IP-Enabled Consumer Electronics: Internet Video & Digital Media to the TV

MultiMedia Intelligence, January 2008, Pages: 45

Internet video is hitting its stride. However it is still almost entirely PC-centric. The next dramatic shift in internet video will debut as TVs and set top boxes connect to access digital media directly. IP connectivity in the living room will also enable connectivity to consumer-originated digital content including digital still cameras, camcorders and surveillance cameras.

IP connectivity is being adopted across a variety of consumer electronic devices. Game consoles already represent a consumer installed base of 55 million internet-enabled devices. Similar internet connectivity is emerging across IPTV, cable, and satellite set top boxes, as well as a new class of internet-enabled TVs and digital media adapters. Finally, advanced HD and Blu-ray DVD players will grow to be among the largest segments of internet-connected devices.

By 2012, MultiMedia Intelligence projects over 217 million internet-enabled consumer electronics will be shipping annually. However, connectivity in consumer devices will dramatically exceed actual utilization. The utopia of internet and consumer generated digital content flowing seamlessly through the home and among devices is still years away, as several barriers to market remain.

“Internet Protocol (IP)-Enabled Consumer Electronics: Internet Video & Digital Media to the TV“ analyzes the service providers, equipment vendors, content service offerings and technology in the multimedia-networked home. The report also looks at in-home connectivity including analysis and forecasts of Ethernet, powerline, coax, and Wi-Fi integrated into consumer electronics. Other forecasts include worldwide subscribers for broadband, VoIP, cable TV, satellite TV, and IPTV, the associated set top boxes, adoption of network-interfaces by device type, as well as the middleware and interface semiconductors. Device segments include TVs, DVD players, DMAs, video game consoles, media servers, DVRs and set top boxes.

Executive Summary
Introduction & Methodology
Networked Consumer Electronics
Industry Players and Dynamics
Broadband Service Providers
Digital Content Providers
Mobile Handsets and Operators
VoIP Subscribers
Cable Providers
IPTV Providers
Satellite Providers
Networked Consumer Electronics – Hardware
Network Architecture
PC/Server Centric
Gateway Centric
Integrated Web Server Centric
Home Gateways
Consumer Electronics
Internet Enabled TVs
Cable STB
Satellite STB
IPTV STB
Video Game Consoles
DVD Players and Recorders
Embedded, Stand-alone, and Whole Home DVR
Home Audio
Digital Media Adapeters (DMAs)
Media/Living Room PC
Networked Consumer Electronics – Software
Middleware
DLNA- Digital Living Network Alliance
UPnP
In-Home Connectivity
Ethernet
Wireless Networking
Coax
Powerline
Alternative local connectivity
Home Networking Interface Semiconductors
Home Networking Services, Content, & Features
Digital Content Services
Music & Movie Downloads
Subscription & VoD
Home Security/Surveillance Services
Home Networking Service & Content Providers
Cable, Satellite and IP TV Operators/Service Providers
Strengths
Weaknesses
Opportunities
Threats
Broadband Portals
Strengths
Weaknesses
Opportunities
Threats
Consumer Electronics Manufacturers
Strengths
Weaknesses
Opportunities
Threats
Retailers
Strengths
Weaknesses
Opportunities
Threats
Media Home Networks

List of Tables

Table 1. Worldwide Shipments of Internet-enabled Consumer Electronics by Device Type (K Units)
Table 2. Media Home Networks
Table 3. Worldwide Broadband Subscribers Forecast (In Thousands)
Table 4. Worldwide Cellular Subscribers
Table 5. Residential VoIP Subscribers
Table 6. Worldwide Cable Subscribers
Table 7. IP TV Worldwide Subscribers
Table 8. Worldwide Satellite Television Subscribers
Table 9. Worldwide Shipments of Internet-enabled Consumer Electronics by Device Type (K Units)
Table 10. Internet-enabled Devices Penetration by Type Compared to total units (K Units)
Table 11. IP-enabled TV Shipments by Interface type
Table 12. IP-enabled Cable Set Top Box Shipments by Interface Type (K Units)
Table 13. IP-enabled Satellite Set Top Box Shipments by Interface Type (K Units)
Table 14. IP-Enabled IPTV Set Top Box Shipments (K Units)
Table 15. IP-enabled Video Game Console Shipments by Interface Type (K Units)
Table 16. Internet-enabled DVD Player & Recorder Shipments by Interface Type (K Units)
Table 17. IP-Enabled Stand-Alone DVR Shipment Forecast (K Units)
Table 18. IP-Enabled Audio Equipment Shipments by Interface Technology (K Units)
Table 19. Digital Media Adapter Shipments by Interface Type (K Units)
Table 20. Consumer Electronic PCs and Media Servers by Interface Type
Table 21. Media Home Network Middleware Prices, Units, Total Value & 3rd Party Revenue Forecast (K Units, $M)
Table 22. Total IP-Enabled CE Ports by Interface Type (Cat-5, 802.11x, Powerline, Coax) (K Units)
Table 23. Total Cat-5 Ethernet in Consumer Electronics Devices (K Unit Shipments)
Table 24. Total 802.11 Wireless in Consumer Electronics (K Unit Shipments)
Table 25. Total Coax in Consumer Electronics (K Unit Shipments)
Table 26. Total Powerline in Consumer Electronics (K Unit Shipments)
Table 27. Average Semiconductor Bill-of-Materials Pricing for IP Interface by Type
Table 28. IP-Enabled Consumer Electronics Interface Semiconductor Revenue ($M)
Table 28. Insalled Base of Media Home Networks (Thousands)

