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Australia - Digital Media - Online Video Market

This annual report offers a wealth of information on the emerging online video media in Australia. The report includes analyses, statistics, forecasts and trends. It provides a comprehensive insight into the progress of the various video media and examines the key issues in the market and the business opportunities arriving from these new developments.

Subjects covered include:

  • Analyses of the video entertainment market;
  • Analyses of IPTV developments including statistics and case studies;
  • Overview and analyses of the various players in the market;
  • The shift from IPTV to video media;
  • Online video media market studies and some statistics;
  • Activities from telcos and ISPs;
  • The shift from mobile TV of mobile broadband access.


Executive Summary

BuddeComm’s annual publication Australia - Digital Media - Online Video Market profiles the online video media market sectors. It provides market statistics, technical information and analysis as well comprehensive market overviews on online video, IPTV and mobile TV.

The report reveals that video applications over broadband have emerged over the last couple of years, as Internet media companies and content producers seek to exploit the added speed and capacity of broadband infrastructure. The killer application on these networks is video-based communication, mainly produced by users themselves.

While some of the incumbents are trying to create IPTV products, these services have so far largely failed to attract users, particularly where such services have to be paid for. Services like ABC’s iView have been far more successful.

Online video consumption is already producing promising statistics, with Google’s YouTube becoming a worldwide leader. New business models continue to emerge around the world as the players competing in the digital media space begin to pay serious attention.

Europe and Asia have had the most dynamic IPTV markets over the past few years, and recently in the USA the telcos’ IPTV plans - driven by HDTV, on the back of their fibre deployments - have started to gather significant momentum. But IPTV, at least in the format it was initially envisaged, is rapidly disappearing from the front page.

On the whole, customers around the world continue to be more interested in the web-based broadband video applications rather than IP-based TV. The economic downturn may also deter telcos from expanding their IPTV coverage over the next couple of years and subscriber growth could be curbed as consumers rein in their spending on luxury services.

There has also been an enormous amount of hype surrounding mobile TV, but the reality is that very few people are prepared to pay the prices the operators are charging for the service. The current technologies - and, more importantly, the business models - don’t stack up yet.

It may be a great engineering achievement, but where is the business model? Mobile video entertainment and communication services, however, certainly have a bright future - but we might have to wait for 4G before mass market applications are developed.

In 2009 the USA is one market to watch. A coalition of broadcasters plans to provide free, over-the-air programming across 22 US cities. While there are no devices yet on the market to receive such services the industry is hoping consumer electronics manufacturers will create appropriate devices.

It will be interesting to see what companies are going to be involved in all of this. The online video market is a meeting place of giants. The telcos were the first cab off the rank, as soon as they realised what they could do with the Internet. However, they became entangled in debating the need for a good broadband infrastructure prior to offering new media services. And the telcos lack the necessary media background. The media companies have staked their claim as well, and then there are the thousands of smaller Internet-based companies that are using online video in their offerings.

Telstra, in particular, remains adamant about its position in this new market. Under its BigPond brand it has made significant investments in the market. Others covered in this report are: Optus, Vodafone, Hutchison 3, Internode, Adam Internet, Unwired and TransACT. Non-telcos include: ROO Media, Video Ezy, Of the World TV, VOD and ReelTime (history.

Key highlights:

  • In 2009 new business models are beginning to emerge as the players competing in the digital media space begin to seriously take note.
  • By 2009, more than a million people were using Australian-based video media.
  • Telstra has run several IPTV trials and has indicated that it aims to use Foxtel as the vehicle for any IPTV services it may offer.
  • The ABC is looking at the possibility of getting Internet channels which stream live shows.
  • Within six months, users looked at more than 1 million iView programs.
  • With the boom in mobile wireless, the emphasis in the market is changing from content to access.
  • Users have the freedom to bypass mobile TV offerings from the operators and directly tap into their video media of their own choice.
Data in this report is the latest available at the time of preparation and may not be for the current year.

