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Streaming Media, IP TV, and Broadband Transport: Telecommunications Carriers and Entertainment Services 2006-2011

a market research report

Report Excerpt

Market Segmentation

Table of Contents

Press Release

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Carriers will soon be offering video and other value-added services geared to spur spending in the consumer and business segments. In this market research report, Insight will examine streaming and other information and entertainment services.

Streaming media—the IP transmission of on-demand rich media that gives the user the ability to listen to audio and view video and graphics animation files from the network without downloading the content—is but one of several technologies being used to deliver information and entertainment services. IPTV, in the context of current broadband transmission technology, will make it possible to move beyond the multicast “time-shift” capabilities of cable’s video-on-demand models so as to deliver true interactivity to unicast, multicast, and broadcast audiences and give carriers a slice of the more than $250 billion forecasted to be spent each year on mass advertising.

In this research report, Insight studies the role and many applications of IPTV and streaming in both the business and consumer markets. In addition, Insight evaluates the broadband infrastructure, hardware, and software necessary to deliver this service to the market, as well as the end user devices at work in homes and businesses. This research study provides a detailed forecast of the video, IPTV, and streaming media markets—including the applications, markets, and equipment.


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    Report Excerpt

    1.1 Streaming Media Market Today

    Streaming media is a method of transferring rich digital media across a network without requiring any local data storage. The streaming media landscape has changed dramatically over the past twenty-four months (see Streaming Media Market Overview, INSIGHT Research, 2004). As an industry, streaming media has survived the introductory phase and evolved to the point at which there are proven business models, a sufficient number of consumers ready to buy, and stable technologies to support the industry’s future growth. As streaming evolves beyond the early adopter phase and strides toward the mainstream, the industry is turning its attention away from the technology in order to concentrate on the applications and communication tools that will restructure the entertainment experience for consumers and increase information productivity for businesses.

    The most important factor driving the consumer segment is content on demand. Consumers want to be able to listen and watch anything they want, at any time and in any place. The amount of video content available has grown apace with demand: a few broadcast channels expanded into the hundreds on the cable networks, and now thousands more movies are available at video rental stores. Moreover, the web has conditioned the consumer to expect services at any time, while wireless devices make it possible to connect from any location. Thus, the consumer’s desire for the widest possible array of audio and video content on demand is the most pervasive driver of the streaming media industry.

    Consumers have demonstrated a willingness to pay for this content, as well as an acceptance towards exposure to commercials in return for content they want. INSIGHT Research believes that the growth of paid content for individual purchases of video will be quite robust once the mechanisms are in place for consumers to easily find the content they desire and distributors deploy the mechanisms to collect the revenue.

    The alternative to paid content is ad-supported content. In 2005, broadband Internet reached 56 percent of households and, in doing so, created a potential audience of critical mass for advertisers. The size and spending power of this online audience has produced significant shifts in advertising spending. According to ZenithOptimedia, spending on Internet advertising will increase from 2.5 percent of total advertising in 2004 to 4.3 percent by 2007. We expect the shift toward online advertising to be a significant factor driving usage of video streaming over the Internet. Advertiser dollars follow the consumer’s eyeballs: as consumers spend more time in front of the PC, advertisers are more willing to spend money to reach them.

    High bandwidth at the receiving station has been critical to the development of a robust streaming media industry. Since broadband penetration has increased over the past several years, the use of streaming has increased dramatically. The number of broadband residential subscribers is expected to reach 88 million homes (75 percent of all US homes) by 2011. As broadband users are the group most likely to request streaming content, INSIGHT’s research suggests a tremendous upside to the streaming industry during over our forecast period.

    Another factor driving the positive growth of streaming is that the entertainment industry has finally hit upon a few business models related to their content distribution that consumers can understand and value. In 2003 we wrote, “The Recording Industry Association of America’s heavy-handed attempt [i.e., selective criminal prosecutions] to enforce its copyright of digital music files being shared across peer-to-peer networks brings into stark relief the problem of an old business model slamming into a new media—and similar business breakdowns are just down the road. TV and cable broadcasters, movie studios, and content providers of every stripe are about to run up against similar property rights and....

