2013 Global Digital Media - The Dynamic Digital, IPTV and Smart TV Markets
Publication Overview
This annual report is a valuable resource of information on the vibrant global TV sector and incorporates insights, statistics, examples and trends. The report identifies the key issues and directions surrounding the progression of IPTV, Digital TV, Pay TV and internet-based online video services and mobile TV. It explores the trends occurring in multi-play bundling supported by relevant case studies and discussed a future based on Over-The-Top (OTT) services. The report includes unique regional information across North America, Europe, Africa, Middle East, Latin America and Asia Pacific, written by BuddeComm’s Senior Analysts.
Subjects covered include:
Global Digital TV, IPTV and Smart TV;
Global online video streaming and Mobile TV;
Global Triple and Quad play;
Global spectrum and white spaces trends;
Global digital advertising and marketing;
Regional overviews for North America, Europe, Africa, Middle East, Latin America and Asia Pacific.
Researchers:- Kylie Wansink, Paul Budde, Lucia Bibolini, Peter Evans, Paul Kwon, Henry Lancaster, Peter Lange. Current publication date:- October 2013 (6th Edition)
Executive Summary
The hotly contested global TV and Video Media market
The world of television has changed dramatically over the last few years with the biggest game changer being the Internet. The internet has completely changed the shape of the industry and the traditional broadcasters are certainly no longer in charge of the global viewing habits of consumers! With a choice of cable, satellite and free-to-air as well as online DVD rental, downloading, IPTV and instant streaming services; the consumer now has enormous control over when and how they watch movies and TV programs.
Recently the industry also saw the introduction of Smart TV and while BuddeComm are great believers in the potential of Smart TV; we don’t foresee that the revolution is going to come out of the current generation of this technology because many of the functions offered by Smart TVs are not even being used by the consumers yet.
Viewing quality is also a target area for TV manufacturers with the recent release of 4K TV and curved television sets. Industry predictions for 4K TV, also known as Ultra-HD TV are very positive and the release of cheaper versions are expected to drive the global uptake of these TVs - especially in established Asia-Pacific markets.
Other trends occurring in the TV sector sees the inevitable overtaking of physical DVDs by on-demand streaming and digital download. This will become the primary way in which households enjoy movies and TV and this will play out over the next decade as more and more consumers IP-enable their lounge rooms. Hollywood will also make more content available digitally, removing the earlier release window advantages that DVD still enjoys today. IPTV is expected to have a profound change on the face of TV delivery over the next years through to 2015.
Over-the-Top (OTT) content in particular will be a key to these changes, offering opportunities for advertising and content providers alike. In mid 2013 we saw the launch of Google’s Chromecast which is an exciting new development. The principle behind it is probably the magic formula that is needed to finally revolutionise television watching. If this device delivers what it promises, it will indeed totally change the broadcasting market. The sheer market power of this device is going to deliver a terrible blow to those in the industry which are hanging on to their old broadcasting models, with exclusive rights, premium services, walled gardens, proprietary devices and so on.
Many consumers now spend less time in front of the television set and significantly more time in front of digital devices – PCs, smartphones, tablets and gaming consoles. This shift in viewer habits is causing the TV and Video Media market to become one of the mostly hotly contested sectors right now – and indeed for the next few years to come.
BuddeComm’s new report, Global Digital Media – The Dynamic Digital, IPTV and Smart TV markets provides important insights into the vibrant global TV market which is undergoing significant transformation. This report includes key trends, statistics, case studies and analysis on the key sectors which comprise the TV market including Digital and Pay TV, Online video streaming, Mobile TV and IPTV. It explores the trends occurring in multi-play bundling supported by relevant case studies and a future based on Over-The-Top (OTT) services. In addition the report provides insightful regional overviews written by BuddeComm’s Senior Analysts for North America, Europe, Africa, Middle East, Latin America and Asia Pacific.
Examples of key insights:
Now more than ever we are witnessing enormous competition in the global TV and video media industries.
There are a myriad of devices to access TV and video ranging from set-top boxes, game consoles, Smart TV to smart phones, PC and tablets.
