strategy analytics’ digital consumer practice delivering a 360° research perspective of the...

Strategy Analytics’Digital Consumer Practice

Delivering a 360° Research Perspective of

the Digital Ecosystem

Delivering Custom Insights

ConnectedHome

DevicesMulti-playMarket

DigitalMedia

AutomotiveMultimedia &

Communications

AutomotiveElectronics

Automotive ConsumerInsights

Wireless Device Labs

Wireless Media Labs

HandsetComponents

SpecTRAX

GaAs

RF Components

WirelessEnterprise

WirelessMedia

WirelessDevices

Smartphones

WirelessOperator

Strategies

Emerging WirelessMarkets

Revenue and Tariff

Strategies

DefenseSystems

Services

Reports

Multi-clientSyndicatedResearch

UserExperience

Labs

Advice

Work-shops

Projects

ProprietaryConsulting

InsightsFor

Success

Supporting Client Business Planning through Custom Insights

DigitalHome

Observatory

Gaming Strategies

Count Share Tracker

Mobile Broadband Opportunities

Baseband Tracker

Tablets/Touch ScreensTablets & Touch Screens

Global Forces: Competitive Intelligence

Mobile Apps Tracker

3

•How much traffic will OTT video bring onto the networks?•Is pay TV doomed or will 3D TV save the day?

Service Providers

•How is the television industry changing? •What industry challenges is this new TV paradigm creating?

Media & Entertainment

A Holistic View of the Emerging Digital Content EcosystemDelivering a 360° Research Perspective

•How many connected TV devices will be sold in the coming years?•What are the CE vendors strategies for OTT video?

Consumer Electronics

•What is driving early adopters to seek out Connect TV experiences? •How are they changing their behavior around what TV they watch?

Consumer Behavior

DIGITALCONTENT

ECOSYSTEM

ConsumerBehavior

Media & Entertain-

ment

Service Providers

ConsumerElectronics

Comprehensive Research on the Content Technology Value Chain

“How will connected consumers adopt and use emerging video services and applications?”“Which digital

video business models will be

mostsuccessful?”

Digital Media Strategies

(DMS)

“What is global demand for tablets and touchscreen devices?

“What is the disruptive

impact of tablets on the value

chain”

Tablet and Touchscreen Strategies “Which strategies should

SPs deploy to meet the Over-the-Top Video

Challenge?”

“How will digital TV and broadband service providers compete effectively to win new and retain existing customers?”

Multiplay Market

Dynamics (MMD)

“SA’s Digital Consumer Practice Focuses on the Opportunities arising from Emerging Digital Content Experiences”


Perspective

Service Provider

Perspective

Consumer Device

Perspective

“Early adopter technology ownership, configuration and behavioral audits”

“Ethnographic and qualitative

interviewing”

Digital Home Observatory

(DHO)

Consumer Perspective

ConsumerBehavior

Media & Entertain-

ment

Service Providers

ConsumerElectronics

DIGITALCONTENT

ECOSYSTEM

“Large scale surveys of consumer usage, ownership and buying intentions”

“Customized cross tabs across content,

devices, services, brands,

demographics”

ConsumerMetrix

(pre-launch)“Which online devices will form the basis of digital home ecosystems?”

“Which vendors are best

positioned for growth?”

Connected Home Devices (CHD)

Digital Consumer Practice:

ConsumerMetrix(pre-launch)

6

DCP ConsumerMetrix: Content Outline

Demographics Attitudes towards Personal Finance

Device Ownership Purchase Intentions Price Expectations Technology Brands

Service Brands

FOCUS ON 3DTV

• 4800 surveys every 6 months = 9600 surveys• 5 countries: US, Europe (Fra, Ger, Ita, UK)

• Video and television focus•Traditional and emerging platforms (TV, online, PC, portable)

Advanced TV ServicesService Providers TV Channels

Social Media

Content Consumption

Advertising Emerging Concepts

FOCUS ON SMART HOME

User Survey Data Tailored To Client Needs

Online TV and Video

7

Technology Brands:Ownership, Purchase Intention, Preference

8

Service Availability and Providers

Note: Non-exclusive list

9

TV Channels and Networks:“Must Have” Top 5

10

Typical questions ConsumerMetrix can address

• Which demographics are most interested in telepresence?• How do nations vary in usage of digital video recorders?• How familiar are consumers with 3DTV?• Which television channels do consumers consider as “must

have”?• How many Sky Digital customers plan to drop the service during

the coming 12 months?• How concerned about personal finances are Comcast customers

relative to those of Time Warner Cable?• How many Sony TV owners plan to buy Sony next time?• How do Apple device owner profiles vary by nation?