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    Market Segmentation

     

    Content Derived Revenue
          Internet CDN Streaming VOD Content
          IP VOD Content
          Mobile Streaming Audio Content
          Mobile Streaming Video Content
          Internet Audio on Demand
          Internet VOD Advertising

    Network Derived Revenue
          Encoding
          DRM
          Telco IPTV Network Services
          Internet CDN Network Services
          Performance Measurement

    Content by Service Provider type
          Mobile
          Internet
          Telco TV


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    Table of Contents

     

    Chapter I
    EXECUTIVE SUMMARY

    1.1 Streaming Media Market Today
    1.2 Streaming Media Overview
    1.3 Streaming Media Market Outlook and Forecast

    Chapter II
    MARKET BACKGROUND

    2.1 Streaming Media Defined
    2.2 Market Drivers
          2.2.1 Enterprise Demand for Streaming Media
          2.2.2 Consumer Demand
                2.2.2.1 Paid Content Model
                2.2.2.2 Streamed Advertising
          2.2.3 Content Providers
                2.2.3.1 Right-Licensing Issues
                2.2.3.2 Royalties
                2.2.3.3 Need for Standardization
    2.3 Infrastructure Requirements for Streaming Media
          2.3.1 Streaming over IP
          2.3.2 Digital Media Format
          2.3.3 Streaming Over Content Delivery Networks
          2.3.4 Streaming In the Last Mile
    2.4 Current Broadband Access Market Size
          2.4.1 Worldwide
          2.4.2 North America
                2.4.2.1 Cellular
                2.4.2.2 WiFi
                2.4.2.3 WiMAX
                2.4.2.4 DSL
                2.4.2.5 Cable
                2.4.2.6 Fiber/Private Line
                2.4.2.7 Satellite
    2.5 Market Summary

    Chapter III
    APPLICATIONS

    3.1 Consumer Markets
          3.1.1 Consumer Delivery Models
          3.1.2 Consumer Entertainment
                3.1.2.1 Audio: Internet Radio, Broadcast Radio, Music on Demand
                3.1.2.2 Video: News, Sports, VOD, PVR
                3.1.2.3 Interactive TV
                3.1.2.4 IPTV
          3.1.3 Streamed Advertising
    3.2 Corporate Communications
          3.2.1 Training
    3.3 Communications and E-Learning
          3.3.1 Government
          3.3.2 Financial Services
          3.3.3 Education
          3.3.4 IP Video Surveillance

    Chapter IV
    TECHNOLOGY

    4.1 Streaming Technology
    4.2 Encoding
          4.2.1 MPEG Technology
    4.3 Digital Rights Management (DRM)
    4.4 Content Hosting
    4.5 Network Services
          4.5.1 Content Distribution Manager
          4.5.2 Request Routing/Content Routing
          4.5.3 Cache Servers
                4.5.3.1 Browser or Local Caching
                4.5.3.2 Proxy Server Caching
                4.5.3.3 Mirroring or Mirror Caching
          4.5.4 Content Switching
          4.5.5 Peer-to-Peer (P2P) CDN
    4.6 Performance Management

    Chapter V
    MAJOR VENDORS

    5.1 Introduction to Streaming Services
    5.2 Encoding
          5.2.1 Apple Computer, Inc.
          5.2.2 Microsoft Corporation
          5.2.3 RealNetworks
          5.2.4 Macromedia Flash
    5.3 Performance Management Services
          5.3.1 Keynote Systems
    5.4 DRM Service Providers
    5.5 Specialized CDN Service Providers
          5.5.1 Akamai
          5.5.2 Mirror Image
          5.5.3 RealNetworks
          5.5.4 SyncCast
          5.5.5 VitalStream, Inc.
          5.5.6 Others
    5.6 Carriers, RBOCs, International Players, Others
          5.6.1 AT&T
          5.6.2 Sprint
          5.6.3 Verizon Communications
          5.6.4 WilTel Communications

