UGC) migrate onto TVs and other video-capable devices, IPGs are transforming into Content and Service Discovery Guides (CSDGs), according to the latest market study by In-Stat . Consumers are embracing a growing array of video options. Consumers demand their choice of display device, content, timing and location. Visionary companies are offering content discovery tools to meet these needs and enable service providers and device manufacturers to offer the best end-user experience. Two years ago I described my own interpretation of a TV 2.0 user experience . But, the progress has been painfully slow because the incumbents previo

Are U.S. consumers really interested in watching television on a mobile device? eMarketer reports that according to data from Mediamark Research & Intelligence (MRI), more than one-fifth of U.S. mobile phone or PDA users are interested in watching live TV on their mobile device. However, the overall market study results are very mixed and inconclusive. Respondents to the research firm's latest market study were even more likely to be interested in watching mobile TV if they indicated that they viewed their mobile device as a source of entertainment -- 46.9 percent of such consumers said so. When it came to paying for mobile TV services, however, consumers were markedly less enthusiastic. Only 13.5 percent of all respondents said they would pay a subscription fee for mobile TV, and even among respondents who said mobile was a source of entertainment, the figure was just 34.5 percent. In addition, more than 70 percent of respondents found ads on mobile phones and PDAs annoying,

Netbook PCs, pocket video camcorders, digital SLR cameras, smartphones, mobile Internet devices and handheld games consoles are fueling growth in the European portable electronics market, according to the latest study by Futuresource Consulting . The market grew 18 percent in 2008 to reach 155 million units and is forecast to grow a further 7 percent in 2009 to reach close to 170 million units. The market is growing by an expanding number of users, including younger and older consumers, more females, and less affluent households. Meanwhile, consumers are also replacing their devices more quickly. As an example, average camera replacement has reduced from 6-8 years to 3-5 years, while personal AV replacement has fallen from 5-7 years to 2-4years. Another important driver of portable electronics is gifting -- albeit in some European markets more than others -- where it can represent up to 60 percent or 70 percent of annual sales in product categories in certain countries. Personal electr

Infonetics Research released its latest market share study and forecast report, Residential Voice, Data, and Video Services in North America: a Market Outlook. Hundreds of service providers market their residential voice, data, and video offerings to consumers. However, the market is dominated by AT&T, Verizon, and Comcast in the U.S., and Bell Canada and Rogers in Canada. AT&T is the overall market leader with 17 percent of total services revenue. "With the residential services market forecast to reach $300 billion by 2013, fueled by broadband and video services, we are expecting a hard-fought battle between the telcos and the cable operators," observes Diane Myers, Infonetics Research directing analyst. Their report includes the top 20 North American residential service providers by revenue and market share, customizable pivot tables, and analysis of overall market conditions for service providers, enterprises, subscribers, and the global economy. Infonetics market

Pay-television revenue in the U.K. will climb from $6.2 billion in 2009 to $8.2 billion by 2014 as IPTV grows at a CAGR of 26 percent within the forecast period, according to the latest market study by Pyramid Research . The U.K. communications market is one of Europe's largest and most dynamic markets, expected to generate $47.1 million in revenue for 2009. Like most mature European markets, the major sources of growth, in absolute revenue terms, are mobile data and fixed broadband, notes Andrei Tchadliev, analyst at Pyramid Research and author of the report. However, it is expected that IPTV revenue will grow at a CAGR of 26 percent from $75 million in 2009 to $237 million in 2014, while triple-play packages surpass double play, both contributing to the overall growth in the pay-TV market. The pay-TV market remains dominated by satellite provider Sky with close to 9.9 million subscriptions estimated for 2009, while IPTV remains concentrated to a small share of the market with onl

According to a market study by The Diffusion Group (TDG), revenue from the delivery of Internet video to a TV set will grow nearly six-fold in the next five years, from approximately $1 billion in 2009 to $5.7 billion in 2014. Colin Dixon, TDG senior partner, says that in 2009, pay-per-view services will account for 96 percent of global Over-the-Top (OTT) revenue, leaving subscription revenue with only 4 percent of the revenue mix. By 2014, however, annual OTT subscription revenue will have grown 50-fold and account for 31 percent of global revenue. Dixon points to current hardware trends as fueling this growth, specifically the ongoing shift to broadband-enabled TVs and the rapid diffusion of ancillary web-enabled platforms such as game consoles, Blu-ray players, and hybrid set-top boxes. Widespread penetration of such platforms will set the stage for a rapid uptake of Internet-to-TV video services, both pay-per-view and subscription-based. As these platforms more widely diffuse and

