Smart Phones Move to the MID
Among the MID devices included in the forecast period from 2008 to 2012, smart phones are projected to dominate the segment. Estimates that about 60% of all smart phones now are considered MID-class devices, but that figure will rise to cover 100% by 2012. A key gating factor is the inclusion of WLAN or 3G connectivity, and applications like video downloads, gaming and full Internet browsing will proliferate when smart phones attain 3G-speed downlink and uplink capabilities.

E-book Readers Open MID Chapter
Despite their relatively recent arrival on the scene, e-book readers already have achieved 35% MID penetration as of 2008, which will then rise to 76% by 2012. The high penetration primarily is driven by the success of Amazon’s Kindle, with 100% WWAN penetration; and of Sony’s counterpart, the Sony Reader, which has 25% WLAN penetration. Kindle, for instance, integrates ubiquitous wireless connectivity within the e-book reader to deliver real-time news, on-the-go media purchasing and even e-mail applications.

Ultra-Mobile PCs and netbooks adopt MID capabilities
A mere 2% of all UMPCs were considered to be MID-class in 2008, but the figure is expected to grow to 28% by 2012. Key factors increasing MID penetration in this area include continued improvements to instant-on capabilities and battery-life performance.

Gaming Devices
Only a small segment of gaming devices—many lack 3G-or-better connectivity features—meet the MID criterias, 2.8% can be considered MID-class by 2011 if the full set of criteria is brought to bear, with the rate increasing markedly to 15.1% the year after. However, if the requirement for ubiquitous coverage is relaxed to cover only WLAN, then the percentage of gaming devices that can be considered MID-class shoots up to 98.6% in 2008, with the figure rising to 100% by 2011.

PMP/MP3 Players
Portable Media Players (PMP)/MP3 players, no significant volume shipments occurred as of 2008. Only 3% of the devices will be MID-class by 2012, but a potential upside to this market exists if manufacturers increase the amount of WWAN support for the players, which are capable of delivering rich multimedia content and experience.

PNDs
Among Portable Navigation Devices (PNDs), a mere 0.22% currently are MID-class-capable, with the number growing to 10% by 2012. The one criterion driving PNDs for MID functionality is the rate of wireless connectivity, primarily through WWAN. Once enabled, PNDs allow the implementation of solutions such as real-time traffic, rerouting, remote map and database updates, location-aware advertising and purchasing of services such as fast-food orders and gas purchases. PNDs are also unique among MID devices in that they have the automobile as a power source and are, therefore, not limited by battery-life constraints.

According to surveys through 2008 by the Pew Internet and American Life Project, larger percentages of older generations are online now than in the past, and they are doing more activities online. Generation X (not Y) is the most likely group to bank, shop, and look for health information online. Boomers are just as likely as Generation Y to make travel reservations online. And even Silent Generation internet users are competitive when it comes to email.
The biggest increase in internet use since 2005 is the 70-75 year-old age group. While just over one-fourth (26%) of 70-75 year olds were online in 2005, 45% of that age group is currently online, and doing more activities online.

Instant messaging, social networking, and blogging have gained ground as communications tools, but email remains the most popular online activity, particularly among older internet users, writes Sydney Jones and Susannah Fox in the report. 74% of internet users age 64 and older send and receive email, making email the most popular online activity for this age group. 89% of teens claimed to use email in 2004. Now, just 73% currently say they use email.

Teens and Generation Y (age 18-32) are more likely than their older counterparts to seek entertainment through online videos, online games, and virtual worlds, and they are also more likely to download music to listen to later.

78% of     12-17 year-old internet users play games online
73% of     online teens email, the second most popular activity for this age    group
only 50% of Generation Y play online games
The report says that health questions drive internet users age 73 and older to the internet just as frequently as they drive Generation Y.  Researching health information is the third most popular online activity with the most senior age group, after email and online search.

Generation X (ages 33-44) continues to lead in online shopping:

80% of Generation     X internet users buy products online
71% of     internet users ages 18- 32 buy products online
38% of     online teens buy products online
56% of     internet users ages 64-72 do
47% of     internet users age 73 and older buy online
67% Generation X internet users lead in online banking, while  57% of Generation Y to do their banking online, up from 38% in 2005. There has been no significant growth among older generations when it comes to banking online

Downloading videos is now being done more equally across all generations under 73 years old.