    Chapter VI
    MARKET FORECASTS

    6.1 Definitions
    6.2 Methodology
    6.3 Market Drivers Summary
          6.3.1 Broadband Internet Access
          6.3.2 IPTV Deployment
          6.3.3 3G Mobile Devices
          6.3.4 Internet Advertising
          6.3.5 Other Factors Affecting Growth
    6.4 Network-Derived Revenue Forecast
          6.4.1 US Streaming Encoding
          6.4.2 US Streaming DRM Forecast
          6.4.3 US Internet CDN Network Services Forecast
          6.4.4 US Telco IPTV Network Services Forecast
          6.4.5 US Streaming Performance Measurement Forecast
          6.4.6 Total US Streaming Network-Derived Revenue Forecast
    6.5 Content-Derived Revenue Forecast
          6.5.1 US Internet CDN VOD Content Services Forecast
          6.5.2 US Telco IP VOD Content Services Forecast
          6.5.3 US Streaming Audio Forecast
          6.5.4 US Mobile Streaming Audio Forecast
          6.5.5 US Mobile Streaming Video Forecast
          6.5.6 US Internet CDN VOD Advertisement Forecast
          6.5.7 Total US Streaming Content-Derived Revenue Forecast
    6.6 Total US Streaming Media Revenue Forecast

    Appendix
    GLOSSARY

    Table of Figures

    Chapter I
    I-1 Streaming Service Taxonomy
    I-2 US Total Streaming Media Market

    Chapter II
    II-1 Buffering

    Chapter III
    III-1 Wisconsin State Assembly Streaming Example

    Chapter IV
    IV-1 Streaming Service Taxonomy
    IV-2 Constant Quality Bit-Rate Evolution for Various Codecs
    IV-3 Role of Encoding in Content Creation, Dist, and Playback
    IV-4 Penetration of MP`s on Internet Enabled PCs
    IV-5 MPEG-4 Image, Video Coding Algorithms, and Tools
    IV-6 Bandwidth Requirements
    IV-7 Live Video Delivery Process
    IV-8 Typical Streaming from Content Provider to Users
    IV-9 Typical Content Delivery Network Configuration
    IV-10 Unicast Network Infrastructure
    IV-11 Architecture for Content Distribution Manager
    IV-12 CDN Peer-To-Peer Network Example

    Chapter V
    V-1 Simple Streaming Services Taxonomy

    Chapter VI
    VI-1 US Encoding Services Revenue, 2005-2011
    VI-2 US DRM Services Revenue, 2005-2011
    VI-3 US Internet CDN Network Services Revenue
    VI-4 US Telco IP Network Services Revenue
    VI-5 US Performance Measurement Revenue
    VI-6 US Network-Derived Revenue Comparison
    VI-7 US Internet CDN VOD Content Services Revenue
    VI-8 US Telco IP VOD Content Services Revenue
    VI-9 US Music on Demand Content-Derived Revenue
    VI-10 US Mobile Streaming Audio Forecast
    VI-11 US Mobile Streaming Video Forecast
    VI-12 US Internet CDN VOD Advertising Revenue
    VI-13 US Total Streaming Media Market, 2005-2011

    Table of Tables

    Chapter II
    II-1 Streaming Media Use
    II-2 Worldwide Broadband Connections
    II-3 Broadband Connections
    II-4 Media by Transfer Rate
    II-5 Wireless Network Deployment Status
    II-6 Downstream DSL Bit-rates vs. Reach

    Chapter III
    III-1 Typical File Size of Various Content
    III-1 US Video on Demand Growth
    III-2 Internet Streaming and Digital Media vs. Int. TV Opp
    III-3 Typical Internal Communications Applications

    Chapter IV
    IV-1 Functions of a Content Distribution Manager

    Chapter V
    V-1 Integrated Media Player DRM solutions
    V-2 Mirror Image’s Services

    Chapter VI
    VI-1 Applications Driving US Internet CDN Network Services Rev
    VI-2 US Total Streaming Network-Derived Revenue
    VI-3 US Total Streaming Content-Derived Revenue
    VI-4 US VOD Content Services Revenue by Network Type


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    Pricing Information

     

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    $ 2996
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    $ 3521 Single-User Printable PDF

    $ 5246 6-Seat Printable PDF

    $ 7500 Unlimited Corporate-Wide Distribution


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