1. ONLINE VIDEO MEDIA
1.1 Online video market overview
1.1.1 Introduction: the power of online video media
1.1.2 Rapidly changing video comms market
1.1.3 Online video media versus IPTV
1.1.3.1 Advantages of online video media
1.1.4 Key trends and business models
1.1.4.1 Killer applications: personal video
1.1.4.2 Telepresence
1.1.4.3 Video iPods
1.1.4.4 Video-on-demand
1.1.4.5 Streaming content into the home
1.1.4.6 TV shows on the Internet
1.1.4.6.1 Hulu
1.1.4.6.2 BBC iPlayer
1.1.4.7 TiVo and YouTube set to make waves
1.1.4.8 Joost and Bablegum beyond the hype
1.1.4.9 Long-tail services from JumpTV and Jalipo
1.1.4.10 Fabchannel
1.1.4.11 Of The World TV
1.1.4.12 Geo-blocking
1.1.5 Video media statistics and forecasts
1.1.6 Backgrounder: video streaming/online video
1.1.6.1 What is streaming video?
1.1.6.2 Streaming media standards by
1.1.6.3 Broadband networks key to breakthrough
1.1.6.4 Narrowband videostreaming didn’t quite make it
1.1.6.5 Streaming HD video
1.1.6.6 The International Webcasting Association (IWA)
1.1.7 Peer-to-Peer (P2P) networks
1.1.7.1 File sharing networks
1.1.7.2 Bittorrent combines P2P technology
1.1.7.3 Influence on Internet resources
1.1.7.4 Commercialisation of P2P services
1.1.8 Conclusion: the future of video in telecoms
1.2 Online video media in Australia
1.2.1 Market overview
1.2.2 IPTV: Australia ain’t America
1.2.3 ABC video downloads
1.2.3.1 ABC iView
1.2.3.2 ABC’s Internet TV trial service
1.2.4 Other initiatives
1.2.4.1 Potential launch of all-broadcaster video portal
1.2.4.2 iiNet
1.2.5 Market surveys
1.2.5.1 IPTV and Internet video services in Australia
1.2.5.2 IDC IPTV forecasts
1.2.6 Regulations
1.2.6.1 IPTV and Unbundled Local Loop (ULL)
1.2.7 Movies downloading
1.2.7.1 Starting with VoD - analysis
1.2.7.2 Social networks
2. VIDEO ENTERTAINMENT
2.1 BigPond Media
2.1.1 Background
2.1.2 BigPond Movies Downloads
2.1.3 BigPond Sport
2.1.4 BigPond TV
2.2 Telstra’s complex convergence strategy
2.2.1 Introduction
2.2.2 Telstra’s original IPTV plan
2.2.3 Telstra’s partial retreat from IPTV market
2.2.4 Conflicts of interest remain
2.3 Internode - BlueBox
2.4 Adam Internet
2.5 Unwired screens IP movies
2.6 TransACT
2.7 Participation TV from Optus
2.8 Non-telco providers
2.8.1 ROO Media
2.8.2 Video Ezy
2.8.3 Foxtel
2.8.4 Of The World TV
2.8.5 VOD Pty Ltd
2.8.6 VoD from destra and Quikflix
2.8.7 ReelTime (history)
3. IPTV
3.1 Introduction
3.2 The future of IPTV
3.2.1 The telcos’ triple play model has failed
3.3 IPTV case studies
3.3.1 USA
3.3.2 Asia
3.3.2.1 China
3.3.2.2 India
3.3.3 Hong Kong’s PCCW
3.3.4 France
3.3.5 Netherlands
3.3.6 Italy
3.3.6.1 Telecom Italia
3.3.6.2 Wind
3.3.6.3 FASTWEB
3.3.6.4 Tiscali
3.3.6.5 Other developments
3.4 Business models
3.4.1 No one-size-fits all solutions
3.4.2 The pay TV business model
3.4.3 Event-staging opportunities
3.5 Telcos versus media companies
3.6 Value-added multimedia
3.7 Video-on-demand
3.7.1 Introduction
3.7.2 VoD needs more work
3.7.3 Other forms of VoD
3.7.4 Online VoD services
3.8 Market developments
3.8.1 Project Kangaroo
3.8.2 First global standards in development
3.8.3 Gaming consoles and IPTV converge
3.8.4 Joost
3.8.5 Broadcasting over IP (BoIP)
3.9 IPTV market statistics and forecasts
3.10 IPTV services revenue statistics and forecasts
