Wednesday, November 30, 2005

Industrial analog IC market

Databeans: Industrial semiconductors generated $20 bn in global revenue for 2004. The largest industrial semiconductor segment was industrial controls, with an estimated 32% share of the market. Other segments within the industrial semiconductor market were: test and measurement (23%), military/aerospace (11%), and medical (10%). Other products constituted about 24% of the market. Analog ICs constitute the largest market share of industrial semiconductors, at 18% of the market, and demand is especially strong now for analog power and special-purpose components. The industrial analog IC market was valued at $3,4 bn for 2004. Industrial controls and T&M represent the largest opportunities for ASIC/ASSP industrial analog suppliers, with a combined estimated market value of over $1 bn for 2005. And, although it is relatively small, the medical segment is where most of the growth is taking place, says Databeans. This is due to the increased demand for home medical electronics and rapidly evolving medical technology. More high performance analog suppliers are focused on this space, bringing to market scores of new products optimised for such high end applications as medical imaging, patient monitoring, and implantable devices, it says. 2005 Industrial Analog ICs report Publ20051130

Consumer Awareness And Purchase Intent Of Next Generation Home Video Game Console Systems

NPD: When it comes to next-generation home video game console systems, Sony’s PlayStation 3 has the highest awareness, familiarity and purchase intent among total respondents, gamers and non-gamers, followed by Microsoft’s Xbox 360 and Nintendo’s Revolution. Brand loyalty appears to be a leading factor driving purchase intent, illustrated by the fact that a higher percentage of those interested in purchasing each next- generation system own the current generation system from the same manufacturer. The majority of current generation system owners who are very or somewhat likely to buy a new system plan on continuing to play with the system they currently own and more than half (58%) will continue purchasing games for the system they currently own. Approximately half of all those who are very or somewhat likely to purchase each system said they are willing to spend between $200 and $299, which is in-line with the price points of current generation systems during and post-launch but, n ot surprisingly, price is the most common factor driving purchase timing, with approximately one-third of those interested in buying each new system claiming they will buy it when it goes on sale, / or when the price drops.

Next Generation Console Study. Publ200511130

Broadband access equipment market at $13.7 billion in 2006.

Ovum-RHK: Global. Market is predicted to continue growing at 7% CAGR to 2010

Market: broadband access equipment forecasts, covering broadband access service demand, and DSL, cable modem and fiber-to-the-premises equipment demand.

  • the total market will be worth $13.7 billion in 2006, split between network equipment (53%) and customer premises equipment (47%)

  • DSL will maintain a leading share of network equipment (70% in 2006), with CMTS and FTTP splitting the remaining share (15% share each)

  • Western Europe will remain the largest regional market throughout the forecast period

  • China-India will overtake Asia-Pacific as the second largest regional market by 2010.

Ovum-RHK expects a robust market for broadband access equipment, driven by close to 20% annual growth in broadband subscribers to 2010. 'Applications such as IPTV, triple-play deployments, and higher bit-rate ISP services will continue to drive growth rates in subscribers of 20% and above in all the major markets.'

Broadband Access Equipment forecasts Publ 200512xx

A Six-Fold Increase in Revenue Expected for RFID in Healthcare and Pharmaceutical Applications Market

Frost & Sullivan The RFID market is still in its nascent stages within the healthcare vertical. The business case for the healthcare market has immediate perceivable benefits as compared to other verticals that are still struggling to define the potential returns of adoption. The potential returns and benefits of RFID adoption go beyond just efficient supply chains and economic value to critical issues such as patient safety and process efficiency. RFID would help improve the process of developing drugs and running clinical trials of drugs, increasing patient safety, managing critical care assets and hospital equipment and cutting down on counterfeiting and diversion of pharmaceutical products.

Te RFID in healthcare and pharmaceutical applications markets earned revenue of $370 million in 2004 and estimates to reach $2,318.8 million in 2011.

The late adoption of barcode technology by the market has meant that the technology is still popular among pharmaceutical and other healthcare applications. The current price of RFID technology would also suggest that a complete replacement of bar codes is unlikely and co-existence of both technologies is expected for the next 10 years.

World RFID in Healthcare and Pharmaceutical Applications Markets Publ. 20051130

Wireless, Consumer Products Continue to Drive Semiconductor Industry

In-Stat Buoyed by fast-growing new technologies in the wireless, broadband equipment, and consumer electronics arenas, the semiconductor industry will continue strong growth this decade after the lean years of 2001 and 2002. Some of the fastest-growing silicon categories include wireless cellular modems (2.5 million units shipped in 2004 to 14.6 million units in 2009), wireless LAN chipsets (84 million units shipped in 2004 to 390 million units in 2009), and digital TV sets (16.5 million units shipped in 2004 to 93.8 million units in 2009). Cellular technology in particular, will continue to be a major growth engine through the remainder of the decade. The potential market for arguably the most successful consumer product of all time, the cellular handset, will grow from 1.6 billion cellular phone subscribers worldwide to 2.6 billion subscribers by 2009. That will represent one-third of the world’s population.

  • Sale of video game consoles bottomed out in 2005 at 16.5 million units. The launch of new products in the segment will double the size of the market by 2008.

  • The PC is not dead. Some 100 million CPUs were sold in 2002; I 187.3 million units will be sold in 2005.

  • As to be expected, not all applications paint rosy pictures. PDAs are a dying product line as they are being absorbed in smartphones. By 2009, shipment levels will be almost 1/3 of 2005 levels.

Show Me the Money!!! Sixty Applications to Fill Your Semiconductor Fab Publ 20051130

Debate Between NAND and HDD for Portable Consumer Electronics Will Heat Up

IDC: The storage debate between NAND flash memory and hard disk drives (HDDs) for the portable consumer electronics market will continue and likely increase with price disparity decreasing over the next four years. NAND memory average selling price is expected to decrease at a 43% compound annual growth rate from 2004 to 2009. However, price per GB is not the sole decision criteria. Factors such as total capacity requirements, form-factor, power consumption, weight, durability, data rates, as well as strategic OEM and storage supplier alliances, weigh heavily into storage technology criterion.

