Digital Lifescapes

As lower-cost online alternatives gain momentum, more Pay-TV service providers are attempting to make their legacy video entertainment offering more attractive by adding new features to their standard subscription package. DirecTV’s Genie, Liberty Global’s Horizon, Dish’s Hopper and the HD DVR boxes that power Comcast’s X1 service all have something in common -- other than better marketing names than an older generation of boxes more commonly known by their model numbers. According to the latest market study by ABI Research, these feature-rich devices bring more channel tuners to centralize digital video recorder (DVR) resources -- minimizing DVR conflicts, as well as better processing power. This increased processing power improves responsiveness and the device user interface. ABI believes that deployment of the device will also act as a Trojan Horse -- while pay-TV operators try to extend home automation and energy management services into their subscriber homes. These featur...

If you've followed the news last year about the consistent decline in cable TV subscribers within the United States, then you may have assumed ​that the overall market was in decline. The worldwide pay-TV market actually grew at a steady pace in 2012 generating $238 billion by end-of-year, that's up from $223 billion in 2011, according to the latest market study by ABI Research. The global pay-TV market is expected to generate $304 billion in 2018 with a compound annual growth rate (CAGR) of 4 percent. In some markets, continued revenue growth will likely come from increases to subscriber fees -- not from the addition of new subscribers. That being said, the global service revenue contributions from cable TV are proving to be mixed, according to ABI's current assessment. The Asia-Pacific region saw service revenue growth due to underlying increase in subscriptions. However, cable TV operators in North America are experiencing an ongoing decline in service revenue ...

Infonetics Research released excerpts from two recently published video equipment market share and forecast reports. These latest market studies demonstrate how video entertainment applications demand is impacting broadband service provider (SP) infrastructure investment decisions. That being said, most of the growth will come from online video streaming apps, not traditional pay-TV. The first report, Video-on-Demand (VOD) and Encoder Equipment and Video Subscribers -- which tracks video equipment sold to telco IPTV, cable video, and satellite video providers. And the second report, Set-Top Boxes and Subscribers -- which tracks IP, cable, satellite hybrid, DVR, and high definition (HD) STBs, as well as over-the-top (OTT) media servers. "Two of the most interesting trends in the video equipment and set-top box markets are 1) across the board, pay-TV operators continue to increase their investments in MPEG-4 encoders to reduce bandwidth requirements for their broadcast channels ...

While some video entertainment industry analysts and consumer electronics pundits are eager to predict a rapid decline of the traditional pay-TV set top box market, others are less sure about the near-term prospects. That being said, a few still see some upside market opportunity within the mainstream pay-TV category. The set top box market actually experienced pockets of growth in 2011, primarily due to robust demand for digital cable set top box products in Asia. In contrast, North American cable set top box unit shipments are decreasing, largely due to the declining number of cable TV subscriber households -- combined with cable TV operators tightening their capital expenditure budgets. According to the latest market study by NPD In-Stat, they report that global digital set top box unit shipments are on track to exceed 55 million, down just 1 percent from 2010 unit shipments. "In-Stat believes that the long-term outlook for the cable set top box market is positive,...

In a bygone era, live TV programming was the top television content source. Now, the availability of digital video recorders (DVRs), Pay-TV on-demand services, and online streaming video options has changed the viewer's preferences. According to the latest market study by TDG , a growing number of TV viewers fall into segments inclined to first select a source other than live broadcast TV. The impact on the traditional broadcast television ecosystem has been significant. To better understand this shifting behavior, TDG developed a quantitative framework based on consumer First Glance TV preferences among different television content sources, including live broadcast, DVR-recorded, on-demand, and online shows -- as well as physical discs such as DVD or Blu-ray. Based on this analysis, TDG identified five key segments -- non-overlapping groups that exhibit unique TV source preferences. The dominant characteristics of each segment are as follows: Black-Box Baulkers - strongl...

As the year comes to a close, 2011 will be remembered as a difficult time for many players in the video entertainment industry. The growth of online video viewing on-demand, and other significant market transitions, have taken a toll on the pay-TV marketplace. The worldwide satellite set-top box (STB) market has experienced slow to negative growth in recent years as both the number of subscribers and the conversion from SD to HD has changed the market dynamics. That trend is about to change. According to the latest market study by In-Stat , they are forecasting that digital satellite STB unit shipments will grow by nearly 14 percent in 2012. "New technology in many ways is powering the expected uptick in unit shipments," says Michelle Abraham, Research Director at In-Stat. Increasingly powerful processors enable a more personalized viewing experience with downloadable apps and recommendation engines. An improved graphics capability also enhances the user expe...

