Digital Lifescapes

The 10 Gigabit (10G) networking system market is already big and growing fast, on target to reach nearly $9.5 billion worldwide in 2008, according to the latest market study by Infonetics Research. Their report, which tracks 10G, 40G, 100G optical and Ethernet ports, plus revenue on various types of service provider and enterprise systems, shows that despite the economic downturn the 10G market is thriving and will continue to thrive for many years to come. Now 40G is increasing rapidly, and 100G should begin soon and take off by 2013. "A majority of service providers we've spoken to are expecting to invest in 40G until the 100G market is up and running; some providers are hoping to skip the 40G phase altogether, but we don't see that being a viable option, as growing traffic demands are outstripping current capacities and 100G won't reach reasonable price points until about 2012 or 2013, said principal analyst and co-founder of Infonetics, Michael Howard. "When 1...

Embedded cellular modem sales are still limited to the early-adopters, but momentum is building for increased sales, according to the latest market study by ABI Research. One recent development is the "GSMA Mobile Broadband Service Mark" initiative which, backed by media spending of $1 billion, is hoped to create awareness of laptop PCs with embedded connectivity. However, it's not at all clear if improving awareness will have a substantive impact in the marketplace, when the price of wireless broadband service offerings remains the primary barrier to mainstream user adoption. Other potential drivers that are hoped to stimulate demand include Qualcomm's Gobi chipset that enables modem connectivity on both GSM and CDMA networks; the promise of lower mobile broadband pricing; and networks maintaining their current EV-DO Rev A and HSPA air interfaces for at least two more years. ABI Research forecasts that these and other market forces will hopefully increase embedded ce...

According to a Parks Associates market study, cable television could see a mass migration away from its services, if providers do not improve their consistently low satisfaction ratings among current subscribers. Their new report reveals that subscribers to satellite television and telco/IPTV are significantly more likely to be satisfied with their services than both basic and digital cable subscribers. These market conditions leave cable carriers vulnerable to subscriber churn, and the market analysis recommends they quickly enhance advanced services like video-on-demand (VoD) to reverse this trend. "Cable subscribers are generally less satisfied, which creates opportunities for satellite and telco/IPTV providers to grab customers," said Kurt Scherf, vice president, principal analyst, Parks Associates. Although cable operators have improved service efforts, cable operators will still hemorrhage subscribers unless they are perceived as offering leading-edge features at equal ...

Analog broadcast television will come to an end in the United States on February 17, 2009. Although many U.S. viewers subscribe to cable or satellite TV services, apparently 15 percent still use a traditional TV antenna. A recent ABI Research survey of U.S. terrestrial television viewers revealed that after analog broadcasting comes to an end, a majority (70 percent) will attach a digital converter box to their antennas. Ten percent will switch to cable or satellite services. A surprising 20 percent will do the unthinkable -- they'll let the TVs they used for analog reception "go dark" forever. According to principal analyst Steve Wilson, "Our survey data suggest that the net result of consumer's choices after analog switch-off will be a drop in overall terrestrial TV viewing. Terrestrial viewers tend to be more likely to use alternative video entertainment forms such as DVD rentals and broadband video and the transition may push them further in that direction....

Over the past six months, the popularity of online video services has grown significantly with women and older consumers, helping close the age and gender gap within the online video audience in the U.S. market. Recent data sourced from Ipsos illustrates the widespread appeal online video services have with the majority of today's Internet users, and how streaming video in particular has helped build an audience with women and those aged 35 and older. Since late 2007, the percentage of female Internet users ages 12 and older that have streamed a video online in the past 30 days has grown from 45 to 54 percent -- an all-time high for this demographic and nearly equal to the percentage of men (58 percent) whom have recently streamed video content online. Moreover, the percentage of adults aged 35-54 that have recently streamed video online has also shot up since December 2007, rising from 49 to 60 percent in that time span. Indeed, video streaming is no longer simply an online behavi...