We do not expect a "winner takes all" outcome by 2008 as both storage technologies will advance through technology transitions to provide higher capacity products and focus on their respective strengths. Instead of viewing each storage technology as a threat, flash and HDD vendors should approach this development as an opportunity to form alliances to broaden and extend their portfolio.

A Hard Choice That Won't be Made in a Flash: HDD Versus NAND Publ 20051130 Flash NON/NAND? Wikipedia

Tuesday, November 29, 2005

Europe Averages 10+ Hours a Week Online. Online Usage Growing Faster than Any Other Media

European Interactive Advertising Association: Key Findings

17% increase in time spent online across Europe

· European super internet users revealed with 24% spending over 16 hours a week online

· France tops Euro league spending 13 hours per week online

· 29% of Europeans download music at least once a month

· 10% of Europeans have made telephone calls over the web

The average European internet user now spends 10 hours 15 minutes a week online compared to 8hrs 45mins a week in 2004, a 17% increase. Looking back over a two year period reveals that Europeans are spending 56% more time online compared to 2003. The average European is also online 5 days a week. The research also highlights the emergence of a new group of super internet users across Europe. Almost a quarter (24%) of those questioned spend more than 16 hours per week using the internet while 69% are online 5 or more days per week. The figures for broadband users are even more staggering with nearly a third (31%) spending more than 16 hours per week online.

While total media consumption has generally increased across the board, the amount of time spent using the internet is growing at a faster rate than other media. In the same period that online saw a 17% increase, TV use increased by just 6%, radio by 14%, newspapers by 13% while magazines saw a 7% decrease in time spent using.

The EIAA study also reveals the extent to which internet users are embracing the new technologies and services now available on the internet. Increasing broadband penetration across Europe is turning consumers into much more sophisticated internet users. 29% of those questioned download music at least once a month, most likely driven by the arrival of a wave of online music stores such as Apple’s iTunes.

Blogging is also becoming increasingly popular with 13% regularly contributing to online blogging sites while 12% are downloading podcasts at least once a month. Even very new technologies such as Voice over IP (VoIP) are proving popular with consumers with 10% of Europeans are already using the internet to make telephone calls.

People’s Favourite Media

The EIAA Mediascope Europe report also highlights the extent to which the internet has become the preferred media throughout the day. Consumer reliance on the internet as a source of information has made it the most consistent media for people during the day. With the exception of early mornings (6am – 10am), the internet is the second most used media throughout the rest of the day. Between 10am and 5.30pm, the internet comes just behind radio in terms of most used media. Then, during both the early and late evening periods (5.30pm – 9pm and 9pm – 6am), the internet is the second most used media after TV. So, in terms of audience reach, the internet represents one of the most reliable methods of targeting people throughout the day.

France tops Euro League

Surprisingly, the EIAA study reveals that French consumers are spending the most time online compared with users in the Nordics which have traditionally been seen as the most advanced internet users. The average French consumer spends 13 hours online a week with 32% of those questioned spending over 16 hours a week online. Both the UK and Spain spend an average of 11 hours online while consumers in the Nordic and Benelux countries spend 10 hours a week on average online. Italians spend the least amount of time online with an average of only 8 hours per week.

What is striking about this study is how quickly consumers are becoming such sophisticated internet users. It just goes to show that if you offer excellent content and services, the demand will be there,” said Michael Kleindl, Chairman of the EIAA and Managing Partner of Valkiria Network. “This is an important point for marketers to note as the internet is unlike any other media in terms of the sophistication of interaction is offers with consumers.”

More (table): The EIAA Mediascope Europe Study Publ 20051129

EUROPEAN MUSIC INDUSTRY FACES A DEMOGRAPHIC TIME BOMB WARNS JUPITERRESEARCH

JupiterResearch The European music industry is facing a demographic time bomb that could impact future revenues. European consumers who download music from illegal file sharing networks currently outnumber those downloading from legal services such as Apple's iTunes Music Store by a factor of three to one: 15% file share while just 5% pay to download. There is solid demand for paid downloads, however, 10% of European consumers are willing to pay, rising as high as 31% in Sweden.

File sharing penetration in Europe is highest among younger consumers (34% of 15-24 year olds) and is impacting the way they value music with many having little concept of music as a paid commodity. Among the 46% of European online 15-24 year olds who use the Internet to consume music, the CD is becoming increasingly irrelevant: 40% do not consider the CD to be a good value for money and 43% prefer to copy rather than buy CDs. Unless these consumers are encouraged to develop music purchasing behavior soon they may never develop meaningful music buying habits. Illegal activity is a key threat. The Digital Youth of today are being brought up on a near limitless diet of free and disposable music from file sharing networks. When these consumers age and increase spending power they should become key music buying consumers.But unless the music industry can transition these consumers whilst they are young away from free consumption to paid music formats, be they digital or CDs, they may never develop music purchasing behavior and the recording industry could suffer long-term harm. European Music Consumer Survey, 2005 Publ 20051129

Flat Panel TVs and Microdisplay RPTVs Achieve Record Results Worldwide

DisplaySearch: Worldwide TV shipments were up 12% Q/Q and 2% Y/Y in seasonally strong Q3’05 to 43.6M units, within 0.6% of DisplaySearch’s forecast. With pricier flat panel and microdisplay rear projection TVs (MD RPTVs) gaining share, revenue growth continued to outpace unit growth with revenues up 19% Q/Q and 12% Y/Y to $19.1B. As a result, average selling prices (ASPs) rose 6% Q/Q and 10% Y/Y to $439. The flat panel TV unit share, covering LCD and plasma TVs, rose from 6% in Q3’04 and 13% in Q2’05 to 16% in Q3’05 on 37% Q/Q and 153% Y/Y growth as prices become increasingly attractive. While accounting for a minority of units, flat panels earned a majority of revenues for the first time with a 55% share, up from 48% in Q2’05 and 33% in Q3’04 on 34% Q/Q and 87% Y/Y growth.

