Digital Lifescapes

Progressive efforts from major companies like Cisco, Microsoft, and IBM to promote media-rich productivity tools are boosting the prospects for videoconferencing and telepresence solutions, according to the latest study by In-Stat. The driving factors behind increased adoption and use are technology, bandwidth, and convergence, the high-tech market research firm says. According to a recent In-Stat survey of U.S. businesses, the decision to use or not use video conferencing is no longer based on uncertainty over the quality of the experience among those who have tried it lately. Furthermore, cost alone does not seem to be a hindrance of adoption or use. "The shift to an IP environment that enables unified communications, presence, and mobile integration provides a technological environment where traditional video conferencing, as well as telepresence can become synergistic elements," says David Lemelin, In-Stat analyst. The research covers the U.S. market for video conferencin...

The worldwide mobile phone market passed a new milestone in shipments by recording over 300 million devices shipped during the fourth quarter, while experiencing slower year over year growth for 2007. According to IDC's Worldwide Mobile Phone Tracker, the 334 million handsets shipped during the holiday quarter was a new record for the industry, and was up 15.3 percent over last quarter. For the entire year, total shipments reached 1,144.1 million units in 2007 with 12.4 percent overall growth. Nokia once again led vendors in shipments throughout the year, although some shakeup in the vendor rankings did occur. Samsung, which had been the number three vendor in the industry, surpassed Motorola during 2007 to capture the number two spot. "Give credit to Samsung for taking the number two position worldwide from Motorola," says Ramon Llamas, research analyst with IDC's Mobile Devices Technology and Trends team. "For the past few years, Samsung's growth kept pace ...

Early attempts to bring over-the-top video to consumer television screens have fallen far short of success, but that's about to change with the arrival of new vertically integrated 2.0 solutions and associated business models, according to a market study by ABI Research. Thus far, initial product offerings have been centered on a computing and home networking model -- but vendors are learning that they need to provide end-to-end solutions in order to attract new consumers. The Digital Living Network Alliance (DLNA) supports broad communication between networked devices and even handset manufacturers such as Nokia have shown how a Wi-Fi enabled handset plays a role in the connected living room. Microsoft has been busy with its Media Center Extender technology, now repositioned as Extender technology for the Windows Media Center. It can be embedded in any suitable consumer electronics device, in addition to standalone DMA (Digital Media Adapter) clients, and is featured in products f...

No cash? No problem. The U.S. finally seems to be moving closer to a goal of using mobile phones to accomplish financial transactions and make purchases as several competing market players align on both technology and objectives, according to In-Stat. Although 2008 will not be the year of mobile payments in the U.S., some meaningful progress is likely, the high-tech market research firm says. "There is evidence that the U.S. market may overcome a crucial issue -- technology incompatibility -- and make progress during 2008 toward contactless payments using cell phones," says David Chamberlain, In-Stat analyst. "Companies in several different sectors all ultimately want to deploy near field communications (NFC), the key enabling technology, into handsets as well as in merchant payment terminals." There is also general agreement that the current generation of mobile banking services is an important first step toward accomplishing that goal. Hopefully, the result will b...

Personal Navigation Devices (PNDs) are a very popular and fast-growing class of consumer electronic device, according to the latest study by Ovum. However, smartphones with GPS are emerging as viable navigation devices too, and in some respects they can offer major advantages over PNDs. Satnav-capable phones are currently selling around four times more quickly than PNDs. There is therefore a substantial addressable market for devices, products and services enabling mobile phone owners to use their phones as satnav devices, either as an alternative to a PND or as a complement to one. Key findings of the Ovum report include: - The total addressable market for in-car navigation on mobile phones is bigger than the total addressable market for PNDs, by somewhere between 15 percent and 25 percent. - Several different types of player can act as the service provider for mobile phone navigation. Vendors of software and content have been driving the market most actively, and many market services...