Digital Media

Strategies

12

Digital Media Strategies Analyzing the market for digital media services

Online video and OTT TV

CompetitorStrategies

Recorded Music Audiovisual Content

Video Games Advertising

Social media

• WebTV, OTT video, online video services

• Forecasts of online video and TV usage, ARPU and revenues worldwide

• Media strategies and partnerships of service providers & device vendors

• Application developers and aggregators position in the media value chain

• Global market trends and developments for online music services

• Global market trends and developments for OTT video, Film & Home Video, Pay Television and TV Advertising

• Global market trends and developments for offline and online games

• Forecasts of TV advertising, Print advertising, Other traditional advertising and online advertising• Global market trends, user

and revenue forecasts• Impact on content

strategies

13

Scaling the Global Media & Entertainment Industry

14

Digital MediaAdoption

• DMS is the industry leading source for Digital Media metrics• WebTV, OTT video, games, music and social media• Forecasts of digital media usage, ARPU and revenues worldwide

Coverage Description

Digital Media Strategies

Recorded Music

Audiovisual Content

Video Games

• Analysis of the strategic position of media brands in the online sector• Media strategies and partnerships of service providers & device manufacturers• Application developers and aggregators position in the media value chain

• The industry leading source for recorded music usage and revenues• Global market trends and developments for online single track, album, online

music subscription services and freemium streaming services

• The industry leading source for audiovisual, TV & Video, usage and revenues• Global market trends and developments for WebTV & OTT video, Filmed

Entertainment & Home Video, Pay Television and TV Advertising

• The industry leading source for video games metrics and revenues• Global market trends and developments for electronic sell-through of games,

massively multiplayer online games and online games subscription services

Advertising• The industry leading source for analysis of advertising-funded business models• Forecasts of the market for TV advertising, Print advertising, Other traditional

advertising and online advertising for media companies and advertisers

Value Chain Analysis• Insight on the rapidly changing media applications and services landscape• The changing nature of consumer behaviour and the approaches media

companies, operators and device manufacturers are taking to reach connected consumers

Digital Media Strategies Analyzing the market for digital media services

15

Digital Media Strategies Key Research Themes - 2011

• Comprehensive global coverage of the key media industries: – Audiovisual (Television & Filmed Entertainment), – Advertising, – Recorded Music – Video Games– Social Media

• Value Chain Analysis– How are key stakeholders positioning themselves in the digital media value chain?

• Consumer Research– Digital Media Survey: How are consumers changing their media habits?

• Case Studies & Best Practice– What companies and what business models are most successful in digital media?

• Market Tracking– Quarterly tracking of leading companies in the digital media space

• Market Forecasts– Global, regional and country level forecast of 25+ key media & entertainment sectors

16

Digital Media Strategies Value Added Additions 2011

• Further country level splits for all key forecasts, including: Argentina, Australia, Brazil, Canada, China, Czech Republic, Denmark, Finland, France, Germany, India, Italy, Japan, Mexico, Norway, Poland, Russia, S. Korea, South Africa, Spain, Sweden, UK, USA

• Digital Media Survey: How are consumers changing their media habits?

• Increased focus on Connected TV and OTT video and the rapid transition of the audiovisual industry: What industry challenges and opportunities is the new TV paradigm creating?

• Increased focus on Case Studies & Best Practice: What are the most successful digital media companies & services doing right? What new business models will emerge in the “Era of Cloud Media” and which players will prevail?

• Increased focus on tracking & indexes: How are leading digital media companies performing on a quarterly basis?

