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Tag: market-data

  • UK viewers reluctant to pay for HDTV

    Digital revolution sweeps UK but viewers appear unwilling to pay for limited range of HD channels

    UK households with digital televisions as their main set now account for 87.2 per cent of the total, according to a study by Ofcom.
    The survey by the independent communications industry regulator revealed how the digital TV market is divided up between the three main forms – digital terrestrial television (DTT), satellite and cable television.

    Unsurprisingly, DTT’s freeview is the most popular, with 9.6 million homes using a digital tuner to receive an expanded range of terrestrial channels – up 1.3 million in the last 12 months.

    Sky has signed up 332,000 new subscribers to its satellite services over the past twelve months and now hase 8.3 million customers, while Sky+ received an additional 262,000 subscribers.
    However, the figures for SkyHD are only up by 43,000 to 465,000 subscribers.

    With the HD market still developing in much of Europe, programming choices are much more limited than in the US, where competition is leading to a rapid expansion of channels.
    The narrower choice of HD channels in the UK is seen as contributing to viewers’ hesitance to pay for HD services currently on offer.


    Ofcom’s Digital Progress Report also shows that Virgin Media cable subscribers now amount to over 3.5 million, up by 36,800 in the first quarter of this year.
    Cable viewers subscribing to Virgin’s digital video recorder service known as V+ -which can also be used to watch HD services – now amount to 364,200..
    Almost half of Virgin Media customers (48 per cent) were using its video on demand service, with viewing up 10 per cent on the previous quarter.

  • iPhone users "unique" in their mobile behaviour

    Study shows that US iPhone users are five times more likely to access mobile internet than average mobile consumer

    The Apple 3G iPhone will change the mobile behaviour of users and alter consumer expectations for phone capabilities.
    That’s according to a report by analysts Nielsen Mobile which looks at the worldwide state of the mobile web.

    The study says that its growth is due to a combination of increasing numbers of user friendly handsets, higher speed networks and unlimited data packages.
    It then goes on to describe the mobile web as having reached a “critical mass” of users this year.

    But it singles out the iPhone – despite being the second most popular device among mobile users in the US after Motorola’s RAZR – for special mention.

    The report says the device’s impact is amplified by the increased awareness its marketing campaign and buzz has driven.
    “As a result, demand for advanced data services and more robust mobile media-focused handsets has increased.

    “iPhone users, a small but growing segment of the overall mobile audience, are unique in their mobile behaviour.
    “For instance, 82 per cent of iPhone users access the mobile Internet, making them five times as likely to do so as the average mobile consumer.”

    The report goes on to say that, so far, the iPhone population had self-selected through price point as early adopters, describing them as “über media consumers”.
    But it adds that as the price point lowers for this device and penetration increases to include more average consumers, the high data usage of iPhone users may be diluted.

    “At the same time, we expect that the powerful user interface and increasing network speeds will continue to change the behaviours of many iPhone purchasers.
    “Fundamentally, the iPhone, and competitive devices, will also affect consumer expectations for phone capabilities.”

  • Smartphone? Most people just want a camera, Bluetooth and music

    Research shows that cameras, bluetooth, and music top consumers’ lists as “must have” features on mobile phones

    The function-packed Apple iPhone 3G may about to be released to the world but many consumers say they just want a mobile that’s a phone
    Clint Wheelock, vice president and chief research officer for ABI Research, said: “It’s still a voice-centric world. Consumers across all mature markets still choose their mobile operator based on ‘the basics’: price, friends/family on the same network, and network coverage.”

    Speaking after the publication of an ABI Research consumer survey, Wheelock said the findings showed that digital camera functionality, Bluetooth connectivity, and music/radio playback on mobile phones were the top three features that people consider essential for the next mobile phone they will purchase.
    The desire for camera phones with 2+ megapixels leads the pack with 47 per cent of consumers listing this feature as a “must have,” followed by Bluetooth at 34 per cent and music/FM radio functionality at 32 per cent.

    Games and Internet access are also high on the list of features that subscribers have on their phones, but never use.
    “Many mobile data and multimedia services are failing to reach the mainstream not because they’re unavailable, but because they fail to provide a satisfactory user experience and pricing model for most consumers,” said Wheelock.

