Digital Lifescapes

Here in the U.S. market, 2011 was a year that many in the traditional pay-TV service provider industry would rather forget. That being said, this year will include more of the same challenges, where the fundamental value proposition is being questioned by subscribers. There are some bright spots, however, where pay-TV providers can use new technology and additional capabilities to add value to their legacy offerings. Some may also create new lower-cost offerings. Hybrid set top boxes are a fast-growing segment of the worldwide set top box market. These boxes include a TV tuner and an Internet connection -- with the latter used to access a multitude of on-demand video content. Hybrid STBs are appearing in all pay-TV service categories with new usage scenarios and creative apps helping to provide some new service development momentum. As consumer connected TVs begin employing applications that deliver low-cost video content via the Internet, hybrid set top boxes will emerge as an...

Soon, just about every type of video-capable consumer electronics device (CE) will have the option to connect to a large screen video monitor or HDTV display. This list of devices will include most portable PCs -- with media tablets being one of the commonly used streaming video players. Digital visual interface (DVI) and high-definition multimedia interface (HDMI) are related high-bandwidth, unidirectional, uncompressed interface standards, while DisplayPort is a fully digital, packet-based technology. HDMI and DisplayPort have recently gained in popularity within the computer industry. A number of computer vendors and display makers have said that they will stop using legacy DVI and VGA connectors within the next few years. Nevertheless, many devices are still shipping with DVI connectors. According to the latest market study by NPD In-Stat, they forecast that the combined total number of devices shipped with DVI, HDMI, or DisplayPort will surpass 2 billion in 2015. "DVI...

According to the latest market assessment by eMarketer, growing online privacy concerns involve three primary stakeholder groups -- consumers, government and the collective advertising industry. Those concerns have been heightened by recent examples of disclosure failures and the apparent lack of consumer trust in many of the recognized industry players. People are becoming increasingly concerned about their online privacy. Government entities in the U.S. market and elsewhere are looking to address that anxiety through laws, regulations and new policy pressure on the digital advertising ecosystem. That last category -- which includes advertisers, ad agencies, media companies, websites, retailers, search engines and related vendors -- is looking to satisfy both government and consumer demands through self-regulation, and tools like Do Not Track (DNT) headers. "There are many key factors in the privacy debate, including control, transparency and value, along with the concept ...

The adoption of over-the-top video services, such as Netflix and Hulu, has created a increasing demand for wireless connectivity that's built-in to the numerous related consumer electronics (CE) devices that are used within the home. Increasingly, home video entertainment devices such as digital HDTVs, Blu-ray players, game consoles, and all versions of pay-TV set-top boxes (STBs) are coming to the market Wi-Fi-enabled -- so that devices can connect to the web and to each other. According to the latest market study by NPD In-Stat, their research shows that the evolution of the home network will drive the number of in-home video WLAN-enabled video devices to approach 600 million in 2015. "Wi-Fi has moved from a nice-to-have feature to a must-have feature as it provides the connectivity necessary to support IP-based video content." says Frank Dickson, Vice President of Research at NPD In-Stat . It's important to note though that Wi-Fi is growing from being simp...

Online video consumption reached record highs during 2011. The last month of the year also ended on a high note. comScore released data showing that 182 million U.S. Internet users watched online video content in December of 2011 for an average of 23.2 hours per viewer. That same U.S. Internet audience viewed a combined total of 43.5 billion videos. Google Sites, driven primarily by video viewing at YouTube.com, ranked as the top online video content property in December with 157.2 million unique viewers, while VEVO ranked second with 53.7 million. Yahoo! Sites ranked third with 53.3 million viewers, followed by Viacom Digital with 45.8 million and Facebook.com with 42 million. More than 43 billion videos views occurred during the month, with Google Sites generating the highest number at 21.9 billion. The average viewer watched 23.2 hours of online video content, with Google Sites (7.9 hours) and Hulu (3 hours) demonstrating the highest average engagement among the top ten propert...

