The Future of TV

BUSINESS INSIGHTS The Future of TV The evolving landscape of HDTV, IPTV and mobile TV New Technology Report - Published October 2007 High definition households in Europe and the US, 2006-2010 Source: The Future of TV “The US is likely to retain its significant lead over Europe with regard to the penetration of HD services by the end of the decade. By the end of 2010, over 50 million US households will be viewing HD programming, representing almost 45% of all TV households across the country. In contrast only 12m (or 8% of TV households) in Europe will have made the transition by this time...“ Identify the competitive landscape, growth opportunities and the impact of new technologies on the broadcast sector with this new report... Business Intelligence for the Technology Industry Business Insights' portfolio of technology management reports are designed to help you make well informed and timely business decisions. 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The order form on the back of this brochure lists recent t itles available from the categories of CRM, Strategy, eCommerce, Information and Communications Technology and vertical markets including Finance and Healthcare. Some key findings from this report... Mobile broadcast TV subscribers Asia-Pacific • There has been a significant reduction in traditional media use since 2005, with the largest audience declines in TV, falling by 17% and national newspapers by 14%. The key driver of European digital TV uptake to 2010 is expected to be digital-to-terrestrial services. It will to drive uptake to 109m by the end o f 2010, compared to 78m in the US. Digital cable will drive growth in the US by 2010, closely followed by digital satellite. Unlike Eur ope, digital terrestrial is not expected to be a significant digital TV plat form in the US. Asia-Pacific is expected to be the largest market for mobile TV subscriptions with around 76.3 million subscribers by 2012, representing a CAGR of 51.7%. A key reason for companies to invest in IPTV solutions is to increase the revenue they get from each subscriber. Providing a broader range of services to which custome rs can be cross-sold increases revenue potential. • • Source: The Future of TV “The Asia-Pacific region, as a whole, is expected to be the largest market for mobile broadcast television and is expected to account for 76m mobile broadcast subscribers by 2012. This is roughly 49% of the total global market ...” • • The Future of TV The evolving landscape of HDTV, IPTV and mobile TV Digital TV households in the US by platform, 2005-2010 Media consumption habits are changing as a result of the emergence of multiple distribution platforms and the ever-growing number of channels available for accessing entertainment. With a significant migration from traditional media by the ‘networked generation’, it is increasingly essential for media companies, broadcasters, service providers, content providers, telecommunications and hardware manufacturers to understand the implications of these trends and to ensure that their products are flexible enough to meet changing consumer demands. The Future of TV: The evolving landscape of HDTV, IPTV and mobile TV is a new management report published by Business Insights that provides a detailed analysis of market opportunities and growth sectors across the European, US and Asia-Pacific regions. This new report combines market analysis and forecasts, technology reviews and strategic recommendations to provide an invaluable tool for understanding the current and future evolution of the broadcast TV sector. Anticipate future changes in demand in the broadcast TV sector and create more effective strategies to exploit this demand with the help of this new report. Source: The Future of TV “In contrast to Europe, digital cable is expected to drive growth from now until 2010 – although digital satellite will represent almost the same opportunity over the forecast period. Unlike Europe, digital terrestrial is not expected to be a significant digital TV platform in the US, and was overtaken by IPTV in 2007...” This new report will enable you to... Mobile subscribers including pre-pay 2006-2012 • Identify and quantify future market growth opportunities by geography and product type based on this report’s market forecasts to 2012 for key TV sectors across the European, US and Asia-Pacific regions. Understand the key drivers and inhibitors in the broadcast TV market including changes in costs, consumer demand, security, technical challenges and content provision Enhance the competitiveness of your products and services with this report’s strategic recommendations detailing how to increase Average Revenue Per User through the provision of new services. Assess the broadcast TV competitive landscape