Advanced Technologies and Intense Competition Fuel Growth in North American Residential Video Services Market.

PALO ALTO, Calif. -- Superior home entertainment and communications services are luring consumers to the North American residential video markets. Enhancements, including personal video recorders, video-on-demand (VoD), high-definition television (HDTV), and pay television services, help providers improve revenue streams and increase adoption rates. In 2004, more than 85 percent of television households in North America subscribed to multichannel video programming.

New analysis from Frost & Sullivan (http://www.telecom.frost.com) North American Residential Video Services Markets reveals that revenue in these markets totaled $64.7 billion in 2004 and can reach $101.5 billion in 2011.

If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants an overview of the latest analysis of the North American Residential Video Services Markets, then send an e-mail to Mireya Castilla, Corporate Communications, at [e-mail] with your full name, company name, title, telephone number, fax number, city, state, country and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.

Super-telecommunication companies are deploying Internet Protocol television (IPTV) by distributing video signals to subscribers using a broadband connection over IP. This facilitates the delivery of the triple play strategy, a convergence of data, voice, and video services on a single platform from a single provider. Employed as a powerful sales strategy, technologies offer consumers control over their video services.

However, alternate technologies such as broadband over power line (BPL), used to interconnect electrical devices in a house, along with wireless broadband could become available very soon and impinge upon existing and newly deployed video services.

This can threaten old participants as well as new entrants in the markets. The latter already face extensive initial investments, adoption uncertainties, and unknown technology issues. Furthermore, incumbents in the pay television market, including cable multiple service operators (MSOs) and direct broadcast satellite (DBS) providers, face the challenge of sustaining revenues. To overcome these obstacles, these companies resort to reducing prices, thereby lowering revenues and resulting in fewer funds available for technology development and expansion.

"In order for providers to compete effectively in this well-established environment, they must offer a unique package," explains Frost & Sullivan Industry Manager Reggie Helton. "In the past, channel offering and price were the only true sources of differentiation, but the future lies in becoming one-stop-shops for all of the consumers' communication and entertainment needs and creating an effective and salable bundle by integrating services is imperative."

Lack of infrastructure and resources could be a deterrent to this development. Yet, providers are aware that besides the convenience and innovativeness of such integration, there is the service aspect. This is because receiving one bill and dealing with only one provider for customer service inquiries are major advantages in the eyes of consumers.

"Providers also offer customers a variety of broadband choices such as different performance versions at different price points, allowing consumers to spend less than the traditional $40 to $50 on monthly access and yet receive speeds much faster than that from dial-up services," says Helton. "This strategy should broaden providers' addressable markets and attract new customers without reducing existing revenue streams."

Maintaining a close eye on competition should equip market participants to seize untapped segments by supplying services not already offered and plan strategic initiatives to retain or attract new customers.

North American Residential Video Services Markets is part of the Consumer Services subscription. The study analyzes the market by segmenting it into pay television services, IPTV, triple play strategy, VoD, and HDTV. It discusses the various trends and opportunities observed in the markets while providing market share analysis, forecasts, drivers, restraints, and revenues. Executive summaries and analyst interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com.

North American Residential Video Services Markets

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Keywords in this release: residential video services, North America, broadband, Internet Protocol television, IPTV, Internet Protocol, IP, high definition television, HDTV, triple play strategy: video, voice, data, fiber deployment strategies, video on demand, VoD, pay television services, wireless, broadband power line, BPL, research, information, market, trends, technology, service, forecast, market share