The M2M market has become a fully mainstream segment of the mobile network service provider industry. By the end of 2011, most major mobile operators in North America, Europe, and the Asia-Pacific region had established M2M business units to focus their efforts in this fast growing market. According to the latest market study by ABI Research, the market for cumulative cellular M2M connections will rise from about 110 million connections in 2011 to approximately 365 million connections by 2016. This increase represents a compounded annual growth rate of about 27 percent by 2016 -- and translates to about $35 billion in connectivity services revenue. The two largest cellular M2M market segments over the forecast period, by revenue, will be automotive telematics and smart energy. Automotive telematics, including factory-installed systems such as GM’s OnStar service, aftermarket services such as usage-based insurance, and fleet management systems, will together represent more than ...

Flash memory technology advancements, changes in the expectations for new mobile PC capabilities, enterprise server and storage architectures, and hard disk drive (HDD) shortages are all impacting the worldwide solid state storage (SSD) market. Chromebooks and media tablets are just one example of where the requirement for fast start-up and instant-resume access to the client device has raised the bar on design considerations. Informed people simply won't accept the legacy mobile PC constraints. The demand for superior SSD technology has risen as a result. According to the latest market study by International Data Corporation ( IDC ), the worldwide solid state storage industry revenue reached $5 billion in 2011 -- that's a 105 percent increase from the $2.4 billion in 2010. IDC expects the SSD market will expand further in 2012 and beyond. "2011 was a record year for the worldwide SSD market, with revenue more than doubling year over year due to strong SSD shipment...

Personal Computer (PC) shipments totaled 92.7 million in the fourth quarter of 2011 (4Q11), down 0.2 percent compared to the same quarter in 2010, according to the International Data Corporation ( IDC ). Shortages of hard disk drives (HDDs) added to challenges from slow economic conditions and competition from other consumer electronics -- including media tablets, eReaders and smartphones. The 4Q11 results reflected a year-on-year decline of 0.2 percent for the quarter and growth of 1.6 percent for the full year. This was in-line with IDC projections of a 0.6 percent decline for the fourth quarter and 1.5 percent growth for all of 2011. Despite the overall market volatility, most regions slightly exceeded forecast. Most Tier 1 PC vendors had access to sufficient HDD supply, though smaller PC vendors and retail channels experienced drive shortages. "Europe and Asia-Pacfic came in a little stronger than expected, reflecting improvement in key markets and the strength of unde...

2011 will be remembered as yet another dismal year for most of the technology trade publishing sector. Connected Planet, a U.S.-based telecom industry magazine with an accomplished track-record which spanned across a century, ceased operations. It was one more example of where advertising revenue could no longer sustain a legacy print publishing business -- even after it's been rebooted as a lower-cost online-only publication. This phenomenon, the prospect of prolonged low profitability, will surely claim more publication closures and traditional media company victims in 2012, but the broader market outlook is apparently not as bleak -- from a top-line advertising revenue perspective. Overall U.S. online advertising spending will growth above 20 percent again this year -- to reach nearly $40 billion, according to the latest market study by eMarketer . Double-digit growth is forecast through 2014, when U.S. online ad spending will reach $52.8 billion. In 2016, eMarketer opt...

Multifaceted mobile devices, such as smartphones, are now pervasive in many markets. Moreover, these coexist with various other types of mobile computing or communication devices. The trend in developed markets is clear -- consumers are likely purchasing these devices with specific primary use-case scenarios in mind. Whether that preferred device is a laptop PC, smartphone, portable media player (PMPs), or media tablet depends on many factors. According to the findings from the latest market study by NPD In-Stat, they have been able to identify survey respondent's defining attitudes and behaviors toward these smart mobile devices. One key finding was that the size of the screen tends to create an optimal use case for the device. Specifically, larger screen devices seem to fulfill productivity needs while smaller screen devices tend to satisfy communication or entertainment needs. "The majority of tablet owners have a screen size between 9 and 11 inches -- a size optimiz...