Virtual Worlds Management announced findings from their comprehensive study showing that venture capital and media firms have invested more than $425 million dollars in 15 virtual worlds companies during the fourth quarter of 2007. Of the $425 million, $375 Million was invested in 13 companies and the remaining $50 million consisted of two acquisitions. Fourth quarter numbers are up from $220 million having been invested in 23 virtual worlds related companies in Q3 2007. In the third quarter Disney also announced its $700 million acquisition of Club Penguin. No comparable data is available for Q4 2006. Investors during the Q4 2007 period include: Omnicom, Alloy Ventures and Storm Ventures, Vickers Financial Group, DHX Media Ltd., Benchmark Capital, Canaan Partners, GrandBanks Capital, Hummer Winblad Venture Partners, Trinity Ventures, Rustic Canyon Ventures, Providence Equity Partners, Charles River Ventures, Kodiak Venture Partners and Pequot Ventures, Gigamedia, Sony and Time Warner,...

World stock markets have recently taken a beating and the U.S. domestic market is on the edge of recession but based on the latest mobile phone shipment figures from ABI Research, it seems no one bothered to tell the handset vendors. "Many economic sectors are struggling and there are fears that the global market might mimic the downturn in the United States, but virtually all the mobile device vendors experienced very festive cheer in 4Q 2007," said ABI Research vice president Jake Saunders, after assessing latest vendor results. "It looks like the quarter will clock out at our forecast of 342 million devices, which takes the yearly tally to 1.15 billion -- a 15.8 percent increase on 2006." "Taking into account the growing sense of global economic uncertainty, ABI Research has reduced its 2008 handset market growth forecast from 13.5 percent to 12 percent,” added research director Stuart Carlaw. Motorola was the only vendor not to enjoy the fruits of 2007. By ...

The DVI standard, facing strong competition from other technologies including HDMI and the DisplayPort standard in the PC market, will begin a steep decline in 2008, according to the latest market study by In-Stat. DVI will decline from 112 million device shipments in 2007 to just 3 million device shipments in 2011, the high-tech market research firm says. Digital visual interface (DVI) and high-definition multimedia interface (HDMI), are related, high-bandwidth, unidirectional, uncompressed digital interface standards. "HDMI's success continues to be enormous, especially in the Consumer Electronics (CE) segment," says Brian O'Rourke, In-Stat analyst. "Close to 90 percent of digital television (DTV) shipments in 2007 are expected to include HDMI. In addition, HDMI penetration of large markets such as set top boxes continues to increase." In-Stat market study found the following: - 143 million HDMI-enabled devices will ship in 2007. - DVI-enabled device shipm...

According to the latest market study by In-Stat, 2007 was a year of contrasts for the global cable TV industry, particularly on the subscriber side. On the positive side of the ledger, total worldwide cable TV subscriber households now number 408 million -- an increase of 10 percent over the total from last January. At the same time, however, the number of U.S. cable TV households decreased again during 2007. Currently, there are just under 68 million cable TV households in the U.S., a decrease of approximately 500,000 during the past year. So why the contrast between the global market and the U.S. market? In-Stat says two key points account for the difference -- booming demand and investment in emerging markets, and increasing competition in more established markets. In contrast, I believe that the primary reason for the U.S. decline isn't competition, it's actually the ongoing increases in cable TV subscription fees, and the growth of alternative forms of entertainment availa...

The number of mobile phone subscriptions worldwide actively using data services via CDMA2000 1xEV-DO increased more than 80 percent year-on-year, according to the latest market study by Informa. The figure surpassed 56 million at the end of 3Q07, up from 30.8 million a year earlier, to represent 15.3 percent of the world's overall CDMA base. The increase was driven by Verizon Wireless (USA) and KDDI (Japan), the leading EV-DO operators, which accounted for 60 percent (33.8 million) of the world total between them at the end of 3Q07. Verizon Wireless total EV-DO subscriptions increased nearly three-fold in the year to September 2007, boosted by a wider range of EV-DO-enabled devices. Currently 39 of the operator's 49 handsets are EV-DO-capable. KDDI has the highest percentage of CDMA users that are also active users of data via EV-DO (56.4 percent). Innovative data services, as well as Japanese subscribers propensity to regularly upgrade to the latest handset models, are the rea...