31% of     Generation X claim to download videos as of 2007
38% of     Generation Y downloaded videos
13% of     G.I. Generation internet users (age 73+) reported downloading videos,     up from 1% in 2005
13% of     the online Silent Generation (ages 64-72) say they download videos,     up from 8% in 2005
Who are these people…

Generations Explained

Generation            Birth Years  Ages in 2009  % Of Total Adult Population  % Of Internet-Using Population

Gen Y (Millennials) 1977-1990  18-32                      26%                                      30%

Gen X                    1965-1976  33-44                      20%                                       23%

Younger Boomers  1955-1964  45-54                      20%                                       22%

Older Boomers       1946-1954  55-63                     13%                                       13%

Silent Generation    1937-1945  64-72                      9%                                          7%

G.I. Generation       <1936          73+                         9%                                          4%

Source: Pew Internet & American Life Project December 2008 survey, February 2009

I actually like the idea to a point. I’ve been a Rhapsody subscriber for years and find great value in the subscription model. The underlying question I have in the Warner plan is if the music is freely shared all around the net, how do they account and pay to the artists who work so hard to produce the music in the first place.

Let me know what you think.

—–

The Music Industry’s Extortion Scheme by Reihan Salam

The record labels want you to pay a tax on music. It’s not as horrible as it sounds.

What would you do if a bully—let’s call him “Joey Giggles”—kept snatching your ice-cream cone? OK, now what if Joey Giggles then told you, “If you pay me five bucks a month, I’ll stop snatching your ice cream.” Depending on how much you hate getting beaten up, and how much you love ice-cream cones, you might decide that caving in is the way to go. This is what’s called a protection racket. It’s also potentially the new model for how we’ll buy and listen to music.

Let’s back up for a second. Four companies (Universal Music Group, Warner Music Group, Sony BMG, and EMI) control a staggering 90 percent of all record sales in the United States, and they’re hopping mad. CD sales are in free fall, and the recording industry’s revenues have shrunk from $15 billion to $10 billion in less than a decade. Instead of blaming themselves for failing to embrace the Internet soon enough, Big Music has pointed the finger at piracy, shaking down scofflaw MP3 downloaders with capricious, multimillion-dollar lawsuits. This has not strengthened the record companies’ position—at this point, they’re losing money and everybody hates them.

Now Big Music is mulling the Joey Giggles approach. Warner Music Group is trying to rally the rest of the industry behind a plan to charge Internet service providers $5 per customer per month, an amount that would be added to your Internet bill. In exchange, music lovers would get all the online tunes they want, meaning that anyone who spends more than $60 a year on music will come out way ahead. Download whatever you want and pay nothing! No more DRM! Swap files to your heart’s content—we promise, we won’t sue you (or snatch your ice-cream cone)! More

The World’s Broadband

Four European Union (EU) nations have the best broadband deployment rates in the world. The Single Telecoms Market Progress Report has shown that Denmark, Finland, the Netherlands and Sweden saw penetration rates in excess of 30 per cent at the end of last year. Along with the UK, Belgium, Luxembourg and France, these countries saw higher rates than the US in 2007, with some 19 million EU broadband lines added last year.

UNITED KINGDOM
Currently in the UK the big issue is the gap between advertised and actual speeds, so while 10Mbps might be available from a few suppliers, very few actually get this speed. According to speedtest.net – a global speed test created by actual users and approved by most of the major ISPs in the US – the real speed is closer to 3Mbps.

Things get faster next year as ADSL2+ comes online promising speeds of up to 24Mbps, although as with all DSL technology, there are physical limits and only those close to the exchange will actually get the top speeds. Virgin Media is currently trialling a 50Mbps cable service and BT is also experimenting with fiber to the home, which could offers speeds of up to 100Mbps.

Return to map

FRANCE
France has an advertised average of 44Mbps.

According to speedtest.net the average speed from those doing the test is 4.6Mbps but higher speeds are beginning to come online. ADSL2+ is already available and is being marketed as providing speeds of up to 28Mbps.

Actual speeds will vary although the copper telephone lines are generally of better quality than in the UK, so speeds are typically higher. The leading ISPs in France have announced fiber-based services. Orange and Frees’ offerings are live now and are marketed at offering speeds around 50Mbps. Free’s offer at 29 euros a month, comes bundled with a broadband telephone service, IPTV, plus a free set top box.