Tablet use during the 2011 UK holiday season doubled compared with 2010, as 8 percent of consumers now use these devices as their main means of getting online, according to a new market study by eDigitalResearch and IMRG . The results also saw record numbers of consumers visiting social media sites over two days, with just under half (45 percent) of online users logging into their accounts, up from 20.8 percent last year. The annual Christmas activity survey also saw a 1 percent rise in the number going online with 86 percent of all UK online consumers now logging on over the two days. Derek Eccleston, Head of Research at eDigitalResearch, said "Looking at the results, we can see that the internet is now a crucial part of everyday consumer life. Many see logging on during Christmas and Boxing Day as the norm, especially when trying out new gadgets and Christmas gifts." The rise in tablet use and social media sites is an indication of what's to come in 2012. It...

As the number of consumer electronic (CE) devices and their capabilities continue to evolve and converge, many require significantly more communication bandwidth to provide the quality interactive experience users have come to expect. SuperSpeed USB brings significant performance enhancements to the ubiquitous USB standard, while remaining compatible with the billions of USB-enabled devices currently deployed in the market. The additional throughput is required to accommodate the need to transfer large digital media files between devices. According to the latest market study by NPD In-Sta t, they now forecast that SuperSpeed USB-enabled device shipments are on a fast track and will surpass 1 billion in 2014, that's up from 70 million in 2011. "Because the throughput of SuperSpeed USB, ten times that of high-speed USB, is not required in some devices, adoption will not initially be as broad as for full- and high-speed USB," says Brian O’Rourke, Research Director at N...

According to the latest market study by ABI Research, video communications and online messaging services over mobile networks were used by fewer than 47 million subscribers at the end of 2011, but will grow to reach 390 million users in 2016. Mobile network operators once regarded video communication as the likely successor to voice communication and a source of potential new revenue, but their expectations are now more realistic. Free alternative video chat offerings will always be available, which requires the service providers to offer substantive value-added offerings that are likely to generate revenue. That said, challenges remain in the marketplace. "Only a small minority of consumers are willing to pay a premium price for video calls," says senior analyst Aapo Markkanen at ABI Research . Video services will be monetized by their bundling with other communication media, promoting premium features to enterprises, and/or delivering advertisements. But could ope...

As more smartphones and media tablets enter the workplace, the world's mobile device-enabled worker population will reach 1.3 billion by 2015 -- that represents 37.2 percent of the total workforce. According to the latest global market study by International Data Corporation ( IDC ), the most significant gains will be in the emerging economies of the Asia-Pacific region -- thanks in part to continued economic growth. In contrast, the Americas will experience a slower growth rate due to a protracted economic recovery and high rates of unemployment. "Despite recent market turmoil, mobility continues to be a critical part of the global workforce and we expect to see healthy growth in the number of mobile workers," said Stacy Crook, senior research analyst for IDC's Mobile Enterprise Research program. IDC's forecast shows that the worldwide mobile worker population will increase from just over 1 billion in 2010 to more than 1.3 billion by 2015. Key findings ...

New product announcements and service demos at CES confirmed what many pundits predicted, a variety of mobile devices -- media tablets and smartphones, in particular -- and digital media streamed from the cloud was a pervasive theme. Indeed, the future upside opportunities for mobile content look very promising. According to the latest market study by eMarketer , ad-supported mobile content revenues will exceed $1 billion by 2015 -- with the fastest growth coming from advertising support for mobile video. Last year, U.S. mobile video revenues from advertising reached just $37.5 million, but by 2015 advertisers will spend $213.6 million on ad placements that support mobile video content. Regardless, that's still lower than the amounts spent on advertising against mobile games and mobile music -- estimated at $65.3 million and $181.4 million, respectively in 2011. Both are forecast to grow to $269.1 million and $591.5 million, respectively, by 2015. Looking forward, eMarke...

Increasing consumer adoption of new video entertainment formats -- including video-on-demand (VOD) and viewing on media tablets and smartphones -- will cause up to $22 billion (30 percent) of the U.S. pay-TV advertising market to shift to new formats by 2016. Western Europe will see similar shifts in advertising revenue, while the rest of world will lag in its transition of advertising to these new formats. Regardless, the eventual realignment of all marketer's advertising budgets will have a dramatic impact on the legacy ecosystem. "A shift is already underway in the television advertising marketplace from linear ads inserted by a 24-hour schedule to advanced technologies that will increase the effectiveness of advertisers' spending," says Sam Rosen, senior analyst, digital home, at ABI Research . New technologies are achieving scale within broadcasters' advertising systems, notably audience measurement and tracking, targeted advertising, interactive advert...