17

Digital Media Strategies 2011 Report Schedule (non-exhaustive list)

Report Topic Report Type Date

Connected TV in the Cloud Report Q1 2011

OTT Video Users Demographics Report Q1 2011

Global Video Game Forecast Forecast and Outlook Q1 2011

Mapping out the Connected TV Landscape Report Q1 2011

Online Advertising Index (OAI): Q4 Metrics Q1 2011

Digital Media Index (DMI): Q4 Metrics Q1 2011

Global Audiovisual Forecast Forecast and Outlook Q1 2011

Digital Music: Streaming services vs. a la carte downloads Report Q2 2011

Global Connected TV User Forecast Forecast and Outlook Q2 2011



Video Games: The growing importance of Downloadable Content… Report Q3 2011



Global Social Media Forecast Forecast and Outlook Q4 2011

Social Media: Will social recommendations replace the program … Report Q4 2011

Multiplay Market

Dynamics

19

Multiplay Market DynamicsUnparalleled Coverage of the Triple and Multiplay Market


Consumer BroadbandAdoption

Service ProviderStrategies

Multiplay Bundling

Digital Television

Adoption

Consumer Satisfaction, Willingness to Pay and

Churn Propensity

Future of Fixed Voice

Emerging Market Opportunities

• Regular and detailed forecasts of broadband adoption in 60+ countries• ARPU, broadband revenue and platform forecasts• Constantly expanding country base, including key emerging markets

• Quarterly operator tracking and benchmarking for 200+ global service providers• Revenue and subscriber reporting, market sizing and operator-level market share forecasting

• Coverage and commentary on bundling strategies employed worldwide• Analysis of the bundle’s “insulating” effect• What works and what doesn’t. Vulnerability analysis of various strategies

• Global DTV forecast, including subscribers and platform splits• IPTV Take Up; service provider imperatives• Advanced Television Services, 3DTV

• Regularly updated consumer surveys, measuring customer satisfaction with Broadband, DTV, and Phone providers, spend intentions and service prioritization

• Measures propensity to churn, barriers to switching and sensitivity analysis

• Effect of Fixed Mobile Substitution on PSTN. Service provider strategies for maximizing lifespan of copper network. Role of VoIP, adoption.

• Expanded country coverage and focus on emerging Triple Play/Multiplay markets, including Central and Eastern Europe (CEE), BRIC and Latin America

• Next Generation Network Assessments and Forecasts (FTTx, Wimax, etc)

20

Multiplay Market Dynamics Key Research Themes - 2011

• Multiplay Bundling Trends and Forecasts• Consumer Cord Cutting: Assessing the Threat of OTT to “Traditional” Service

Providers• 3DTV: In Search of a Monetizable Business Model• Value Added Services as Churn Mitigators, Consumer Interest in and

willingness to pay for:– Home Security– eHealth– Financial Services– Remote Management– Storage

• The Exabyte Era: Consumer Generated Network Traffic Forecast and Implications

• Fulfilling the Promises of IPTV• Addressing Addressable Advertising • Consumer Telepresence Market Opportunity

21

Multiplay Market Dynamics Value Added Additions 2011

• Enhanced focus on overall Video Ecosystem– 3DTV, HD and OTT

• Traffic Measurement and Forecasting – New focus on country-level data traffic– Forecasting of average actual bandwidth on regional basis

• Broadband Composite Index – Enhanced measurement tool for assessing broadband development– Five factor analysis and comparative rankings

• Value Added Service Coverage– Coverage of growing Value Added Service (VAS) market– Leverages survey work on customer interest in specific VAS

22

Multiplay Market Dynamics Proposed Research Calendar: 2011

Connected Home

Devices

24

Connected TV Devices

• TV, DVR, DVD, Blu-Ray, Set Top Box, Digital Media Players/Adapters• Google TV, Canvas, HbbTV and many other platforms demanding different

devices


Connected Convergent Devices

Connected Gaming Devices

Connected Ad-hoc Devices

HDTV & 3DTV

• Pocketable: WLAN Smart Phone, MIDs, • Mobile: Netbooks, Tablets & Notebooks E-Book Readers. • Who can challenge the iPad? And what will iPad cannibalize?• Fixed & Portable Games consoles.• No longer just for gaming – they drive HD, 3D, VOD and connectivity. Could they

take over the home?• Connected MP3/4 players• Digital Cameras, Shoot & Share Video, Digital Photo Frames.• Consumer Desktops, Network Attached Storage, Navigation, • When will HD Devices catch up with HD TV sets?• When will 3DTV sets catch up with 3D-Ready STBs and Consoles?