Infonetics Research released a new market size and forecast report, Mobile Services and Subscribers Market Outlook: Voice, SMS/MMS, and Broadband. "There is no question that mobile broadband services represent the next big wave of revenue for mobile operators. But make no mistake: voice service is not going away and will keep its lion's share of operator revenue for the foreseeable future, even as mobile operators diversify revenue streams," said Stéphane Téral, principal analyst for mobile and FMC infrastructure at Infonetics Research. Meanwhile, here in the U.S., the FCC chairman will propose new rules and has called for a review of network management practices across all communications platforms -- including wireless networks -- which have come under fire for allegedly blocking voice services that compete with mobile service provider offerings. The Infonetics market study highlights include: - Revenue service providers collect from cellular services reached $624 billi

According to eMarketer , the U.S. terrestrial radio industry is in deep financially trouble. Many of the country's largest national broadcasters are on the verge of bankruptcy, and the Radio Advertising Bureau (RAB) announced that Q1 2009 was the worst quarter in its history. eMarketer predicts the radio industry will see double-digit losses in advertising spending this year alone, with terrestrial radio bringing in $14.5 billion in ad revenues in 2009, a drop of 18 percent from 2008 levels. No surprise, when you consider that car dealers have been the primary commercial radio advertiser. In contrast, the Internet radio (audio streaming) industry are positioning themselves to take advantage of the shift in advertising spend. Even in this tough economy, Internet radio is growing ad revenues year over year and is one of the fastest-growing online media categories. Attractive demographics (affluent listeners) and a connected audience will prove increasingly appealing to advertisers a

Mobile Voice over IP (VoIP) is moving beyond its initial benefit, as a preferred approach to make inexpensive international calls from a mobile device, according to the latest In-Stat market study. While Mobile VoIP still poses a potential threat to mobile operator voice revenue, it also represents a dynamic new capability that promises numerous applications. In-Stat projects that by 2013 Mobile VoIP applications will generate annual revenues of $32.2 billion, driven by over 278 million registered users worldwide. One new application integrates Mobile VoIP into a unified mobile interface to social networking sites. In another new development, MVNOs and 3G operators without legacy networks are using Mobile VoIP to more cost effectively add voice to data offerings. In yet another scenario, a few carriers are using a form of Mobile VoIP, UMA, to support better indoor coverage and off-load macro networks. "Applications such as Skype and Vonage have influenced users to think of voice

WiMAX operators are departing from the current cellular phone device model, according to Senza Fili Consulting . Operators are pushing vendors to provide powerful, interoperable, and affordable devices that give subscribers the freedom to choose, plus the ability to effortlessly register them to any network. "WiMAX operators are exerting substantial pressure on vendors to ensure that they have the devices they need, at the right price, supporting the applications and features that subscribers demand," said Monica Paolini, Senza Fili Consulting. At the same time, operators are preparing their networks to host a wide range of mobile devices that support multiple wireless interfaces, frequencies and form factors. Based on data from a recent WiMAX Forum survey, the report shows that operators are piecing together a wise, carefully planned device strategy that will enable them to offer core services at launch and expand the subscriber choice to a wide range of innovative services.

Futuresource Consulting provided insight into where the UK Consumer Electronics market is going, and what movements we should expect to see by the upcoming winter holiday season. Consumer appetite for High Definition TV (HDTV) shows no signs of slowing, with the 2010 football World Cup and 2012 London Olympics expected to help drive interest across Europe. Flat panel sales are currently driven by people replacing their CRT TV sets, and also by demand for smaller screen sizes as second and third displays are purchased for use in the kitchen or bedroom. The UK remains the lead market in Europe, with shipments last year reaching 8.8 million units, and Futuresource forecasts show the UK market will grow to 9.6 million units in 2009. However, price drops during the latter half of 2008 and into 2009 have had a negative impact on TV vendors, with overall TV revenues expected to fall this year. LCD has captured more than 90 percent of flat panel sales, and future growth will be driven by valu

SuperSpeed USB technology will experience broad adoption across a range of PC and related peripherals over the next several years, according to the latest market study by In-Stat. Among peripherals, SuperSpeed USB will be targeted initially at devices requiring high data transfer rates and large data stores -- such as external hard-disk drives and Flash Drives. Other likely target devices include Portable Media Players (PMPs), LCD PC monitors, and digital still cameras. In-Stat projects that attach rates for SuperSpeed USB will grow to over 70 percent in external hard-drives by 2012, with similar attach rates in notebook and desktop PCs. Initial adoption will emerge in 2010. By 2013, shipments of USB 3.0 flash drives will approach 200 million units worldwide. Eventually, mobile phones will be the highest volume segment, simply due to the overwhelming volume phones shipped. Overall, SuperSpeed USB will represent over 25 percent of the USB market by 2013. "SuperSpeed may eventually