    However, he said the survey results identified some “surprising differences” between markets.
    “Camera phones, for example, were more than twice as important for consumers in Taiwan versus those in the US,” he said.
    “Similarly, Bluetooth is considered essential by mobile subscribers in Western Europe and Taiwan, but penetration of this feature is very low in Japan and South Korea, so it’s of little importance to consumers in those countries.”

    Other key findings from ABI Research’s global wireless consumer survey of 1,402 current wireless subscribers in seven countries, are as follows:

    * The three most common features that subscribers have on their current mobile phones are: games (64%), Internet access (61%), and 2+ megapixel cameras (58%).
    * The handset features that are least likely to be regarded as essential are: Wi-Fi, mobile TV, and games.

    Click here for full information on the ABI Research brief Wireless Subscriber Profiles and Preferences.

  • HDTV to follow lead of smartphone

    In the same way that mobiles will all soon be “smartphones”, HDTV will simply become “TV”

    BY 2015 nobody will refer to “high definition” TV because HD will be the standard form of free television everywhere.
    But the HD broadcast offering in Europe will largely remain patchy during the intervening transition period, according to a report by Screen Digest.
    The study says HDTV will mainly develop as a pay TV product in Europe over the next five years – and mostly as a satellite product.

    A major factor for this is the lack of HD on free-to-air platforms, with only Sweden having already launched HD on free DTT and only France and the UK likely to follow in the short-mid-term.

    The report says that despite its name, Freesat HD has a disappointing HD line-up and is not likely to make a strong market impact in the UK.
    Other barriers to HDTV uptake are a lack of local HD channels in many countries, with pay TV operators relying mostly on US HD channels supply so far.
    The study concludes that a number of European pay TV operators “lack of ambition” when it comes to HDTV.

    In the report, HDTV 2008: Global Uptake, Strategies and Business Models, three critical success factors that will support the successful migration to HDTV are identified:
    – penetration of HD-ready displays
    – supply of HD content and HD channels
    – the availability of HD broadcast on a variety of television platforms.

    The report shows that all these are now cleared for a sustainable migration to HD in the long term.
    But it adds: “In the next five years, HDTV will mainly develop as a pay TV product in Europe, and mostly a satellite product.
    “However after analogue switch-offs are completed between 2010 and 2012, and digital free-to-air platforms are upgraded to more advanced technologies, they will end-up with more bandwidth capacity and become more widely accessible.”

    This, says the report, will kick-start the next phase of HDTV migration as HD becomes the mainstream and ultimately, the standard form of free television around the middle of next decade.

    There is a clear connection between the depth of the HD offerings and the take up of HD by subscribers, according to the study.
    It says that HD has not been pushed hard enough yet by many of Europe’s pay TV operators despite being used heavily as a marketing tool.
    The problem is that this isn’t followed through with the delivery of HD channels.
    Premiere in Germany still only offers two HD channels and its HD uptake is sluggish.
    By contrast BSkyB has now 17 HD channels covering all genres, and on the back of this has signed up almost 500,000 subscribers in less than two years – the fastest take-up of any new BSkyB product.
    The report says that in European pay TV markets that show signs of maturity, operators can use HD to drive ARPU, increase loyalty and reduce churn rates.
    HDTV can also drive pay TV acquisition, as new owners of HD-ready sets are frustrated by the lack of free HD sources.
    “Pay TV operators should therefore seize this window of opportunity before free TV eventually accommodates more HD,” says the report.

    The report also says that small and medium sized pay-TV operators might benefit from reduced costs of transmission and release bigger capacity by migrating their subscribers to MPEG4 at an early stage.