Home Networking• Opportunities and Challenges for the current batch of no-new-wires

technologies

Mobile Broadband& Wi-Fi

• Mobile operators move beyond the handset into convergent or non-traditional devices – what are they and how many?

• Wi-Fi still needed by Mobile Ops to offload and ease pressure on the networks – how many Wi-Fi enabled devices?

Connected Home Devices (CHD) Service Total coverage of the fixed and portable device landscape

25

Connected Home Devices (CHD) ServiceKey Research Themes - 2011

• Which devices will bring the most immersive consumer experience – Google TV-type experience or Managed Services from existing Pay-TV providers?

• Tablets, E-Books, Netbooks and MIDs will be hot product categories for 2011. Which ones will win?, where? And why?

• I want what I want, where I want! What are the enabling technologies to achieve this?

Connected TV Devices

Connected ConvergentDevices

Enabling Technologies

26

Europe (E&W)UK, FR, DE, IT,

SP

US

RoWJapanBRIC

Global

CHDForecast Coverage

Device Unit Sales, Installed Base, Market Value, Household Penetration

27

CHDHow We Forecast Our Devices

The Total Addressable Market Networked Devices Wi-Fi Devices WWAN Devices

Segment W

i-Fi Enabled D

evices

Segement 3G

/4G

devices

All Devices

Segment IP Enabled D

evices

Start here

28

Connected Home Devices (CHD) Service Value Added Additions 2011

• Further country level splits for all key forecasts, not just the main Connected CE devices. Current coverage is: Western Europe, UK, France, Germany, Italy, Spain, USA, Japan, BRIC region, RoW and Global summaries

• Connected Device Survey: What are consumers buying and why?

• Increased focus on the rapid transition of the TV industry: What industry challenges is the new TV paradigm creating?

• Connected Home Leaderboard: Further Competitive Strategy Analysis of the key industry players

29

Connected Home Devices (CHD) Service Comprehensive Coverage and Forecasts for 21 Connected Device Product Categories

FixedTV

DVR

Set-Top Box

DVD

Blu-ray (BD)

Games Consoles

Digital Media Adaptors/Players (DMA)

Digital Photo Frames (DPF)

Network Attached Storage (NAS)

Audio Systems

Desktop Consumer PCs

PortableDigital Camera (DSC)

Portable Media Player Mp3/4

Tablets

E-Books

Portable Games Console

IP Cell Phone

Mobile Internet Device (MID)

Netbook

Notebook

Portable Navigation Device (PND)

The High Definition HomeHDTV

HD Receivers

HD Media Players

HD Portables

Connected Device SegmentationWi-Fi Devices

3G/4G Devices

Wired Devices

Connected Device Tracker - database

Currently covers key regions of USA, Western Europe, C&EE, Japan, BRIC,

and ROW

30

Coverage Areas GLOBAL REGIONS COUNTRIES

1. Connected TV Devices X X X

2. Connected Convergent Devices X X X

3. Connected Gaming Devices X X X

4. Other Connected Devices X X X

5. HDTV & 3DTV Homes X X X

6. Enabling Technologies Forecasts (e.g. WiFi or WWAN)

X X X

7 Vendor Competitive Strategy Analysis X

8. User Research into Device Ownership X

Connected Home Devices (CHD) : Major Deliverables and components

Tablet & Touchscreen

Strategies

An Overview

32

What is Tablet & Touchscreen Strategies (TTS)?

Devices

Tablet & Touchscreen Strategies (TTS) is the ‘go to destination’ for tablets and touchscreen

devices, applications and related services research at Strategy Analytics.

