U.S. PC/TV Convergence Product Markets Report: 7160-72 Publication Date: December 1999 Price: $3,450.
Cable Modems And Set Top Boxes: Bridging The Information Gap From PC To TV
With Internet usage steadily increasing, consumer enthusiasm for high-speed Internet access heightening, and entertainment applications generating greater PC/TV demand, now is the time for cable modem and interactive set top box (ITVSB) companies to actualize profitability. According to Frost & Sullivan's (www.frost.com) new strategic research, ""U.S. PC/TV Convergence Products,"" total revenues were up from $1.86 billion in 1998 to $2.09 billion in 1999. Mainly driven by continuing Internet technological advances and home network entertainment popularity, revenues are projected to increase over the forecast period (1999-2006). Because ITVSBs enable more personalization and end-user interaction than ever before, outstanding revenue opportunities exist for companies that can overcome market challenges and satiate changing consumer demands. ""Technological advances, coupled with demand for advanced information services, will continue to push television and PC convergence,"" says Frost & Sullivan information technology analyst Brian Palmer. ""The continued development of high bandwidth applications and the Internet will provide the momentum to implement the required infrastructure and equipment."" New technologies, augmented industry competition and intense price wars that diminish profit margins are factors that continually depress growth in the scan converter and TV tuner card markets. ""LCD projectors, VGA cards offering TV tuner functionality or TV out, interactive television technologies, and computer ready televisions can limit growth potential in the scan converter and TV tuner card markets,"" says Frost & Sullivan information technology analyst Sunni Tweet. ""Although marketing funds are scarce amid decreasing profit margins, companies that formulate innovative business plans will reap the benefits of increased Internet usage and skyrocketing PC sales."" A key technology trend that will impact the PC/TV convergence products industry is the growth in home networking. ""Basic household concerns, such as where a PC or a television is placed, can greatly affect how each device is perceived and used,"" says Palmer. PC/TV convergence is both a cultural and technological change, which home networking growth could ease by seamlessly connecting two technologies and cultures. ""U.S. PC/TV Convergence Products"" analyzes the markets for scan converters, TV tuner cards, cable modems and ITVSBs. This study supplies strategic recommendations, competitively benchmarks industry participants, identifies market challenges, explicates market drivers and restraints, and provides revenue forecasts for each market segment. Frost & Sullivan presents 1999 Market Engineering Awards to companies that have worked hard to make a positive contribution to the PC/TV convergence industry. The Product Innovation Award is presented to Terayon Communications Systems, and the Product Line Strategy Award is given to General Instrument Corporation. Frost & Sullivan has identified the following companies as market participants for the purposes of this research: ADS Technologies; AIMS Lab; AITech International; Antec, Inc.; ATI International, Inc.; AVerMedia Technologies, Inc.; Com21, Inc.; Digital Media Works; Focus Enhancements, Inc.; General Instrument Corporation; Good Systems, Inc.; Haulage Computer Works, Inc.; Hybrid Networks, Inc.; ixMICRO; Motorola, Inc.; Pinnacle Systems; Pioneer Electronics; Samsung Corporation; Scientific-Atlanta, Inc.; Sony Electronics, Inc.; Terayon Communications Systems; and UMAX Technologies, Inc. Related companies include 3Com Corporation; ADC Telecommunications, Inc.; Avio Digital, Inc.; Broadcom Corporation; Cable Television Laboratories, Inc.; Cisco Systems; Diamond Multimedia Systems, Inc.; Packard Bell/NEC; Phasecom, Inc.; Philips Consumer Electronics Company; ReplayTV; TiVo, Inc.; TV One and Tytec Enterprises, Inc. Frost & Sullivan is an international marketing consulting and training company that monitors the information technology industry for market trends, market measurements and strategies. This ongoing research is used to complement a series of research publications such as No. 5910-66 ""North American Interactive Television Service Markets"" and is used to support participants with customized consulting needs.