Skip to main content

All Eyes are Focused on the Digital Ecosystem Conflict

Incumbent broadband service providers everywhere don't fear each other as competitors -- but there's two industry outsiders that they observe very closely. Google and Apple have a significant competitive advantage in the battle to engage the connected consumer.

Why? They've already attracted an army of independent collaborators.

Having moved beyond a single product category focus, these new media app competitors operate digital ecosystems where devices, software, services, and creative content -- from hundreds of third-party companies -- combine to create consumer value far greater than is possible from any single product, or company.

Currently, over 40 million U.S. broadband households own and operate an Apple device. Google's fast growing ecosystem, based on the Android OS, is expected to double in size over the next five years.

"Not long ago devices were independent of services and video content; however, those days are long gone," says Keith Nissen, Research Director at In-Stat.

Today, nearly all consumer electronics (CE) devices are becoming web-enabled, linking them to online applications, services, and vast libraries of digital content.

The success of Apple has highlighted the inherent advantages of a comprehensive digital ecosystem. Today, the largest digital media giants such as Microsoft, Disney, and Sony, have to craft their own digital ecosystem strategy to selectively compete and sometimes complement those of competitors.

At the same time, more narrowly focused device manufacturers, service operators, and online portals need to navigate and position their products in the competitive landscape among the dominant digital ecosystems.

In-Stat's latest market study findings include:

- The Apple ecosystem in the U.S. totaled 137 million installed devices in 2010.

- The Netflix online video service is currently supported on over 250 CE devices.

- In 2010, Facebook had nearly 69 million frequent (at least once/week) users in the U.S. market.

- Amazon controls approximately 60 percent of the U.S. e-reader market.

Popular posts from this blog

How a Digital-First CEO Leads Transformation

Some leaders reject the notion that "wait and see" is the best response to disruptive change. Savvy senior executives are already driving digital business transformation throughout their organization in an effort to gain a bold strategic advantage. According to the latest market study by International Data Corp (IDC), Digital-First CEOs plan to drive at least half of their income from digital business products, services, and experiences by 2027 -- that's ahead of the market average of 39 percent. Driven by their response to the COVID-19 pandemic, these business leaders have changed how they think about the relationship between business and technology, and how they approach the next digital transformation era -- from scaling digital technology to guiding a viable digital business. Digital Business Market Development IDC defines digital business as value creation based on technology, which entails: 1) Automated customer-facing processes and internal operations; 2) Provision

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th

5G Fixed Wireless Access Revenue to Reach $24B

Available Internet access at an affordable cost is essential for everyone to participate in the Global Networked Economy. The deployment of fifth-generation (5G) wireless communications infrastructure is enabling the introduction of lower-cost broadband services in some markets. Fixed Wireless Access (FWA) allows mobile network operators (MNO) to deliver high-speed Internet connections in areas that have either insufficient or no prior wireline broadband access services. It's also used in urban, suburban, and rural areas where fiber optic communication is considered too expensive to install and maintain. With this new technology, MNOs have the potential to provide broadband capability at similar levels to fiber optic networks. Fixed Wireless Access Market Development Therefore, FWA can be used to supplement existing wired broadband Internet service offerings, provide additional broadband capacity, or act as a backup service for home or business applications. Although FWA is well es