3.11 IPTV standards
3.11.1 Open IPTV Forum
3.11.2 ITU IPTV standard
3.11.3 DOCSIS 3.
4. MOBILE TV
4.1 Mobile TV market overview
4.1.1 Mobile TV standards
4.1.2 Mobile TV
4.1.2.1 DVB-H for Europe
4.1.3 Analysis - focus on video media, not TV
4.1.3.1 The broadcaster and the mobile operator
4.1.4 Mobile TV around the world
4.1.5 Mobile TV statistics and forecasts
4.1.5.1 Consumers want GPS, not Mobile TV
4.1.5.2 Other published statistics and forecasts
4.1.5.2.1 Mobile TV and video subscriber statistics
4.1.5.2.2 Mobile TV and video revenue statistics
4.2 Mobile TV market in Australia
4.2.1 Market overview and analysis
4.2.1.1 The future indeed is video communications
4.2.1.2 On-demand mobile video
4.2.1.3 Pursuing wrong business models
4.2.1.4 Operators need to move over
4.2.1.5 Device driven developments
4.2.1.6 Content driven developments
4.2.2 Market statistics
4.2.2.1 Key market 13-19 year olds
4.2.3 Major players
4.2.3.1 Hutchison’s
4.2.3.2 Vodafone
4.2.3.3 BigPond mobile TV
4.2.3.3.1 Overview
4.2.3.3.2 Launch of mobile music program and news channel
4.2.3.3.3 User statistics and trends
4.2.3.4 Optus
4.2.3.4.1 Participation TV
4.2.3.4.2 Partnership with Network
4.2.4 Spectrum for mobile broadcasting
4.2.5 Multimedia Broadcast Multicast Service
4.2.6 Digital Video Broadcasting-Handheld (DVB-H)
4.2.6.1 Overview
4.2.6.2 DVB-H trials
4.2.6.2.1 Irdeto
4.2.6.2.2 Broadcast Australia
4.2.6.2.3 Telstra pulls out of Movemedia trial (historic)
5. GLOSSARY OF ABBREVIATIONS
LIST OF TABLES
Table 1 - Worldwide revenue from online video - 2008; 2012
Table 2 - Online video streams - top 6 online video properties in US - 2007; 2009
Table 3 - PCCW growth in NOW TV - 2003 - 2007
Table 4 - France- IPTV subscribers - 2005 - 2008
Table 5 - Italy - Alice TV subscribers - 2007 - 2008
Table 6 - FASTWEB TV subscribers - 2006 - 2008
Table 7 - Worldwide IPTV equipment spending - 2007; 2013
Table 8 - Worldwide IPTV subscribers - comparison of analysts forecasts - 2007 - 2013
Table 9 - Worldwide IPTV set-top box sales - 2007; 2012
Table 10 - Market share of IPTV set-top boxes - Asia Pacific; Europe; US - 2012
Table 11 - Worldwide IPTV services revenue - 2006; 2008; 2012
Table 12 - Worldwide mobile broadcast TV subscribers - comparison of analysts’ forecasts - 2007; 2010 - 2012
Table 13 - Mobile video subscribers versus broadcast mobile TV subscribers - 2011
Table 14 - Top 3 mobile broadcast TV markets - 2012
Table 15 - Mobile video revenue versus broadcast mobile TV revenue - 2006; 2008; 2011
LIST OF EXHIBITS
Exhibit 1 - Equivalence between access modes and traditional audiovisual use
Exhibit 2 - Video Ezy - 2008
Exhibit 3 - Proposed ReelTime retail pricing strategy
Exhibit 4 - IPTV applications
Exhibit 5 - Top IPTV carriers worldwide - 2008
Exhibit 6 - IPTV subscribers by province and operator in China - 2007
Exhibit 7 - Examples of other forms of VoD
Exhibit 8 - Mobile TV - Unicast and MBMS
Exhibit 9 - Confusing mobile TV technologies
Exhibit 10 - First example of video media collaboration
Exhibit 11 - Mobile TV emerging across the world
Exhibit 12 - Mobile TV viewing minutes in USA and Australia
Exhibit 13 - Broadcast Australia DVB-H trials - 2005 - 2007

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