An interesting development is that some mobile devices are also becoming the TV remote control and soon there will be apps that will also address the problem of the mass of remote controls that now monopolise the top of many coffee tables around the world.
As BuddeComm has been predicting for several years, the future of the digital media is very much revolving around video-based services.
The potential applications for cloud computing in the broadcasting sector are still emerging but one interesting development in the US is causing disruption. The TV recording service known as Aereo which utilises cloud technology is under fire from the free-to-air (FTA) broadcasters; and in mid October 2013 they filed legal proceedings against Aereo in the Supreme Court.
Online video streaming already makes up the largest component of Internet traffic.
In 2013 around a couple of billion online videos are watched worldwide each month.
In Latin America, Smart TV sales are expected to escalate in Brazil ahead of the forthcoming FIFA World Cup and Olympic Games.
Improvements in broadband infrastructure drive IPTV implementations in Africa.
Australia ranks as the highest percentage worldwide of those that download illegal digital content.
On the back of Asia’s aggressive development and adoption of broadband internet, we have seen a rapid expansion in IPTV services, mostly in a number the more developed markets.
Growing fixed and mobile broadband penetration is driving IPTV and OTT initiatives in the Middle East.
Media convergence in the USA has seen the steady merging of voice, video and data applications, including broadband, VoIP, digital and broadband TV (IPTV).
As with the North American pay-TV market, in Europe the phenomenon of cord-cutting is gaining traction.
During the last two years in New Zealand, infrastructure improvements as well as the gradual rollout of national fibre infrastructure, has made IPTV viable for a growing proportion of the population.
Data in this report is the latest available at the time of preparation and may not be for the current year