  • LCD TV shipments rose 36% Q/Q and 156% Y/Y to a record high 5.5M units and a 13% share of the TV market, up from 5% in Q3’04 and 10% in Q2’05. With LCD TV ASPs rising 1% Q/Q to $1190 due to significant gains by larger sizes, LCD TV revenues surged 37% Q/Q and 103% Y/Y to $6.5B and a 34% share of the worldwide TV market in Q3’05, up from 29% in Q2’05 and 19% in Q3’04. The average LCD TV diagonal grew from <24”>25” as the 30” and larger share grew from 29% in Q2’05 to 36% in Q3’05 as prices reached new lows. LCD TVs gained share vs. other technologies across most size categories between 15”-19” and 45”-49”. All regions enjoyed at least 44% growth Q/Q except Japan which was up just 1% due to its already high penetration. Europe remained the leading region with a 40% share, up from 38%, while the North American share rose from 27% to 30%. For the first time, 32” LCD TVs were the single most popular size in every region, earning a 27% share worldwide, up from 21%. 20” remained the #2 size followed closely by 26”. By brand worldwide on a unit basis, the top 5 remained the same with Sharp #1 maintaining an 18% share, followed by Philips/Magnavox, Samsung, Sony and LGE. Regionally on a revenue basis, the leaders remained the same with Sharp leading in Japan and North America, Philips #1 in Europe, Hisense leading in China and LGE #1 in ROW.

  • Plasma TV shipments grew 40% Q/Q and 143% Y/Y to a record 1.6M units and a 3.6% share, up from 2.9%. Significant price declines, particularly from early September, supported the strong growth. Blended plasma TV ASPs dropped 8% Q/Q and 32% Y/Y to a record low $2057 with 37” HD, 42”-43” HD and 50” prices all down at least 13% Q/Q. Despite the lower prices, plasma TV revenues also established a record high, up 29% Q/Q and 65% Y/Y to $3.96B and a 21% share of TV revenues, up from 19%. The HD share of the PDP market rose from 40% in Q2’05 to 47% in Q3’05 worldwide and from 51% to 66% in North America with PDP manufacturers positioning HD products for faster growth as evidenced by the price gap between 42”-43” HD and 42” ED falling 47% from $2012 to $1061 from Q3’04 to Q3’05. 50” was the fastest growing size in Q3’05, up 89% Q/Q, enabling its share of the plasma TV market to rise from 9% to 12%. The 50” plasma share of the 50”-54” TV market surged from 22% in Q2’05 to 31% in Q3’05, gaining share from CRT RPTVs as MD RPTVs also gained share. 42”-43” HD was the next fastest growing size category, up 73% Q/Q and earning a 29% share, up from 23%. 42” ED remained dominant with a 50% share, although it was down from 56% in Q2’05. The <42” style="background-color: rgb(192, 192, 192);">Panasonic remained #1 in plasma TVs with its share rising from 27% to 29% on 51% growth. It remained #1 in Japan, North America and Europe and overtook Changhong for the top position in China. LGE remained #1 in ROW. By size/resolution, Panasonic was #1 in the 5 largest categories - 37” ED, 37” HD, 42” ED, 42”-43” HD and 50”.

  • MD RPTVs rose 50% Q/Q and 44% Y/Y to a record high 634K units after declining sequentially for the past two consecutive quarters. MD RPTV shipments surpassed CRT RPTV shipments for the first time worldwide. The MD RPTV share of the global TV market rose from 1.1% in Q2’05 to 1.5% in Q3’05 on a unit basis and from 6.5% in Q2’05 to 8.1% in Q3’05 on a revenue basis. By technology, DLP and LCOS drove the growth, up 66% and 151% Q/Q with LCD RPTVs up 29%. Due to its significantly faster growth, DLP overtook LCD RPTVs with a 47% to 46% advantage. Gains by 1080p MD RPTVs caused the blended ASP to fall just 2% Q/Q and 18% Y/Y to $2428 enabling MD RPTV revenues to reach a record $1.54B, the second highest quarter to date and up 47% Q/Q and 18% Y/Y. Gains by LCOS, and 1080p DLP sets, which feature larger average diagonals, enabled the average MD RPTV diagonal to rise from 51.4” to 51.7”. By resolution, 1080p MD RPTV shipments reached a 7% share in Q3’05, up from less than 1% in Q2’05. North America continued to dominate the MD RPTV market earning an 88% share, up from 84%. North America gained sequential share from all other regions on 58% Q/Q and 47% Y/Y growth. North America led in every size and resolution category. China also experienced rapid growth, up 44% Q/Q, while ROW and Europe declined Q/Q. Japan shipments were also broken out for the first time. By size, larger sizes continued to gain share with <50” style="background-color: rgb(192, 192, 192);">Samsung remained #2 although its share fell from 25% to 21%. Mitsubishi rose from #4 to #3 on rapid growth in LCD RPTVs as well as DLP. Panasonic fell from #3 to #4 while Toshiba jumped from #7 to #5. By brand by region, Sony led in each region except Japan which was led by Epson.

