VIDEO ACCESS AND MOVIE RENTAL. Video content delivery
will be one of the leading drivers of the 3G broadband marketplace.
Consumers have a voracious appetite for all types of
media, particularly video (movie) content. In 1999, over 70
percent of households in the United States rented an average
of 1.3 videos per week.* The statistics for movie rentals confirm
the preference of movie viewers to stay at home to view
movie content. Since 1980, when VCRs first emerged as a
means of watching full-length motion pictures, the sales of prerecorded
rental and sell-through video cassettes has grown by
more than 66,000 percent as compared to box office theater
growth of 22 percent over the same period.† The video rental
business is projected to top $7 billion in 2000 and grow to $19
billion by 2004, with video sales reaching $20 billion.‡
Adult entertainment content ordering and delivery has been
one of the leading categories of early Internet usage. As such,
adult entertainment was an early adopter of user interface augmentation
through streaming video, private access to sensitive
material, and one-click ordering. In 1998, pay-per-view and
subscription adult entertainment accounted for about 40 percent
of the U.S. consumer paid online content market.§ Adult
entertainment, a multibillion dollar industry, will benefit from
broadband access. Consumers will be able to download private
content to their wireless devices or wireless-enabled viewers. 158
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NETWORKED GAMES
NETWORKED GAMES. Since 1997, networked games have
become a big opportunity on the Internet. Networked games
allow users to play games against friends who are connected to
the Internet. Almost any computer game that can be played by
two or more people can be played online. It is estimated that
by 2002, 60 percent of children online (over 16 million) will be
playing games, and they will spend over $70 per year for game
services. Adult will spend $140 per year for an estimated total
of $622 million for online game services. Wireless high-bandwidth
services allow for substantially improved game services
through streaming video and audio, and permit its players to
engage in games virtually from anywhere.
And as low-cost home broadband services and equipment
become more available, companies will create richer gaming
applications. Major game vendors such as Nintendo, Sony, and
Sega are entering the broadband market by selling game CDs
and allowing potential customers to participate in online games
for free. Alternatively, there are some games that can only be
played online including Ultima, Starseige, Quake Arena, and
Unreal Tournament.
To use online games, customers pay a monthly access fee or
pay-per-play. Networked games make it much easier for customers
to find new opponents, or to find a partner to play at
any time. High-speed data wireless access will provide for
much better three-dimensional (3D) graphics viewing.
become a big opportunity on the Internet. Networked games
allow users to play games against friends who are connected to
the Internet. Almost any computer game that can be played by
two or more people can be played online. It is estimated that
by 2002, 60 percent of children online (over 16 million) will be
playing games, and they will spend over $70 per year for game
services. Adult will spend $140 per year for an estimated total
of $622 million for online game services. Wireless high-bandwidth
services allow for substantially improved game services
through streaming video and audio, and permit its players to
engage in games virtually from anywhere.
And as low-cost home broadband services and equipment
become more available, companies will create richer gaming
applications. Major game vendors such as Nintendo, Sony, and
Sega are entering the broadband market by selling game CDs
and allowing potential customers to participate in online games
for free. Alternatively, there are some games that can only be
played online including Ultima, Starseige, Quake Arena, and
Unreal Tournament.
To use online games, customers pay a monthly access fee or
pay-per-play. Networked games make it much easier for customers
to find new opponents, or to find a partner to play at
any time. High-speed data wireless access will provide for
much better three-dimensional (3D) graphics viewing.
GAMBLING
GAMBLING. Online gambling is the interactive process of
allowing customers to wager money or credits in return for
games that have standardized odds. Online gambling has the
potential to be one of the largest interactive services. In 2000,
the global gambling market was valued at over $900 billion. A
growing portion of the gambling industry is moving towards
online gambling. Customers with a credit card and an Internet
connection are able to gamble on casino games, lotteries, and
sports books (horse and dog racing, boxing, team sports betting,
etc.) almost anywhere in the world.
Although there are some issues about the legality of gambling
online, the majority of online gamblers are located in
countries with regulations favorable to online gambling companies.
