In This Issue: For TV, The Future Is Now-And It's On The Net: The world of television is undergoing rapid change. The threat is from the same source, the Internet, which promises to deliver a virtual programming universe to consumers anytime, anywhere. However, convergence in telecommunications and the Internet is coming and, in 2007, the major electronics makers will roll out new Net-ready TV sets, equipped with storage and computing power to rival current PCs.TV's Search For A Profitable Plot On The Net: The advertising dollars now allocated and projected to be allocated to the Internet are big. By one estimate, video-related advertising online could exceed $2.3 billion within four years. For advertisers, one attractive aspect of Internet TV is its ability to more precisely measure a show's audience. Global Electronics Makers Switch On To Flat-Screen TV Boom: Markets for flat-screen TVs are booming globally. According to independent research, their sales in the U.S. will nearly triple in 2007, hit 2.4x in Europe, and achieve a slightly more modest 1.7x in Japan. Equity Insight: What Sony Needs Is A Computing Platform That Thrives In The Living Room: To create a successful platform, Sony has to clear two hurdles: It needs to plant a computer in the living room, a crucial step since the company needs a centralized digital system in the household. And it must connect the living room to the Internet, allowing users to access various kinds of network and to each other. Equity Insight: Emerging Digital Strategies For Branded Entertainment: Hollywood is on the cusp of a new digital era. As the Internet has begun to splinter traditional media audiences, Standard & Poor's is seeing the early evidence of a concerted push by film and TV content providers into newer avenues of distribution made possible by broadband and wireless platforms. Equity Insight: Old Media And New Media-Friends, Not Foes: If content is king, then its queen is monetization. This marriage of substance and sales has driven progress and profits in the media world for decades. This is why we believe Internet companies that enable and promote content monetization should be viewed as critical allies of, not necessarily competitors to, traditional media companies. Cable Versus Satellite: J.D. Power Scores The Combatants: The increased popularity of bundled services has likely contributed to falling monthly payments for cable subscribers. In 2006, the share of households reporting that they have bundled at least local and long distance from the same carrier has increased to 77%. Why Customer Service Matters In Cable And Satellite: Standard & Poor's sees most consumers with a choice of two broadband "pipes" into the home capable of video, one from the cable company and the other from the telephone company. Satellite will be the third competitor for video, albeit without its own competitive high-speed Internet offering. |