  • CRT TV unit shipments declined 8% Y/Y while rising 8% Q/Q to 35.5M units. All regions suffered declines of at least 9% Y/Y except China which was flat and ROW which was down 1%. ROW remained dominant with a 45% share, down from 47%, followed by China with a 21% share, up from 19%. With pricing pressure from LCD TVs and loss of share at larger sizes to LCD TVs, CRT TV ASPs were down 7% Q/Q and 17% Y/Y with the average size falling to 22.5”. As a result, CRT TV revenues were down 24% Y/Y and accounted for a 35% share of the total TV market, down from 51% in Q3’04. By size, the 30” and larger share fell from 7% to 6% with the 21” and smaller share rising from 60% to 61%. Samsung overtook LGE to become the #1 branded CRT TV manufacturer followed by LGE, TTE which remained #3, Funai which rose from #5 to #4 and Philips/Magnavox which fell from #4 to #5. By brand by region, Mitsubishi overtook Panasonic for #1 in Japan, Funai remained #1 in North America, Samsung remained #1 in Europe, Konka overtook Changhong in China and LGE remained #1 in ROW.

  • CRT RPTV shipments fell 10% Q/Q and 58% Y/Y to 479K units. Its share of the total TV market fell from 2.6% in Q3’04 to 1.4% in Q2’05 and 1.1% in Q3’05. As a result, it fell behind MD RPTVs for the first time worldwide. Declining demand and pricing pressure from MD RPTVs and flat panel TVs caused ASPs to drop 15% Q/Q and 25% Y/Y to $1032, a record low. As a result, revenues were down 23% Q/Q and 68% Y/Y to $494M, also a record low. While no regions earned Y/Y unit growth, Europe and China earned Q/Q growth with China’s share rising from 18% to 24% and Europe’s share rising from 8% to 10%. North America remained dominant with a 49% share, down from 54% in Q2’05, on a 19% Q/Q and 58% Y/Y decline. By brand on a unit basis, TTE remained #1 with its share rising from 20% to 24%. Samsung remained #2, Toshiba rose from #4 to #3, Hitachi rose from #5 to #4 with Mitsubishi rising from #6 to #5. By region, TTE led in North America, Samsung led in Europe and ROW and Changhong was #1 in China.

In terms of worldwide TV shipments and revenues by supplier, Samsung remained #1 on a revenue basis and overtook LGE to become #1 on a unit basis as shown in Tables 1 and 2. Samsung has earned this position due to its strong position in each technology although it did not lead in any single technology. On a unit basis, it was #2 in CRT TVs, MD RPTVs and CRT RPTVs and #3 in plasma and LCD TVs. While Panasonic was #7 on a unit basis, it was #2 on a revenue basis due to its dominant plasma position. More: Quarterly Global TV Shipment and Forecast Report Publ 20051201

Significant Growth in Small Form Factor and Mobile PC Hard Disk Drives to Boost Worldwide HDD Semiconductor Market

IDC: Significant growth in the small form factor and mobile PC hard disk drive (HDD) segments will more than counterbalance flat growth in the desktop PC and enterprise HDD segments to accelerate worldwide semiconductor revenue growth through 2009. While the worldwide HDD semiconductor market will grow at a compound annual growth rate (CAGR) of 9.6% from 2004 to 2009, chip revenue in the small form factor HDD will experience the healthiest growth rate with a 39.4% CAGR over the same period. Small form factor HDD chip revenue will represent nearly a quarter of the market by 2009.It is critical for HDD semiconductor suppliers to become mindful of end demand as volatile consumer markets grow to drive more and more HDD unit shipments. Consumer markets are also perilous for the growing conflict they represent between HDD storage and NAND flash memory storage.

  • System-in-Chip (SoC) will be increasingly adopted across all form factors

  • Perpendicular recording technology will take hold over the forecast period

  • NAND flash memory's adoption in portable devices will force small form factor drives to move into devices that require higher storage capacity than NAND can support economically

Worldwide Hard Disk Drive Semiconductor 2005-2009 Forecast Publ 20051129 Release publ. in: IQ Online Flash NON/NAND? Wikipedia

Six IT Trends That Will Have a Significant Impact on People, Business and the IT Industry

Gartner: worldwide These six IT trends are expected to drive market growth, representing revenue opportunities for both incumbents and new market entrants in each space. To catch the waves of change at their early stages, vendors, users and investors in technology will need to look outside their industries to find early adopters that provide inspiration for how these trends translate into business value. By 2008, 10 percent of companies will require employee-purchased notebooks. Company-owned notebooks are commonly used for personal purposes, such as e-mail, music and videos. Notebooks will begin to move from company ownership to personal ownership. Since notebook prices have declined dramatically during the past few years, this transition is mostly likely to be managed through the implementation of a notebook allowance, much like car mileage today.Transferring notebook ownership to employees does not eliminate the cost of PCs, but shift it to employee benefits and indirect user operational costs. The payback is removing PC assets from the company books and freeing IT to focus on critical business initiatives. By 2010, 30 percent of U.S. homes will use only cellular or Internet telephony. In 2004, nearly 90 percent of the world's new telecom connections were mobile. Growth in traditional wired voice connections will slow in North America, Western Europe and other developed markets as more people dedicate fixed phone lines to DSL links and switch to cellular or Internet telephony. U.S. consumers are just beginning to add voice over Internet Protocol (VoIP) services to their range of telephony options, but as they get more comfortable with the technology, and as VoIP services improve, they will start to abandon traditional phones. Mobile communications will remain the preference of developing countries, and as a result, wireless links will represent 99 percent of the world's new voice connections in 2009. i"t only took more than 125 years but POTS (plain old telephony service) is now on the decline in the U.S.. The emergence of VoIP and the phenomenal rise of the mobile phone now represent the 'dial tone' for the future The job market for IT specialists will shrink 40 percent by 2010. The coming decade will see the emergence of IT "versatilists," people whose multidisciplinary assignments, roles and experiences create a valuable blend of synthesized knowledge, competencies and context to fuel business value. Today's IT specialists must focus on a rapid and intentional expansion from technical specialization to business competence in order to position themselves as tomorrow's business contributors. The long-term value of today's IT specialists will come from understanding and navigating the situations, processes and buying patterns that characterize vertical industries and cross-industry processes. Business Process Outsourcing (BPO) service providers will capture $11 billion of insurance revenue by 2008. Insurers are turning to external BPO providers to expedite their legacy transformation process. BPO providers are responding by assuming the business process requirements from insurance providers. By 2008, BPO will have the intellectual property and technology platforms to align with the distribution channel (for example, bank and investment houses) and launch insurance ventures that capture up to one percent of the global annual premium total of life, annuity, and property and casualty products. Using the US as an example, this translates into a shift of nearly $11 billion to BPO which will have a substantial impact on the market landscape. Intellectual capital is migrating from insurers to BPO providers, enabling the providers to become competitors - not just service providers - in the insurance market. A 50 percent growth in healthcare software investment could enable clinicians to cut the level of preventable deaths in half by 2013. Healthcare has historically underinvested in IT, however, this is changing. Gartner analysts predict that by 2009, healthcare investments in IT will increase by more than 50 percent, which could enable clinicians to reduce the level of preventable deaths by 50 percent by 2013. The earliest adoption of IT - and realization of improved safety and cost containment - will occur in markets where the ultimate payers exercise leadership to stimulate simultaneous adoption of IT, consensus quality measurements, transparent reporting and aligned financial incentives. The largest IT challenge in most countries will be deploying IT to the numerous small practices that provide most primary care. Through 2008, investigation of new technologies will slow as discretionary budgets divert to regulatory compliance. Regulation is increasing, and the race for "regulatory parity" between the European Commission and the U.S. government ensures this trend will continue through 2010. Regulatory compliance spending is growing at a rate twice that of IT spending, and in many case, discretionary IT budgets are entirely consumed by compliance efforts, stifling initiatives that are important to business growth. New regulations will change the business realities that executives must confront,. Most of these will also cause change for IT. The best IT organizations take the lead to work with the legal, financial, and business organizations of the enterprise to get ahead of the changes for better corporate performance.