Many of these companies operate in places such as the
Caribbean, Europe, Australia, and South Africa. It is projected
that over $10 billion will be gambled online by 2002 as operators
take advantage of the huge audience reach and cost savings
of the Internet.*
allowing customers to wager money or credits in return for
games that have standardized odds. Online gambling has the
potential to be one of the largest interactive services. In 2000,
the global gambling market was valued at over $900 billion. A
growing portion of the gambling industry is moving towards
online gambling. Customers with a credit card and an Internet
connection are able to gamble on casino games, lotteries, and
sports books (horse and dog racing, boxing, team sports betting,
etc.) almost anywhere in the world.
Although there are some issues about the legality of gambling
online, the majority of online gamblers are located in
countries with regulations favorable to online gambling companies.
Many of these companies operate in places such as the
Caribbean, Europe, Australia, and South Africa. It is projected
that over $10 billion will be gambled online by 2002 as operators
take advantage of the huge audience reach and cost savings
of the Internet.*
MUSIC AND MUSIC CONTENT
MUSIC AND MUSIC CONTENT. Music content delivery
involves the transporting of music content (usually in digital
form) from a manager of the content (a music producer or their
agent) to the end customer. In the 1990s, much of the content
was sold via the Internet rather than delivered through it due
to the limited amount of bandwidth and devices to store and
play downloaded music content. Downloading a full-length
CD, even in compressed form, is a formidable challenge for the
average user with a dial-up modem. The market for digital distribution
of music in 2002–2003 is estimated at approximately
$150 million. With 3G broadband wireless data, it will be possible
to download entire music CDs in less than 2 minutes.*
The sale of compact discs (CDs) and tapes via online services
is expected to grow to $2.6 billion (14 percent of total U.S.
music sales of $18.4 billion by 2003). Online shopping allows
customers to easily preview content or details of a product such
as tracks on music albums. In 1998, music industry revenue
topped $13.5 billion in the United States, with online sales
totaling $157 million, up 315 percent from 1997’s figure of
$37 million. As 3G wireless networks and other broadband systems
are deployed, consumers will shift their acquisition from
purchasing CDs or tapes to downloading their favorite music
content to their media player.
By 2000, more than half of the users on the Internet had listened
to music audio on a personal computer (PC). Of these, 36
percent have downloadable music and 5 percent have transferred
unauthorized (pirated) music files to their hard disk drive.
As an interim approach to music content delivery on the
Internet, companies are offering digitally compressed music in
MP3 form. In 2000, MP3.com launched subscription music
channels on the Internet. For a monthly fee of less than $10,
users have access to thousands of music tracks to listen to.
involves the transporting of music content (usually in digital
form) from a manager of the content (a music producer or their
agent) to the end customer. In the 1990s, much of the content
was sold via the Internet rather than delivered through it due
to the limited amount of bandwidth and devices to store and
play downloaded music content. Downloading a full-length
CD, even in compressed form, is a formidable challenge for the
average user with a dial-up modem. The market for digital distribution
of music in 2002–2003 is estimated at approximately
$150 million. With 3G broadband wireless data, it will be possible
to download entire music CDs in less than 2 minutes.*
The sale of compact discs (CDs) and tapes via online services
is expected to grow to $2.6 billion (14 percent of total U.S.
music sales of $18.4 billion by 2003). Online shopping allows
customers to easily preview content or details of a product such
as tracks on music albums. In 1998, music industry revenue
topped $13.5 billion in the United States, with online sales
totaling $157 million, up 315 percent from 1997’s figure of
$37 million. As 3G wireless networks and other broadband systems
are deployed, consumers will shift their acquisition from
purchasing CDs or tapes to downloading their favorite music
content to their media player.
By 2000, more than half of the users on the Internet had listened
to music audio on a personal computer (PC). Of these, 36
percent have downloadable music and 5 percent have transferred
unauthorized (pirated) music files to their hard disk drive.