In 2010, Many SA teams have covered Tablets from their own perspective: Devices, Media, Enterprise, Consumer Research etc

Each will now feed material into a new Service

Content Access Enterprise Behaviour

33

Summary: TTS provides a holistic approach covering all aspects of the Tablet market

Device Landscape : Focus on Tablets, But also E-Book Readers (EBRs), Mobile Internet Devices (MIDs) & future touchscreen portables

Market Forecasts: unit sales, quarterly vendor market share, ASP, market value , 3G, Wi-Fi, Screen Size, OS, Price Band.

and by ~25 enabling technologies eg HDMI, Flash, 3D, USB, BT

Target Audience: device manufacturers and their enabling technology suppliers, media & content players, service

providers and internet brands.

34

Summary: TTS provides a holistic approach covering all aspects of the Tablet market

Prepay vs. Monthly

subscriptions

The impact of Apps on media

consumption

Traffic Implications

For SPs

Cannibalization Vendor Competitive Positioning

Behavioral Perspectives

Verticals Enterprise Consumer

35

• Pocketable, truly mobile consumer devices enabling a PC-like Internet experience. Typically a MID will have a display between 4 inches and 6 inches, with the bulk in the 4.5 to 5.3 inch range.

MIDs

Tablets

Mobile InternetDevices

MIDs

E-Books(EBRs)

Future TouchscreenProducts Eg Gaming

Dedicated eBook readers or devices. These are turnkey products that employ Electronic paper, also sometimes called e-paper or electronic ink and include some eBook Reading software

EBRs

Touchscreen Handsets, Touchscreen PCs

What’s excluded

This category refers to a slate-shaped mobile casual-computing device, equipped with a touch screen or stylus. This would be typified by the Apple iPad

Tablets

TTS: A Summary of Device Coverage

TTSService

36

3 Worlds (Mo/CE/PC) converge in the Touchscreen Device Landscape between smartphones & notebooks

DisplaySize(Inches)

Unsubsidized Retail Price

10

2

US$1k

8

6

4

US$500

Netbook

MID

Smartphones

12

14+

E-BookTablet.

Notebooks

20+

‘Smart Feature’ phones

Connected TVsFixed networked devices

Non traditional devices

Smartphones

Smart feature phones

The lines are blurring – cannibalization is inevitable

Source: Strategy Analytics Tablet & Touchscreen Strategies Service

37

Coverage Areas GLOBAL REGIONS COUNTRIES Per Year

1. Volume (Shipments) X X X 2

2. Value (ASPs / Revenues / Price Tiers) X X X 2

3. Vendor & OS Market Share X X 4

4. Forecast other features e.g. Screen size, WiFi or WWAN

X X 2

5. Enabling Technologies Forecasts (e.g. HDMI, USB, DLNA, Flash, 3D etc)

X X 2

6. Database (Tablet & EBR) X 4

7. Competitor Analysis X X Ad Hoc

8. Distribution Trends X X Ad Hoc

9. Tablets in the Enterprise X Ad Hoc

10. Industry Reports X Ad Hoc

TTS Service Scope A familiar SA Model..

38

TTS : Value-Adds of a single service solution

Items Examples

Major regional/country level forecasting for Tablets WE, CEE, NA, AP, CALA, AME + 88 countries

Regional forecasts of EBR, MID & any future device shipments By Region

Thought leadership pieces TTS O/S landscape, Wi-Fi Vs 3G,

Strategic Competitive analysis Vendor roadmap evolutions

Various forecast models provided Enabling technologies, unit sales etc.

• Benefits:– More granularity for this high-growth sub-segment– More dedicated support– More data– Thought-leadership (qualitative)– World-class enquiry support

39

Summary: Key Takeaways

• Quantitative and qualitative analysis of Tablet products: unit sales, quarterly vendor market share, ASP, market value , 3G, Wi-Fi, Screen Size, OS, Price Band, and by ~25 enabling technologies eg HDMI, Flash, 3D, USB, BT

• The impact of Apps and services on media consumption and the traffic implications for fixed and mobile service providers.

• Assessing the impact of subsidies and data pricing. Studying the business models required to drive mobile broadband usage - Prepay vs. Monthly subscriptions.

• Tablet usage by consumers as an entertainment and personal productivity device, and as an Enterprise device, as the corporate world wakes up to the opportunities available with this new platform.