    Click here to view the report summary and its key findings

  • Signs that South Korean handset barrier may be lifted offers alluring prospect to foreign manufacturers










    South Korean regulations requiring handset applications to be based on a homegrown technology are largely why the country’s mobile phone market is dominated by Samsung Electronics and LG Electronics.
    As a result of the WIPI ruling – the acronym stands for wireless internet platform for interoperability – foreign companies have found it too expensive to produce handsets tailored for South Korean consumers.
    Nokia is virtually absent in the country and Motorola is a minor competitor with less than 5 per cent of the market. Apple has kept its iPhone out of the market because of the WIPI rule.
    Yet international handset makers are keen to enter South Korea, one of the world’s most technologically advanced and expensive telecoms markets.
    Now President Lee Myung-bak’s newly elected government has expressed a willingness to soften the WIPI rule, potentially opening the door to foreign handset makers.
    The move comes as criticism of the WIPI regulations grows, based on the argument that it restricts Korean consumers’ choices,
    Some analysts believe that, even if Korea does soften its rules, foreign companies could still find it tough to break the into the Samsung and LG-dominated market.
    But there is no doubt that if the protection barrier is removed there will be no shortage of foreign handset seeking to end their dominance.



  • Brightpoint to implement cost-cutting in Europe after predicting slowdown in handset sales






    The mobile phone distributor, Brightpoint, is to take cost-cutting measures across its global operations over fears of a slowdown in handset sales.
    The company said it now expects the global handset market to reach 1.25-1.30 billion units this year, down from a previous estimate of 1.25-1.35 billion.
    Second-quarter sell-in units are expected to be “flat to slightly up” compared to the first three months of the year.
    This contrasts with a previous forecast for 3-5 per cent growth by the distributor.
    The cost-cutting will come mainly in Europe, at the former Dangaard operations.
    Brightpoint is cutting 50-75 jobs at its European head office in Denmark, and eliminating another 225-250 positions across its other European operations.
    This is expected to result in annual cost savings of US$25-30 million.
    Brightpoint is implementing other cost reduction initiatives in its Americas and Asia Pacific divisions as well as within its corporate and global information technology organisations.
    The company has simultaneously begun the evaluation and design phases of a European shared service facility and warehouse consolidation and automation projects.
    These measures are expected to contribute “significant additional cost synergies” as they are implemented over the next 6-24 months.
    Brightpoint also announced the resignation of Dangaard founder Steen Pedersen, currently president of Brightpoint Europe, from 19 November.
    Michael Koehn Milland, currently co-COO and president of international operations at Brightpoint, will take the new role of president for Europe, the Middle East and Africa.
    Milland will be responsible for global business development with the objective of increasing Brightpoint’s market share worldwide.
    Mark Howell, the other co-COO, will take up the position of president Americas and also oversee all global logistics operations.

  • Smartphones and low-cost mobile phones set to see most significant growth at expense of mid-tier handsets


    The top and bottom ends of the wireless handset markets are to enjoy the best growth rates over the next five years, according to researchers.
    This will be at the expense of mid-range models, commonly called “enhanced” phones. The enhanced phone sector is currently the largest in terms of shipments, with 854 million units shipped in 2007.
    But it will be overtaken by both other classes in 2013, with just 441 million shipping.
    Kevin Burden, a director of ABI Research and author of the report “Mobile devices annual market overview”, said: “As we see more user sophistication and demand for high-end features, handset manufacturers will continue to push functions of high-level smartphone operating systems further down their product lines.
    “Their smartphone portfolios will grow, and with them, the entire smartphone market.”
    The report said this was seen as desireable by operators as well, who wanted more smartphone users because of the higher average revenue per user (ARPU) they generated.
    It added that the operators also like phones with standard operating systems that are optimised for their content delivery platforms.
    At the other end of the market, demand will be driven by the huge emerging markets in countries such as China, India, and Brazil.
    Here, the ABI report said the low-cost and ultra-low-cost handset categories were set to become the largest classes of mobile phones by 2013 in terms of shipments, though not in terms of revenue.
    “While the unit shipments of ultra-low-cost handsets will be dramatic over the forecast period, the device class is only expected to account for 6 per cent of the market’s overall revenue,” said Burden.
    “But vendors will continue to pursue these markets for the sake of brand-building and the prospect of eventual upward migration by users.”
    Since no single mobile device will serve the needs of everyone, a number of other form factors will compete for users’ mobile computing cycles.
    In particular, MIDs (Mobile Internet Devices) and UMPCs (Ultra-mobile PCs) show promise for wider consumer acceptance.
    According to the ABI report, prices will be moderate (eventually under US$200 for many MIDs) and the devices wiill deliver a superior mobile Internet experience.

