Digital Lifescapes

The smartphone markets around the globe continue to build upon their strong 4Q-2009 performance in the first three months of 2010. According to the latest market study by ABI Research , a little more than 55 million smartphones shipped during the quarter. In fact that represents a drop of about one million compared to 4Q-2009, but seasonal sales cycles always produce lower results in the first quarter of any year compared to the previous quarter. According to ABI senior analyst Michael Morgan, "Normally we would see a much greater decline in shipments in the first quarter; the fact that the drop was so relatively small highlights the continuing dynamic growth of the smartphone market." Much of the fastest growth is being seen in markets that previously had little penetration by expensive, cutting-edge smartphones. With new less expensive models becoming available, the global smartphone market is becoming much more diverse. An example is provided by Nokia. Its shipment

Technologies such as high definition television (HDTV), digital video recorders (DVR) and the Internet are creating higher quality convenient experiences for U.S. consumers. As a result, the amount of video Americans consume continues to rise, according to the latest market study by The Nielsen Company . Over the last two years, ownership of HDTVs, DVRs and smartphones have increased at double- and triple-digit rates. "Consumers are driven by the convenience and quality that today's technology now enables," said Matt O'Grady, Executive Vice President, Audience Measurement at Nielsen. "New mobile devices and enhanced TV quality allow viewers to engage in more content than ever before." More than half of U.S. TV households now have HDTV, up 189 percent from the first quarter of 2008, and more than one-third now have DVRs, up 51 percent. High-speed broadband Internet access, now in 63.5 percent of homes, has created a better user experience for watching

Global demand for digital set-top boxes reached  a record high in 2009, with worldwide set top box (STB) unit shipments increasing 11 percent, according the the latest market study by In-Stat . Increased demand for both satellite and terrestrial pay-TV STBs fueled the market growth, with market share fragmented across many vendors. Even after a record year, the market likely faces numerous challenges. "The set top box market will be solid for the next few years. However, there are some emerging threats that will test the market's long-term viability," says Mike Paxton, an analyst at In-Stat. According to In-Stat's assessment, the foremost threats are: - Over-the-top (OTT) video offerings could permit consumers to downgrade or disconnect their current pay-TV service. - Software platforms that enable consumer electronic (CE) devices to function like, or even replace, a traditional set top box. - Other consumer electronic devices, such as video game consoles a

eMarketer reports that UK advertising spending suffered a double-digit drop in 2009, according to several sources. However, the Internet defied this downward trend. UK advertisers spent £3.54 billion ($5.56 billion) online in 2009 -- 5.7 percent more than in 2008. Online spending growth will speed up in 2010 to 7 percent before moderating in 2011. The London Olympics in 2012 will also provide a boost in spending increases. "On the whole, digital marketers in the UK rose to the challenge of budget restraint with sound strategies and imagination," said Karin von Abrams, eMarketer senior analyst. "Because Internet ad spending continued to grow during the economic downturn, online marketers are also well placed to capitalize on the recovery, whether this is slow and halting, or steady and more rapid." The Web already claimed a larger share of UK ad revenues than TV in 2009 -- according to MAGNA and ZenithOptimedia, and will consolidate this dominance over the n

The digital home Local Area Network (LAN) will increasingly become instrumental in enabling HD video distribution within a residence, and in particular emerging over-the-top (OTT) video entertainment services. Wired Ethernet is still the preferred method to interconnect devices on the network, such as broadband routers and digital media player set-top boxes. However, in larger homes there are times where using Ethernet cables isn't practical. Most consumers attempt to use Wi-Fi routers to provide wireless connectivity. Using a legacy Wi-Fi router to stream HD video can be problematic, because high-definition video requires greater bandwidth. New high-speed gigabit routers are therefore becoming the preferred wireless home networking standard. 2009 was a premier year for the latest Wi-Fi standard, 802.11n. The current 802.11n devices showed significantly stronger growth than 802.11g, according to the latest market study by In-Stat . 802.11n grew 76 percent year-over-year --

