MUMBAI: Rapidly rising broadband penetration in North America has set the stage for increased demand and rapid growth of premium or paid online content applications such as music, gaming and video/movies. This is bringing in opportunities for the consumer broadband market and participants that can identify and deliver compelling content to their customers. This market has earned revenues of $2.45 billion in 2005 and is likely to exceed $10 billion in 2012, suggests the findings from Frost & Sullivan (www.frost.com/communicationsservices) analysis North American Residential Online Content Services Markets. |
“For mainstream consumers, online content has been inextricably linked to Internet usage and rising broadband penetration is further cementing this bond,” notes Frost & Sullivan research analyst Piyush Arora. “As broadband service providers continue to enhance speeds and bandwidth limits for their subscribers, new opportunities are cropping up in terms of content applications that can be delivered on these fast connections.” Premium online content applications such as music, video/movies and gaming offer broadband service providers a competitive advantage in a market where participants have largely competed on speed and pricing. Providing content can also help service providers sell ‘triple play‘ or ‘quadruple play‘ service bundles to customers. The study indicates tha online gaming is undoubtedly the most popular of these applications, currently accounting for the bulk of market revenues, at 59 percent. Music and video are fast catching up and becoming popular among broadband consumers. At present, online music and video revenues constitute 34 percent and 7 percent, respectively, of the total paid content market revenue, informs an official release. |
However, a key challenge facing all market participants is the need to strictly control unauthorized on-line content distribution as well as the piracy of copyright protected content. A related challenge is to ensure that the various competing digital rights management (DRM) technologies and standards, needed for the legal distribution of digital content, are compatible with each other. Currently, the leading on-line content distributors and device vendors use different proprietary standards. In 2004, the loss to the U.S. music industry due to illegal file sharing exceeded a massive $2 billion, which demonstrated the seriousness of this challenge. Unless the rights of artists and other copyright owners are protected, content owners – including music recording companies and movie studios – are not likely to consider the Internet on an equal footing with traditional media. “Online content distributors and specialist content providers must therefore, continue to collaborate with content owners, technology companies, broadband service providers and other stakeholders to curb the illegal distribution of digital content,” says Arora. “The online music market has already benefited from these efforts, which can reap similar results in the emerging video market as well.” Moreover, participants must take concrete steps to resolve the DRM interoperability issues, to encourage consumers to actively use the Internet as a mainstream medium for accessing paid content. North American Residential Online Content Services Markets, part of the Communications Services Subscription, provides an analysis of the current and future market for premium or paid online content services and applications along with the key market drivers and restraints and industry challenges faced by various stakeholders in the industry. |
Category: Software
-
Broadband growth ups demand for premium online content in North America
-
Echostar buys a stake in South Korea’s TU Media
MUMBAI: US satellite service provider Echostar has become the second-largest shareholder in South Korea’s TU Media.
It operates a satellite digital mobile broadcasting (S-DMB) service.
TU Media has raised $74.7 million.
The company said that its largest shareholder, SK Telecom, and Echostar purchased 9.95 million new shares of TU Media to raise the company‘s capital to 288.2 billion won.
TU Media said that the partnership with Echostar would help accelerate its efforts to make inroads in overseas markets.
In 2005, TU Media started the S-DMB service. This allows users to watch TV on a mobile device.
The company cliams to have attracted more than 1 million subscribers for the fee-based mobile broadcasting service since its launch. It aims to raise the number to two million this year.
-
Net lags behind TV on ad spends: Study
MUMBAI: JupiterResearch, which focusses on the impact of the Internet and emerging consumer technologies on business, has found that globally the Internet continues to rival TV for consumers’ time while print media suffers the effects of online media usage.
According to a new report Media Consumption Patters: Online Vies with TV As Primary Medium, online users spend as much time as they spend watching TV, while users under the age of 35 spend more time online than on TV.
