2007 Global Digital Media Volume 1 - Industry Convergence Continues

Publication Date	May 2007
Publisher	BuddeComm
Product Type	Report
Pages	166
ISBN Number	not applicable
Product Code	BUD00117

Price

£305.00
approximately: $595 | €385

PDF

PRINT £355 ($695 | €450)

Order above formats by FAX

Summary

The convergence between telecoms, media and IT saw the arrival of Digital Media, and in 2007 we are beginning to see a clearer future for its direction. Led by high-speed access to the Internet, new ranges and applications for Digital Media are developing. This in turn is stimulating other industry sectors to change their business models, including the traditional media and telecommunications companies.

Some convergence will continue to take place now, but other forms will wait until open networks based on Next Generation Networks (NGN) and fibre become available over the next 10 years. In the meantime, supplementary as well as converged services will continue to be introduced.

For more information, see chapter 1, page 1 and see chapter 2, page 12.

It is the Internet companies such as Google, Yahoo!, eBay, AOL, Microsoft, News Ltd and Amazon, which by evolving their services and capabilities are forcing the industry to change. They are breaking down the old business models which were mainly built around monopolistic market structures.

Traditional media companies have realised they can longer treat the Internet simply as a fad; the reality is that these developments are well and truly eating into their businesses. The industry has had no choice but to finally moving in more innovative directions. The telcos will also need to work hard to keep up, as they too have lost the lead they had in the market for the last five years.

The focus is moving towards content and applications, and this requires a change in marketing strategies. The market is now moving from supply driven (telco) to demand driven (Internet), and those with the best marketing and customer service capabilities will win; technologies are rapidly becoming commodities. Convergence will inevitably lead to a structural separation between infrastructure and media players.

Triple play is the first telecoms derived business model designed to deliver some the newly integrated products. However triple play models themselves have so far not lived up to expectations. While there have been some positive developments in countries such as France, Italy and Hong Kong; by and large it has not been the success story that was anticipated. It is the Internet media companies that are now setting the trend and the business models emerging from their stables will become far more important in the future.

A key to success in the new era of digital media revolves around advertising. New advertising business models are now emerging, giving the industry the confidence to begin changing their more traditional models. The phenomenal growth in online advertising revenues is also a driving this trend.

More and more businesses are also increasing their e-activities. This includes e-trading, website marketing, transactions, email and other forms of related communications. Digital Media, such as videoconferencing, is now playing a vital role in many companies' day-to-day operations, and new developments such as telepresence are also beginning to infiltrate.

Key Highlights:

In order to maintain their positions and compete in the new market, leading Hollywood players have digitalised their collections, and in some cases set up online content distribution services. Others have established partnerships with existing content distributors and packagers, and the content is promoted and sold over the Internet or even mobile.
Current broadband developments will finally lead to the much-vaunted phrase 'Interactive Multimedia', and this in turn will bring one-to-marketing opportunities based on video communications and interactive digital TV networks.
It is expected that by 2015, 65% of all New Media revenues will be based on permission based marketing.
For more information, see chapter 6.2, page 75.
Search services are central to almost everything that users do online, and this places leading search companies such as Google and Yahoo! at an advantage in the new market. Google is the industry leader, dominating the worldwide search market with around a 60% market share.
The value of search services also became evident with Microsoft launching its own search engine 'Live Search', and Amazon its 'A9' search engine. Traditionally known as a web encyclopaedia, Wikipedia is also attempting to move into the market, with the proposed launch of a search engine in 2007.
For more information, see chapter 4, page 45.
User Generated Content (UGC) will see the largest growth this year; video-based consultancy, monitoring and communication services will also see significant growth.
The USA continues to play a leading role in the development of new digital media markets, being home to many of the global digital media giants such as Microsoft, Google and Yahoo!.
In 2010 over $2 billion will be spent on social network advertising in the US.
Cable TV is set to play a pivotal role in China's converged media environment, as triple play services - which include the provision of television, telephony and broadband Internet access over a single network - begin to be delivered over cable TV infrastructure. China has the largest cable TV network in the world.
For more regional information, see chapter 8, page 88.