The long-anticipated DVR boom is finally happening. Equipment prices have fallen rapidly. Operators want their subscribers to take DVRs as they register very highly in consumer satisfaction indexes -- and thus help to ensure loyalty. DVR competition between operators is intensifying, according to a market study from Informa Telecoms & Media. Who can offer the largest capacity, with HD compatibility and push VOD services too? Most U.S. platforms now provide HD DVRs as standard. Simon Murray, author of the report, stated "DVR take-up works best where there is intense digital TV competition. Platforms will not want to be left behind if a competitor is attracting new subscribers through DVR promotions." By end-2008, Informa forecasts 56.1 million installed DVRs around the world. The Global DVR Forecasts report states that this represents 5 percent of TV households and 18 percent of digital TV homes. The forecasts claim 20 million added DVR homes in 2008, and 25 million more i...

The boundary lines between the TV, PC, and mobile screens are blurring with increased broadband and 3G penetration, according to the latest market study by In-Stat. Service providers are being challenged from all sides for influence over the consumer and the content they consume, the high-tech market research firm says. The challenge for network service providers is how to add value in the connected lifestyle. "One answer is the introduction of multi-screen video services," says Keith Nissen, the In-Stat analyst who worked on the study. For instance, consumers could view NBC's videos of the recent Olympic Games on TV, PC, or mobile devices using existing network services. Another alternative is converged multi-screen services that offer consumers the same capabilities, along with value-added, next-generation features and functions that make the service device independent. Their research covers consumer behavior and preferences regarding multi-screen video services. It ide...

Ipsos released research findings from a study examining the growing diversity, consumption patterns and social activity of videogamers. The results of this study -- which included a quantitative overview as well as focus groups and in-home interviews -- were released in New York at an event for IGN advertising clients. This study was conducted in two phases, a quantitative overview of gaming households among the U.S. online population, and a follow-up assessment among the key segments in the gaming market. The qualitative portion of the research included focus groups and in-home interviews. While videogaming has in the past been stereotyped as a solitary activity, statistics from the research study point to the fact that videogamers are now more likely than non-gamers to play sports, or attend a concert. In addition, the study's results point to videogame players evolving into a surprisingly diverse crowd, with the average age of gamers now topping 30 and more than half of gamers m...

In 2008, according to the latest study by In-Stat, the road to wireless 4G became less complex with ultra-mobile broadband (UMB) displaced, narrowing the path to the two remaining technologies -- LTE and WiMAX. Both 4G technologies, meaning those technologies that are expected to meet the requirements of IMT-Advanced, are far from being commercially deployed, the high-tech market research firm says. Both LTE Advanced and 802.16m WiMAX are being specially crafted to offer 100Mbps mobile throughput and 1Gbps stationary throughput; these extremely high throughput capabilities are expected to be a critical part of the ITU's IMT-Advanced requirements. "Mobile WiMAX effectively came on the scene in 2006 with South Korea's WiBro; the earliest commercial LTE deployment will be in 2009," says Gemma Tedesco, In-Stat analyst. "Overall, In-Stat expects that mobile WiMAX will ultimately outpace LTE over the next few years due to timing of network roll-outs." The In-stat ...

Gannett Company, the largest U.S. newspaper publisher, posted a 33 percent decrease in third-quarter profit as print advertising spiraled lower, reflecting an industry-wide malaise that has persisted for three years -- and said it would suspend monthly revenue reports indefinitely due to the volatility of digital advertising trends. All of the legacy Big Media companies -- in television, radio and print -- have suffered from the continued fragmentation of their once captive mass-media audience. The old model relied on "restraint of trade" as the basis for protecting profit margins. With the advent of the Internet and the Web 2.0 phenomenon -- an enabler of low-cost multimedia distribution -- the disruption has neutered the "gatekeepers of access" to the marketplace. The bulls that fathered the concentration of media ownership ironically ensured that the flawless execution of their strategy would lead to the eventual extinction of the herd. The government's wi...

