Consumer adoption of Web-to-TV is gaining momentum. Within five years there will be over 200 million web-enabled CE devices operating in the US. Movie rental and purchases are rapidly migrating to electronic sell-through. On-demand TV programming viewing is expanding at an exponential rate. But what is the best method of monetizing OTT video content?
This research report provides an update to In-Stat’s original 2009 Web-to-TV report. The report uses primary research to quantify current Web-to-TV consumer behavior. Total US web-enabled device shipments and installed base are forecasted.
Three alternative Web-to-TV models are identified in order to assess how OTT video content can be monetized. These include the current overlay model that favors device manufacturers and retailers. The bundled model reflects the emergence of video search engine platforms, such as Google TV, that span both online and pay TV programming. Finally, the integrated model envisions the delivery of third-party online TV via pay TV hybrid set-top boxes.
Five-year forecasts for Web-to-TV adoption are presented, segmented by household, revenue, and device type.
UltraViolet Digital Rights Locker Poised for Launch
The Digital Entertainment Content Ecosystem (DECE), a consortium of major device manufacturers, retailers, content producers, and service providers, will be launching the UltraViolet digital rights locker platform next year. If successful, UltraViolet will change the way consumers acquire, manage and view their favorite movies and other video content. Yet, UltraViolet has many hurdles to overcome.
This In-Stant Analysis provides a brief description of the UltraViolet locker and how its functionality will be incorporated into many online video stores and services. It also outlines the major challenges the initiative faces in order to win over the digital entertainment industry, as well as, and the consumer mass market.
Device manufacturers, retailers, content producers, and service providers are all positioning themselves to capitalize on the anticipated rapid growth of OTT video. Within five years, In-Stat predicts that two-thirds of US broadband households will be accessing OTT video, generating over $20 billion in revenue. But what kinds of services will consumers favor? Will it be downloading or streaming video content?
This report examines the market for paid OTT video services to the home. The research is based on data collected from a recent In-Stat primary research survey. The report quantifies the number of current OTT video households in the US, the devices being used, sources of online video and how the content is being acquired. OTT video service providers are profiled. The market data is segmented by age group for added clarity. The report also provides five-year OTT video household and revenue forecasts, segmented by acquisition method (download/streaming).
The US Market for Web-Based TV Widgets and Applications
Just about every manufacturer of consumer electronic devices is introducing web-enabled models that support TV applications (formerly known as widgets). By 2014, there will be over 83 million web-enabled CE devices, including digital TVs, Blu-ray players, digital media players/adapters, gaming consoles, and hybrid set-top boxes that can be used to access YouTube videos, receive RSS news and weather feeds, and deliver Netflix or Amazon VOD to the TV. Technology is driving the introduction of TV applications, but what do consumers really want? This report presents the findings from a US primary research study that identifies consumer interest in TV applications and discusses how they can best be productized. In support of the research findings, 2010-2014 device shipment and installed base forecasts are presented. The report also quantifies the number of US households that will operate at least one web-enabled CE device for viewing online video content over the next five years.
OTT Video Platforms, Devices, and Consumer Expectations
Over-the-top (OTT) refers to the delivery of Internet-based multimedia content to the TV over a broadband connection. Content producers, service providers, device manufacturers, alike, are all seeking to create a new OTT video distribution channel for on-demand, Internet-based digital entertainment.
This PowerPoint research report presents a real-world assessment of the OTT video market opportunity. Based on an In-Stat primary research survey of US broadband households, the report quantifies current Internet TV viewing behavior, web-to-TV adoption, and web-enabled CE device requirements. In addition, the research documents consumer expectations regarding the consumption of digital entertainment, identifying OTT video market and content monetization opportunities. For anyone seeking to participate in the emerging OTT video market, this research will prove vital to product and market planning.
3D has been getting a lot of press in 2009 as the number of 3D films shown in cinemas is increasing and consumer electronics manufacturers prepare to offer 3D TV sets in 2010.
3D has been popular with film producers several times over the previous century, only to have interest wane after a few years, so why will it work this time? There will be a common format for home video in Blu-ray, which along with 3D TV sets will offer a high-quality 3D experience. Due to the availability of 3D TVs, content producers are boosting their efforts to shoot and broadcast live events, particularly sports, in 3D. Consumer electronics manufacturers will even bring 3D content creation to the home with 3D camcorders and digital still cameras.
This report looks at the eco-system for 3D: 3D formats, 3D content, consumer interest in 3D, transmitting 3D to the home, and 3D consumer devices. Worldwide five-year forecasts for 3D channels, 3D TV set shipments, ASPs, revenues by region, and 3D Blu-ray player shipments are provided.
