Digital Lifescapes

The telecom marketplace continues to change as more CIOs and CTOs seek ways to improve voice services and cut costs. Moreover, the mobile telecom market has been prone to digital disruption, as voice over IP (VoIP) communication has evolved. The use of fixed-line telephone services has declined steadily, while there have been significant increases in the use of mobile phone services, Wi-Fi calling services, and over-the-top (OTT) mobile voice. Plus, the roll-out of superior mobile network connectivity modes -- such as 4G LTE, 5G, and in the foreseeable future, 6G networks -- will continue to transform the global communications market. Mobile Telecom Market Development The decline in fixed-line telephone services is reducing for a number of reasons, but it is primarily due to a significant increase in mobile phone and media tablet device ownership supporting data-intensive applications -- such as mobile games, mobile videos, and location-based services.  According to the latest worl...

The global mobile communication services market has always been prone to technological disruption and innovation. Over the past 10 years, however, the mobile voice services landscape has been profoundly affected by advances in new technology. These include the penetration of artificial intelligence (AI) and machine learning in communication services, the rise of highly customized Over-the-Top (OTT) mobile voice and messaging applications, and the rollout of superior connectivity modes such as 4G LTE and 5G. Mobile Voice Service Market Development To adapt, mobile network operators are migrating their networks to an all-IP ecosystem. Focus has moved beyond Evolved Packet Core (EPC) frameworks to converge data and voice services on the same network. In turn, this has created offerings such as Voice over LTE (VoLTE), Voice over Wi-Fi (VoWi-Fi) and HD Voice services. This has enabled mobile network operators to provide services that can compete directly with the OTT software app pr...

Mobile communication service providers across the globe have been eager to uncover new sources of subscriber revenue as over-the-top (OTT) apps continue to disrupt their traditional business model offering voice calling and text messaging. These operators are currently under pressure due to investment in emerging technologies, including 5G and M2M networks. Thus, they must develop and deploy new capabilities that can leverage their networks to both increase revenues from voice services and reduce OPEX (Operational Expenditure). That said, the latest worldwide market study from Juniper Research has found that operator-billed mobile voice revenues will fall from $354 billion in 2018 to $197 billion by 2023 -- that's an average annual decline of 10 percent. Mobile Services Market Development The new research, Mobile Voice: Operator Strategies & Vendor Opportunities 2018-2023, identified a series of new opportunities which collectively would enable mobile network operators t...

Mobile messaging today encompasses both the more traditional forms of messaging and the popular Over The Top (OTT) messaging services from providers such as WhatsApp and WeChat. Communication has never been so rapid or efficient, with new technologies and apps driving demand. One of the key developments has been the growth of OTT mobile messaging services. Where Mobile Network Operators (MNOs) once saw a good portion of revenue come from SMS, MMS and voice calls, OTT players have offered people a free option -- in the form of messages which can be sent over Wi-Fi or Internet connections, driving demand away from mobile operator networks. OTT Messaging Market Development Juniper Research forecasts that OTT messaging applications -- such as WhatsApp and WeChat -- will see adoption grow from 2.3 billion unique users in 2016 to 4.2 billion by 2021, representing a growth of over 12 percent compound annual growth rate (CAGR). According to the Juniper assessment, the OTT vendors will ...

Some traditional pay-TV service providers have already supported their customer's expectations for better apps on smart TVs, which enable service subscribers to overcome the limitations of their provider's set-top box and limited on-demand video programs. Moreover, the leading online video subscription services -- such as Netflix, Amazon Prime and Hulu -- enable millions of American smart TV owners to independently access video entertainment (without traditional pay-TV). Internet-Connected TV Market Development According to new research from The Diffusion Group (TDG), the penetration of Internet-connected TVs among U.S. broadband households has increased nearly 50 percent since 2013 -- from 50 percent market penetration to 74 percent at the end of 2016. Connected-TV market penetration grew by 22 percent between 2013 and 2014, and another 15 percent between 2014 and 2015. However, new growth has slowed to only 4 percent, indicating that the market has matured, which is...

