© alterfalter dreamstime.com Analysis | December 10, 2013
Shipments of OTT-enabled devices to reach 1.7bn this year
In a sign of how profoundly Internet-based media is revolutionizing the way consumers access video entertainment content, more than 1.7 billion devices capable of accessing over-the-top (OTT) broadband content like Netflix and Hulu are set to ship by the end of 2013.
Shipments of OTT-capable devices will rise 20 percent this year from 1.43 billion units in 2012, according to a new Consumer Electronics Topical Report from IHS Inc. At 1.7 billion units, this will equate to enough OTT systems to accommodate almost one out of every four people on the planet. The market will grow another 20 percent next year, on its way to some 2.67 billion units by 2017. By then, total shipments will have expanded by 86 percent from 2012 volumes—phenomenal growth by any measurement. OTT-capable equipment includes set-top boxes, Blu-ray players, Internet-enabled TVs, game players, digital media adapters like Apple TV or Roku, media tablets, PCs and smartphones. Promising a new paradigm on how to access broadband media, OTT devices allow consumers to watch or listen to content from a wide range of places and through an extensive array of playback systems. The model for such consumption is called over-the-top because the media being retrieved comes on top of a data connection, in many cases separating the content provider from the data or service provider. The former can be an entity such as Amazon, one of the more widely known OTT content purveyors besides Netflix and Hulu. The latter can be any of the cable or telco giants providing cable or Internet service. “Content owners, operators and consumers all are driving the proliferation of the OTT model,” said Jordan Selburn, Senior principal analyst, consumer platforms. “Content owners want to expand the market for the films, music and videos they own. Meanwhile, operators wish to use OTT in order to add value to their services and keep subscribers from cancelling TV subscriptions in favor of purely broadband connections—preventing what the industry calls ‘cutting the cord.’ Consumers, for their part, desire access to a wide variety of media at the time and place of their own choosing.” OTT systems galore now available The majority of OTT devices now are either PCs or smartphones, which together accounted for 836 million of the 1.43 billion OTT-capable devices shipped last year. Even though the primary task of the two devices is voice and data, both are also increasingly being used as media portals. But even discounting PCs and smartphones, the rest of the OTT device market is extremely large and growing at an accelerating rate. Approximately 480 million of such non-PC, non-smartphone devices will ship this year, up 30 percent from 2012. The only segment not forecast to grow this year is the handheld game platform. Like other single-tasking systems, the space is under attack from more broadly based general-purpose equipment, primarily smartphones and tablets. For the same reason, digital media adapters have been slow to gain acceptance, lagging behind other OTT devices and making up less than 1 percent of the total OTT market this year. Chips ahoy! At the heart of each OTT-capable device are advanced semiconductors—the guts of each OTT system allowing them to connect with, and then process, the content to be consumed. Today’s chips allow OTT devices to plug into high-bandwidth, media-quality data streams, send it to other similarly capable devices in the home, and then handle the content without draining either the system’s battery or the consumer’s wallet. The hurdle for such chips continues to climb, however, because the technical requirements imposed by OTT media are weighty. For instance, the newest media coding standard known as high-efficiency video codec requires substantially more computational power than earlier standards, and a brute approach relying on software alone would not suffice, draining a mobile device’s power, as an example. At the same time, such challenges present rich opportunities for semiconductor suppliers as new standards and technologies continue to expand the market. The introduction of new and innovative technologies will inevitably require a new generation of semiconductors, with advancements made possible only from new silicon.
Cicor selected as production partner for drug delivery system Cicor announces that it has won a major new customer in the medical technology sector, one of the company's strategic target markets.
Keysight, FormFactor and CompoundTek to collaborate Keysight, FormFactor and CompoundTek, have formed a joint plan to provide an advanced photonics on-wafer testing solution to include automated alignment, simultaneous optical-optical and optical-electrical device tests.
Wireless Telecom buys Holzworth Instrumentation Wireless Telecom Group Inc. has signed a definitive agreement to acquire Holzworth Instrumentation Inc., a Boulder, Colorado-based provider of specialty phase noise analyzers and signal generators.
NCAB Group acquires Altus-PCB in USA Altus-PCB is a full-service supplier of PCBs based in New Jersey, USA, that has a business model similar to NCAB’s. Tee US company has a high level of technical expertise and sells mainly to original equipment manufacturers (OEMs).