Gartner's Top Predictions for 2006 and Beyond Publ 20051129

IPTV in Europe Sees France as the Leading Country with Future Forecasts Estimating That by 2009 There Will Be 2.4 Million Subscribers Research and Markets: European IPTV: Market assessment and forecasts to 2009: . Key Findings:

-- In the first six months of 2005 the number of subscribers to European IPTV services has increased by 66%

-- France is the biggest of Europe's IPTV markets and will still be in 2009 by which time there will be 2.4 million subscribers

-- IPTV growth rates over the next five years will see this new platform have a significant impact on most European Pay TV markets

-- In 2004 eight new IPTV services were launched in Europe, this is the highest number so far.

Screen Digest's latest report: European IPTV: Market Assessment and Forecasts To 2009 Publ 20051129

Monday, November 28, 2005

VOD revenues to break $10 billion in 2010

Informa: In 2010, 350 million homes will take VOD or NVOD services, equivalent to one-third of the world's total TV households. These homes will generate revenues of $10.7 billion. On-Demand TV (4th edition) forecasts that North America and Europe will account for a combined 86% of global on-demand revenues in 2010, with North America leading the way with a 44% share. So much of the content available through VOD is free of charge and many of the more successful operators are looking to expand their free offerings. Although this doesn't generate much in the way of revenues at the moment, it adds value for subscribers and has become a really useful tool for reducing churn. Within a few years subscribers will be migrated to paid content and then significant revenues will be generated."

By the end of 2005, North America will take 50% of revenues and account for more than half of the VOD/NVOD households. Asia Pacific will have 125 million on-demand homes by 2010 (as the market leader, having overtaken North America in 2010), or 36% of the total, but will account for only 10% of the global on-demand movie revenues. The U.S. alone will have 103 million on-demand homes by 2010.

Despite continuing caution with regards to making forecasts, many operators have made progress in upgrading their networks and consumers continue to embrace digital TV as well as high-speed internet. Moreover, telcos have continued to embrace the entertainment sector via VDSL and FTTH.

It is important to note how the public will receive their on-demand TV signals. The more traditional methods of delivery - pay-per-view for sports and near-video-on-demand for staggered movie screenings via digital cable and DTH - are set to dominate the on-demand sector for the next five years. Thereafter, true VOD, whereby subscribers can purchase movies or events when they want, will come more to the fore.

On-Demand TV (4th edition) Publ 20051128 On Demand TV? Wikipedia Release publ. in: NetImperative

Saturday, November 26, 2005

Strong Adaptive Front Lighting Growth.Legislation Changes Help Drive Growth at Over 60 Percent Per Annum

Strategy Analytics: Adaptive Front Lighting Systems is predicting a strong 64 percent average annual growth rate for adaptive front lighting systems over the period 2005 to 2010. Adaptive front lighting systems - headlamps that automatically change the beam output pattern to offer the driver the best possible view of the road - are beginning to appear in near-luxury models, such as the Audi A6 and BMW 5-Series, and are also becoming available in mass market models such as Opel's Astra and Vectra. The adaptive front lighting market to grow rapidly from its current low base, to a market of 9.6 million system units by 2010.

The relaxation of legislation governing vehicle lighting systems, together with the consumer's desire for the improved safety that these systems can offer, is helping to drive this market. The installation rates of HID / xenon lighting have been growing over the last few years, forming a solid basis for the adaptive front lighting market.

Just as Japan and Europe dominate with the highest installation rates of HID lighting, accounting for 94 percent of systems in 2005, those regions will have the highest demand for adaptive front lighting. Adaptive Front Lighting Systems Publ. 20051026

Broadband Homes In Europe And North America Drive a Multi-Billion-Dollar Online Music Market

Strategy Analytics: Broadband households in Europe and North America will re-shape the distribution of recorded music over the next five years, spending billions of dollars to download music from sources like Apple Computer's iTunes Music Store, RealNetworks's Rhapsody, Napster, Yahoo and a hoard of Internet service providers. Broadband users in these regions will spend over a billion dollars on online music this year, with sales expected to reach $4.5 billion by 2010. This figure will represent nearly 16 percent of total sales, up from less than two percent in 2004.