Over the next few years there will be significant change occurring in the digital entertainment industry. Whether it's TV Everywhere initiatives, over-the-top video services, Web-to-TV devices, or 3D digital televisions, the market success of each new innovation will be dependent on attracting early adopters of technology. Yet, many of the characteristics that defined early technology adopters in a pre-Internet world no longer apply. Primary research data is used to identify the attributes of today’s broadband consumer households, in terms of both their own perceived attitudes regarding technology adoption, and their actual online behavior. Five-year forecasts of US consumer households segmented by technology adoption and online behavior is presented.
Competing Business Models for the Future of Digital Entertainment
By 2013, In-Stat predicts the home digital entertainment market in the US will total $233 billion. Device manufacturers and retailers, content producers, as well as pay-TV service providers are seeking to ensure their piece of the revenue pie. Yet, technology, consumer preference, and conflicting corporate goals cloud the outcome. This research presents the market vision for the three industry sectors. Against this perfect-world backdrop, key market elements, such as retail disc sales vs. electronic sell-through, and web-to-TV vs. TV Everywhere are evaluated. Based on these assessments, a vision of the future digital entertainment market comes into focus. A five-year digital content ownership forecast, covering video disc sales, EST, rentals and downloads supports the research conclusions. In addition, a home digital entertainment revenue forecast, that includes CE devices, broadcast and online advertising, and service subscription revenue is presented.
The battle between digital entertainment content protection and content usage has been heating up. Copy protection, watermarks, digital fingerprinting, and conditional access are all technologies used to enforce copyright protection. Yet, attempting to stop the 12 billion illegal P2P downloads occurring annually in the US is being called pointless. What is needed is a new approach to monetizing digital content.
This research briefing provides a detailed examination of the shift from content protection to a two-pronged strategy that involves digital rights information management, as well competing with P2P file sharing services. In-Stat’s primary research identifies consumer expectations and content consumption behavior. The outlined digital rights management strategy has the potential not only to create a market where content producer and consumer expectations are aligned, but one that can generate an added $2.5 billion in annual revenue by migrating P2P file sharers to legal services.
Consumers are increasingly viewing TV content online. The on-demand, Web-user experience fits our busy lifestyles more than broadcast TV. What consumers really want is the online video viewing experience on their HDTVs. A wide variety of devices and technologies are making the Web-to-TV market a reality. This research briefing provides an in-depth look at the online video services, alternative devices, consumer preferences, upcoming content optimization, and revenue opportunities for Web-to-TV. Five-year device and service revenue forecasts are segmented by device type. The research briefing offers insight into how Web-to-TV video content will be consumed in the future. It also examines how Web-to-TV will alter content producer, TV network, and pay-TV service provider business models.
The game console business is extremely costly, and coupled with a dismal economy, Microsoft, Nintendo, and Sony each have turned to online gaming to generate additional revenue. Clearly, in order to take advantage of online gaming, consumers must own a game console. While game console shipments are entering a decline, subscription growth to online game services is expected to occur as a result of the sizable video game console installed base and a growing consumer awareness and comfort with online gaming. From 2005 to 2013, annualized growth of console and handheld subscribers combined will be 20.4%.
In-Stat’s latest gaming report contains forecasts for online game subscribers annually through 2013 for online-capable game console and handheld consoles. Forecasts for each console include an annual console installed base, the number of subscribers (free or paid), subscription revenue, paid download revenue, and online advertising revenue. This report does not forecast PC online gaming or casual gaming. Analyses are provided for the online console strategies of Microsoft, Nintendo, and Sony, as well as the online handheld strategies of Nintendo and Sony.
Monetizing the Internet Using Web 2.0 Business Models
This MS PowerPoint research briefing, entitled Monetizing the Internet Using Web 2.0 Business Models, #IN0904402CM, March 2009, examines how businesses detrimentally impacted by the Internet can revitalize themselves using a Web 2.0 business model. The research includes a review of Web 2.0 principles, as well as an in-depth analysis of consumer Internet behavior, based on insightful primary research from In-Stat. Key elements of Web 2.0 business models are identified, along with their impact on device markets. Major organizational challenges are also outlined.
Two case studies are used as examples of how Web 2.0 business models can transform legacy market sectors. Newspaper 2.0 applies a new business model to the rapidly dying newspaper industry. Telco 2.0 applies a similar web-based business model to the wireline telephony market. The two case studies have interesting similarities, and possibly a common future.
The old war between legacy industries and the .com world is no longer a winner-take-all proposition. This research briefing will open your eyes to a completely new way of leveraging and monetizing the Internet.
As 2008 wound down to a dismal close, In-Stat fielded a consumer survey to ascertain how the economic turmoil is likely to affect consumers' spending plans. We also included a battery of questions about TV viewing and multitasking habits. While the economy is definitely going to slow down consumer spending, new applications that combine TV and the Internet can continue to develop, because there is no new cost involved for consumers. We estimate that over 66 million US consumers are simultaneously using a PC while watching TV. With broadband service becoming nearly ubiquitous, and consumers using a PC while watching TV, Harris' Dynacast product shows one way to "marry" TV to people simultaneously viewing a related website, and transform the World Wide Web into a "lean back" experience.