Offered either on a stand-alone basis or bundled with other telecom products, IPTV services are experiencing noteworthy expansion across developed and emerging markets, according to the latest market assessment by Pyramid Research. IPTV subscriptions doubled in number over the past 12 months and will continue to post double-digit growth over the next four years as they are rolled out in markets around the world. In numbers, the results are as follows: - There were approximately 15 million IPTV subscribers at year-end 2007. - Using a bottom-up regional analysis and forecasts, the global IPTV market in 2011 will be more than 72.6 million subscribers. But all is not equal even among IPTV offerings. Currently, IPTV services do not evolve in a linear manner from basic to highly sophisticated products. Some telcos launch highly interactive IPTV services with a wide content portfolio from day one, while others go to market with a basic VoD-only approach. By considering market conditions and t...

As mobile television services expand over the next five years, ABI Research predicts that the total number of subscribers will grow to 462 million -- driven in large part by the expansion of 3G networks, and flat-rate plans for mobile video services. The build-out of mobile video delivery networks and an increase in the amount of available content will also contribute to the market's growth. "Mobile operator sustained investment in video delivery will continue to be rewarded by subscriber's growing adoption rates, particularly as they upgrade to new video-capable handsets," says research director Mike Wolf. "Consumers are being increasingly enticed by better experiences through more powerful and larger screens as well as by a widening array of subscription options." ABI Research sees the Asia-Pacific region as the overall leader in the adoption of mobile video services. The number of subscribers to mobile video services in Asia-Pacific will grow from 24 mill...

Pressure on companies to provide work-life balance programs for their employees -- combined with advances in communication technologies -- is increasing the number of mobile workers in the U.S. and around the world. By year-end 2011, IDC expects nearly 75 percent of the U.S. workforce will be mobile. The current generation of workers is demanding more flexibility and mobility in their schedules. They also have a higher comfort level with technology in general, including remote access technologies and mobile devices. The proliferation of high speed networks, widespread public wireless broadband Wi-Fi hotspots, and fixed-mobile convergence (FMC) technology now allows employees to work effectively from almost anywhere. In addition to meeting the demands of today's workforce, enterprises are deploying mobile solutions to meet both horizontal and vertical industry needs driven by increasing business response time as well as to help reduce corporate space (and leasing) requirements. Orga...

Though 2007 was another strong year for video game makers, the gaming console hardware business is very costly, according to the latest market study from In-Stat. Therefore, the three main vendors have turned to online gaming either to generate additional revenue streams or to promote brand loyalty, the high-tech market research firm says. "The primary differences among Nintendo's, Sony's, and Microsoft's online efforts are mainly of scope," says Stephanie Ethier, In-Stat analyst. Microsoft is looking to create a number of revenue streams through its Live service, including its subscription service, paid casual games, and additional paid content. Sony is following a model similar to that of Microsoft's, except for the subscription service. Nintendo is limiting its revenue to paid downloads for Nintendo and partner games. In-Stat's market study found the following: - From 2004 to 2011, annualized growth of console subscribers will be 42.7 percent, and growt...

Time Warner Cable (TWC), the second largest Multi System Operator (MSO) in North America, confirmed plans last week to test market usage-based billing (UBB) in its Beaumont, Texas market. TWC estimates that roughly five percent of its High Speed Internet service users consume fifty percent of the bandwidth. However, a new assessment by Strategy Analytics questions the wisdom of this move. "Moving towards UBB is an operational misstep, and runs the risk of confusing customers, creating bad blood and further tarnishing the already low customer satisfaction scores Broadband Service Providers (BSPs) typically garner," says David Mercer, Vice-President of the Strategy Analytics Digital Consumer Practice. Continued broadband penetration depends on the BSP's ability to win customer wallet share. Customers have grown accustomed to paying for their broadband service in a certain way, and appreciate and expect a predictable monthly bill. Dramatically altering the model, with no dis...