Return to map

GERMANY
Average advertised speeds of 9Mbps falls to 4.8Mbps according to speedtest.net.

In Germany the main delivery mechanism is still largely DSL, and the leading company is the old incumbent Deutsche Telekom. They have a VDSL network – which provides fiber as far as the street cabinet. This is live in the main German cities, and offers speeds of up to around 25Mbps. Outside of the main towns there is a mixture of ADSL 1 and 2 technologies.

Return to map

SWEDEN
Average advertised speed of 21Mbps but according to speedtest.net, people are actually achieving an average of 7.4Mbps.

In Sweden there is a VDSL network live. Fiber has been available for quite a long time with a significant number of people served by it. Speeds vary depending on which network, but can go up to 100Mbps, However there is a big polarisation between those that get it and those still relying on DSL products.

Return to map

POLAND
Average speed of 4Mbps, falls to 1.6Mbps according to speedtest.net.

In Poland there is virtually no local loop unbundling, which means little competition for the France Telecom-owned incumbent.

Speeds there aren’t fast by western European standards although there are quite a lot of so-called LAN networks (Local Area Networks) using ethernet cable, which allow for super-fast speeds because of their limited geography. This phenomenon is peculiar to eastern European countries such as Poland where the existing infrastructure isn’t great but it is relatively easy for local entrepreneurs to set up such systems quickly.

Return to map

SOUTH AFRICA
1Mbps (this data comes from the ITU as OECD doesn’t have figures for Africa).

Alongside countries such as Morocco, South Africa is one of the biggest broadband countries in Africa. The primary delivery mechanism is via broadband. WIMAX penetration is still low. Although it is likely to become an important infrastructure in Africa, currently it is too expensive to be widely deployed.

Return to map

ISRAEL
Israel’s advertised figure is 2Mbps.

Israel has very high penetration levels with around 70% of households using a broadband connection. There is quite a lot of cable services available alongside DSL and there has been quite a big government spend on broadband.

Return to map

UNITED STATES
The US has an average speed of 8Mbps according to the OECD, although it is nearly half this (4.6Mbps) according to speedtest.net.

The US is unusual because it is one of the few countries in which cable is the largest connection network. Typically cable is marketed at offering between 5Mbps and 20Mbps. Number of fiber providers, most notably Verizon which offers fiber to home, with speeds up to 20Mb, This is just available on the east coast. ATT is offering a hybrid DSL service while Qwest has just announced a fiber to street strategy.

Return to map

MEXICO
Mexico’s advertised speed is 2Mbps.

In Mexico the predominant infrastructure is broadband via DSL.

Its rich incumbent telecom firm TelMex are considering laying fiber and despite the fact that there is no large scale implementation it is likely to overtake the UK very soon in terms of the amount of fiber available.

Return to map

NEW ZEALAND
Average advertised speed of 13.5Mbps, falls to 2.4Mbps according to speedtest.net

Broadband comes largely via DSL in New Zealand where Telecom New Zealand is very dominant.

Cable is limited to one or two cities. There are very specific challenges for providers in New Zealand. Because of the distances between houses there tends to be very long telephone lines, meaning quality is not great for many. International connectivity is also an issue because of its physical distance from the rest of the world. There is not much competition meaning speeds stay slow. The model of local loop unbundling – opening the telephone exchanges to other operators – is being considered as is the idea of providing fiber to the street cabinet or to push DSL into remoter street cabinets to reduce line length.

Return to map

JAPAN
Japan has an average speed of 93Mbps according to the OECD, but this falls to 10.6Mbps according to speedtest.net, which could be indicative of the fact that fiber is concentrated in the towns and cities.

Cable broadband is quite strong in Japan but the biggest market is in fiber to the home.

This has proved so popular with consumers that DSL is actually in decline. Companies are so advanced with fiber delivery that they are beginning to find DSL surplus to requirements. The speeds fiber provides means applications such as sharing video files are standard. Fiber also dramatically improves upload speeds, making it much more suitable for web 2.0 communication, with individuals contributing back to the internet with pictures and videos.

Return to map

SOUTH KOREA
South Korea’s figure is 43Mbps.

In South Korea there has also been a very strong fiber rollout, which has been enabled, at least in part, by state contributions.

