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Emerging IPTV and Mobile TV Models: Market opportunities, challenges and key vendors

Published by: Business Insights

Published: Apr. 20, 2009 - 124 Pages


Table of Contents



Emerging IPTV and Mobile TV Models

Executive summary

The new broadcast landscape

Mobile TV

IPTV

Establishing a revenue model

Vendor landscape

Chapter 1 Introduction

Introduction

Definitions

Digital pay-TV (DTV)

Digital terrestrial TV (DTT)

Internet Protocol TV (IPTV)

Internet TV

Mobile broadband

Mobile Internet

Mobile TV

Video on demand

Chapter 2 The new broadcast landscape

Summary

Introduction

The emergence of new delivery models

The drive towards digital TV services

Broadband adoption

Shake-up in consumer viewing habits

TV viewing has undergone a seismic shift

Consumers are increasingly attracted to alternative online entertainment channels

Content producers exploit new channels for distribution to expand audience reach

Consumers look to the mobile phone for entertainment

Competition and innovation

Broadcasters and content producers give strong investment to new channels

Non-traditional competitors enter into the sector through white label services

Development of mobile TV standards

Resistors to future success

Broadband development

Monetising new digital TV platforms

Chapter 3 Mobile TV

Summary

Introduction

Defining mobile TV

Mobile TV audiences

Growth opportunities

Current take-up of value-add services

Delivering mobile TV content

What to watch

Live or on-demand content?

Case study: mobile TV in action in Japan

Mobile TV offerings in Japan

Mobile TV providers

NTT DoCoMo

KDDI

The role of the mobile operator

External threats

Barriers to widespread adoption of mobile TV

The mobile TV revenue model

Market immaturity

Availability of content

User experience

Chapter 4 IPTV

Summary

Introduction

IPTV adoption

Drivers behind IPTV

Faster broadband speeds

Increased competition in the sector

Growth in digital TV

Regional demand for IPTV

IPTV delivery

IPTV supply chain

Vendor strategies

IPTV infrastructure providers

Market positioning

IPTV technology offerings

Future outlook

IPTV service providers

The business case

Service bundles

In search of differentiation

Video on demand as a differentiator

HDTV as a differentiator

Quality of experience

Beyond broadcast

Finding a niche market

Challenges in rolling out IPTV services

Challenges facing technology vendors:

Challenges facing service providers:

Chapter 5 Establishing a revenue model

Summary

Introduction

Mobile TV

Will people pay?

Pricing models

Flat-rate subscriptions

Pay per use

Pay per view

Making money from content

New wholesale broadcast model

Mobile advertising

Consumer views on mobile advertising

The impact of the economic downturn

Recommendations for operators

The likely operator model for monetising mobile TV

IPTV

Drivers behind IPTV advertising

The advertising opportunity

Challenges to IPTV advertising

Scale and reliability are a must

People and processes

Accountability and measurement

Regulation

Revenue sharing

Selling IPTV advertising

Dynamic insertion of targeted ads

On-demand ad insertion

Ad tagging

Dedicated advertising channels

Search and auctions

T-commerce

Chapter 6 Vendor landscape

Summary

Introduction

Vendors in the mobile TV sector

Vendor analysis

Nokia

O2

Vodafone

Orange

China Mobile

Alcatel-Lucent

Qualcomm

Vendors in the IPTV sector

A competitive market

Vendor analysis: IPTV service providers

AT&T

Verizon

BT

DTV

Vendor analysis: IPTV technology providers

Alcatel-Lucent

Cisco

Harmonic

Microsoft

Motorola

SeaChange

Ericsson

Sezmi

Intel

Index

List of Figures

Figure 2.1: Global DSL subscriber numbers (000s), 2007-2012

Figure 2.2: Consumers demand for control over TV content

Figure 3.3: Mobile phone take-up continues to grow 2007-2013

Figure 3.4: The mobile phone remains primarily a communication device for consumers globally

Figure 3.4: Digital TV platform uptake (households in millions), 2007-2012

Figure 4.5: Europe sees a higher take-up of IPTV than the US

Figure 5.6: How much will consumers pay for blockbuster films on their mobile phone?

Figure 5.7: Consumer willingness to view ads in return for free films on their mobile phone

Figure 5.8: How mobile content services fit into ad-funded model

List of Tables

Table 4.1: Digital TV platform uptake (households in millions), 2007-2012

Table 4.2: Vendors introducing video-specific features


Abstract

The delivery of TV is undergoing one of the biggest transformations in its history, driven by technological innovation and changing consumer habits. Over the next few years, the entire broadcast market will make the transition from analog broadcast to digital services. The movement away from analog free-to-air (FTA) services - such as those received over an aerial - to digital terrestrial television (DTT) and free satellite will be a major leap forward in the provision of digital TV to the public.

‘Emerging IPTV and Mobile TV Models: Market opportunities, challenges and key vendors’ is a report published by Business Insights that examines the vendor opportunities and challenges presented by the emerging TV models of mobile TV and IPTV. This report provides an analysis of the market conditions that have driven the emergence of alternatives to the traditional broadcast model, in addition to the macroeconomic factors that will have an impact on their future growth. This report also examines the service offerings of major vendors competing within the mobile TV and IPTV markets, and provides insights into the future competitive landscapes of each sector.

Key Findings

Traditional television viewing in the UK declined by 3.6% between 2002 and 2006. The increasing use of the internet continues to have a significant role in changing consumer viewing habits.

In 2012, the IPTV market is forecast to attain household usage of 22.8m, an increase of 28.8% since 2007. IPTV market growth is being driven by faster broadband speeds, increased competition and the growth of digital TV.

Operators are still experimenting with pricing models for mobile TV, and opinion is divided about the relative merits of the flat-rate subscription model and the pay-per-use model.

BT’s IPTV offering has grown in popularity since launch, however the future success of this endeavour is highly dependant upon the positioning of Vision within the UK TV market.

Use this report to...
  • Understand the key trends and drivers that are shaping the future of mobile TV and IPTV platforms with this report’s examination of the drivers and resistors of these new delivery models.
  • Identify future growth areas in the emerging TV markets with this report’s analysis of key data from user trials to provide insights into changing consumer usage and viewing habits.
  • Discover the commercial potential of mobile TV and IPTV, understand the most effective pricing and revenue models and assess the revenue potential of advertising through these emerging channels.
  • Evaluate the competitive landscape of the market for mobile TV and IPTV services with this report’s comparative analysis of leading vendor strategies and the competitive potential of their service offerings.
Explore issues including...

The transition to digital TV is a key driver of IPTV as well as other digital TV platforms. It allows service providers to broaden content packages and bundle services offered to consumers.

Changing consumer viewing habits. As the Internet has made the 24x7 culture a reality, users have become more accustomed to instantaneous consumption and access to TV programs according to their own schedule and not that of the broadcasters.

Advertising plays a crucial role in the development of mobile TV and IPTV. Although mobile advertising requires more consumer acceptance, advertising on the IPTV platform provides the facility to mix classic TV advertising with the accountability and targeting capabilities of the Internet.

Discover
  • What factors are responsible for the emergence of mobile TV and IPTV?
  • How do mobile TV and IPTV service providers establish successful revenue models?
  • What are consumer attitudes towards price plans for TV programs via these platforms?
  • What are the growth opportunities and barriers pertaining to the widespread adoption of mobile TV?
  • How do vendors providing IPTV services confront challenges and generate affective strategies?
  • Who are the key vendors and service providers in both mobile TV and IPTV markets?


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