Telcos Prepare Major Push Into Digital Entertainment Content, New Report FindsSports Content and Programming a Primary Target, Seen as a Way to Generate Steady Revenue and Engender User Loyalty, According to Heavy Reading ResearchPRNewswire NEW YORK, Jan. 25 /PRNewswire/ -- Telecom service providers of all stripes are gearing up for a major push into the digital content sector, which has rapidly emerged as a critical competitive flashpoint affecting the entire telecom supply chain, according to a major new report from Heavy Reading (http://www.heavyreading.com/), the market research division of CMP Technology's Light Reading (http://www.lightreading.com/). Digital Content in the Telecom Ecosystem: The Sports Factor assesses the telecom sector's role in the new media landscape by examining developments in one of the most important areas of digital content development: sports content and programming. The all-new 51-page report focuses on the positioning of North American telcos as new entrants in the entertainment industry ecosystem, and how that ecosystem is likely to intersect with the telecom services sector. The report includes full analysis of results from an exclusive Heavy Reading survey of telecom and cable service providers regarding their perceived roles in the future of entertainment services. The survey drew responses from 156 qualified telecom service provider respondents, the vast majority of whom are involved in their company's entertainment plans. "Survey results show that service providers are highly optimistic about the roles they will play in the future of entertainment," notes Sterling Perrin, Senior Analyst with Heavy Reading and author of the report. "Respondents to our survey overwhelmingly believe that players with converged wireline and wireless offerings have the most to gain from the digital entertainment evolution -- more than cable and satellite providers and user- generated content players such as YouTube." Key findings of Digital Content in the Telecom Ecosystem: The Sports Factor include the following: Service providers are casting a wide net in their plans to make money from content. This reflects the early stage of market development and general uncertainty surrounding what the winning revenue formula will be. In our survey, nearly every revenue option presented registered a strong positive response, including (in order of preference) VOD premiums, broadcast content subscriptions, interactivity service premiums, and advertising. Service providers are surprisingly open-minded about the types of end-user platforms they would consider for content viewing. While cable companies have a vested interest in preserving the TV/STB delivery model, telcos appear more willing and interested in a broader approach, encompassing not only the TV, but also the PC and even mobile devices. Network equipment providers will remain highly trusted partners as telecom service providers plot their new media strategies. In our survey, equipment vendors topped the list of preferred partners for developing digital entertainment business models and services. Systems integrators and consultants also scored well in partnership ratings. Pricing is a major long-term challenge for telco entertainment services, and unique sports content is one possible way to compete beyond price. In the near term, telcos have far more to gain by engaging in price wars than their cable and satellite rivals. Over the long term, however, price competition is a dangerous strategy. Exclusive sports content is an excellent means of gaining loyal subscribers and differentiating from incumbents. In addition to exclusive survey results, Digital Content in the Telecom Ecosystem: The Sports Factor is based on one-on-one, exclusive interviews with a large ecosystem of companies surrounding digital sports programming. These players include: -- Wireline, wireless, and converged wireline/wireless service providers, including AT&T, MediaFLO, MediaZone, Sprint Nextel, TVN Entertainment, and Verizon Communications -- Sports content owners, including Major League Baseball, the National Football League, and the NFL's Houston Texans -- Specialist technology and services suppliers for sports programming, including MobiTV, Nellymoser, and RealNetworks. The report is essential reading for a wide range of industry participants, including the following: -- Telecom service providers: How is the business model for delivering digital entertainment content likely to evolve? What is the likely role that telecom operators will play in the digital content ecosystem? How are your competitors preparing to enter the digital content era? What are the clear opportunities that exist in this emerging sector? What are the major pitfalls to avoid? Which prospective partners are likely to provide the best guidance in this sector? -- Equipment suppliers: How do your service provider customers perceive your role in the digital content era? What opportunities will you have to monetize the carrier push into digital content delivery beyond selling equipment? Which types of operators are likely to be most receptive to an expanded role as a business partner? -- Cable MSOs and satellite service providers: What are the real competitive threats posed by telecom service providers as they move into digital entertainment distribution, specifically relating to sports content and programming? What are the key strengths that you will be able to leverage in their efforts to protect market share, and how can your company maximize those strengths? What strategies can you deploy now to exploit the vulnerabilities of telcos as newcomers to this sector? -- Providers of digital entertainment content: How will telecom operators fit into the existing digital content ecosystem? How will the emergence of telcos as content providers affect your existing relationships with other distributors? What advantages are to be gained from the arrival of a new distribution channel? What are the potential hazards to avoid? -- Investors: How will the market share battle take shape in the digital content distribution sector? What are the risks and rewards for each side in this showdown? Which technology providers are likely to emerge as the main beneficiaries of this battle, and when are they most likely to reap those benefits? Digital Content in the Telecom Ecosystem: The Sports Factor costs $3,995 and is published in PDF format. The price includes an enterprise license covering all of the employees at the purchaser's company. For more information, or to request a free executive summary, contact: Dave Williams Sales Director, Heavy Reading 858-485-8870 dave.williams@heavyreading.com Press/analyst contact: Dennis Mendyk Managing Director, Heavy Reading 201-587-2154 mendyk@heavyreading.com About Heavy Reading Heavy Reading is an independent market research organization offering quantitative analysis of telecom technology to service providers, vendors, and investors. Its mandate is to provide the comprehensive competitive analysis needed today for the deployment of profitable networks based on next- generation hardware and software. About CMP Technology CMP Technology (http://www.cmp.com/) is a marketing solutions company serving the technology industry. Through its market-leading portfolio of trusted information brands, CMP has earned the confidence of more technology professionals than any other media company. As a result, CMP is the premier provider of access, insight and actionable programs designed to connect sellers and buyers in ways that yield superior return on investment. CMP Technology is a subsidiary of United Business Media (http://www.unitedbusinessmedia.com/), a global provider of news distribution and specialist information services with a market capitalization of more than $3 billion. SOURCE: Heavy Reading CONTACT: Dave Williams, Sales Director, +1-858-485-8870, Web site: http://www.heavyreading.com/ |