  • Mobile software set for rapid growth as inexpensive smartphones ring changes


    The mobile software market will be worth an estimated US$ 67.3 billion in 2013 – up from US$ 17.9 in 2007 – as the number of mobile devices grows and minutes of use increases steadily.
    This revenue growth will be fuelled by mobile carriers’ willingness to carry data apart from voice and the introduction of third-generation (3G) smartphones.
    That’s the conclusion of analysts at Frost & Sullivan in their report “World Next-Generation Mobile Software Market”.
    They say that with the expansion of memory, an increase in processor speed and the availability of better networks that allow for faster data transfer, mobile software is in for exponential growth.
    Daniel Longfield, research analyst at Frost & Sullivan, said there was a mass move towards mobile devices as people used them for tasks that a few years ago were performed on a desktop computer, a laptop, a MP3 player, an electronic gaming platform, or a digital camera.
    He said mobile software was key to placing mobile devices at the forefront of consumer habits by incorporating the applications and capabilities of other electronic devices into mobile devices.
    This, in turn, will benefit all members of the mobile value chain.
    “Over the next decade, the cycle of software development, where many mobile software products and applications were developed originally for other types of devices, will reverse,” said Longfield.
    “This reversal is likely because the number of mobile devices manufactured is expected to continue to outpace all other types of personal electronics and also due to smartphones possessing more processing speed and memory.”
    The report predicts that the mobile software market will grow at a faster rate than the total software market, thereby increasing its segment size.
    But it warns that as mobile carriers are extremely cautious about spending, mobile software vendors will have to prove the value proposition and return on investment of their products before clinching deals.
    Going forward, the mobile software market expects to witness greater standardisation, technological advances, and competitive changes. All these will further increase the mobile software market size.
    “Mobile software vendors are poised to receive large revenue increases from carriers and other mobile market value chain members,” said Longfield.
    “However, these spoils will not come without great effort to patch endless gaps in the current carrier service infrastructure and business models.”

  • Survey shows viewers shifting towards web but preference is still for television screen


    Over a third of all US broadband users have watched at least one TV show on the Internet, according to a study conducted on behalf of the Cable & Telecommunications Association for Marketing (CTAM).
    But the research found that while broadband users are increasingly turning to the web for their video content fix, 94 per cent still prefer to do their viewing on a television screen.
    For cable and satellite networks concerned about the growing threat of online TV shows and movies, the survey provided some comfort.
    Of those who watched online shows, 82 per cent did so because they had missed a specific programme on TV.
    Based on this, the report points out the “critical importance of strong marketing for the initial TV showing”.
    That said, technical limitations that make viewing web video onto TV difficult are not likely to remain so for long.
    The research comes as ByD:sign announce they are launching the first LCD HDTV with DivX Certification for the Japan market. (See Separate article hdtv.biz-news.com/news/2008/06/30/0017)
    With guaranteed DivX video playback, users will be able watch content from the PC on the television while maintaining superior video quality.
    Video On Demand also continues to have a growing presence, with availability in approximately 28 million US homes and over half (54%) of these households ordering On Demand movies or programs.

  • European callers become more mobile as landlines increasingly shunned


    Almost a quarter of European households have given up fixed landlines for mobile phones and online calling, according to a European Union survey.
    The poll, carried out in November and December, found that 24 per cent of European households now eschew fixed landlines in favour of mobile phones, up from 22 per cent in a survey two years earlier.
    The Czech Republic, Finland and Lithuania had the lowest number of landlines in use across the 27-nation bloc.
    The results chime with the growing interest in the use of mobile VoIP services – either via GSM/GPRS wireless standards or through WiFi – and the widespread installation of internet calling software on smartphones.
    The EU survey – which questioned 26,730 people – also found that 22 per cent are now using their personal computers for phone calls or video chatting via programs such as Skype.
    That is a rise of 5 percentage points from the last poll.
    The survey said the bloc’s newer members, most of them in eastern Europe, were leading the trend in a shift to online calling.
    In Lithuania, 61 per cent of the households were using Internet phone services.