Mobile phone service providers can rejoice. The average mobile phone subscriber in the U.S. sent and received more SMS text messages than mobile telephone calls during Q2 2008, according to Nielsen. This was the second consecutive quarter in which the average number of text messages was significantly higher than the average number of voice phone calls. Finally, the U.S. market is beginning to catch-up with this truly global phenomenon. Although the research is an indicator of rising mobile data use, the two types of mobile communication are not directly comparable. Users typically convey far more information in a voice call than in a text, so text conversations can require multiple messages. The comparison is also one of synchronous and asynchronous communications: Phone calls are synchronous and e-mail, for example, is asynchronous. "The issue with text is that it occupies a middle ground," said John du Pre Gauntt, senior analyst at eMarketer. "It's as instantaneous...

Worldwide PC shipments struggled to meet expectations in the third quarter of 2008 (3Q08), according to IDC's Worldwide Quarterly PC Tracker. Worldwide shipments were up 15.8 percent year over year, which was slightly less than projected. Strong results in EMEA (Europe, Middle East, Africa) helped offset slow growth in other emerging regions, while the U.S. and Japan held steady. Here's the regional market detail. U.S. -- As expected the third quarter was sluggish with performance further exacerbated by a flurry of bad economic news. Among the bright spots, however, were the emergence of low-cost notebooks and some marginal back-to-school activities that helped to keep the quarter in positive territory. EMEA -- Continued buoyancy in the consumer notebook market supported another strong quarter in EMEA, as expected. Demand for mainstream notebooks remained robust in the back-to-school season while the proliferation of low-cost ultra portables and deals through Telco operators cr...

In-Stat conducted a survey of their Technology Adoption Panel to determine what devices road warriors -- defined as those who travel five or more days in a typical month -- travel with, and what interface options they use. The results from 522 respondents show that these Digital Nomad travelers carry several devices, and stay connected through multiple interface options. The results show that 85 percent travel with a notebook PC, 66 percent with a mobile phone, 43 percent with a smart phone (defined as a combination mobile phone and computing device), 53 percent with a headset, 38 percent with a portable media player, 21 percent with an external storage drive, and 17 percent with a PDA. In terms of notebook connectivity, business travelers depend primarily on Wi-Fi, USB and Ethernet as their lifelines on the road. Wi-Fi was used by 93 percent of road warriors with notebooks, while USB was used by 84 percent and Ethernet by 72 percent. Those using Wi-Fi in their notebook employed it to ...

According to IDC, worldwide virtualization license shipments in the second quarter of 2008 (2Q08) increased 53 percent year-over-year, compared to a 72 percent year-over-year increase the previous quarter. The x86 server market led the way with 60 percent year-over-year growth followed by the EPIC server market with 18 percent growth. Worldwide CISC and RISC server virtualization licenses declined 15 percent and 7 percent year over year, respectively. "Quarterly totals of x86 server virtualization licenses continue to experience healthy growth, although the growth rates have slowed over the last four quarters. The modest decline in growth rates indicates that the market is showing early signs of maturation," said Brett Waldman, research analyst for System Software at IDC. Based on our conversations with end users, IDC believes that the high-volume consolidation opportunities -- the low hanging fruit in the x86 server virtualization market -- is starting to dry up. This is, in...

Regardless of the current economic environment, broadband services are still in high demand -- attracting millions of new subscribers worldwide each month, according to the latest market study by In-Stat. Over the past 12 months, approximately 80 million new broadband subscribers signed up for high-speed access to the Internet, the high-tech market research firm says. In terms of broadband access technologies, digital subscriber line (DSL) technologies continue to serve the greatest number of broadband subscribers worldwide, accounting for 55 percent of total broadband connections. "The increasing popularity of online applications such as downloading music files, watching TV programming, and playing online video games, are driving demand for services that provide ever-increasing amounts of bandwidth," says Mike Paxton, In-Stat analyst. Being able to use these applications, combined with the basic consumer desire to surf the net, is fueling global demand for broadband services...