Table of Contents
1. Digital TV, IPTV and Smart TV
1.1 Broadcasting changing beyond recognition
1.1.1 Chromecast set to revolutionise the TV
1.1.2 Cloud computing and broadcasting
1.1.3 Move towards channel unbundling
1.2 Digital TV
1.2.1 Digital TV market overview
1.2.2 Other key trends
1.3 Pay TV
1.4 Cable TV
1.5 HDTV
1.5.1 HDTV market overview
1.5.2 Ultra-HD/4K TV
1.5.3 BitTorrent’s deal with CE manufacturers
1.5.4 3D TV
1.6 IPTV revolution
1.6.1 IPTV market statistics
1.6.2 Customer video demand killed by the video supply industry
1.6.3 IPTV+RF
1.7 The Smart or Connected TV
1.7.1 Introduction
1.7.2 Smart TV threatens broadcasters
1.7.3 The gigabyte household needs FttH access
1.8 Brief case study: YouView
1.9 Waiting for the next generation of smart TVs
2. Online video Streaming and Mobile TV
2.1 The power of online video media
2.1.1 Introduction
2.1.2 Online video key statistics
2.1.3 Online video media versus IPTV
2.1.4 Advantages of online video media
2.2 Internet Video-On-Demand (iVoD)
2.2.1 OTT services will also drive iVoD
2.2.2 TV shows on the Internet
2.3 Industry insights
2.3.1 Personal video
2.3.2 Video conferencing and telepresence
2.3.3 TV Everywhere (TVE) and multi-screens
2.3.4 Video Content Delivery Network (CDN) services
2.3.5 Geo-blocking
2.3.6 Copyright and the Internet back in the Spotlight
2.4 Brief case studies
2.4.1 Netflix
2.4.2 YouTube
2.5 Mobile TV/video comms
2.5.1 On-demand mobile TV
2.5.2 Broadcast mobile TV
2.5.3 Mobile TV market summary
2.5.4 Smartphones and mobile TV
2.5.5 Device and content-driven developments
2.5.6 Key market – the youth segments
2.6 Conclusion: The future of video in telecoms
3. Triple and Quad Play
3.1 Introduction
3.2 The three elements
3.3 National broadband networks are ideal for triple play
3.3.1 Lower costs open up access to new models
3.4 What went wrong with triple play initially?
3.4.1 Failing telco models
3.4.2 VoIP and video – hard nuts to crack
3.4.3 TV camera in front of radio programs
3.4.4 The failure of portals
3.5 The future of triple-play
3.5.1 Diversification of video content
3.5.2 Tele-presence will be the killer app
3.5.3 Triple play is an access product
3.5.4 Different Customer service models
3.5.5 Media centres in the home
3.5.6 Smart TV
3.5.7 Triple play moving to the cloud
3.6 Key multi-play markets in Europe and Asia
3.6.1 Case study: France
3.6.2 Case study – The Netherlands
3.6.3 Case study: Italy
3.6.4 Case study: Hong Kong
3.7 Case study – South Africa
3.7.1 IPTV, Triple Play
3.8 Unified Communications (UC)
3.8.1 Early days
3.8.2 UC&C today
4. Spectrum and White Spaces
4.1 Pent up demand for spectrum
4.1.1 Spectrum issue – more to it than meets the eye
4.2 White spaces overview
4.3 Examples of white space developments
4.3.1 USA
4.3.2 Canada
4.3.3 UK
4.3.4 Australia
4.3.5 Africa
4.3.6 Singapore
4.4 Spectrum – important to the development of mobile broadband as a utility
4.4.1 Spectrum key to social and economic development
4.4.2 Spectrum harmonisation and infrastructure-sharing
4.4.3 Mobile broadband will stimulate investments in fibre networks
4.5 A comprehensive infrastructure plan is essential
5. Advertising and TV/Video Media
5.1 Market summary
5.2 Market insights
5.2.1 Consumers will lead the way
5.2.2 Changes in internet advertising
5.2.3 TV advertising
5.2.4 Digital ad exchanges
5.3 Internet media companies – selected insights
5.3.1 Google - Advertising a main strategic drivers
5.3.2 Yahoo - profit up, sales down as it attempts to lure Google and Facebook users
5.3.3 Hulu - mostly positives for Hulu
5.3.4 Facebook - prepared to operate in different markets
5.3.5 Amazon’s rising threat
5.3.6 Online video advertising
5.4 A multi-screen approach gains attention
5.5 Consumers react to privacy misuse by Internet companies
6. Regional Overviews
6.1 North America
6.1.1 USA
6.1.2 Canada
6.2 Latin America
6.2.1 Argentina
6.2.2 Brazil
6.2.3 Chile
6.2.4 Colombia
6.2.5 Mexico
6.2.6 Venezuela
6.3 Europe
6.3.1 DTTV
6.3.2 Key markets
6.4 Africa
6.4.1 Digital TV
6.4.2 IPTV
6.4.3 Mobile TV
6.5 Middle East
6.5.1 Broadcasting overview
6.5.2 Satellite TV
6.5.3 Cable TV
6.5.4 Pay TV
6.5.5 IPTV
6.5.6 Video-on-Demand (VoD)
6.6 Asia
6.6.1 Overview
6.6.2 China
6.6.3 South Korea
6.6.4 Japan
6.6.5 Hong Kong
6.6.6 India
6.6.7 Indonesia
6.6.8 Singapore
6.6.9 Malaysia
6.6.10 Thailand
6.7 Pacific Region
6.7.1 Australia
6.7.2 New Zealand
Table 1 – Global - digital TV households – 2009; 2011; 2013
Table 2 –Global - digital TV penetration market share – 2006; 2009; 2012; 2016
Table 3 – Top 8 countries – pay TV subscribers - 2013
Table 4 – Global - number of HDTV households – 2009; 2012; 2015; 2017
Table 5 – Global – Number of 4K TV households – 2013; 2018
Table 6 – Global - IPTV subscribers – 2010 - 2013
Table 7 – Global revenue from online TV and video – 2008; 2010; 2012; 2017
Table 8 – Online video unique visitors – top online video properties in the US – Various months – 2010 - 2013
Table 9 – Global mobile TV subscribers – 2009 - 2014
Paul is by far, the leading telecommunications analyst in Australia. Not only is his company's research first class and timely, it is superbly contextual to the complexities of today's modern media and communications technology. He is always extremely generous in sharing his knowledge with others and has a great ability to connect people together and be a thought leader on topics of National interest such as the NBN, FttH and Smart Grids.
Bruce Duyshart, Director Strategic Technology, Lend Lease