Several factors hindered the widespread global deployment and adoption of mobile cellular and broadcast TV services. According to the latest market study by ABI Research , the market inhibitors are finally being addressed. Worldwide mobile TV service adoption will accelerate starting in 2012 through 2015, when total market revenues are forecast to exceed $20 billion. The three most important market barriers have been: - The lack of free and simulcast local and national TV programs as a primer for fee-based premium content in most countries -- outside of Japan and South Korea. - Limited analog-to-digital TV transitions in most regions that would allow broadcasters to simulcast mobile and terrestrial TV services. Most developed countries will complete that transition by 2012. - 3G cellular service throughput and latency performance are inadequate for mobile TV. The deployment of 4G networks over the next few years will enable a significantly improved mobile TV experience. Acc

News and entertainment smartphone applications (apps) are downloaded the most, but productivity apps apparently generate the most revenues, according to the latest market study by In-Stat . Productivity applications -- such as mapping, business and enterprise applications and phone tools or utilities -- generate 59 percent of all smartphone application revenue. According to In-Stat assessment, the competition in the smartphone app market will intensify over the next few years as developer ecosystems become more competitive with the Apple iPhone app store. There are more than eight common smartphone Operating Systems (OS), and the number is likely to grow rather than shrink. Google will exploit its Internet dominance, and Apple will leverage its development community and stable platform. Microsoft is placing its market recovery bet on Windows Mobile 7. In-Stat's market study found the following: - Games and Music & Radio are the top 2 news and entertainment smartphone

A growing set of consumer electronics (CE) devices -- ranging from web-enabled TVs, to Blu-ray players and over-the-top set-top boxes -- now support TV application widgets. Among these TV apps are those that enable users to view YouTube videos, access Netflix subscription services, or obtain weather forecasts directly on the TV using a broadband Internet connection. The rapid growth of web-enabled CE devices -- which In-Stat projects will to 83.4 million by 2014 -- is the foundation for a vibrant TV Widget Market. Most CE device manufacturers are introducing software developer platforms that support application widgets. However, In-Stat research indicates only a modest consumer interest in performing PC-centric applications on the TV. Consumers have higher interest in TV applications that enhance and/or augment the viewing experience, rather than simply provide information that is readily accessible via other screens. "Consumers want more than simply displaying additiona

Both the fixed and mobile broadband service provider markets will continue to grow in revenues -- up to $416 billion in 2020 -- according to the latest market study published by the Telco 2.0 Initiative at STL Partners . Their report finds that broadband service providers will benefit from both new types of broadband wholesale and more sophisticated direct-to-consumer retail propositions and service tariffs. They believe that recent introductions of new tiered and capped wireless Internet data plans are early evidence of this trend. Key findings from the Telco 2.0 report include: - Global broadband access is forecast to increase from $274 billion in 2010, to $416 billion in 2020, an increase of 52 percent in revenue terms. - More than half the revenue growth will come from wholesale and two-sided fees for improved access capacity and quality. - By 2020, mobile broadband will be worth $138 billion, or 32 percent of the total broadband industry revenues. - Three new revenue s

U.S. mobile phone service subscribers are finally becoming more sophisticated, like their counterparts in other more advanced mobile markets, using their smartphone applications (apps) at a higher rate. eMarketer reports that according to the latest comScore study, the total number of mobile app users in the U.S. increased by 28 percent from April 2009 to April 2010. Several app categories saw usage grow much faster. Social networking apps grew their user base by 240 percent during the period, to more than 14.5 million mobile users. Other categories gaining in user adoption include weather apps -- at more than 18 million and maps at about 16.8 million. Social networking is the fastest-growing mobile content category, relative to browser access -- with nearly 30 million mobile users visiting the sites through mobile browsers. "Social networking is by far the fastest-growing mobile activity right now," said Mark Donovan, comScore senior vice president of mobile. The

The potential to eliminate slower interface connections -- to save space and allow smaller consumer electronics device designs -- is driving integration of SuperSpeed USB (3.0) into netbooks and other mobile PCs, according to the latest market study by In-Stat . Today, 97 percent of the mobile PC market uses high-speed USB (2.0), however by 2014 In-Stat expects the market to transition completely to SuperSpeed USB. "In the past, new interface technologies were adopted more quickly in desktops," says Brian O'Rourke, In-Stat analyst. However, the landscape is shifting. Mobile PCs are omitting optical and large hard disk drives, which increases the need for faster interfaces to connect to external storage solutions. This makes SuperSpeed USB a higher priority in mobile PCs. I believe that the accelerated adoption of HD video formats, that produce significantly larger files than SD formats, will create new momentum to quickly utilize faster device connectivity standar