Content

1. The Market In 2007
- 1.1 Overview & analyses of digital media
  - 1.1.1 Introduction
  - 1.1.2 The rise and rise of the Internet economy
  - 1.1.3 The future is digital people, not digital media
  - 1.1.4 Convergence delivering results
  - 1.1.5 The Internet
  - 1.1.6 Digital content
  - 1.1.7 Probing for demand
  - 1.1.8 The disruptive effects of digital media
  - 1.1.9 2007, a new stage of growth for digital media
2. Converging Industries
- 2.1 Transitioning to Digital Media
  - 2.1.1 Introduction
  - 2.1.2 The most important telecoms transition issues appearing from our models and scenarios
  - 2.1.3 New kinds of innovations
  - 2.1.4 What may be next after WMesh+fiberMAN
  - 2.1.5 Postsciptum
  - 2.1.6 References
3. Innovative Business Models Arise
- 3.1 Industry business models
  - 3.1.1 The role of the telcos
  - 3.1.2 The role of the broadcasters
  - 3.1.3 The role of the content providers
  - 3.1.4 The role of the IT industry
  - 3.1.5 Broadband Service Providers (BSPs)
  - 3.1.6 Internet economy based business models
- 3.2 Triple play
  - 3.2.1 Introduction
  - 3.2.2 Overview of triple play
  - 3.2.3 Bandwidth requirements for triple play
  - 3.2.4 What went wrong with triple play? Analyses 2007
  - 3.2.5 Multiple play could lead to decline in spending
  - 3.2.6 Spending up on triple play - Infonetics 2006
  - 3.2.7 Triple play in the OECD
  - 3.2.8 Triple play developments around the world - 2007
- 3.3 Marketing strategies
  - 3.3.1 Internet companies taking over the bat
  - 3.3.2 The multimedia consumer
  - 3.3.3 The key drivers of growth
  - 3.3.4 The role of service providers
  - 3.3.5 Customer loyalty
  - 3.3.6 Permission-based marketing
  - 3.3.7 Advertising
4. Evolving Internet Media Companies
- 4.1 Introduction and analyses
- 4.2 Digital media
  - 4.2.1 Structural separation for convergence
- 4.3 Internet media companies
  - 4.3.1 Search services seen as key
  - 4.3.2 Search services market statistics
- 4.4 Amazon
  - 4.4.1 Amazon - new services
- 4.5 AOL
  - 4.5.1 AOL - redefining its future
- 4.6 eBay/Skype
  - 4.6.1 eBay's ARPU and revenue
- 4.7 Google
  - 4.7.1 Innovations keep Google in lead
  - 4.7.2 Merger and alliance examples
- 4.8 Microsoft
- 4.9 News Corp
  - 4.9.1 Not a leader in move to convergence
  - 4.9.2 Merger and alliance examples
- 4.10 Yahoo!
  - 4.10.1 Yahoo expands services
  - 4.10.2 Merger and alliance examples
- 4.11 Wikipedia
- 4.12 Other developments
  - 4.12.1 TV Airwaves for Internet
  - 4.12.2 Copyright becomes as issue
- 4.13 Internet media bypassing the telcos
5. Analyses Of The Media Industry
- 5.1 Massive media changes
  - 5.1.1 Continental shift in competition
  - 5.1.2 Distinct industry realignments
  - 5.1.3 TV broadcasters
  - 5.1.4 Radio broadcasters
  - 5.1.5 Newspaper publishers
  - 5.1.6 The video and DVD rental companies
6. Advertising And Marketing Strategies
- 6.1 Advertising strategies, overview, revenues
  - 6.1.1 Measuring digital media revenues - analysis
  - 6.1.2 Internet advertising
  - 6.1.3 Market developments
  - 6.1.4 Advertising statistics and market trends
  - 6.1.5 Dubious 'advertising' tactics
  - 6.1.6 Advertising and the digital media - analysis
  - 6.1.7 Interactive advertising
- 6.2 Permission-based marketing
  - 6.2.1 Introduction of the concept
  - 6.2.2 Establishing one-to-one marketing
  - 6.2.3 Permission-based: 65% of residential New Media market by 2015
  - 6.2.4 Free Internet, banners and spam are the Ford T-models
  - 6.2.5 First success stories
  - 6.2.6 Trust is key to success
  - 6.2.7 Customer Relationship Management (CRM)
7. Consumer And Business Markets
- 7.1 Enterprise networks need to go public
  - 7.1.1 Skype's VoIP service for enterprises
- 7.2 E-commerce
  - 7.2.1 The market is still growing
- 7.3 Business market
  - 7.3.1 Telecommunication services
  - 7.3.2 E-commerce is changing business models
  - 7.3.3 Market developments
  - 7.3.4 The next step for companies with broadband - analysis
- 7.4 Residential market
  - 7.4.1 New media explosion through to 2008