The initial development plans for telco IPTV was introduced with great fanfare and anticipation -- launched by service providers who promised to re-invent the traditional pay-TV experience. Instead, what they delivered was an unimaginative replica of the channel-centric legacy cable TV offering. Regardless of the anticlimax, those new IPTV services have gained some traction in the marketplace. But the sustainability of that growth has always been in question -- and still is with some skeptical industry analysts. The pay-TV sector is going through a transition, and therefore somewhat volatile. Worldwide set-top box revenue, as a whole, will decline slightly in 2011 over 2010, with Latin America and Middle East/Africa markets being the only regions showing any increase in shipments. However, despite the general maturation and stagnation of the market, IP set-top box (STB) shipments are forecast to increase by over 1 million units in 2011, according to the latest market study by In-...

Without a doubt, 2010 was a challenging year for the worldwide digital set-top box (STB) market, as total unit shipments decreased by 7 percent. It is likely that 2011 will also be a disappointing year, but there may be better news on the horizon. Fueled primarily by the analog-to-digital transition as well as upgrades of older devices to newer HDTV versions, HD and PVR versions, and Hybrid STBs with PVR capability and a broadband connection -- digital terrestrial STB unit shipments will approach 45 million units by 2015, according to the latest market study by In-Stat . "Digital set-top boxes continue to be key pieces of equipment for pay-TV service providers. For many service providers, the digital STB functions as their gateway into the home," says Mike Paxton, Research Director at In-Stat. In addition to their important position in the digital TV or pay-TV ecosystem, digital set-top boxes continue to offer an attractive market opportunity for STB manufacturers and s...

Infonetics Research earlier this month released its fourth quarter 2010 (4Q10) Cable, Satellite, IPTV, and Over-the-Top (OTT) set-top box (STB) subscriber market share and forecast. In the fourth quarter of 2010, Infonetics witnessed the dramatic growth of over-the-top video entertainment services, as service providers and equipment vendors seemed to reach their optimal price-points. However, by and large, these services continue to complement traditional pay-TV rather than fully replace it. On a global basis, demand for set-top boxes continues to increase as more countries transition from analog to digital broadcast television and more operators offer enhanced services -- such as HDTV and DVR. "There is increasing demand for hybrid set-top boxes, which leverage the existing broadcast infrastructure, but utilize the broadband connection to incorporate OTT content and increase interactivity and on-demand services," notes Teresa Mastrangelo, directing analyst for video at...

Satellite pay-TV providers in North America haven't added many new subscribers. Competition for subscribers has been an issue, and the fundamental value of all pay-TV services is being questioned by prospective customers. In particular, the U.S. market for video entertainment has also evolved -- due to the rapidly growing adoption of low-cost on-demand over-the-top (OTT) video services. In Europe, the market has less need for set-top boxes, because more TV sets have integrated satellite tuners and CI+ slots. As a result, according to the latest market study by In-Stat , shipments of satellite set-top boxes declined in 2010 by 8 percent -- in both the North American and Western European. "The decline in North America shipments moving forward will be a result of a movement to residential media servers, first by DirecTV, and then by other providers," says Michelle Abraham, Principal Analyst at In-Stat. The move to IP video clients will impact Europe as well, though m...

The demand for more hard disc drive (HDD) storage from PC users, game enthusiasts, and video entertainment viewers is keeping the industry growing to the degree that In-Stat forecasts HDD unit shipments will increase to over 1 billion units by 2014. The main drivers of growth have been the notebook PC market, TV set-top boxes, and external storage. "As video has gone digital, demand for storage is found in consumer applications including set-top boxes (STBs), external drives, automotive applications, personal media players, camcorders, home servers, and video cameras," says Norm Bogen, VP, Digital Entertainment at In-Stat . STBs have been a HDD application target since TiVo pioneered TV recordings and playback and Time Shifting. The 3.5" HDDs at 7200 rpm and with capacities starting from 500 GBs to 2 TBs are being offered in this DVR application market. Among consumer applications, external HDDs are the second largest segment behind DVRs and will double in unit v...

The broadcast digital terrestrial television (DTT) set-top box market continues to expand, as countries migrate from standard definition (SD) TV to high definition (HD) programs, and digital video recorders (DVR) become a standard feature. New products like hybrid web-to-TV set top boxes also will contribute to the long-term growth of DTT STBs pushing revenues to nearly $6 billion by 2014, according to the latest In-Stat market study. “The bulk of the market value resides in Western Europe and Asia-Pacific with the key growth regions being Latin America and Asia-Pacific,” says Gerry Kaufhold, Principal Analyst at In-Stat. Sezmi TV will spur moderate growth for HD-DVR STBs in the U.S. market. The Middle East and Africa hold potential but not until the economic situation improves and local governments decide how they will handle subsidizing DTT converter boxes. Some of the In-Stat market study findings include: - Europe is embracing High Definition and optional Pay-TV service...