Both TV viewing and online use have increased during the past five years, although usage appears stabilised. Consumers say they spend over ten times as much time with TV and the Internet as they do with print media like magazines and newspapers.
Despite this trend, however, advertisers continue to spend disproportionately on print, with newspapers garnering nearly three times the expenditure of online. Money spent on television advertising remains the clear leader among the marketing mix with advertisers spending four times as much on TV advertising as all online advertising.
JupiterResearch VP senior analyst David Card says, “Neither relatively better targeting nor the increasing availability of branding-friendly rich media and video inventory have led to any demonstrable online cannibalization of TV spending. But that’s partly because over half of users’ time online is spent in communications, like e-mail and instant messaging.”
So while online social networks might seem like the ideal mix of media and communications, advertisers must use them appropriately. Brand advertisers should rely on sponsorships, widgets, or branded microsites within the networks.
JupiterResearch analyst Emily Riley says, “Sponsoring personal-page themes and widgets that entertain or offer exclusive access to content also makes sense for reaching potential brand advocates. But it takes a light touch. Marketing can’t be so intrusive that it risks creating negative brand association.”
-
Apple Inc to launch movie rental service
MUMBAI: Apple Inc. is in talks with major Hollywood studios to launch a movie rental service.
It already offers movies for download and purchase via its universal online iTunes music store. iTunes users can download and buy movies made by The Walt Disney Co. and Viacom Inc.‘s Paramount Pictures.
The library has a collection of more than 200 hundred films on a download-to-own basis for $14.99 per film.
The new rental service would offer movies for $2.99 for a 30-day ‘viewing period’. Technology embedded in the download will then allow the movie files to be moved from a computer to another device, such as an iPod or an iPhone, but will not permit copying.
The Financial Times reported that Walt Disney Company and Paramount are already looking to come on-board, but Universal is still giving second thoughts. The service is likely to be launched this fall, in the US.
Online movie rental companies such as Movielink, CinemaNow and Amazon.com would be its main competition. It would also be a competitor to DVD rental stores and DVD-by-mail service Netflix.
-
Indiagames, Sify partner to launch two games
MUMBAI: Indiagames Ltd. has launched two more massively multiplayer online games (MMORPG) with Sify (Access Media) under the titles ‘Gunbound‘ and ‘Rakion‘.
The launch is in continuation of a partnership signed in December 2006. Both the games will be available on Indiagames‘ Games on Demand (GoD) service.
Indiagames CEO Vishal Gondal said, “Currently Indiagames is in talks with other MMORPG game publishers and will soon have many more of other MMORPG games on the GoD catalogue.”
Access media president Pijush Kanti Das said, “Our partnership with Indiagames enables us to reach out to a larger gaming audience. As leaders in the MMORPG segment, it is natural for us to extend our products to be available to a wider segment.”
Rakion is an on-line action strategy game, with intense focus on sword and weapon battles. Gunbound is an online casual turn based fun game where in gamer can play with international players.
MMORPG allows thousands of players to play in an evolving virtual world at the same time over the Internet.
GoD is a subscription based online PC gaming service featuring over 300 international quality games including Microsoft‘s Age of Empires amongst others. GoD service is available with almost every major internet service provider.
-
Trai announces non-Cas area tariff meetings
NEW DELHI:The Telecom Regulatory Authority of India (TRAI) will be holding Open House Discussions (OHD) in Jaipur (4 July ), Hyderabad (13 July), Kolkata (10 July) and Lucknow (13 July) on consultation paper on tariff for cable television services in non-CAS areas.
A press release from Trai said today that the venues and the time of the Open Houses are as follows:-
- Hyderabad: 11 AM to 1 PM at Grand Ball Room – III, Taj Krishna, Road No.1, Banjera.
- Jaipur : 11 AM to 1 PM at Hendley‘s Hall, Jai Mahal Palace, Jacob Road, Civil Lines.
