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Broadband Service Markets Shift as Set-Tops Mature and TV Programmers Reach for PC-Literate Consumers.


SUNNYVALE, Calif.--(BUSINESS WIRE)--Feb. 15, 1999--

Changes are Driven by the Internet, Low-Cost PCs, and

Improved Quality of Multi-Channel Digital Video

A new generation of consumers, new alliances between program producers and carriers, and advanced digital set-tops together are creating a new era of digital television and broadband data services.

The latest report from MRG MRG Merge
MRG Minority Rights Group International
MRG Mad River Glen (Vermont)
MRG Mouvement des Radicaux de Gauche (French: Left Radical Movement)
MRG Manyetik Rezonans Görüntüleme
, New-Format Digital Television Report -- Cable, Satellite, & Terrestrial Dealing with the earth. See terrestrial link.  Set-top & Infrastructure Market Analysis 1999-2002, tracks market growth of set-tops, related infrastructure, and content creation as part of this new market phase.

By analyzing cable, satellite and ATSC (Advanced Television Systems Committee) An international digital television (DTV) standard adopted by the U.S., Canada, South Korea, Taiwan and Argentina.  (DTV (Digital TeleVision) Transmitting TV using digital signals. The major DTV standards are ATSC (North America), DVB (Europe) and ISDB (Japan). All three use MPEG-2 video compression and Dolby Digital audio compression. DVB and ISDB also include MPEG audio compression. )(1) set-tops, the report shows how over 4.6 million set-tops were shipped in 1998 and over 6.1 million are expected for 1999. It also shows how program developers are targeting both the TV and the PC with newly developed content.

"With about 50% of U.S. homes now having a PC, the digital set-top becomes a critical hub for importing content for the TV and the PC," states Gary Schultz, Principal Analyst. "Internet growth, cheap PCs, shifts in consumer preferences, and a younger consumer base all contribute to the shift." Additionally, improved EPGs (Electronic Program Guides) enhanced memory, optional modems, and smart cards Example of widely used contactless smart cards are Hong Kong's Octopus card, Paris' Calypso/Navigo card and Lisbon' LisboaViva card, which predate the ISO/IEC 14443 standard. The following tables list smart cards used for public transportation and other electronic purse applications.  are part of the new set-top features examined.

To describe the new consumer demand, the report argues that the old "television set" market is now six separate analog/digital market tiers. "Carriers and CE manufacturers failing to realize this fundamental change are likely to become road-kill," states MRG Analyst Paul Donovan. "U.S. consumers are too savvy to tolerate tol·er·ate
v.
1. To allow without prohibiting or opposing; permit.

2. To put up with; endure.

3. To have tolerance for a substance or pathogen.
 poor product or service definition and sub-standard sales consultants," he adds.

The analysis is based on in-depth interviews with the top 20 U.S. Cable carriers, the major Satellite carriers, and about 50 of the top 150 Terrestrial broadcast stations. Also interviewed for the report were over 20 analog/digital set-top, infrastructure, and television suppliers, along with major retail chains.

The 200-page report is available in English or Japanese versions for $3,995.00 each.

About Multimedia Research Group, Inc. (MRG)

Founded in 1990, MRG, Inc. has headquarters in Sunnyvale, with research offices in New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
 and Tokyo. MRG provides market analyses of new technologies in the communications industries communications industry, broadly defined, the business of conveying information. Although communication by means of symbols and gestures dates to the beginning of human history, the term generally refers to mass communications. .

(1) ATSC is the new DTV standard adopted for the U.S. in late 1996.
COPYRIGHT 1999 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1999, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Geographic Code:1USA
Date:Feb 15, 1999
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