Many factors impact base station demand, and the largest is the uptake and usage of 3G technology in mobile service provider networks, according to the latest study by In-Stat. Should uptake of 3G services be light over the next several years, the only new base stations required would be those to support more subscribers and for replacement of old or broken base stations, the high-tech market research firm says. But, should 3G demand miraculously become heavy, the number of base stations required to quench this wireless demand could be large, with operators paying dearly for new base stations. However, given the lack of consumer demand for 3G services, it's the equipment vendors who continue to benefit. Meaning, analysts are apparently puzzled. "Our forecast for 3G data use falls somewhere between very little use and heavy use," says Allen Nogee, In-Stat analyst. "While there are many convincing arguments for heavy wireless data use, competing technologies, such as W...

Worldwide PC shipments grew by 15.5 percent in the fourth quarter of 2007 (4Q07), according to IDC's Worldwide Quarterly PC Tracker. In EMEA the consumer and back-to-school rush that drove more than 20 percent growth in 3Q07 subsided, but shipments continued to expand rapidly -- outpacing growth in the prior five quarters. Other markets also performed well with growth in the United States rising to 8.8 percent and stronger than expected results in Japan and Latin America. On an annual basis, total shipments reached 269.0 million units in 2007 with growth of 14.3 percent. HP took the top spot with volume of over 50.5 million, with Dell in second with volume of 40.0 million. Acer moved into third with volume of 21.2 million excluding Gateway's business for the first three quarters and 24.6 million including Gateway, followed by Lenovo with 20.2 million. "Fourth quarter results show a very healthy PC market," said Loren Loverde, director of IDC's Worldwide Quarterly ...

ComScore released its latest Video Metrix report, indicating that more than 75 percent of U.S. Internet users watched a video online, averaging 3.25 hours of video per person during the month of November 2007. Google Sites, which includes YouTube.com, increased its video market share by more than two percentage points to 31.3 percent from October to November. Americans viewed nearly 9.5 billion online videos in November, with Google Sites once again ranking as the top U.S. video property with 3 billion videos viewed (31.3 percent share of all videos viewed), 2.9 billion of which occurred at YouTube.com (30.6 percent). Fox Interactive Media ranked second with 419 million videos viewed (4.4 percent), followed by Yahoo! Sites with 328 million (3.5 percent) and Viacom Digital with 304 million (2.6 percent). In total, 138 million Americans -- approximately three in four U.S Internet users -- viewed online video in November. Google Sites also captured the largest online video audience with 7...

Last year was the first time trade shows -- or face-to-face media -- surpassed business publications in share of total revenue. The emphasis on socialization -- and social media -- is growing for digital media, according to the latest market assessment by eMarketer. Their "B2B Marketing Online" report tracks the tectonic shifts that are shaking up the once solid and predictable world of long, complicated sales cycles. Of course, reaching the ultimate decision maker is still the key goal, but marketers also need to target researchers, technical advisers and negotiators at every stage of the buyer facilitation process. In addition, online search-based research clearly plays a major role for buyers in every phase of the purchase process, and social media -- such as blogs, wikis, social networks -- are being consulted as well. eMarketer projects that in 2008, U.S. B2B online advertising spending will increase almost 19 percent, to $5.2 billion. I believe that the technology marke...

As the market for basic video services becomes ever more competitive, cable TV operators around the world are now relying on cable modem services to generate new revenue streams, according to the latest study by In-Stat. In fact, bundling video and data services is providing cable operators with a significant competitive advantage over their pay-TV service rivals, the high-tech market research firm says. "Some markets, such as North America, are feeling the effects of increasing competition for video service subscribers," says Mike Paxton, In-Stat analyst. "However, in other markets, demand for cable video services is growing at an almost exponential rate. China is a good example. In 2007, it added over 20 million cable TV subscriber households." The research covers worldwide markets for cable modem and cable TV video services. It discusses technology standards and market dynamics for cable modem services around the world, provides regional and country-by-country su...