​As memories of the holiday season drift away, the mood among mobile phone handset vendors remains quietly confident, regarding the 2012 upside opportunity. "The outlook will yield growth in the order of 8 percent, netting 1.67 billion handsets shipped worldwide by the end of 2012. Particularly notable is for the first time, 3G and 4G handset shipments will capture more than 50 percent of total handsets shipped,” said Jake Saunders, vice president of forecasting at ABI Research . In the second half of 2011, tier one smartphone vendors began redoubling efforts to promote their smartphone line-up to upwardly mobile, aspirational smartphone owners in emerging markets. Samsung has been making substantial inroads into the emerging country smartphone market. Apple is expanding sales channels in emerging markets, with greater success in China than it’s having in India, but is also targeting South American markets such as Brazil. HTC is gaining traction in China, but developed mar...

By all accounts, 2012 will be the year that media tablet adoption accelerates. Tablet usage by existing device owners has skyrocketed. As an example, Apple iPad users are estimated to have already cumulatively downloaded three billion applications since the launch of the iPad in 2010. This was 19 percent of all cumulative downloads by Apple users. According to the latest market study by ABI Research , the Apple iPhone took two years before being able to achieve this level of downloads, while the iPad took a year and a half. By comparison, Google Android tablets have reached 440 million downloads thus far. "Discounting all those apps that were originally developed for Android smartphones, Android still trails greatly behind the iPad in terms of its tablet app offerings," says research associate Lim Shiyang at ABI Research. Many Android tablets in the market are still using older versions of the OS, which disadvantages users from enjoying the better effects of apps prod...

All mobile phone service providers initially resisted any new capability that might reduce revenue from voice calls. However, driven by increased smartphone penetration and a growing breadth of offerings, mobile voice-over-IP (VoIP) usage is now on the rise. Moreover, the upside potential for greater adoption in 2012 is significant. As the addressable market of potential users increases with smartphone penetration a greater number of providers are introducing services -- including a growing handful of forward-thinking mobile operators that are beginning to embrace, to some degree, mobile VoIP. According to the latest market study by NPD In-Stat, active mobile VoIP subscriber rates tripled in 2011 -- growing from 9 million in 2010 to 29 million last year. "While VoIP is a well-defined market, mobile VoIP is still in its infancy, with most offerings only being developed over the past several years, and because it’s in its nascent stage, there are significant opportunities fo...

The international Consumer Electronics Show (CES) 2012 will be held in Las Vegas, Nevada this week. Consumer and enterprise technology industry analysts will use this exhibition to determine where all the leading vendors are focusing their attention for the coming year. Ovum has shared some pre-show trend predictions as follows: Consumer Market Related Trends at CES 2012 Media Tablets: Expect more Google Android "Ice Cream Sandwich" devices, as well as Samsung's Windows 8 tablet. OEMs will pursue the high-margin enterprise tablet market -- as well as the consumer market --so expect to see Mobile Device Management capabilities and partnerships. Connected Home: The DECE will be promoting new OEM and retailer partnerships. Ultra high definition TVs will be demonstrated. Smart TV application platforms and new user interface models for EPG and metadata navigation are also likely, as well as media sharing over DLNA. Google TV and Android STB OEM/ODM deals will be ann...

More and more people are willing to buy products and services online. According to the latest market study by eMarketer , U.S. mobile commerce sales -- including travel related services -- surged 91.4 percent to reach $6.7 billion in 2011. Ongoing growth is forecast to boost sales to $31 billion in 2015. The key market development trends are already in motion. Familiarity with using mobile shopping services via a smartphone -- plus an increasing number of retailers launching mobile optimized websites and apps -- will play an important role in driving additional m-commerce sales. "To keep up with consumer expectations, retailers are bolstering their mobile offerings," said Jeffrey Grau, eMarketer principal analyst. “Retailers were slow to react to consumer interest in mobile shopping. But now they are making great strides in launching mobile websites and apps." This accelerated momentum will help U.S. m-commerce related revenue grow at a compound annual rate of 5...

