New Data Shows Internet Video Rivals Cable
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Posted On :
Dec-10-2011
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Article Word Count :
576
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More TV and Movie fans are getting their data online rather than via their cable provider. Companies positioned to take content beyond the laptop and on to other mobile devices and notepads stand to be the big winners in this growing marketplace.
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New data from network policy control provider Sandvine suggest something many in the
industry have been suspecting for some time: Internet video usage now rivals basic cable
usage.
Sandvine's Global Internet Phenomena Report: Fall 2011 (PDF) contends that entertainment
applications are the primary drivers of network capacity on fixed access (non-wireless)
networks in North America, accounting for 60 percent of peak downstream network traffic
from 7 p.m.-9 p.m., up from 50 percent in 2010.
The report, suggests Dave Rosenberg, who wrote a piece on the new study for CNET, says
“we've entered a post-PC era where the majority of the traffic is destined for devices
other than a laptop or desktop computer. Fifty-five percent of the real-time entertainment
traffic is consumed via game consoles, set-top boxes, smart TVs, tablets, and mobile
devices.”
Online movie providers have had their hands in the technology for some time and, after some
struggles along the way and divisive issues over content pricing and ownership and
licensing, it appears the technology is finally clicking.
But the bigger question, says Rosenberg, is what this portends for the future of pay TV as
a whole. Cable companies, he suggests, “have developed a bit of a monopoly in certain
geographies as the primary (often only) choice for cable TV and/or Internet service. And
considering that broadband Internet prices have largely normalized and cable prices have
increased, one has to wonder cable companies will protect their margins as users take
advantage of cheap bandwidth to get online content.”
That said, Apple's success with iTunes content sales, which are expected to reach $13
billion in 2013, ushered in a new way for users to pay for content. And in the new
biography of Steve Jobs, author Walter Isaacson wrote that Jobs told him, "I'd like to
create an integrated television set that is completely easy to use. It would be seamlessly
synced with all of your devices and with iCloud."
TV and movies are available for download on a number of different online websites, many for
free or a minimum monthly service fee. However, there are other big-players in the arena
to contend with, including Apple and Google.
Google's approach to the market, suggests Rosenberg, is that the company has “largely
avoided producing hardware and instead has worked through distribution channels such as
TiVo to get YouTube on set-top boxes. “Google, however, has already shown that it can keep
content in sync across browsers and mobile devices, so it clearly has a huge opportunity
here as well,” says Rosenberg.
What happens next, Rosenberg points out, is unclear. In addition to the content producers,
there
are also “a number of hardware providers who would have to get on board with any of these
strategies and realistically, while Apple generally does a better job of offering a
complete solution, Google's ubiquity and desire to sell ads, rather than hardware, could
give them an upper hand.”
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http://www.articleseen.com/Article_New Data Shows Internet Video Rivals Cable_116965.aspx
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