Mobile network service provider revenue loss from 'grey route' application-to-person (A2P) traffic will amount to $62 billion over the next 6 years, despite the increased deployment of security measures, according to the latest worldwide market study by Juniper Research. Historically, the A2P service offering was used for mobile alerts or as a billing methodology and transport for simple content and services -- both for one-off downloads or actions (such as voting) and for recurring transaction payments. The study discovered that the high levels of grey route traffic -- essentially A2P messages masquerading as P2P (Person to Person) messages and delivered via non-interconnected routes -- could be attributed by the scale of the price differential between A2P and P2P. Mobile Messaging Market Development Today, the trend has become more pronounced as mobile network operators have offered high-volume, low cost SMS bundles to cope with the challenge of Over-the-Top (OTT) mes...

The digital TV and video entertainment market will expand via online and mobile delivery of new media. This new growth will be driven by network operator owned services, such as Internet Protocol Television (IPTV), or through Over The Top (OTT) video streaming services such as Amazon Prime, Netflix and Hulu among others. Meanwhile, traditional pay-TV operators and terrestrial over-the-air TV broadcasters will continue to be disrupted by new digital technologies and new business models. Furthermore, the impact of the ongoing video entertainment transformation could also create new challenges for the Cinema theater sector. According to the latest market study by Juniper Research, ultra high-definition television (UHDTV) streaming video services -- i.e. 4K OTT -- content will start to reach the mainstream market soon, with adoption set to soar over the next 5 years. How Connected TV Fueled the Disruption Note, 4K is a term that was originally used to describe the cinema projection...

Several television broadcasters and pay-TV providers have attempted to match over-the-top (OTT) video by offering their own online services. Most notable is the move by HBO to offer a subscription service to their TV shows via HBO Now. Revenues from subscription video on demand (SVOD) services, such as Netflix and Amazon, are set to more than double from $14.6 billion this year, to $34.6 billion in 2021. Netflix will now grow its U.S. subscriber base to be similar in size with leading traditional pay-TV service providers. Ongoing SVOD Market Development According to the latest market study by Juniper Research, SVOD providers will see substantial returns on their expansion and growth strategies, as more countries and markets move to this method of video consumption. And, as more consumers adopt the move away from the old linear, scheduled TV model. While SVOD continues to draw customers away from traditional pay-TV providers, legacy networks are now seeking to diversify and a...

Online video entertainment has disrupted most legacy media companies that refused to acknowledge the market opportunities beyond traditional pay-TV services. This shift has become a global phenomenon. The impact and implications are far-reaching. Western European over-the-top (OTT) television and video revenues will more than double between 2015 and 2021. However, growth rates within each nation will vary considerably, according to findings from the latest market study by Digital TV Research. "OTT adoption is already high in Scandinavia, the Netherlands and the UK, but it has been much more muted in other countries -- such as France, Spain and Portugal," said Simon Murray, principal analyst at Digital TV Research . European OTT TV Market Development OTT TV and video revenues in Western Europe will reach $14.64 billion in 2021 -- that's up from $6.40 billion in 2015. From the $8.25 billion in revenues to be added between 2015 and 2021, the UK will contribute $2.30 ...

The world now contains 8.1 billion connected smartphones, media tablets, personal computers, televisions, TV-attached devices and various audio devices. On average, across the whole globe, this Internet-connected device installed base now equates to about four devices per household. "The proliferation of media-enabled connected endpoints has implications for media consumption, media production, broadband infrastructure, and the business itself of network management and traffic discrimination," said Merrick Kingston, principal analyst at IHS . Smartphones have already contributed about half a billion new devices to the market each year. Media tablet adoption has also grown rapidly. But that overall growth is not spread evenly. Case in point: by the end of 2020, the forecast smartphone-to-tablet ratio will rise to nearly 10:1, according to the latest worldwide market study by IHS. Gains for Mainstream Market Development The IHS study also noted the big changes in the...