As an interim approach to music content delivery on the
Internet, companies are offering digitally compressed music in
MP3 form. In 2000, MP3.com launched subscription music
channels on the Internet. For a monthly fee of less than $10,
users have access to thousands of music tracks to listen to.
TRAVEL
TRAVEL. In 1999, US consumers booked $6.5 billion of
leisure and unmanaged business travel online, almost triple the
$2.2 billion booked in 1998, representing 5 percent of total US
bookings in 1999. Online bookings are expected to increase
significantly to 14 percent of total bookings by 2005 ($28 billion),
with key segments including lodging, cruise, tour, and
rental car products.†
leisure and unmanaged business travel online, almost triple the
$2.2 billion booked in 1998, representing 5 percent of total US
bookings in 1999. Online bookings are expected to increase
significantly to 14 percent of total bookings by 2005 ($28 billion),
with key segments including lodging, cruise, tour, and
rental car products.†
ENTERTAINMENT AND LIFESTYLE
This category covers applications that are primarily designed
for leisure and entertainment, such as music and video-movies,
horoscopes, jokes, and soap opera updates. Games, sporting
events, icons, ring-tones, postcards, and video clips are included
in this category. Most of these will be multifunctional, provide
information and advertising, and may change according to
season or nature of the event.
Entertainment and lifestyle will be a popular category of
applications as users look for ways to personalize devices.
These applications will offer truly personal services that follow
the user throughout the day and offer bursts of entertainment
when convenient.
Key drivers for entertainment and lifestyle applications are:
• Cool, current, and compelling data. Entertainment is a very
personal and fickle subject because user preferences and
content that is “in” changes often.
• Notifications of events with limited timelines. Concerts often
sell out within minutes of being announced, leisure events
are often subject to last minute promotions, and special
offers make timeliness and mobility a benefit.
• Changes and delay. Weather can cancel or delay travel or
other personal activities with little notice. Consumers with
the right wireless applications can regroup and plan an alternate
course of action to better utilize personal time and
efforts.
During 1999, over 19 million people worldwide used mobile
phones to download or access online games, audio, or video
services. Entertainment will be one of the leading forms of content
carried over wireless networks. Surveys of industry confidence
indicate that entertainment is perceived to be the second
most popular mobile application after email and SMS.*
In 2000, simple embedded games and ring-tone downloads
are popular. As new low-cost broadband wireless services
become available, we will see more new applications. These
include playing interactive mobile games, listening to music
downloads (in MP3 format) via the wireless phone or attached
accessory, and watching video clips (e.g., football highlights) on
your wireless video-phone.
for leisure and entertainment, such as music and video-movies,
horoscopes, jokes, and soap opera updates. Games, sporting
events, icons, ring-tones, postcards, and video clips are included
in this category. Most of these will be multifunctional, provide
information and advertising, and may change according to
season or nature of the event.
Entertainment and lifestyle will be a popular category of
applications as users look for ways to personalize devices.
These applications will offer truly personal services that follow
the user throughout the day and offer bursts of entertainment
when convenient.
Key drivers for entertainment and lifestyle applications are:
• Cool, current, and compelling data. Entertainment is a very
personal and fickle subject because user preferences and
content that is “in” changes often.
• Notifications of events with limited timelines. Concerts often
sell out within minutes of being announced, leisure events
are often subject to last minute promotions, and special
offers make timeliness and mobility a benefit.
• Changes and delay. Weather can cancel or delay travel or
other personal activities with little notice. Consumers with
the right wireless applications can regroup and plan an alternate
course of action to better utilize personal time and
efforts.
During 1999, over 19 million people worldwide used mobile
phones to download or access online games, audio, or video
services. Entertainment will be one of the leading forms of content
carried over wireless networks. Surveys of industry confidence
indicate that entertainment is perceived to be the second
most popular mobile application after email and SMS.*
In 2000, simple embedded games and ring-tone downloads
are popular. As new low-cost broadband wireless services
become available, we will see more new applications. These
include playing interactive mobile games, listening to music
downloads (in MP3 format) via the wireless phone or attached
accessory, and watching video clips (e.g., football highlights) on
your wireless video-phone.
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