Press Releases : Platforms

Broadband-Enabled TV Households to Top 360 Million by 2014

The Diffusion Group — Mon, 04 Jan 2010 00:58:00 GMT

Broadband-Enabled TV Households to Top 360 Million by 2014
Broadband-Enabled TVs and Retail CE Platforms to Usher in New Age of Non-Traditional TV Services

Dallas, TX (January 5, 2010) – – According to new research from The Diffusion Group (TDG), by 2014 more than 360 million households worldwide will own the components necessary to enjoy Over-the-Top (OTT) video services on their TV, with more than half actively receiving OTT services. This and other themes are discussed in TDG’s latest digital media analysis, Broadband-Enabled TV: Evolution of OTT Hardware Platforms

“A key reason why many OTT efforts have failed (and will continue to do so) is their dependence on proprietary single-function hardware paid for by consumers.” notes Colin Dixon, managing partner at TDG. “In order to grow a profitable base of service users, OTT operators must either give the hardware away for little to nothing—something upstarts cannot afford to do—or leverage other Internet-enabled platforms as a conduit to the living room. The latter approach is preferable yet its success hinges on the rate at which these Internet-enabled platforms diffuse– a factor over which OTT providers have little control.”

Dixon notes that a number of companies including Netflix and the BBC have been embedding their service software in a variety of retail video platforms and are enjoying early success. As normal replacement cycles unfold over the next five years, and as manufacturers accelerate their shift to embedded solutions, the number of households with at least one Internet-enabled living room video platform will grow (and rapidly so).

The number of broadband-enabled TV households (those with the basic infrastructure to enjoy OTT video services) will grow from 130 million in 2009 to more than 360 million in 2014.

The number of active OTT households (those that put this infrastructure to use) will grow from 40 million in 2009 to 170 million in 2014.

TDG’s latest digital media analysis, Broadband-Enabled TV: Evolution of OTT Hardware Platforms is the second in a two-part report series by Colin Dixon on the emerging opportunities associated with Over-the-Top video services. This second report analyzes and forecasts global demand for a variety of Over-the-Top video platforms including games consoles, Blu-ray players, hybrid set-top boxes, Internet set-top boxes, media-centric PCs, and networked digital TVs.

The report is now available for purchase at www.tdgresearch.com or by contacting TDG directly at 469-287-8050.

Over-the-Top TV Revenue to Top $5.6 Billion by 2014

The Diffusion Group — Mon, 14 Sep 2009 01:00:00 GMT

TDG – Over-the-Top TV Revenue to Top $5.6 Billion by 2014

Dramatic Growth in Diffusion of Broadband-Enabled TVs Will Drive Use of On-Demand Internet Pay-per-View Services

Dallas, TX (September 14, 2009) – – According to a new report from The Diffusion Group, revenue from the delivery of Internet video to the TV will grow nearly six-fold in the next five years, from a meager $1 billion in 2009 to $5.7 billion in 2014. These forecasts are part of TDG’s latest digital media analysis, Broadband Enabled TV: Rise of the OTT Provider, authored by TDG senior partner and digital video expert, Colin Dixon.

Dixon posits that in 2009, pay-per-view services will account for 96% of global OTT revenue, leaving subscription revenue with only 4% of the revenue mix. By 2014, however, annual OTT subscription revenue will have grown 50-fold and account for 31% of global revenue.

Dixon points to current hardware trends as fueling this growth, specifically the ongoing shift to broadband-enabled TVs and the rapid diffusion of ancillary web-enabled platforms such as game consoles, Blu-ray players, and hybrid set-top boxes. Widespread penetration of such platforms will set the stage for a rapid uptake of Internet-to-TV video services, both pay-per-view and subscription-based.

As these platforms more widely diffuse and consumers become more comfortable with using Internet-based TV services, the market will be primed for the arrival of full-fledged PayTV replacement services. Subsequently, TDG expects major OTT service announcements in virtually all global regions in 2010 and 2011, both in terms of stand-alone OTT and hybrid PayTV/OTT TV services, both of which will help fuel growth in OTT subscription revenue to $1.8 billion worldwide by 2014. At that time, North America will account for the vast majority of global OTT subscription revenue ($830 million) followed by Asia ($490 million), and Europe ($407 million). Other global regions will collectively account for only $60 million of this total.

Broadband Enabled TV: Rise of the OTT Provider is the first of a two-part report series by Colin Dixon on the emerging opportunities associated with Over-the-Top video services. The initial report analyzes and forecasts global demand for Over-the-Top (OTT) services, and revenue associated with both pay-per-view and subscription video services, as well as the diffusion of broadband-enabled TVs. The second report in the series will provide forecasts for a variety of web-enabled video platforms including game consoles, Blu-ray players, hybrid set-top boxes, Internet extenders, and others.

TDG Releases New White Paper on the Threats and Opportunities of Online Video for PayTV Operators

The Diffusion Group — Tue, 19 May 2009 15:47:00 GMT

According to a new white paper from The Diffusion Group, the nation’s leading research advisory for the broadband media ecosystem, PayTV operators such as cable and satellite companies must work aggressively to both protect against emerging Over-the-Top TV providers and leverage their extensive content relationships and entertainment-oriented brands to establish a strong online presence...and soon....(read more)

Broadband and Home Network Diffusion to Fuel Rapid Proliferation of Internet-Enabled Video Platforms

The Diffusion Group — Sun, 15 Mar 2009 17:13:00 GMT

According to new research from The Diffusion Group (TDG), the number of global broadband households will near 440 million by 2010 and top 1.2 billion by 2030. During that same time, the number of broadband-enabled home networks will grow from 150 million in 2010 (34% of broadband homes at that time) to more than 1.0 billion in 2030 (83% of broadband homes at that time). With such infrastructure in place, the opportunity for broadband-enabled services – especially video – will grow dramatically....(read more)

TDG’s President and Principal Analyst to Deliver Keynote at 2008 RICA/ RTG Fall Forum “Capitalizing on Convergence.”

Wendy Stockard — Thu, 13 Nov 2008 19:51:00 GMT

TDG's President and Principal Analyst to deliver Keynote
at 2008 RICA/RTG Forum "Capitalizing on Convergence"

November 13, 2008 (Dallas, Texas) - Michael Greeson, one of the world's leading consumer technology and digital home analysts, will headline a comprehensive examination of the power of convergence enabling incumbent carriers to expand their service offerings (while also enabling a new crop of video competitors) at next week’s RICA/RTG Fall Forum.

Greeson, who founded The Diffusion Group in 2004, will deliver the opening keynote for the Capitalizing on Convergence forum during the November 19-20 event. The address, scheduled for 9 a.m. on Thursday, November 20 at the Monte Carlo Hotel in Las Vegas, will examine how the fusion of telecom, data processing and imaging technologies into one operating platform is ushering in a new era in which voice, data, and images are combined to render services to the user.

“New Internet video offerings must be viewed as both complementary and competitive,” said Greeson, “and rural carriers must be prepared to embrace new video technologies to meet the evolving demands of their customers and to fend off emerging competitors.”

Convergence of services, technologies and applications remains a vital yet obscure topic in telecommunications today, with the industry ever looking to adapt to new markets.

“Standing still is not an option," said Greeson. “Passivity will only make the problem worse.”

For additional information relative to the RICA-RTG Fall Forum, please contact the RICA office at (866) 472-1209 or email RICA at info@ricalliance.org.