Pay-TV service providers across the globe are responding to the emergence of agile video entertainment competitors. The over-the-top (OTT) television and video service revenues for 17 countries within the Asia-Pacific region will reach $18,396 million in 2021 -- that's up from $5,741 million in 2015. Furthermore, China will overtake Japan in 2016 to become market leader in the region. "Smartphone users will continue to drive OTT TV and video audiences. Smartphones are a more important OTT TV reception method than fixed broadband in the Asia-Pacific region -- with the notable exceptions of Australia and New Zealand," said Simon Murray, principal analyst at Digital TV Research . Advertising on OTT sites will remain the main revenue source, bringing in $8,745 million by 2021 -- that's up by $6 billion from $2,609 million on 2015. China will supply $4,911 million of the 2021 total, with Japan providing a further $1,475 million. OTT Video Market Development in APAC ...

Over-the-top (OTT) video adoption continues to disrupt the legacy pay-TV market. In its latest analysis on the online streaming media adapter market, ABI Research examined the impact of new lower-priced devices and the mounting pressures within the global consumer electronics industry. People now have many ways to stream video entertainment. Moreover, the ongoing introduction of new, cost-efficient devices with innovative functionality has the capability to swiftly change the competitive landscape. Meanwhile, traditional pay-TV providers continue to increase service subscription and set-top box rental prices. "The rise of Google's Chromecast devices, along with the Amazon Fire TV Stick, generated interest in the stick or dongle form factor, but these successes speak more toward pricing than design," says Michael Inouye, principal analyst at ABI Research . Streaming Media Market Development In China, according to the ABI assessment, the streaming media stick form f...

While the traditional North American pay-TV industry has yet to respond to market share losses associated with Over-the-Top (OTT) video subscription services, this entertainment phenomenon is now gaining significant momentum in other parts of the world. Parks Associates announced new international data showing OTT video usage in Western Europe is continuing to expand, with 55 percent of UK broadband households and 51 percent in France watching TV programming and movies online -- that's compared to 70 percent in the U.S. market. However, the number of paid subscriptions in Europe is significantly lower, where 30 percent of broadband households in the UK and 17 percent in France subscribe to OTT video -- that's compared to 64 percent of U.S. broadband households. Video Subscription Service Market Development "OTT is definitely gaining traction across Europe. We are seeing new OTT video services spring up but not as many as in North America," said Brett Sappingto...

Why are traditional pay-TV services being disrupted by alternative lower-cost video entertainment services? Perhaps it's due to the apparent ease-of-use in searching for something to watch. Or, maybe it's the variety of video consumption options, as well as the huge depth of available television series and movie content. Whatever the primary reason, and despite the widespread availability of inexpensive ancillary online video streaming devices, 32 percent of over-the-top (OTT) TV Users still prefer having the native connectivity of a Smart TV set. This finding is according to data from the latest TDG market study, a survey of 2,000 U.S. adult broadband users -- 60 percent of which use an OTT video streaming service on their home television set. Streaming Online Video Device Preference  When asked which TV streaming platform they prefer, 32 percent of OTT TV Users selected their smart TV. Interestingly, this is pretty much equal to the penetration of smart TVs in general...

Reporting on the American pay-TV market during the last couple of years was somewhat predictable -- it's been an ongoing decline of subscribers as price increases motivated consumers to consider other video entertainment options. More and more American baby boomers in urban areas bought a digital TV indoor antenna and switched to free over-the-air HDTV broadcast services. For younger adults, traditional pay-TV wasn't viable -- why pay for advertiser-supported content that's available online for free or at a much lower cost via Hulu? Furthermore, as more online subscription video-on-demand services -- such as Netflix and Amazon Prime -- gained momentum, it became clear that the traditional mass-media TV was losing its appeal. Besides, a movement toward the adoption of over-the-top video entertainment seemed to be perpetual. But this market shift could still decelerate, given some of the recent trends. According to the latest market study by Leichtman Research Group (L...