According to a Virtual Worlds Management market study, venture capital and media firms have invested more than $148.5 million in twelve virtual worlds-related companies during the third quarter of 2008 -- with participation from many more VC firms and angel investors. The total investment in the virtual worlds space for 2008 is now over $493 million. The news was announced just prior to the upcoming Virtual Worlds London conference. The bulk of the investment is in the entertainment space, with all but $22.4 million going to developers of worlds with strong game-play elements, ties to media brands, or the youth sector. Youth worlds are constantly on the rise, and investors remain interested in backing them as long as they can find unique propositions. "Many smaller investments were made across a spectrum of youth-oriented virtual worlds," explained Joey Seiler, Editor of Virtual Worlds News. "$35.64 million was invested in seven virtual worlds aimed at kids through teen...

The market for ultra-mobile devices (UMDs) is already complex, and will become more complicated as it grows. The following forecast insight may serve to guide vendors and investors as they negotiate this multifaceted landscape. According to ABI Research principal analyst Philip Solis, "Total revenues earned by vendors in the UMD market are expected to increase from $3.5 billion in 2008 to nearly $27 billion in 2013." This year, retail sales account for only 14 percent of shipments, while UMDs provided by mobile operators stand at nearly 30 percent -- the balance are sold directly by manufacturers. Over five years, however, that distribution mix will change significantly. Mobile operators currently subsidize UMDs for the sake of their potential services revenue, but they would prefer not to do so. By 2013, only 20 percent will be operator-provided, while retail sales are expected to account for 75 percent. In 2013 more than half of all UMDs will have x86 processors inside, wit...

During 2007 and into 2008, the market for pre-paid mobile services has continued to grow more than twice as fast as the post-paid contract market, according to the latest study from Informa Telecoms & Media. At the end of 2007, there were 2.33 billion prepaid subscriptions in the world, of which nearly 2 percent were accounted for by prepaid WCDMA accesses. Prepaid services generated $241.9 billion in revenues for mobile network operators in 2007. By far the largest prepaid market was Asia Pacific, with 43 percent of global subscriptions and almost 30 percent of revenues. The number of people owning multiple SIM cards continues to rise, and at the end of 2008 about 28.9 percent of reported subscriptions worldwide will be accounted for by secondary or tertiary SIM card ownership. Operators may be forced to consider whether issuing SIM cards is a sustainable way of increasing the lifetime value and profitability of individual customers. Ultimately, understanding prepaid customer'...

Marketers need to fully understand the Digital Native segment of the market. Why? They're the future technology savvy consumer of products and services. eMarketer estimates that this year 95.7 percent of college students -- 17.4 million strong -- will go online at least once a month. They're the Digital Natives. "College students are the most digitally connected demographic group in the U.S.," says Debra Aho Williamson, senior analyst at eMarketer. "They have grown up with technology and it is a seamless part of their lives." Marketers looking for the next big trend online can learn a lot from college students. "Students have played a prominent role in some of the biggest developments in the Internet and technology in recent years," says Ms. Williamson, "from social networking to the iPod." In fact, entering college freshmen have already lived through a series of Internet era milestones -- often themselves created by college students. ...

The entry of a broad range of new mobile multimedia devices -- able to display video -- will have a profound effect on the mobile video market, according to the latest market study by In-Stat. The reach of new device choices will provide more markets for mobile phone operators, mobile broadcasters, advertisers and other content owners, the high-tech market research firm says. "Even though cellphones and smartphones will remain the predominant method of viewing mobile video, over 160 million other devices that provide mobile video over networks now in exclusive use by cellphones will be sold in the next five years," says David Chamberlain, In-Stat analyst. The In-Stat research covers the worldwide market for devices that can support mobile video. It provides analysis of the market for various consumer electronic devices capable of receiving mobile video from a variety of sources. In-Stat's market study found the following: - Shipments of 3G video-capable cellphones will in...