Use of legal music services in Europe and North America will be driven by the rapid adoption of broadband Internet access as well as explosive sales of MP3 players and music-enabled mobile phones.Despite the success that Apple has enjoyed selling individual songs for 99 cents each, by 2010 over 60 percent of online music revenues will come from subscription-based services that give customers access to millions of songs for a fixed monthly fee. Telcos, cable operators and other broadband service providers will encourage adoption of subscription-based services, which produce steadier revenue streams and are more likely to deter customer churn'. Subscription-based services will also be better positioned to maintain price points over time by adding portability and other advanced features. Broadband Homes and Online Music: Already a Billion Dollar Market Publ. 2005126

Broadband Homes In Europe And North America

Strategy Analytics: Broadband households in Europe and North America will re-shape the distribution of recorded music over the next five years, spending billions of dollars to download music from sources like Apple Computer's iTunes Music Store, RealNetworks's Rhapsody, Napster, Yahoo and a hoard of Internet service providers. Broadband users in these regions will spend over a billion dollars on online music this year, with sales expected to reach $4.5 billion by 2010. This figure will represent nearly 16 percent of total sales, up from less than two percent in 2004.

Use of legal music services in Europe and North America will be driven by the rapid adoption of broadband Internet access as well as explosive sales of MP3 players and music-enabled mobile phones.Despite the success that Apple has enjoyed selling individual songs for 99 cents each, by 2010 over 60 percent of online music revenues will come from subscription-based services that give customers access to millions of songs for a fixed monthly fee. Telcos, cable operators and other broadband service providers will encourage adoption of subscription-based services, which produce steadier revenue streams and are more likely to deter customer churn'. Subscription-based services will also be better positioned to maintain price points over time by adding portability and other advanced features. Broadband Homes and Online Music: Already a Billion Dollar Market Publ. 2005126 Release publ. in: HiddenNews

Friday, November 25, 2005

Free Am Radio Back As Digital Radio Mondiale Hits The Road.Digital Radio Mondiale, Free To Air, Free To Transmit, With Near FM Quality Sound

Strategy Analytics: studied the potential for Free Digital AM wave band radio providing enhanced in-vehicle infotainment. To Challenge Growth In SDR, IBOC and DAB! highlights the global revival opportunity for AM's formerly popular, free long and medium wave radio bands. Now, with near FM quality sound, free to the listener and license free to the broadcaster, Digital Radio Mondiale is fuelling growth in the traditional radio in-vehicle infotainment business. This development could help drive the anticipated growth of in-vehicle infotainment business, which will be worth $44 Billion by 2011.

The recently demonstrated Visteon in-vehicle Digital Radio Mondiale (DRM) prototype radio head unit, unveiled at the Berlin IFA World of Consumer Electronics Show, challenges the growth in SDR (Satellite Digital Radio), IBOC (In-Band On Channel) and DAB (Digital Audio Broadcast), by providing a low cost near equivalent quality service with many features of the later formats. DRM will be cheaper and easier to transmit, as well as cheaper and easier to receive, compared to other digital broadcast formats, making it an extremely attractive proposition for in-vehicle entertainment. Manufacturers of in vehicle infotainment systems will need to quickly incorporate DRM into their platform strategies, enabling a quick rollout as the demand for DRM takes off.

The market for in-vehicle audio entertainment systems will grow by over 7 percent CARG, worth $44 Billion, in terms of OE and aftermarket systems sales, across North America, Europe and Japan, by the end of 2011, increasing from $27 Billion in 2004.

There is a continued and growing trend toward automotive multifunction entertainment systems, including digital radio. Consumer high value perceptions of emerging entertainment features means that there are significant margin opportunities for car makers and systems suppliers, alike. Digital Radio Mondiale, a free and world broadcast standard, presents an opportunity to the car makers and systems suppliers, enabling them to protect the premium value of its business within the so-called Golden-Stack of the radio-head from ongoing encroachment from portable devices. Over the next 2-3 years, the market for in-vehicle entertainment systems will be most significantly impacted by new digital audio products that play `soft' music files and digital broadcast technologies. AM Radio Is Back ! Publ. 20051025 DRM? Answers Satellite radio? Answers About:

Thursday, November 24, 2005

Mobile Online Gaming in the APEJ Region Poised to Grow Steadily in the Coming Years

IDC: Mobile online gaming in the APEJ region will continue to grow at a steady pace, capturing the interest of providers as a potential revenue-generating service. The key factors contributing to the industry's development are the proliferation of affordable, high-resolution, and Internet-ready handsets and the development of more compelling game content. A new study from IDC examines the future opportunities and challenges facing content developers, service providers, and technology players, such as handset manufacturers in the wireless online gaming market in the Asia/Pacific excluding Japan (APEJ) region, as well as providing a market forecast for selected countries in the region. As mobile penetration in the APEJ region continues to rise, and as users continue to consume more feature-rich media, mobile online gaming will continue to experience growth,. “However, this fledgling industry is not without barriers. Imbalanced revenue sharing models between carriers and game developers, and the prevailing mindshare of Asia/Pacific users that mobile handsets are simply communication devices and not entertainment gadgets are among the fundamental issues that need to be addressed for widespread industry growth.as users in the region continue to consume mobile media such as ring tones, logos, wallpapers, and other feature-rich media, IDC believes that further inroads into the mobile online gaming space will follow suit. The path of natural progression will entail a shift in usage patterns – from “simple content” as in SMS-based applications, to feature- or “media-rich” content such as Java-based games and applications. Among the countries included in the study, Korea is seen to have the highest degree of mobile online gaming penetration in the region at 6.9% in 2004. This is expected to reach 9.6% by the end of the forecast period in 2009. The penetration growth will be largely due to the high mobile phone penetration in the country and the abundance of game content and mobile game developers. Asia/Pacific Wireless Online Gaming 2005-2009 Forecast and Analysis Publ. 20051124 Release publ. in: .CellularNews