- Kolkata : 11 AM to 1 PM at Crystal Hall, Taj Bengal,34-B, Belvedere Road, Alipore.
- Lucknow: 11 AM to 1 PM at Central and North Hall, The Taj Residency, Gomati Nagar.
Trai has said that all interested agencies/ individuals are invited to participate.
The consultation paper is available on TRAI‘s website http://www.trai.gov.in
- Hyderabad: 11 AM to 1 PM at Grand Ball Room – III, Taj Krishna, Road No.1, Banjera.
-
DTH operators in promo drive to lure subscribers
MUMBAI: Direct-to-home operators have lined up free subscription offers in a bid to acquire subscribers.
Tata Sky has just announced a special promotional offer ‘1pe3 2pe5‘ while Zee Group‘s Dish TV has an ongoing Summer Holiday Bonanza which, on purchase of a connection, allows customers to avail of a four month free subscription to the top end Maxi package and a free season ticket for 24 movies on demand.
Tata Sky‘s offer, on the other hand, entails three months of free subscription on the purchase of one connection and five months free subscription on the purchase of two or more connections. Consumers, however, have to purchase Tata Sky by 23 July. Existing Tata Sky subscribers can also avail of this offer.
Tata Sky‘s top-end package, Jumbo Super Saver Pack, comprises 99 Hindi, English, regional and sports channels along with six interactive services and is priced at Rs 300 per month.
Meanwhile, Dish TV has three optional monthly packages – a Maxi package of 115 channels priced at Rs 300, a Welcome package of 85 channels at Rs 262 and a Freedom Plus package of 55 channels at Rs 160. The current subscription offer, which was introduced on 5 May, gives customers the Maxi package free for the first four months, following which they can choose their own package. The movies on demand feature is priced at Rs 1320.
Apart from the promotional offer, Tata Sky has also introduced online recharge options to enhance subscriber convenience. Subscribers can now pay for their subscription on www.tatasky.com through their credit card/net banking accounts. The online payment option also offers the flexibility of paying for an entire year‘s subscription at a single go.
Says Tata Sky MD and CEO Vikram Kaushik, “As part of our endeavour to constantly offer greater choice and convenience to our customers, we have launched the ‘1pe3 2pe5‘ offer and the online recharge functionality. We believe both these initiatives will be appreciated both by our new and existing customers.”
In addition to the Super Saver Pack, Tata Sky recently introduced three new channel packages – the Starter Pack, the Family Pack and the Western Pack.
-
Harris to showcase integrated broadcast workflow solutions at Broadcast Asia
MUMBAI: Harris Corporation, an international communications and information technology company, is showcasing a wide range of broadcast workflow solutions at the Broadcast Asia 2007 exhibition and conference.
The event will take place from 19-22 June at the Singapore Expo. The Harris solutions enable customers to improve efficiency, create new revenue streams and reduce the costs of operations.
NewsForce is a complete, file-based newsroom solution built on the NEXIO XS server platform, which includes three new Harris editors optimized for fast cutting, voicing and airing of news and provides a streamlined, MOS-enabled infrastructure for producing, processing, distributing and managing standard-definition/high-definition (SD/HD) content.
Integration of Apple’s Final Cut Studio production suite with NewsForce – takes advantage of the open XML API in Final Cut Pro, the editing software at the heart of Final Cut Studio, to provide tight integration with the Nexio storage area network.
Integration of the Harris Velocity NX promo editor with Dixon Sports Computing’s video clip management tools – enables the creation of high production-value HD/SD highlight packages in live sports broadcast environments.
Platinum MX – extends the innovative Platinum line of large routers into medium-scale configurations. Platinum MX™ is designed for cost-effective configurations up to 128×128 in a compact 9RU frame, while providing the same advanced capabilities of the larger 256×256 and 512×512 Platinum routers.