The market for mobile broadband connectivity for portable devices has previously been slow to gain momentum in North America. Only in the past 18 months has the U.S. market participants taken significant steps toward fostering broader adoption -- beyond the early-adopter mobile business user. According to a new International Data Corporation ( IDC ) forecast, the U.S. mobile broadband market will potentially grow from 6.5 million subscribers in 2009 to 30.2 million in 2014 -- which accounts for a compound annual growth rate (CAGR) of 36.1 percent over the forecast period. The introduction of subsidized netbook and tablet PCs, changes to pricing structures, and the early availability of 4G with WiMAX will begin to spur interest among the consumer segment about the power of mobile broadband as a secondary access method beyond wired broadband. IDC believes that although the possibility of mobile broadband becoming a primary access technology remains somewhat a figment of our imagina

Yet another market study has uncovered delays in the planned migration to forth-generation wireless networks. Infonetics Research recently published their 4G Strategies: Global Service Provider Survey. Senior Infonetics analysts asked operators about their 4G network build-out plans, deployment strategies, challenges, technical and commercial drivers -- plus, the 4G services, applications, and devices they plan to offer. "Better spectral efficiency tops the list of technical drivers for service providers upgrading to 4G," notes Richard Webb, directing analyst for WiMAX, microwave, and mobile devices at Infonetics. "We asked service providers around the world when they anticipate their 4G networks will be complete with commercial services running. Two-thirds said 2012 to 2014, which is a realistic timeframe when an equipment and device ecosystem based upon an IMT-Advanced definition of 4G seems likely," adds Stéphane Téral, Infonetics Research's principal

Will the evolution to forth-generation wireless services follow the path of its predecessor, troubled by the lack of a cohesive industry effort to reach mainstream adoption? Apparently, the path to full 4G deployment could be more troublesome than prior 3G technologies. To date, 4G wireless technologies are challenged by a multiple of wireless standards, limited availability of spectrum, constricting business models, as well as a host of other market and industry issues. That said, it could still reach a successful outcome, in spite of all the missteps. According to the latest market study by In-Stat , the new generation of data-centric mobile devices -- such as smartphones, netbooks, and tablets -- are already straining current 3G networks. Regardless, even with these market and technical hurdles, baseband modem integration into mobile devices will reach 2 billion by 2014. In-Stat's assessment includes the following: - The transition to 4G communication standards has begun

During the past thirty years, television channel tuners have moved beyond TV sets, and found their way into Cable TV set-top boxes and Cable Modems, PC-TV tuners, and Digital Terrestrial TV (DTT) set-top boxes. Many satellite and telco pay-TV set-top boxes also include broadcast TV tuners. Although traditional can-type TV tuners are still the mainstream approach being used for high-volume television sets, the next-generation of ultra-slim TVs will need compact Silicon Tuners to enable thinner circuit boards, according to the latest market study by In-Stat . Smaller-screen TVs that need to add digital reception capabilities will also benefit from smaller, less power-hungry Silicon Tuners. "During this decade, the global market for TV Tuners will make an epochal transition from traditional can-type TV Tuners to all solid state Silicon Tuners" says Gerry Kaufhold, In-Stat analyst. The silicon tuner contenders have already displaced the can tuners in most Satellite TV and