  - 7.4.2 Early adopters
- 7.5 Target market: top end of consumer market - analysis
8. Regional Overview
- 8.1 North America
  - 8.1.1 USA
  - 8.1.2 Canada
- 8.2 Latin America
  - 8.2.1 Overview of media convergence
  - 8.2.2 Triple play models
  - 8.2.3 Pay TV
  - 8.2.4 Broadband TV (IPTV)
  - 8.2.5 Digital Terrestrial TV (DTTV)
- 8.3 Europe
  - 8.3.1 Western Europe
  - 8.3.2 Eastern Europe
- 8.4 Africa/Middle East
  - 8.4.1 Africa
  - 8.4.2 Middle East
- 8.5 Asia
  - 8.5.1 Market overview
  - 8.5.2 Japan
  - 8.5.3 South Korea
  - 8.5.4 China
  - 8.5.5 Hong Kong
  - 8.5.6 Singapore
  - 8.5.7 Taiwan
- 8.6 Pacific region
  - 8.6.1 Australia
  - 8.6.2 New Zealand
  - 8.6.3 South Pacific
9. Glossary Of Abbreviations
List Of Exhibit
- Exhibit 1 - Some application bit rates
- Exhibit 2 - Drivers of high-speed Internet
- Exhibit 3 - Tillevision Model for ICT Infrastructure
- Exhibit 4 - Tillevision Model
- Exhibit 5 - Conjecture Subsidiarty
- Exhibit 6 - Fractal repetition of the Internet paradigm
- Exhibit 7 - Rural Tellet mobile voice-mail devices
- Exhibit 8 - Media centre devices
- Exhibit 9 - Telecommunication convergence
- Exhibit 10 - Digital media marketing commandments
- Exhibit 11 - Banners
- Exhibit 12 - Permission-based business model
- Exhibit 13 - Early adopters
List Of Tables
- Table 1 - DSL, 1Gb/s, DWDM transmission speeds - what does it mean?
- Table 2 - Digital Access Index for top 25 countries - 2005
- Table 3 - Information highway services - level of interest
- Table 4 - What is the service worth to you?
- Table 5 - Interactive services; what subscribers will pay for
- Table 6 - Drivers for service providers to deploy triple play services
- Table 7 - Percentage of operators globally offering unlimited nationwide fixed-line calls - 2005
- Table 8 - Triple play pricing with per-minute call charges - 2005
- Table 9 - Double play pricing (voice and data) with per-minute call charges - 2005
- Table 10 - Bit caps and corresponding service limits from off-network sources - 2005
- Table 11 - Online users and other media - 2005
- Table 12 - Percentage of online searches conducted on four leading search engines in the US - January 2007
- Table 13 - Percentage of online searches conducted on leading search engines in the US - 2006
- Table 14 - Global market share of Google and Yahoo! - November 2005
- Table 15 - Percentage of worldwide advertising spend on Internet vs other media - 2006; 2009
- Table 16 - Worldwide Internet advertising spending versus overall advertising spending - 2006 - 2009
- Table 17 - Global advertising expenditure by region - 2004 - 2008
- Table 18 - US ad spending on social networking sites - 2006 - 2007; 2010
- Table 19 - Worldwide ad spending on social networking sites - 2006 - 2007; 2010
- Table 20 - Percentage of total US online advertising spending - top four portals - 2006 - 2007
- Table 21 - Share of online display ads - top 3 US websites - 2005 - 2006
- Table 22 - Media platform used by US consumers for major news event - October 2006
- Table 23 - Advertising expenditure growth by country, top ten - 2005
- Table 24 - Historical worldwide B2B revenue - 1998 - 2005
- Table 25 - Cable TV subscribers, annual change and penetration - 2000 - 2005
- Table 26 - Cable TV subscribers, annual change, penetration - major countries - 2005 - 2006
- Table 27 - Triple play households in Europe - 2005; 2010; 2015
- Table 28 - European mobile and broadband (triple play): growth opportunities - 2005 - 2010
- Table 29 - Service bundling offers: UK market - 1995; 2002; 2005 - 2006
- Table 30 - Proportion of bundled services by type: UK market - 2006
- Table 31 - European IPTV subscribers - 2004 - 2006
- Table 32 - Global share of IPTV subscribers - 2006
- Table 33 - UPC video and voice subscribers - September 2006
- Table 34 - Online advertising market Australia, revenue and forecasts - 2003 - 2010
- Table 35 - Home network penetration of Australian households - 2005; 2007; 2010; 2015
- Table 36 - Australian content market revenue - 2005 - 2007