Opto provides fiber solutions in a minimal amount of space. It features an architecture that provides natural cost advantages to both system-wide and individual application solutions. Fiber modules are able to operate simultaneously alongside any processing and/or distribution modules within the 6800+ frame.
The QSEE6800+HST module – provides cost-effective signal monitoring capabilities. The module permits user-customizable alarm criteria, with both level and time-duration thresholds, and scalable thumbnail viewing for up to eight HD/SD signals with four groups of embedded audio.
Harris Channel One is a complete solution for automated TV channels that combines a high-quality graphics playout server, animation, live video, video clips, audio, real-time external data feeds and master control functionality in a single chassis, enabling broadcasters to produce and air complete television channels in HD or SD.
DTP-300 is the latest addition to the Digital Turnaround Processor (DTP) product line, the DTP-300 allows broadcasters to add local branding, insert commercials, manage EAS and rate-shape MPEG-2 and MPEG-4 program streams without having to decode and re-encode at the local station level.
Inscriber® G-Scribe™ 5.0 is an advanced suite of on-air graphics design tools featuring an updated, full-featured character generator, real-time animation, multilayer compositing, 3D fly by technology, and a feature-rich media store for managing digital assets.
H-Class ADC Playout Automation is a premier production room tool for automated dubbing, content management and program playout. Ideal for small- to mid-size broadcasters, the ADC™ Playout Automation system controls a full range of devices, including the latest integrated switchers and branding equipment; manages complex effects and playout tasks; and can be customized to add air channels or device controls with the option of expansion as station needs grow.
NetVX ENC-A21 HD/SD and ENC-A11 SD encoders – bring the latest H.264 video encoding technology into the successful Harris NetVX video networking system.
InfoCaster version 3.0 digital signage solution offers the ability to create, schedule, manage, distribute and deliver graphics, live video and dynamic data to a single local display or thousands of remote displays spread over a network.
-
HBO to be available in HD by mid-2008
MUMBAI: US broadcaster HBO is committed to making all 26 feeds of its HBO and Cinemax multiplex channels available in high-definition.
The rollout will begin later this year, with anticipated completion by the end of second quarter of 2008.
HBO chairman and CEO Bill Nelson says, “We have a long history of firsts in technology – satellite, multiplex and SVOD. Such a commitment reinforces our tradition of giving our customers the best programming when they want it and how they want it. This move further solidifies HBO‘s leadership in the premium category.”
HBO was the first national cable network to offer HD feeds, with HBO HDTV launching in 1999 and Cinemax HDTV in 2003.
-
Deltatre extends relationship with Fifa
MUMBAI: Sports technology firm Deltatre has announced an extension to its long-term relationship with football‘s governing body Fifa following the launch of a revamped Fifa.com.
Deltatre has been providing the competition results and TV graphics services for all Fifa events since the Fifa World Cup in 2002.
The new Fifa.com is produced by the Fifa new media department with the support of Deltatre and its partners NTT Europe Online and Entriq.
The new contract, which spans the period 2007-2011, forms the cornerstone of Fifa‘s ambitious new media strategy to create the most comprehensive global football destination on the web by offering one single destination website to all football fans and enhance the user experience making Fifa.com web 2.0 enabled.
Fifa‘s New Media department head Charles-Henry Contamine says, “Fifa is very pleased to be working with deltatre on this ambitious and challenging new project. The new Fifa.com project is an important piece of Fifa‘s long-term new media strategy and is a big step forward as we bring the Fifa World Cup website under the umbrella of Fifa.com.
“With deltatre, we feel we have a highly reliable service provider that brings the necessary commitment, experience, creativity and spirit to lay the foundation for the successful realisation of our goals” .
Deltatre CEO Giampiero Rinaudo says, “We are thrilled to extend our close and long-term relationship with Fifa to this new exciting project. Together with our partners, NTT Europe Online and Entriq, we look forward to the challenges over the next four years, which will culminate in the delivery of the event website for the 2010 Fifa World Cup in South Africa.”