Often regarded as something of a gold standard when it comes to super-fast broadband, an amazing 90% of homes have a broadband connection of between 50 and 100Mbps. They also pay the lowest rates in the world. There are pilot services offering connections starting at 1,000Mbps. The big driver for fast broadband here is gaming and 43% of the population has a personal profile in the virtual world Cyworld, which recorded $10m worth of trade per month last year.

Return to map

CHINA
ITU data puts China’s broadband speed at 1Mbps.

China is fast becoming the world’s largest broadband economy. It is laying quite a lot of fiber which is a less disruptive option in China because of the amount of new building work being done. It already has 14 million fiber lines, compared to 9.6 million in Japan, 1.7m in the US and just a few thousand in the UK but it doesn’t generate the same speeds as in other Asian countries because the fiber tends to feed into blocks of flats rather than individual dwellings.

By Mark Levy CEO of MaxxoMedia

The vision of the digital living room has been around a long time. This is where the living room and Internet collide centered around a screen (namely the TV) and information, video, audio, games, and communications all converge. Over the years, attempts have been made to bring this vision to reality mostly with lukewarm results. Anyone remember WebTV?

At a recent gathering just outside of San Francisco, this vision was discussed. The talks centered around three main topics: 1) What will the interfaces to this digital living room look like? 2) When will this vision become a reality? And 3) How will the various parties, from cable operators and content providers to ad agencies, hardware manufacturers and even consumers make money in this new world?

Attendees included representatives from across the digital living room landscape — the usual suspects such as Comcast, Verizon, HP and Microsoft to the upstarts and start-ups like Hillcrest Labs, HDD Disk Flix and SendToMyTV — mixed for a day-and-a-half discussing how each of them will make the future come to life.

It was soon clear that this vision was further away than anyone would admit. Some commented that the topics and problems at this conference have remained the same for years, moving forward each year only incrementally, if at all.

However, others saw progress, which lead them to believe the manna was going to start falling soon. The evidence towards this convergent possibility is the massive increase in people watching video, short and long form, over the Internet on their PCs and laptops, and the increase in broadband speeds to the home. Over 10 billion streams of video were initiated over the web in January of 2008.

The question was raised about how the consumer would be paying for all this content. Currently almost all of this video viewing is ad-supported … thus cash-free to the consumer. This ad revenue needs to get split between the distributor and the content provider. Unfortunately, ad agencies aren’t clear exactly how to measure this new medium, so they have little to show their clients as support for moving their budgets into the new world.

Cable companies want to maintain a walled garden approach to offering content, so they are concerned with how and when to allow their customers to access content from the Internet.

On the set top box side, TiVo, a pioneer in intelligent set top boxes, continues to be one of the more progressive companies in the space. With the luxury of having a proprietary set top box in millions of homes, they have expanded the digital video recorder to allow their customers to access parts of the Internet, like Amazon UnBox, in their living room.

The Xbox 360 and PlayStation 3 have a large installed base of boxes that have the potential to shift the landscape dramatically. The 360 comes equipped with a network connection that allow consumers to access the Internet, play games in real time with others, download movies, TV shows and play HD movies. The PlayStation is rumored to be adding a video download store soon.

With the expectation of massive amounts of content being available through Internet TV, companies are facing off around the consumer search experience.

Hillcrest Labs offers a pretty interesting interface available through their set top box. The consumer accesses the well-designed content interfaces and search screens with a slickly designed three-dimensional mouse device that allows the user to easily point and click on content or application choices.

Hitachi is focused on making the search experience as fast as possible with massive amounts of data. They’ve developed a very fast database and retrieval system, and are planning to bring it to the home set top box in partnership with cable companies and set top box manufacturers.

Currently the database is being used in in-dash, personal navigation and GPS devices with some really interesting application ideas. One application in particular allows the user to recall songs from the database that were playing at another time based upon GPS location information.

The main takeaway from the event was that there are many companies looking to make the digital living room a reality. So look out for a number of new services being offered by the cable operators, new set top boxes from companies you’ve never heard of, new content offerings and a multitude of business models in the coming months and years.

The bottom line, though, is it will take a lot of collaboration to make this vision a reality for all involved anytime soon.

By Belinda Goldsmith

NEW YORK (Reuters Life!) – Surfing the net has become an obsession for many Americans with the majority of U.S. adults feeling they cannot go for a week without going online and one in three giving up friends and sex for the Web.