Mobile cloud computing subscribers worldwide will grow rapidly over the next five years, rising from 42.8 million subscribers in 2008 to just over 998 million in 2014, according to the latest market study by ABI Research. Mobile cloud applications move the computing power and data storage away from mobile devices and into the cloud (managed cloud services), bringing apps and mobile computing to not just smartphone users but a much broader range of mobile subscribers. According to ABI senior analyst Mark Beccue, "From 2008 through 2010, subscriber numbers will be driven by location-enabled services, particularly navigation and map applications. A total of 60 percent of the mobile Cloud application subscribers worldwide will use an application enabled by location during these years." Some innovative applications are already commercially available. Lock manufacturer Schlage, or example, has launched LiNK -- a keyless lock system for the home that enables subscribers to remotely

eMarketer reports that while social network advertising gets the attention, it's only one of many ways marketers can reach customers. Social networks can be used for branding, improving customer loyalty, lead generation, direct marketing and e-commerce. "The beauty of social networks is that they are a place where nearly any marketing goal can be achieved, with nearly any marketing tactic," said Debra Aho Williamson, eMarketer senior analyst. Common wisdom over the past few years has been that people are interested in interacting with social network friends, not marketers. Not so, according to Anderson Analytics May 2009 survey -- 52 percent of social network users had become a fan or follower of a company or brand, while 46 percent had said something good about a brand or company, that's double the percentage who had said something negative (23 percent). In a December 2008 MarketingSherpa survey, 92 percent of respondents said social media marketing was effective at

The main engines of growth in South Korea's telecom market from 2010 to 2014 will be services built around broadband technologies -- such as VoIP, IPTV, and mobile data, according to the latest market study by Pyramid Research. South Korea is arguably the most advanced communications market in the world -- with its 75 percent household fixed broadband penetration rate and 86 percent mobile user penetration rate at year-end 2008. "Despite the expected decline in service revenue in 2009, Pyramid Research expects the market to rebound and to grow at a CAGR of 4.9 percent during the next five years, generating $29.5 billion by 2014," notes Tae Hyung Kim, analyst at Pyramid Research. VoIP subscribers increased eight-fold from just 0.3 million subscribers in 2006 to 2.5 million in 2008 due to the enactment of VoIP number portability and Pyramid expects the trend to continue throughout the forecast period. "With 18.8 million pay-TV subscriptions in a country of 17.6 million

Online digital video consumption is a mainstream activity in the U.S. -- 67 percent of online Americans have now streamed or downloaded digital video content, according to the latest market study by Ipsos. While YouTube continues to dominate the short video clip market and iTunes continues to do brisk business via downloads, the streaming of longer running content -- such as TV shows and movies -- has become more popular due to sites such as Hulu and Netflix. The growth of Hulu in particular has been rapid -- only 9 percent of digital video users were aware of Hulu in September 2008; today, its awareness is 41 percent. iTunes also posted growth for digital video during this time frame, and YouTube keeps extending its reach. At the same time, the visibility of MySpace as a digital video source has dimmed somewhat recently. "The increase in usage across multiple sites confirms that Americans are watching a greater breadth of digital video than ever before," explains Brian Picke

Worldwide revenue from Linux operating system software grew by 23.4 percent from 2007 to 2008, and that growth will be followed by a 2008-2013 compound annual growth rate (CAGR) of 16.9 percent, according to the latest study by IDC. With this growth, worldwide Linux operating systems revenue will cross $1 billion for the first time in 2012, growing to $1.2 billion by 2013. By comparison, Linux server operating system subscriptions will exhibit a different profile, with a contraction of net new subscriptions expected in 2009, followed by a steady recovery through 2013. Meanwhile, non-paid Linux server operating system deployments are predicted to grow more quickly than new subscriptions through 2013, leading to a net increase of non-paid Linux server operating systems deployed compared to total worldwide Linux server operating systems being placed into service. The combined total of Linux server operating system subscriptions and non-paid deployments is expected to show a 2008-2013 CAGR

Home network users are continuing to migrate to newer and faster home networking connectivity technologies, including Gigabit Ethernet, 802.11n Wi-Fi and alternative wire technologies -- such as coax, powerline and phone wiring. In 2008, 10/100 Ethernet was still the leading technology in use with home networks worldwide. However, 802.11x networks will outnumber 10/100 Ethernet by the end of 2009, according to the latest market study by In-Stat. In addition, many Wi-Fi users have transitioned (or are transitioning) from 802.11b to the more robust 802.11g, and some have begun to upgrade from 802.11g to draft 802.11n-compatible wireless network products. "Another notable trend is that the use of home networks for more than just Internet sharing among North American users increased from 41.8 percent in 2008 to 49.7 percent in 2009," says Joyce Putscher, In-Stat analyst. But most consumers have not yet bridged the chasm between the PC and consumer electronics (CE) worlds by addin