with this report’s insight into M&A activity, non-traditional entrants to the TV market and changes in the technology landscape. • • Source: The Future of TV “A primary factor in the uptake of mobile broadcast television is the adoption of mobile services. Because mobile broadcast television is often linked to a mobile operator and a subscription to its services, addressing mobile penetration and subscriber uptake is essential to create a foundation from which to address mobile broadcast TV...” • Key issues examined in this report... Mobile TV usage pattern • How big will the IPTV mar ket be? By the end of 2010, IPTV will account for approximately 8.6% of digital households in Europe and 7.5% in the US. • Which mobile TV format is likely to be widely adopted? HD television (HDTV) is gaining considerable traction across the globe. Consumers are upgrading their television sets to plasma or LCD flat screens as they demand greater quality in their TV experience. • What type of content is most likely to appeal to consu mers? As expected, some broadcasters will support both formats depending on the type of content being transmitted. Pay-TV operators are also likely to support both formats in order to provide high quality regardless of the format used by th e content provider. • Do consumers want mobile TV? Results from both secondary and primary research highlight that one of the biggest challenges facing players investing in the mobile bro adcast TV space is convincing consumers that the service is wo rth their while. Source: The Future of TV “Current trials have established that mobile TV viewing patterns differ from standard TV. While standard broadcast TV mainly takes place in th e evening, mobile TV has its peak hours in the early morning, lunch time and in the early afternoon, clearly showing that mobile TV will become an individual activity mostly based on commuting... ” Your questions answered... Digital TV Market Comparison • Which mobile TV format will be the likely winner? • How big will the digital TV market be in 2012? • What impact will mobile TV have on A verage Revenue Per User? • How do the drivers of digital TV differ between the US and Europe? • Will IPTV be a s ignificant revenue stream? • What does the entrance of non-traditional players mean for the broadcast TV sector? • How should service providers differentiate their products? • Which will be the biggest market for m obile TV? Source: The Future of TV “Europe and the US will see strong consumer adoption until the end of the decade. Satellite, Cable, Digital Terrestrial Television and IPTV all offer distinct features with regards to interactivity and additional services. The rate of growth and th e regulatory nature of each national market will continue to differ until the end of the decade, although the uptake of as a whole di gital television is expected to grow strongly...” Sample Information: ‘The Future of TV’ Chapter 2 The Rise of Digital TV Investment in new channels A recent survey of senior IT executives within 150 Figure 2.4: Proportion of IT budget invested into new distribution channels, 2007 broadcasters and content producers in North America and Western Europe highlighted that players are making substantial investments in new channels. As a whole, the survey results yield strong indication that service operators are primarily interested in expanding their product portfolio’s to incorporate new distribution channels. One of the biggest channels that players are interested in exploiting is the Internet, with over 56% of respondents stating that they are investing heavily into online distribution. The figure below illustrates results with regards to the level of investment respondents are looking to devote to new Source: The Future of TV distribution channels over the course of 2007. The survey illustrates that around 21% of broadcasters are investing heavily in alternative channels, allocating over 20% of their IT budget in this area. As a whole, around 84% of respondents are aiming to invest at least some proportion of their budget into alternative distribution channels over the next 12 months. The survey suggests that the industry is actively looking to new strategies to delivery content. This development can be directly attributable to the significant shift in consumer consumption habits and the rise of alternative television players such as Joost, Jalipo and YouTube. While content producers and broadcasters are potentially using these alternative channels as an economical means to boost reach and generate customer loyalty, traditional pay-TV operators are looking to create innovative services in response to boost their competitive positions. Enhanced content services There is little doubt that service bundling and expanded product portfolios are