Smartphone adoption will continue on its upward trajectory. According to the latest market study by NPD In-Stat, as a result, mobile phone data usage is increasing by a factor of 70-100 percent annually. To meet this demand, cellular network architectures have to fundamentally change to provide the required infrastructure needed for adequate coverage, cell density, and local community resistance to traditional macro cell base station deployments. Increasingly, small cell deployments are being used to enhance mobile wireless network coverage. Femtocells will be used in residences and enterprises alike. Picocells will be used to provide coverage indoors and outdoors, with microcells employed to cover areas where macrocells would be overkill. The latest NPD In-Stat global market assessment predicts the retail value of small cell shipments will reach $14 billion in 2015. "The potential that true mobile broadband offers in personal communications, commerce, and social networki...

comScore reported the key trends in the U.S. mobile phone industry during the three month average period ending November 2011. Their market study surveyed more than 30,000 U.S. mobile subscribers and found that 234 million Americans age 13 and older used mobile devices. Device manufacturer Samsung ranked as the top OEM with 25.6 percent of U.S. mobile subscribers (up 0.3 percentage points), followed by LG with 20.5 percent share and Motorola with 13.7 percent share. Apple strengthened its position at number four rank -- with 11.2 percent share of total mobile subscribers (up 1.4 percentage points), while RIM rounded out the top five with 6.5 percent share. 91.4 million people in the U.S. owned smartphones during the three months ending in November -- that's up 8 percent from the preceding three month period. Google Android ranked as the top smartphone platform with 46.9 percent market share, up 3.1 percentage points from the prior three-month period. Apple maintained its...

The accelerated adoption of Android-based smartphones is a global phenomenon. According to the latest (2011 Q3) market study by IDC, Samsung has now overtaken Apple and grew share for a third consecutive quarter in the Australia and New Zealand (ANZ) overall mobile phone market. Overall the Australian mobile phone market dipped by 17 percent quarter-on-quarter (QoQ) by shipments across both smartphones and feature phones categories. The smartphone market is now 65 percent of the total Australian mobile phone market. Google Android has overtaken Apple iOS in first position -- holding 49 percent market share. Apple iOS in second place now holds 36 percent unit share as the market eased in preparation for the new iPhone 4S launched in October 2011. "Collective efforts to expand brand presence from all Android manufacturers at all price points will increase consumer choice and drive demand, which in turn will help Android grow to at least 40 percent market share over the next 3 ...

ComScore released the results of a recent global market study in a report entitled "Top 10 Need-to-Knows About Social Networking and Where It’s Headed." The goal of this report is to frame the current state of social networks through the lens of how users around the world have grown to use them over time. This report addresses questions such as: How extensive is consumer usage of social networking and how does it vary by country? What is the current rate of social networking adoption in different parts of the world? Which sites are driving this adoption in different markets? How are these consumer usage dynamics changing over time? Where do these trends appear to be headed in the future? The report includes a summary of the current state of social networking activity -- as measured via passively observed digital consumer behavior -- providing background research and analysis on this topic. The top ten insights are: Social networking is the most popular online activ...

At the close of last year, Infonetics Research released the findings from their third quarter 2011 (3Q11) market study of broadband access equipment and home networking devices. Looking forward, wireline broadband service providers will continue to seek new upside revenue opportunities -- due to market saturation for basic Internet access offerings. "As we mentioned earlier, we expect the global wireline broadband CPE market to peak in 2011 due to a surge of infrastructure investments this year by service providers, especially in emerging markets," said Jeff Heynen, directing analyst for broadband access and video at Infonetics Research . With a bulk of the infrastructure groundwork already laid, many broadband service providers must now shift their focus to provisioning new services in subscriber homes. However, basic internet access service growth potential still exists in a few emerging markets. Infonetics says that they're already seeing steady growth in wideba...