Sponsored content by SourcengineComponent Aggregators vs E-Commerce Marketplaces What is the difference between electronic component aggregators and a marketplace?
67% of a buyer’s journey is now done digitally. Learn how marketplaces emerged as full-cycle procurement platforms and challenged the traditional component aggregators.
Mycronic's Thomas Stetter looks back at a successful year As the company is moving more and more towards becoming a full solutions provider, business is taking off and the numbers show very much confirms that the Mycronic's strategy is working.
IBL Löttechnik reviews 2019 IBL Löttechnik GmbH is staying on top of the market thanks to continues R&D investments.
Second install for EFI at Mid America Display Silicon Valley’s EFI will install a second EFI Nozomi C18000 single-pass inkjet, direct-to-board printer later this month to Mid America Display.
Ron Jakeman of Electrolube looks back at a successful 2019 Electrolube has been growing, both in terms of its footprint and financially, for a number of years not; Ron Jakeman details the company's progress.
Etteplan and Scanfil to start strategic cooperation in joint customer projects Engineering company Etteplan and contract manufacturer Scanfil have today agreed to enter a strategic partnership in Finland.
The lovechild of ACE Production and InterSelect Carlos Bouras of Nordson Select gave us the rundown of the result of the integration and combination of ACE Production and InterSelect GmbH - the new Integra.
American Battery Metals, U.S. lawmakers convene American Battery Metals Corporation has completed a series of meetings with lawmakers and personnel in the Department of Energy and Department of the Interior in Washington, D.C., to discuss issues critical to the domestic battery production and storage industry.
Cogiscan, Critical Mfg. form strategic partnership Quebec, Canada-based Cogiscan and Critical Manufacturing, headquartered in Portugal, have forged a strategic partnership to deliver smart factory solutions for electronics manufacturers.
Collins Aerospace expanding in North Africa Collins Aerospace Systems, a unit of United Technologies Corp., has taken the first step toward the expansion of its existing site in Casablanca, Morocco.
The advantage of Vantage - Garrett Wong tells the tale Nordson Asymtek's Garrett Wong gives us a rundown of the business year and also details the Vantage Advantage
Saki’s Eddie Ichiyama details a very successful business year Eddie ichiyama from Saki gave us an update on how 2019 has been for the company and also shared some details on the recent expansion in the Czech Republic.
The ripple effect of Enrico Krog Iversen while being an active part in creating one of the fastest growing robotics companies in modern time might have been enough for most people, that does not seem to have slowed down a certain Danish entrepreneur.
Yamaha's Ichiro Arimoto on the business year and the company's new ventures Evertiq had the opportunity to talk to Ichiro Arimoto, General Manager of Yamaha Motor Europe, about the business year and the company's new ventures.
Mycronic, Indium forge strategic partnership Indium Corporation has announced a strategic partnership with Sweden-based Mycronic, to develop no-clean and water soluble solder pastes for jetting applications.
SCHMID delivers PlasmaLine to Hofstetter PCB SCHMID announced it has installed the company’s first PlasmaLine comprising ICP etch & sputter deposition of its Korean JV SCHMID AVACO at Hofstetter PCB AG in Switzerland.
Cobot market to reach USD 9+ billion by 2025 A new report from Tractica is forecasting continued rapid growth for the global collaborative robot (cobot) market over the next few years, reaching revenue of USD 9.7 billion by 2025.
MixComm scores USD 8+ million in series B round New Jersey-based fabless semiconductor company MixComm has secured USD 8.6 million in series B funding led by existing investor, Kairos Ventures.
SIA elects 2020 leadership The Semiconductor Industry Association (SIA) Board of Directors has elected ON Semiconductor CEO Keith Jackson as its 2020 Chair and Qorvo CEO Robert Bruggeworth as its 2020 Vice Chair.
Si wafer shipments recede for fourth straight quarter Worldwide silicon wafer area shipments slid for the fourth consecutive quarter of 2019, according to the SEMI Silicon Manufacturers Group (SMG) in its most recent quarterly analysis of the industry.
Decline in Q4 DRAM contract prices lessens as buying momentum recovers According to the latest analysis from the DRAMeXchange research division of TrendForce, Q4 DRAM ASP is as of yet undergoing a slight QoQ decline, but this decline has shrunk down to 5%.Load more news