essential for survival in an increasingly crowded and aggressive marketplace. While this issue is important, it is equally as crucial to ensure content itself is used as a source for differentiation. Video-on demand (VOD) services and high definition (HD) content are at present used by key players as a method to create differentiation in the market. - 41 - Order this report today to find out more... Table of Contents CHAPTER 1: THE EVOLVING BROADCAST LANDSCAPE • Media in the 21st C entury - New business models - Broadband adoption and its impact on TV • Competitive landscape - The impact of M&A on the m edia sector - Non-traditional competitors • Technology landscape - Digital TV - Video on demand (VOD) - High-definition TV - Mobile TV - Mobile TV subscriber forecast • The future of advertising in a digital world CHAPTER 2: THE RISE OF DIGITAL TV • Market overview - Triple-play bundling - Investment in new channels - Enhanced content services - Video on demand - HDTV content - Operational efficiencies - Mobile TV • Market sizing - Europe vs US comparison - By platform - Europe - United States • Conclusions - Europe - United States CHAPTER 3: THE FUTURE OF HDTV • HDTV market overview • HDTV technology standards - Compression technology • Consumer electronics equipment - HD televisions - Commercial market vs consumer market - HD set-top boxes • Market sizing - General - The United States - US satellite operators - US pricing • Western Europe • Conclusions CHAPTER 4: THE EMERGENCE OF IPTV • IPTV market overview - What is IPTV? - Broad range of services • IPTV technology overview - Digital Subscriber Line Access Multiplexer - Consumer equipment - Middleware - Multicasting and unicasting • Market drivers and inhibitors - Drivers - Improved compression and reduced hardware costs - Hardware costs are falling - Increasing uptake of broadband - Increasing competition between platforms - Boosting ARPU and reducing churn - Inhibitors - IPTV is relatively new and untested - Deployment costs - Lack of content relationships - Competing platforms • Market sizing • Conclusions CHAPTER 5: BROADCAST TV TO MOBILE • What is mobile broad cast TV? - The broadcast TV to mobile value chain • Market drivers and inhibitors - Drivers - Consumer demand - Mobile phone penetration - Single, multifunctional devices - New revenue stream - Inhibitors - Competition from other content services - Consumer education - Technical challenges - Handset capabilities - Content security - Mobile TV content • Technology standards - DMB vs DVB-H vs MediaFLO - DVB-H - Digital Multimedia Broadcasting (DMB) - MediaFLO - ISDB-T - Summary Table of Contents (contd.) • Market sizing - Global - North America - Europe - By country - Asia Pacific • Recommendations - Pricing - Option 1: flat fee for unlimited TV access - Option 2: pay-per-view - Option 3: charge per minute - Option 4: two-tier pricing model - Business model - Handsets - Audience - Lifestyle target - Demographic targeting • Conclusions TABLES • European broadband penetration by household, 20062010 • Digital TV uptake comparison: Europe vs US, 20052010 • Digital TV market development comparison, 2005-2010 • Digital TV households by platform, 2005-2010 - Europe - US • The most common HDTV display formats • Mobile broadcast TV subscribers 2006-2012 - North America, - Europe, 2006 – 2012 - Asia-Pac, 2006 – 2012 FIGURES • Digital TV market comparison. 2005-2010 • Simplified broadcast TV to mobile value chain • Mobile Broadcast TV subscriber forecasts, 2006 – 2012 • Proportion of IT budget invested into new distribution channels, 2007 • Broadcasters IT budget priorities, 2007 • High definition households in Europe and the US, 20062010 • High definition households in the US, 2006 – 2012 • HD households in Western Europe with CAGR, 2012 • European HDTV market development comparison, 2008 • Top-level IPTV systems architecture • Compression technology developments have boosted the potential of IPTV services • Cable operators and telcos are providing an increasingly similar range of services • Offering video services can substant ially boost ARPU for telcos • Incremental costs per IPTV subscriber ($) • IPTV uptake comparison: Europe vs. the US, 2005-2010 • Simplified model for mobile video consumption • Simplified broadcast TV to mobile value chain • Mobile subscribers including pre-pay, 2006-2012 • Expandable screen on a mobile phone • Regional comparison of mobile broadcast TV subscribers, 2006 – 2012 • European mobile broadcast subscribers by country, 2012 • Major Asia-Pac markets comparison for mobile broadcast TV subscribers , 2006 – 2012 • Mobile TV usage pattern • Finnish trial sample distribution by age group FAX BACK TO +44 (0)20 7900 6688 or +44 (0)20 7551 9089 Website 1. 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