U.S. online video viewership has risen steadily and is expected to grow through 2014. eMarketer estimates that growth will slow from between 8 and 9 percent a year from 2010 through 2012 to about 5.2 percent in 2014 -- when 77 percent of all U.S. Internet users will be routinely watching online video content. Growth in online video viewership was increasing more quickly between 2008 and 2009, by 11.3 percent. At the same time, streaming and downloading of full-length movies increased much more dramatically. According to Ipsos OTX, the percentage of Web users who watched long-form online video more than doubled between September 2008 and October 2009. Such rapid increases in downloading and streaming mean full-length movie -- and, by likely extension, TV -- content is on a faster growth track than online video viewing as a whole. One factor behind the turn toward long-form content is the success of Hulu -- which The Nielsen Company ranked second to YouTube in overall video streams

comScore reported key trends within the U.S. mobile phone services market during the three months ending April 2010 -- compared to the preceding three-month period. During that period, 234 million Americans age 13 and older were mobile subscribers, with device manufacturer Samsung ranking as the top OEM at a 22.1 percent share of U.S. mobile subscribers -- up one point from the prior three month period. LG ranked second with 21.8 percent share, followed by Motorola (21.6 percent share, down 1.3 percentage points), RIM (8.4 percent share) and Nokia (8.1 percent share). In a ranking of the top mobile operators in the U.S., Verizon led the market with 31.1 percent of mobile subscribers. AT&T ranked second with 25.2 percent market share -- up 0.2 percentage points from the period ending January 2010. Sprint narrowly grabbed the number three position with 12.0 percent market share, closely trailed by T-Mobile (12.0 percent), while Tracfone gained 0.3 points to capture 5.1 percent o

comScore recently performed a U.S. market study of the fastest-growing mobile application (apps) and browser content categories. Social networking led as the top-gaining category for both application and browser access. The study also found that accessing bank accounts was one of the fastest-gaining categories. "With mobile media consumption on the rise, the discussion of how consumers are accessing content -- whether it is via application, browser or both -- continues to be an important factor for companies looking to invest further in their mobile brands," said Mark Donovan, comScore senior vice president of mobile. Regarding market penetration, 78 percent of smartphone users accessed their browser in April 2010, while 80 percent accessed applications. In comparison, just 19 percent of feature phone users accessed their browser, with 17 percent accessing applications. Although smartphone users are driving growth in browser (up 111 percent in the past year) and applic

Infonetics Research released the first edition of its 2010 biannual Pay-TV Video Services and Subscribers report -- which tracks telco IPTV, cable video, and satellite video services and subscribers. "Increased competition among video service operators will help keep monthly subscription fees in check, which will offset some of the growth expected from incremental revenue via video on demand (VoD), digital video recording (DVR), and start-over services," notes Jeff Heynen, directing analyst for broadband and IPTV at Infonetics Research. According to Infonetics, the biggest single threat to traditional pay-TV revenue growth is the continued rise of online Over-the-Top (OTT) video viewing, where consumers can downgrade or eliminate their monthly TV subscription in favor of streamed content delivered over the Internet via ad-supported sites like Hulu and YouTube -- and by online-only pay-TV service platforms, such as Netflix and Amazon. Infonetics Video Services Market St

comScore released April 2010 data showing that 178 million U.S. Internet users watched online video during the month. Recently launched in December 2009, Vevo (which includes viewing from the Vevo channel on YouTube) attracted 43.6 million viewers in April, representing a quarter of the U.S. online video audience. U.S. Internet users watched 30.3 billion videos in April, with Google Sites ranking as the top video property with 13.1 billion videos, representing 43.2 percent of all videos viewed online. YouTube accounted for the vast majority of videos viewed at the property. Hulu ranked second with 958 million videos, or 3.2 percent of all online videos viewed. Microsoft Sites ranked third with 644 million (2.1 percent), followed by Viacom Digital with 384 million (1.3 percent) and Yahoo! Sites with 371 million (1.2 percent). Nearly 178 million viewers watched an average of 171 videos per viewer during the month of April. Google Sites attracted 136.3 million unique viewers during

More service providers are evolving their business model to include "Smart Pipe" offerings. The market for consumer Broadband Value-Added Services (BVAS) grew by 30 percent during 2009 based on revenue gains and by 13 percent in subscribers, according to the latest market study by Point Topic . The run rate for consumer BVAS revenues went from $39.6 billion to $48.9 billion during 2009. This was a greater rate of increase than that for consumer broadband lines which grew 14 percent -- from 366 million to 417 million from Q408 to Q409. For comparison plain broadband access subscription revenues increased from a run rate of $113 billion at the end of 2008 to $129 billion at the end of 2009. In that context, BVAS revenues contributed an extra 37.9 percent to standard access revenues by the end of 2009. "Value added services, like VOIP, security and IPTV grew more quickly than the number of broadband lines in 2009. The operators and ISPs are starting to increase the pr