The recent volatility in the global pay-TV industry is starting to impact vendor product shipments. In 2Q10, worldwide total set top box (STB) revenue declined by 6 percent from the previous quarter while shipments declined even more. One bright spot, shipments for HD-capable STBs and DVR-enabled STBs were up slightly over 1Q10, contributing to a slightly higher selling price. For the remainder of 2010, only Latin America and Europe are forecast to show any gains in revenue or unit shipments, according to the latest market study by In-Stat . The global market for STBs is highly fragmented with many vendors offering legacy pay-TV products. Moreover, as the market evolves to include more Hybrid STB and purpose-built low-cost online video players, the fragmentation will likely increase. In-Stat's market study uncovered the following: - Cisco, Motorola, and Pace were the market leaders in cable STB shipments. - Echostar, Humax, Pace, and Technicolor were market leaders in s...

eMarketer reports that traditional television broadcasters in the U.S. must respond to a growing trend. As TV program time-shifting and online over-the-top (OTT) video viewing have both increased in importance, there's been a corresponding decrease in interest with "live" broadcast TV. Furthermore, the TV set isn't the focal point that it used to be in America. According to a report from market researcher Morpace, nearly three in five U.S. consumers watch at least some video on a device other than a television. Morpace found that today only 52 percent of the total TV viewing time consisted of watching live TV. However, among younger adults ages 18 to 34, that proportion fell further to 41 percent. Adults 55 and older watched live TV almost two-thirds of the time. But, Gen Xers and younger American baby-boomers were evenly split between live TV and several time-shifting methods. Online OTT was the most popular alternative to live TV, with about half of consum...

The legacy cable TV set-top box (STB) market grew in 2009. However, growth slowed significantly last year and 2010 is on track to be the first year of negative growth since 2002, according to the latest market study by In-Stat . Despite the overall market slow-down, some regional markets are poised for growth. Examples of these regional markets are Europe, where the demand for high-definition (HD) cable STBs is fueling growth, and Latin America, where the shift from analog cable TV to digital cable TV is spurring unit shipment growth. "Even in a soft year, the cable STB market continues to offer solid growth opportunities for cable set top box manufacturers," says Mike Paxton, Principal Analyst. This growth is particularly true for manufacturers target emerging regional markets or if they focus on high-margin product categories -- such as HD or PVR-enabled cable STBs. I believe that high-growth opportunities could quickly migrate to the low-cost purpose-built IP dig...

Digital video players, blu-ray disc players, game consoles, and now television sets are connecting to the Internet. Moreover, everything online is becoming accessible on smartphones and other connected mobile devices. Internet video streaming is the new service that's in high demand. However, most TVs are not enabled to display these offerings. The hybrid Web-to-TV set top box (STB) will deliver over-the-top services to these TV sets -- by integrating Internet access capability into cable, satellite, telcoTV (IPTV), and digital terrestrial STBs. Work is underway to create hybrid services that bring apps and widgets to TV programming, along with advanced advertising, according to the latest market study by In-Stat . The market value of Hybrid STBs will reach $1.3 billion worldwide by 2014. "TV programs have come to the Internet. Now, the Internet is coming back to TV, and savvy software engineers and smart TV producers are finding ways to create new hybrid services that...

As the world continues to migrate from standard definition (SD) to high definition (HD) television, the impact on the pay-TV digital set-top box (STB) market is somewhat subjective. There will likely be a reduction in SD STB revenue from current levels of 1.4 billion, eventually declining to 438 million by 2014. Meanwhile, HD personal video recorder (PVR) set top box revenues could potentially increase by 61 percent over the same time period, according to the latest market study by In-Stat . However, I believe that the continued adoption of purpose-built low-cost IP video players, such as Roko , could have a very significant negative impact on demand for traditional STB devices. Particularly in North America, where pay-TV service fees are very high and continue to rise. In-Stat's market study findings include: - Total worldwide digital STB unit shipments will decrease by 10 percent from 2009 to 2014. - Digital PVR STB unit shipments will increase 57 percent by 2014. - O...

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...

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...

The average American home now has 2.93 television sets per household, up from 2.86 sets per home in 2009 -- the largest year-over-year increase since 2006 according to the latest Nielsen market study. This year the number of U.S. homes with three or more TV sets increased to 55 percent -- with 28 percent having two sets and 17 percent have just one set. The report also finds that while the total population continues to increase, the number of people per TV home holds steady at 2.5, continuing the recent trend of more TVs per home than people. Other findings from the Nielsen market study include: - Less than 10 percent of U.S. homes receive their TV signal over-the-air. - 34 percent of American homes have a digital video recorder (DVR). - 46 percent of U.S. homes are able to receive a high-definition (HD) signal. - Total advertising spending on U.S. Network television in 2009 is down 10 percent from last year while spending on Cable is up 16 percent. - The Business and...