In February 2009, ABI Research found that dual-mode cellular/Wi-Fi mobile handset shipments were set to double between 2008 and 2010. ABI analysts have now confirmed that a similar pattern will hold true for the period 2009-2011. This year is on track to see 144 million handsets shipped, with forecasts for 2011 at just over 300 million. "Wi-Fi's penetration into handsets has more momentum than the bad economy," says industry analyst Michael Morgan. "It has become a must-have item much as Bluetooth did earlier. But just having Wi-Fi in the handset isn't enough. You have to have a reason for customers to use it. Until now it has been predominantly for data use, with voice struggling to find its niche." However mobile operator attitudes to Wi-Fi have been changing. At first many feared that Wi-Fi would take (voice/data) traffic off their networks, resulting in lost revenue. Now they're starting to realize that it may instead mean an increase in available ne

eMarketer reports that the Social Media Marketing bandwagon is in motion, according to the latest market study from Equation Research. Their survey of U.S. brand marketers found the majority already using social media. Some marketers were planning on adding social media activities over the next year, including 15 percent of respondents in businesses with fewer than 50 employees and 24 percent of those whose companies had at least 500 employees. The most popular social media channels for brand and agency marketers were Facebook, Twitter, online videos and blogs -- each used by more than one-half of survey respondents. Respondents reported common barriers to social media adoption. Among brand marketers, 37 percent did not know enough about social media to begin, and another 37 percent said there was no good way to measure its effectiveness (seriously, compared to traditional "leap-of-faith" mass media marketing?). Agency marketers reiterated those concerns, and were also likely

Americans are increasing their overall media consumption, and media multi-tasking is a key part of the equation, according to the latest market study by The Nielsen Company. During 2nd Quarter 2009, the number of people watching mobile video increased 70 percent from last year and people who watch video online increased their viewing by 46 percent compared to a year ago. In addition, the average American TV consumption remains at an amazing all-time high (141 hours per month) -- compared to the same time frame last year. But, are people really paying attention to the television during all those hours? Maybe, or then again, maybe not. "Although we have seen the computer and mobile phone screens taking on a significant role, their emergence has not been at the cost of TV viewership," said Jim O’Hara, President, Media Product Leadership, The Nielsen Company. "The entire media universe is expanding so consumers are choosing to add elements to their media experience, rather t

To date, the slowest total global broadband service provider Customer Premises Equipment (CPE) market growth this decade had been 2.4 percent (154M units) in 2008, according to the latest market study by In-Stat. 2009 will be even slower. However, cable gateways, Wi-Fi and VoIP routers, and wireless and VoIP DSL CPE units continue to grow in at least double digits. In addition, several segments of the broadband CPE market, including cable gateways, Fiber-to-the-Home (FTTH) gateways, and Fixed Wireless Broadband (FWB) CPE are expected to grow considerably faster than the overall market over five years. "Gigabit Ethernet, VoIP, the DSL Forum's TR-69, and 802.11n are all drivers for CPE upgrades and replacements," says Joyce Putscher, In-Stat analyst. "We're also seeing accelerated growth in FTTH CPE unit shipments in 2009." In-Stat's market study found the following: - The overall broadband CPE market includes broadband modems, routers, and residential gat

The U.S. communications market will reach $406 billion in 2014 as mobile data revenue climbs to $94 billion, surpassing fixed voice (PSTN + VoIP) during the forecast period, according to the latest market study by Pyramid Research. The executive study provides a comprehensive view of the U.S. communications market by analyzing key trends, evaluating near-term opportunities and assessing upcoming risk factors. The U.S. communications market, including traditional pay-TV, generated $359 billion in service revenue in 2008 and is expected to grow at a CAGR of 2.5 percent from year-end 2009 to year-end 2014, reaching $406 billion, notes Dan Locke, Senior Analyst at Pyramid Research. Most of the growth will be attributed to mobile data and IP networks. Mobile data is already larger than fixed broadband and it will surpass fixed voice (PSTN + VoIP) in 2011, climbing from $36 billion in 2008 to $94 billion in 2014. The study found additional growth will be driven mostly by IP networks because

With the global switch over from analog to digital TV broadcasts, hybrid set-top boxes potentially have a more significant role in the access to entertainment and information services. This is especially apparent in mature high-speed Internet economies where broadband service providers strive towards providing interactive bi-directional television, thereby leading to the growth of IP set-top boxes. According to the latest set-top box (STB) market study by ABI Research, IP STBs will generate a market value above $3 billion by 2014. This analog-digital switchover has also brought about a progressive momentum towards sophisticated box types as well as advanced compression technologies. As ABI Research industry analyst Serene Fong notes, "Shipments of basic boxes across all television platforms have declined and will continue to fall throughout the six-year forecast period. In contrast, shipments of boxes with HD capabilities and MPEG-4 compression technologies -- including HD hybrids