Tuesday, November 22, 2005

HE U.S. ONLINE TRAVEL INDUSTRY WILL REACH $104 BILLION BY 2010

Jupiter Research: The U.S. online travel market has experienced strong growth over the past year and forecasts that the market will reach $68 billion by the end of 2005, up from $57 billion last year, and grow to $104 billion in 2010. Also indicate that revenues for the travel industry have grown in 2005 as a result of increased inventory, passenger numbers and prices across the air, car, cruise and hotel industries. We are seeing strong increases in revenue across all segments of the online travel industry. Higher fuel costs will remain a major challenge for the travel industry in the near future, as the industry struggles to compensate for additional costs while remaining price competitive

Supplier Web sites continue to represent the majority of online travel sales, capturing 56% of online travel revenue in 2005. Travel search engines such as SideStep and Kayak remain relatively new and have not yet gained sizeable traction. Supplier Web sites have not yet seen their sales significantly impacted by these search engines. A major driver of the overall growth is business travel, which is expected to grow substantially. Increasingly sophisticated managed booking tools and increased business traveler compliance with company booking policies will spur the online managed business travel market to reach $31.5 billion by 2010, up from $15.1 billion in 2005. We expect the online travel market to continue its strong growth over the next five years and to represent 34% of all travel spending in 2010. The online share of total travel spending in the U.S. is quite high and its lower distribution costs are an important factor in holding down expenses for the travel industry. U.S. Travel Forecast, 2005 to 2010 Publ. 20051122 Release publ. in: M-travel BTN

U.S. DIGITAL SATELLITE RADIO DEVICE MARKET WILL GROW TO 55 MILLION UNITS IN 2010

Jupiter Research: Forecasts that the U.S. digital satellite radio market will grow from an installed base of 12 million units in 2005 to 55 million units in 2010, a compound annual growth rate of 35%.

Transportable devices will lead the installed base mix with sales being driven by wide device selection and lower price points, however, in-vehicle interest has been strong. Twenty-three percent of online consumers we surveyed demonstrated a strong interest in the service, but overall only 6% of online consumers have satellite radio.

Sixty-six percent of sales in 2005 will be transportable devices comprising both plug & play and handheld units. This trend will continue though to 2010, which will see 60% of sales coming from transportable devices. In-car device sales will grow from 2.5 million units sold in 2005 to 6.9 million units in 2010. Both XM and Sirius need to move beyond the automobile and integrate satellite radio into other devices in order to spur growth. The cell phone presents a lucrative opportunity -- not for integrating the satellite receiver, but instead for taking advantage of fast wireless networks to offer existing Internet streaming services to both current and new customers.

U.S. Satellite Radio Forecast, 2005 to 2010 ubl. 200511122 Satellite radio? Answers About Release publ. in: VnuNet Information Week

VoIP Service in Asia to Grow About $1 Billion Per Year Through 2009

In-Stat : The market for VoIP services in Asia continues to show strong growth, as total revenue is expected to rise from nearly US$5.5 billion in 2004 to over US$10 billion by 2009.. Currently, long distance calls, initiated from either traditional PSTN terminals or full IP local loops but carried over IP backbones to recipients’ local networks, create the bulk of VoIP business in Asia, providing for 85.4% of total revenue in 2004. By contrast, adoption of local VoIP services is slow due to regulatory barriers in many countries and the dominance of incumbent players. . In Japan, however, competitive service providers such as Yahoo! BB have demonstrated how they can creatively leverage technological advantages to introduce new services and woo customers in a loose regulatory framework.”

  • In 2004, there were 8.7 million local VoIP lines in Asia.

  • Regulators still have to make hard, yet smart decisions to ensure smooth market development, with some vendors placing high stakes on VoIP for their future success.

  • In Japan, South Korea, Hong Kong, and Singapore, a large portion of long distance calls has already migrated to the IP platform.

VoIP Services in Asia Publ. 20051122

NAND Growth Continues to Set Records

Semico: Worldwide. The NAND market is growing faster than any market in the history of the semiconductor market. tNAND megabytes should grow by about 230% this year, driving revenues to jump a whopping 42% despite a price collapse that started in the second quarter.Semico has modified its near-term growth projections, increasing its 2006 forecast from $11 billion to $13 billion, or a 25% jump over 2005’s revenues of $10.2 billion.What’s driving all this growth? A lot of NAND’s upside demand comes from unexpected new applications. Digital cameras, camera phones, and USB flash drives, the key market drivers to date, are being joined by new demand starting from the MP3 player market, largely through Apple’s introduction of two flash-based members of their iPod family this year: the iPod shuffle and the iPod nano. The resulting growth has taxed manufacturers’ ability to match supply with demand, causing sudden unexpected shortages One thing is clear about the NAND market, It’s hard to over-forecast! Suppliers who ramped their capacity aggressively early in the year are finding that they need to add still more to even start to satisfy demand. NAND makers have been forced to devise some clever tricks to stay ahead of demand, or even to match its growth. Samsung is not only migrating the technology across process nodes faster than any of their other technologies, but they are also converting numerous DRAM fabs to NAND and running the technology on two of their new 300mm lines. Toshiba and SanDisk, through their Flash Vision joint venture are investing heavily to open a new mega-fab in Japan ahead of an already-aggressive schedule on top of rapid process shrinks and a prior conversion to MLC which practically doubled their effective capacity. Hynix is ramping faster than any others from zero NAND shipments early last year to becoming the third largest supplier in Q3. Even smaller suppliers like Renesas, M-systems, STMicroelectronics, Micron Technology, and Infineon are looking for ways to ramp quickly. Major NAND users, OEMs like Lexar Media, Kingston, Viking Technologies; camera companies, like Nikon, Olympus, Kodak, Canon, & Fuji Film; MP3 Player companies like Apple, Creative, and Sony, and some of their suppliers like SigmaTel and Silicon Motion, are faced with supply constraints that are forcing prices up and causing demand to be tight. This report will help them understand the cycle and improve their procurement strategies. Making NAND? Step Hard on the Gas: Third Quarter 2005 Pricing & Forecast. Publ. 20051122 Flash NON/NAND? Wikipedia