Technology, media and telecommunications marketing practitioners are ready to let go of legacy practices and try something that's potentially more effective. eMarketer reports that social media is now developing a reputation for being valuable -- for customer interaction, brand awareness and lead generation. In February 2010, for example, inbound online marketing platform HubSpot found Twitter usage could double monthly leads, and Onesource reported in January that business-to-business salespeople were looking to LinkedIn for prospecting. Moreover, according to virtual events provider Unisfair, social media is now the top emerging channel for sales lead generation among technology marketers that they surveyed in May 2010. Lead generation was marketer's first priority, with 66 percent saying it was their greatest concern for 2010, compared with just 17 percent who chose brand awareness. When online marketing firm R2integrated surveyed U.S. marketing professionals in A

The 3GPP mobile broadband technology (UMTS-HSPA) realized growth of 81 percent throughout the Americas in the year ending March 2010, according to the latest market study by 3G Americas . Propelled by an increase in 3G wireless network deployments, upgrades to HSPA networks, mobile broadband subscriptions, netbooks and smartphones, mobile phone service providers are reporting significant growth in revenue from data related services. "Mobile broadband is growing at an explosive rate throughout the Western Hemisphere as the investment by operators in networks and devices is delivering advanced services to customers," said Chris Pearson, President of 3G Americas. "This is evidenced by the strong growth of mobile broadband subscriptions in North, Central and South America." Total 3GPP subscriptions (GSM-HSPA) in the Western Hemisphere reached 621.7 million as of March 2010 -- and captured 74 percent share of market. In the first quarter alone, there were 22.1 mill

Will consumer advertising on mobile handsets, such as smartphones, finally gain momentum in the U.S. market as it has in others around the world? At this point in time, it's apparently a definite maybe. According to the latest market study by ABI Research , 27 percent of U.S. mobile phone users accessing the mobile Internet have clicked on a mobile banner advert or text link. That compares to 21 percent in their previous survey. Neil Strother, ABI Research's practice director for mobile marketing strategies, said "More people are accessing websites through their mobile phones today than 14 months ago, and clicking on ads is becoming more commonplace." This trend is a positive one for marketers and advertisers, and should give them greater confidence in their mobile efforts, knowing that well-targeted offerings can find traction among consumers. The key to success, Strother says, is to purchase inventory on mobile websites that have the desired audience profile

According to the latest market study by Informa Telecoms & Media, e-reader sales are expected to peak at 14 million units in 2013, before falling by 7 percent in 2014 as the device category faces increased competition from other consumer electronics (CE) devices. This decline will be driven by a shift away from dedicated e-readers, such as the Amazon Kindle , towards other multifunction device types -- notably mobile smartphones and tablet form-factor computing devices. Informa believes that this transition may lead to a segmentation of the e-reader market into two distinct groups -- low price, low feature models and higher price devices with more advanced features. The current e-reader offers a good reading experience, high levels of portability and extended battery life. However, it is under threat from the availability of electronic book (e-book) content on multifunctional devices such as mobile phones, tablet computers, netbooks and other portable CE devices. "Mobi

The nascent market for media tablets, fostered by Apple's iPad, will be driven by the device attributes as a content presentation and consumption tool. Moreover, the market momentum will be continued by compelling new applications and services that will be created to take advantage of these platforms. According to a new market study by IDC , worldwide media tablet shipments will grow from 7.6 million units in 2010 to more than 46 million units in 2014 -- representing a compound annual growth rate (CAGR) of 57.4 percent. In comparison, IDC expects 398 million portable PCs (notebooks and netbooks) will be shipped in 2014. "These are early days for media tablets, an altogether new device category that takes its place between smartphones and portable PCs. IDC expects consumer demand for media tablets to be strongly driven by the number and variety of compatible third-party apps for content and services," said Susan Kevorkian, program director at IDC. The availability