A survey asked 1,011 American adults how long they would feel OK without going on the Web, to which 15 percent said a just a day or less, 21 percent said a couple of days and another 19 percent said a few days.

Only a fifth of those who took part in an online survey conducted by advertising agency JWT between Sept 7 and 11 said they could go for a week.

“People told us how anxious, isolated and bored they felt when they are forced off line,” said Ann Mack, director of trend spotting at JWT, which conducted the survey to see how technology was changing people’s behavior.

“They felt disconnected from the world, from their friends and family,” she told Reuters.

The poll, released on Wednesday, found the use of cell phones and the Internet were becoming more and more an essential part of life with 48 percent of respondents agreeing they felt something important was missing without Internet access.
More than a quarter of respondents — or 28 percent — admitted spending less time socializing face-to-face with peers because of the amount of time they spend online.

It also found that 20 percent said they spend less time having sex because they are online.

Continued…

Blogs provide commentary or news on a particular subject such as food, politics, or local news; some function as more personal online diaries. A typical blog combines text, images, and links to other blogs, web pages, and other media related to its topic. The ability for readers to leave comments in an interactive format is an important part of many blogs. Most blogs are primarily textual, although some focus on art (artlog), photographs (photoblog), sketchblog, videos (vlog), music (MP3 blog), or audio (podcasting), and are part of a wider network of social media. The term “blog” is a portmanteau of the words web and log (Web log). “Blog” can also be used as a verb, meaning to maintain or add content to a blog.
In May 2007, blog search engine Technorati was tracking more than 71 million blogs.

There are many blog popularity-ranking services on the web, but unfortunately, they all rely on only one piece of data for their rankings. Either link popularity, RSS feeds or some sort of traffic-ranking service. To get a more accurate measurement picture all data from multiple sources need to combine. The top 25 Most Popular Blogs are ranked by a combination of RSS Subscribers from FeedBurner, Inbound Links from Yahoo Site Explore (entire site not including internal pages), Alexa Rank, and Compete and Quantcast U.S. Unique Monthly visitor data. Blogs that are only a part of a non-Blog site are not included (i.e. Google Blogs).

25 Most Popular Blogs

Josh Crandall, managing director of Media-Screen, says “Many broadband consumers go online for entertainment, and to talk about entertainment with other fans. Marketers need to leverage that interest…”

Search engines and social networking sites are gaining in popularity, says the report, influencing an equal number of people as magazines and newspapers.  48% of younger users say they learn about new entertainment through community, review and video sharing sites and blogs. Only 25% say they learn about new entertainment through television. 

Crandall goes on to say “Currently, the proportion of advertising resources devoted to the Internet (about seven percent according to ZenithOptimedia) is nominal relative to the value it generates… among fans… consumers, on a typical weekday, spend more than 40% of their time consuming media online…”

Two online media activities – sending email and visiting Web sites for personal reasons – are more popular than watching television, says the report:

And, the report find that roadbanders spend 27 percent of their overall time online, or about one hour and forty minutes, on leisure and entertainment

Other topics covered in the Report include:

• Online versus offline sources used to learn about bands, TV shows, movies, games and web sites
• Community-based activities such as rate/review a product, publish a personal page, upload a video or audio file
• Influence of user-generated sources and content
• Fan-related activities
• Entertainment content accessed online by psychographic group
• Demographics of population and usage among gender, age and income

For more information, please visit Media-Screen here.

Additional broadband findings for the quarter include:

• The top telephone companies added 1.49 million subscribers, 51% of the net broadband additions for the quarter
• The top cable providers had a record tying quarter with about 1.45 million subscribers added
• Telephone companies have added more broadband subscribers than cable providers in each of the last ten quarters, acquiring about 1.86 million more subscribers than cable over that time
• The top cable broadband providers have a 55% share of the market, with a 5.3 million subscriber advantage over the telephone companies

Other related findings from the first quarter of 2007 include:

• The top cable companies added a record 1.1 million telephone subscribers
• The top cable companies added over 1.2 million digital cable subscribers, the most net additions since the fourth quarter of 2002
• The top cable companies added about 200,000 basic cable subscribers
• The three largest telephone companies added over 150,000 wireline video subscribers, and added 335,000 video subscribers in DBS partnerships

Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “The top cable companies now have over 30 million broadband subscribers, and about 10 million telephone subscribers, to complement their enhanced TV offerings.”

For more information about LRG, please visit here.