Monday, November 21, 2005

VoIP IC Market to Grow Five-Fold by 2009

In-Stat :VoIP ICs continue to gain traction as VoIP functionality is integrated into Customer Premise Equipment (CPE) including modems, routers and residential gateways. The overall market for VoIP ICs will grow from $208.7 million in 2004 to $1.3 billion in 2009. Over the next few years, wireless handsets will become another key market for VoIP ICs. By the end of the forecast period, VoIP functionality will be integrated into a high percentage of new wireless handsets. From a revenue perspective, the IP Phone sub-segment (wireless and wireline combined) represents the smallest revenue market today, but will be the largest one by 2009. This reversal will occur due to high growth in business-oriented IP PBX/hosted PBX phones and dual-mode wireless handsets.

  • VoIP IC revenue on the infrastructure side is growing more slowly than other segments, given extreme price pressure that begins at the service provider level and filters down through VoIP equipment providers to their silicon providers.

  • Texas Instruments’ initial dominance of the VoIP IC market is declining even as TI shipments continue to grow. As the market expands, new fabless players are gaining a stronger foothold.

  • VoIP equipment providers look to VoIP IC companies to assist in developing the best quality, most cost effective, and power-efficient products. Thus, an understanding of the future market for VoIP ICs must begin by examining various end-user markets.

VoIP ICs – Building a Foundation for the Future VoIP? Wikipeida Publ. 20051121

NOR Regains Elusive Growth. 2005 Revenues to Hit $7.2 Billion

Semico: The NOR flash market has finally risen above its 2004 doldrums and is poised to grow significantly now through 2006, . NOR revenues, which had been steadily sliding since the second quarter of 2004, pulled forward in the third quarter, and are on a track to grow by 19% in 2006. Semico expects to see the market return in force, with revenues peaking at nearly $13 billion by 2008. The correction that Semico forecast for the second half of 2005 has materialized, reversing 2004’s sharp NOR price decline, the result of a supply/demand imbalance. This market’s demand growth is solid, but 2005 saw a revenue decline that stemmed from an overcapacity. TL leading NOR suppliers, including Intel, Spansion, Sharp, STMicroelectronics, Renesas, SST, Atmel, and Macronix, are experiencing longer lead times and a return to profits. NOR is used in myriad applications, ranging from PCs and peripherals, through consumer electronics devices and into the automotive and telecom spaces, driving this pervasive technology to grow in accord with the penetration of electronics into our lives. The OEMs who consume the world’s flash, including cell phone companies Nokia, Motorola, and SonyEricsson, leading data processing OEMs like Dell, IBM, Apple, and HP, and contract manufacturers like Flextronics, Jabil, Sanmina-SCI, and Solectron, are seeing small price increases and a return to more healthy lead times. Although changes like this are inevitable, this report helps these users to properly time transactions around market cycles. NOR Turns the Corner: Third Quarter 2005 Pricing & Forecast. Publ. 20051121

Online Bill Payment To Grow 75 Percent By 2010. Young Consumers Fuel Growth; Banks Grab Back EBPP Market Share

Forrester: Twenty million more Americans will pay their bills online over the next five years.: Much of the growth will be fueled by today's tech-savvy young consumers, who will seek the ease and convenience of online bill payment as they lead more complex financial lives. By 2010, approximately 47 million US households will pay bills online — a 75 percent increase from the end of last year. Over the past several years, most new online bill payers have gravitated toward their individual billers' sites — credit card companies and cell phone carriers — to view and pay their bills online. But in a dramatic turnaround banks — which were generally late to recognize consumer demand for electronic bill presentation and payment (EBPP) — will surge ahead in growth over the next five years as more firms follow the lead of Bank of America, Wachovia, and Washington Mutual, which have moved to free online bill payment. By 2010, the EBPP market share will be split nearly in half between banks and individual biller sites.

Smart banks have stepped up their efforts to grow their base of online bill payers by eliminating the monthly fee. They now understand the impact these customers have on the bottom line. These customers buy more products, do more self-service, and have higher retention rates. The key question now is: How do the banks sustain growth? They have to involve their branches. Most successful firms are getting at least half of their online bill-paying customers from initiating a sales conversation and enrollment in their branches.

By the end of the decade, 52 percent of online households will pay bills online. But as Forrester first predicted in 2003, annual EBPP growth rates are slowing dramatically and will continue to do so over the next five years. The 26 percent year-over-year growth rate in 2004 will decline to just 7 percent in 2010.

Forrester sees a generation gap in electronic bill payment adoption over the next five years. For consumers under 30, adoption will soar 219 percent as the financial lives of Generation Y begin to mature. Growth among baby boomers, on the other hand, will be just 32 percent over the remainder of the decade. What's holding back the boomers? Simply put: Old habits die hard. For many of them, writing checks at the kitchen table each month may be time-consuming, but it's not enough of a pain to persuade them to move online. Online bill payment and presentment is becoming a commodity product. What will differentiate providers in the future is ease of use, the speed of payments, and security. Banks haven't done a great job marketing EBPP because they're using a one-size-fits-all message. They need to emphasize speed and convenience to young consumers and highlight simplicity and security to boomers and seniors.

EBPP Forecast: 2005 To 2010 Publ. 20051121