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Home Gateway Report: Worldwide Multi-Carrier Digital Settop and Services Analysis and Forecast 2003-2006
Multimedia Research Group, Jan 2003, Pages: 150
Home Gateway Report: Worldwide Multi-Carrier Digital Settop and Services Analysis and Forecast 2003-2006 covers all major digital video carriers including Satellite (DTH), Digital Terrestrial (DTT), and Digital Cable.
The Telco-based video market is covered in another report, IP/Broadband Video Business Case and Global Forecast - 2003-2006, also published by MRG, Inc.
Digital video households, while still far fewer than analog video households worldwide, represent one of the fastest growing sectors in electronics today. Anticipated growth from 2002-2005 is approximately 67% worldwide, meaning a potential windfall for infrastructure, receiver, display, and content suppliers.
The development and distribution of digital video content has grown beyond regionalism to reach an international scope. International standards like Mpeg-2, Gigabit Ethernet, Internet Protocol, Mpeg-4, MHP, DVB, Ocap, plus caching and storage products being formed into regional SANs (Storage Area Networks), all help to hasten the move toward a new kind of multi-channel economics for digital video services.
The traditional multi-channel video broadcast model is beginning to move into maturity. In its place, a more precise point-to-point model is emerging because broadcasting hundreds or thousands of unused “channels” no longer makes economic sense. Meantime, consumers of digital video will find an increasing array of choices including High Definition (HD), Digital Video Disc (DVD), Personal Video Recorder (PVR), home networking, and video file sharing. Therefore, video content providers, manufacturers, and service providers alike must stay ahead of the pack in this changing environment, taking care to offer only new services that consumers will buy.
This report is intended to help industry executives to exploit opportunities related to new technologies and emerging market forces. This report is also intended to help executives make profitable decisions today that will stand up in this fast-changing environment for years to come.
Video On-Demand vs. PVRs - U.S./Canada Cable
In North America in 2003, VOD/Svod (Video on Demand/Subscription Video on Demand) should continue for the second year as the U.S. cable industry’s most important new video service after high-end digital channels like HBO. With the capital cost per VOD stream dipping to below $200 (for networks already upgraded to HFC), subscribers with digital STBs can be activated (or enabled) easily from the headend. Because no changes have to be made (typically) to the digital STB in order to enable the VOD, the expensive “truck-roll” installation is eliminated. Only the headend and/or hubs need additional VOD technology.
By the end of 2002, the U.S. and Canadian (North American) cable market had over 19 million digital cable subscribers, with an expected 36 million digital subscribers to be in place by the end of 2005. Of that, about 3.85 million subscribers, or 20%, were VOD enabled in 2002, growing to an anticipated 18 million, or 50% of digital cable subscribers will be VOD enabled in 2005. Worldwide growth and revenue for both VOD and PVRs also are reflected in Chapter 3 of this report for digital terrestrial, cable, and digital satellite, showing how VOD and PVRs will work together to provide new on-demand services.
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