The American video entertainment realm has continued to evolve during 2015. Market development in the traditional pay-TV sector has been particularly difficult. However, there are still some significant upside opportunities. Baby Boomers comprise nearly a third of U.S. adult broadband users and are significantly more likely than other segments to subscribe to traditional pay-TV services. According to the latest TDG Research study and data-driven analysis of this vital but oft-overlooked consumer segment, this makes them excellent candidates for the high-revenue sales of operator value-added services. As TDG first noted earlier this year, the race-to-the-bottom that currently defines pay-TV operator strategy -- that is, the targeting of Millennials with low-cost bundles -- has deflects marketing resources away from efforts to grow ARPU among other subscribers. "Unlike Millennials, Broadband Boomers are quite loyal to their current operators and have very deep pockets,"...

Mobile network service providers are focused on defending their traditional voice services from new market disruption that threatens to further erode their legacy business model. Armed with new technology and bold plans for more rapid deployment, savvy operators are responding to the incursion. The number of VoLTE (Voice over LTE) connections is now anticipated to reach 2 billion by 2020, rising from an estimated 123 million in 2015, according to the latest worldwide market study by Juniper Research . The research uncovered that the marked improvement in voice quality, enabled by VoLTE, is likely to spur increased adoption of the technology by mobile network service providers across the globe. Besides, given the downward trajectory of voice service revenue trends, wireless network operators must act swiftly to slow the decline. Juniper found that direct revenues from VoLTE will likely be limited at first, with increased availability of compatible smartphones driving adoption o...

As the video entertainment market evolves in America, the traditional pay-TV service providers are seeking to maintain their subscriber base in the face of rising operational costs related to content, which often directly translates into higher service fees for their customers. Meanwhile, short-term promotional discounts are still being applied to attract potential new customers to the traditional pay-TV offerings. But it's becoming increasing difficult to compete with the value-based pricing of the over-the-top (OTT) streaming video services (Netflix, Hulu, etc.) . According to the latest market study by Leichtman Research Group (LRG), 83 percent of all U.S. households nationwide subscribe to some form of pay-TV service. That being said, the percentage of households that subscribe to a pay-TV service is down from 87 percent in 2010. "Changes in the dynamics of the pay-TV industry are not driven just by those exiting the category, but also those coming into the category,...

Digital entertainment now encompasses the inclusive aspect of services found on many smartphones, media tablets and connected TV sets. According to the latest market study by Juniper Research , the mobile and online entertainment industry will reach revenues in excess of $300 billion annually by 2019 -- that's up from $195 billion this year. The research observed that growth in the market would be driven by increased adoption of online television and video entertainment services, with the industry accounting for more than 60 percent of the net increase in market value over the next 5 years. The new study also found that Over-the-Top (OTT) video service providers -- such as Netflix and Hulu -- offer an attractive combination of third-party and home-grown content, with a subscription-based model that is supplanting the legacy on-demand pay-per-view approach. The research also found that while video game revenue will capture the lion's share of the digital entertainment m...

The impact of alternative forms of video entertainment on the traditional pay-TV sector is now very much a global phenomena. What started as a small disruption in North America, with the introduction of Netflix and Hulu service offerings, has evolved into a transformation that reaches far and wide. Over-the-Top (OTT) television and video revenues within the Eastern Europe, Middle East and Africa (EEMEA) region, which includes nineteen countries, will reach $2.63 billion in 2020 -- that's up from only $52 million recorded in 2010, and the $616 million expected in 2015. According to the latest market study by Digital TV Research, from the $2.21 billion in revenues to be added between 2014 and 2020, Russia is forecast to contribute $795 million, with Turkey bringing in a further $219 million. Russia will remain the largest revenue earner in the region, by a wide margin. "OTT in Eastern Europe, Middle East & Africa will still be an immature sector by 2020, although thi...