List of Figures

Figure 1. Worldwide Shipments of Internet-enabled Consumer Electronics by Device Type (K Units)
Figure 2. Multimedia Home Network Overview
Figure 3. Home Media Network
Figure 4. Middleware and Networked Consumer Electronics Software Stack
Figure 5.DLNA Framework
Figure 6. Networked Applications & Content

The market opportunity for multimedia home networks is huge and we are currently nowhere close to the top of the adoption curve. All the latest generation game consoles have already adopted IP interfaces. More than just an idle interface, these interfaces are leveraging the Internet for online gaming, as well as sales of digital music. Activision announced in September 2007, that is has sold 650,000 downloads, at $6.25 a pack, associated with their Guitar Hero game.

TV manufacturers are adopting the Internet connection, as well. Cable, telco, and satellite set top boxes will be Internet-enabled, as well and other multimedia devices. Content will not only be shared among multiple devices, but most of these devices will be able to access content directly on the Internet. Yet, while manufacturers and operators across the spectrum are gradually adding IP connections, outside of game consoles the market for IP-enabled consumer electronics has not reached a true inflection point for hyper growth.

The early market has been a grand experiment in Digital Media Adapters (DMAs) trying to bridge the home network into the living room. Even with Apple entering the market with their Apple TV, DMAs have failed to ignite dramatic consumer demand. The ecosystem for ubiquitous Internet-enabled CE devices simply isn’t complete, due to:

- Consumer Education lacking
- Inadequate ease-of-use
- Content offerings & business models are still developing
- Consumer usage models are not developed

Simply integrating the DMA function into CE devices is not enough to dramatically accelerate growth. The complete ecosystem is developing steadily.
- Availability of online digital music content is in place.
- Availability of online video content is increasing and extending to include both copyrighted content and user-generated content.
- Business models are slowly expanding to include electronic sell through (EST), rental, subscription and advertising models.
- Experimentation and early deployments are contributing to better ease of use, and better understanding of usage models.
- Competition from IPTV operators is driving innovation across all pay TV operators

As a result, growth of IP-enabled consumer electronics will continue progressively across all product categories. We haven’t seen see an overnight explosion, but rather a succession of better and better products, and a growing installed base. Overall, the market will grow from about 64 million IP-enabled CE devices in 2007, to over 215 million units in 2012.

ABC
Geek Squad
PV
AcTVila
Gigle Semiconductor
Paramount
Akimbo
Google
Samsung Electronics
Allegro Software
HBO
Sharp
Amazon
Hitachi
SiConnect
Apple
High Definition Audio-Video Network Alliance
Sling Media
Arkados
HomePlug
SmartLabs
AT&T
HomePNA
Sony
Atheros
HP
Sprint
Avtrex
HPNA
Texas Instruments
AWOX
Intel
Tiscali
Bluetooth SIG
Intellon
TiVo
British Telecom
Linksys
TMobile
Broadcom
Macrovision
Toshiba
CBS
Marvell
UPA
CEPCA
Matsushita
Verizon
Conexant
Microsoft
Vudu
Coppergate Communications
Comedy Central
Mitsubishi Wal-Mart
DigiOn
Multimedia Over Coax Alliance
Walt Disney
Digital Deck
NBC
Warner Bros
Divx
Netflix
WiBree Forum
DS2
Netgear
YouTube
EchoStar
Orange
ZigBee Alliance
Entropic Communications

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