• Usage patterns are still unfolding, but TTS will cover usage within the home, on the road, or in the office; studying in detail the split between Wi-Fi devices and 3G devices.

• Consumer analysis: examining current Tablet ownership, buying intentions, price expectations.

• Tablet Database with detailed specifications.

Digital Home

Observatory

ConsumerBehavior

Media & Entertain-ment

Service Providers

ConsumerElectronics

•How much traffic will OTT video bring onto the networks?•Is pay TV doomed or will 3D TV save the day?

Service Providers

•How is the television industry changing? •What industry challenges is this new TV paradigm creating?


A Holistic View of the Emerging Digital Content EcosystemDelivering a 360° Research Perspective

•How many connected TVs devices will be sold in the coming years?•What are the CE vendors strategies for OTT video?

Consumer Electronics

•What is driving early adopters to seek out Connect TV experiences? •How are they changing their behavior around what TV they watch?

Consumer Behavior

DIGITALCONTENT

ECOSYSTEM

Digital Home Observatory

Observing online video usersUnderstanding emerging behaviorsIdentifying needs and preferences

500+ hours annually100+ consumers

8 markets

Online Video• Which OTT Consumer Segments are Emerging? What is driving adoption?• How are OTT consumer behaviors different from traditional media consumers in

terms of content discovery, storage, consumption and sharing?• What is the optimal UX for integrating online video? Which offerings best meet

user needs for Hardware, Controllers, Software, Content and Value Added Services?


Multi-Screen

Social TV

• How are consumer behaviors changing relative to multi-screen adoption?• What new multi-screen experiences do users want?• How can you deliver a superior multi-screen experience?

• How is consumer use of social networking while watching TV developing?• What are the core motivations for social networking related to media and how

should you implement social TV applications to provide the optimal experience?

Digital Home Observatory Research Scope

3DTV• Which segments will adopt 3DTV?• What are the barriers to adoption and how can these be overcome?• How can you deliver a superior 3DTV experience?

Digital Home Observatory 2011 Research Topics

• Profiling Online Video Consumers– Consumer Profiling, Behavioral Insights, Implementation Preferences– Reports on Consumers in 5 Markets: USA, UK, Germany, Spain, China

• Online Video Discovery and Sharing– Examines online content discovery processes for movies, TV shows and video clips– Defines approaches for optimizing the online content discovery expertience

• TV Apps: User Profile and Insights– Observing and interviewing consumers who use connected TVs with app interfaces

• Multi-Screen: User Profile and Insights– Observing and interviewing consumers who consume media across smartphones, tablets, laptops and TVs

• Social TV: User Profile and Insights– Observing and interviewing consumers who use social networking while watching TV

• UX Benchmarks:– Placeshifting Solutions (Sling Media, Orb TV etc.)– Controllers for Web TV– OTT Media Boxes (Google TV, Apple TV, Boxee, Roku Box etc.)– Connected TV/Tablet Apps (AT&T U-verse, Comcast Xfinity, TWC TV-On-Your-Tablet…

• Innovation Reviews

45

Observing the Digital Media Consumer

Recommendations for Developers of Controllers,Digital Media Hardware, EPG/GUIs and Connected Services

Explaining Behaviors, Motivations, PreferencesIdentifying Unmet Needs & Barriers to Adoption

Defining Best Practice Experiences

Directly Observing Digital Media Lead Adopters in the HomeGlobal Research Scope

Key Contacts

Research alerts: Register at www.strategyanalytics.comStrategy Analytics Blog: http://blogs.strategyanalytics.com/

• David Mercer– VP, Digital Consumer Practice– +44 1908 423610– [email protected]

• Peter King– Director, Tablet and Touchscreen Strategies– +44 1908 423615– [email protected]

• Jia Wu– Senior Analyst, Connected Home Devices– + 1 617 614 0712– [email protected]

• Kevin Nolan– VP, User Experience Practice– +44 1908 423609– [email protected]

• Ben Piper– Director, Multiplay Market Dynamics– +1 617 614 0723– [email protected]

• Martin Olausson– Director, Digital Media Strategies– +44 1908 423611– [email protected]

mailto:[email protected]






strategy analytics’ digital consumer practice delivering a 360° research perspective of the...

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