New study Cable Modem Market Shares, Strategy, and Forecasts, Worldwide, 2012 to 2018. The 2012 study has 455 pages, 138 tables and figures. Worldwide cable markets are poised to achieve significant growth as the next generation cable modem systems provide a way to improve entertainment and healthcare services delivery in the home.
According to Susan Eustis, lead author of the study, “Cable modems bring Internet to the home. They are used by the cable industry to deliver Internet services. They are useful to the cable TV services vendors as a way to provide new types of entertainment and sports oriented services into the home and promise significant growth to the cable industry as bundled video channels continue to have widespread appeal. Next generation cable modem and home IP gateway devices offer significant IP based functionality to the home. Cable modems are useful particularly in the US, with the cable video business model spreading worldwide. Markets are poised for significant growth. Video content is proliferating.”
Cable TV services providers offer sports, news, shows, real time entertainment, and music. Videos are mainstream to cable TV offerings in a market environment where video is set to replace data and text in many, many instances. Religion, food, travel, medicine, and weather are specialty TV offerings. Cable TV has them all. The ability to bundle these offerings will not be replaced by single stream offerings. The Internet is good for reruns and user generated content, but the advertising bundle implemented by cable TV has distinct advantages for viewers.
Cable industry interrupt-based advertising is accepted by viewers as a tradeoff to the significantly higher cost of direct purchase, providing a sustainable cable TV industry business model. Cable TV has enormous value because people can watch channels they might not otherwise watch as part of a package.
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Bundling works for video content in a way that it does not work for the music industry. People want to create their own music bundles, but video is far more complex. Bundling in the manner the cable TV industry provides is very sophisticated and is not at all analogous to the music industry. What is a good show one year is not good the next. The ability to flip back and forth give people needed ability to change their viewing habits, without lock-in from single download options is of significant value to users.
The aim of a cable TV network has evolved to support delivery of digital video and two-way services such as high speed data, video on demand, and telephony. Worldwide there is a trend for cable operators to increase their investment in their networks.
The cable modem business is driven by industry dynamics related to expansion of information and entertainment services in the home. Trends toward increased delivery of use of wireless devices to access video content and data over the Internet are increasing the use of a variety of digital devices in the home.
Emerging competition between cable operators, telecommunications services providers, and Internet-based services providers represents a major market disruption.
The Internet is the only network protocol going forward. As cable providers build out further high bandwidth video capability, It is going to be building on Internet protocols. The pace of new service introduction continues to increase. The variety of connected consumer devices continues to increase. This change increases the consumption of bandwidth and the demand for cable modem products.
MSOs in the cable industry need to defend against competitive next -generation video services like U-verse and FiOS. They need to make wireless services an integral part of their lineup. The acquisition of content at lower prices is essential. Enterprise customers play a larger role in the cable modem business model. Cable modems are positioned to be part of a profitable and sustainable business opportunity.
Cable operators are demanding advanced network technologies and software solutions. The increase in volume and complexity of the signals transmitted over broadband networks as a result of the migration to an all-digital, on demand network is causing the need for cable operators to deploy new technologies. Transport technologies are based on Internet Protocol.
This allows cable operators to cost effectively deliver video, voice, and data across a common network infrastructure. Cable operators are demanding sophisticated network and service management software applications that minimize operating expenditures needed to support the complexity of two-way broadband communications systems. cable operators are focusing on technologies and products that are flexible, cost effective, compliant with open industry standards, and scalable to meet subscriber growth and effectively deliver reliable, enhanced services.
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Chronic disease conditions are best treated early on when there is a change in patient condition and an early intervention can make a difference. It is even better to treat them in a wellness treatment environment before there are indications of chronic disease, before symptoms develop, by addressing lifestyle issues early on. Cable modems represent a way to migrate telemedicine treatment to the HDTV giving patients with chronic conditions access to remote nursing care.
Cable modem dedicated device markets at $4.7 billion in 2011 are anticipated to reach $8.6 billion by 2018 as next generation gateways are introduced to manage Internet connectivity in the home.
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