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Insatiable Appetite for Content Drives Consumer Video Devices Market Finds Frost & Sullivan - Apps, QoE and transformative user experiences are keys to breakthrough growth in price-challenged industry - DigitalMedia.Frost.com
Insatiable Appetite for Content Drives Consumer Video Devices Market Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Mountain View, CA, United States, 2013/05/21 - Apps, QoE and transformative user experiences are keys to breakthrough growth in price-challenged industry - DigitalMedia.Frost.com.

   
 
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The consumer video devices market is transforming the way users interact with their phones, televisions and computers. The industry is on a remarkably growth spree, driven by soaring consumer demand for a ubiquitous video experience and growing affordability. A consistent shift toward long-form online video consumption, including live TV, is driving first-time purchases of devices. This is also driving upgrades to higher-end, feature rich devices. However, competition and demand are compelling device manufacturers to discount their prices, globally and regionally.

Analysis from Frost & Sullivan (digitalmedia.frost.com), Analysis of the Consumer Video Devices Market, finds that 1.2 billion units worth over $360 billion were shipped in 2012. Unit sales expect to nearly triple to 3.1 billion devices by 2017.

If you are interested in more information on this study, please send an e-mail with your contact details to Mireya Espinoza, Corporate Communications, at mireya.espinoza[.]frost.com.

"Consumer appetite for online and personalized content, including both on-demand and live TV, anytime and on multiple screens simultaneously, is going to remain the number one driver of the consumer video devices market," noted Frost & Sullivan Digital Media Industry Manager Avni Rambhia. "Internet video disrupted the Pay TV industry once; today, a wide range of consumer video devices including Blu-ray players, gaming consoles, IP connected devices, set-top boxes, smart phones, and smart TVs are forcing a remolding of business models across the board."

Smart phones account for nearly half of total market units currently and will continue to spur market expansion. The rapid adoption of tablets and smart TVs and sustained sales of set-top boxes (including home gateways) are also significant contributors to overall growth.

However, the competition to innovate and differentiate, while still lowering prices, is stressing the market in terms of risk and return on investment. Regional vendors pose greater competition to global vendors in high growth emerging markets as they continue to improve the quality and reliability of their devices while addressing local price sensitivity. Price-performance is a challenge that needs to be addressed by vendors at a global level and also region-by-region.

"Price does matter to the large majority of consumers, but features and innovation determine early market success," said Rambhia. "Thus, a strategy that straddles both price and feature sets is most likely to succeed in the long-term."

Partnerships with content service providers, game developers, and app developers to ensure a total package that will appeal to consumers is key to winning market share in a space where every new generation model has the potential to swing the fortunes of a vendor significantly one way or another.

"From a service provider perspective, a personalized, convenient, and intuitive user experience is critical to achieving service popularity," concluded Rambhia. "Vendors who craft compelling services that are consistently available across all major devices will find that users are willing to pay (directly and through ad viewing) for such experiences."

Analysis of the Consumer Video Devices Market is part of the Digital Media Growth Partnership Services program, which also includes research in the following markets: Video Encoders and Transcoders, Online Video Advertising, Transparent Caching and Conditional Access, DRM and Middleware. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Analysis of the Consumer Video Devices Market / NC68-70

 
 
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Insatiable Appetite for Content Drives Consumer Video Devices Market Finds Frost & Sullivan

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