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A blog on the convergence of info-communications industries: communications, computing, electronics, entertainment, publications and education. Strategic, technological and financial analysis. English and French blog. Cette chronique traite de l’évolution des industries de l’information et des communications et couvre des aspects stratégiques, technologiques et financiers, comme l’économie du savoir et de l’innovation. L’auteur est Associé principal de Infocom Intelligence.
Sunday, December 26, 2010
The most popular comments of 2010 of the blog
These are the 10 most popular comments of this blog in 2010:
Friday, December 24, 2010
The growth of ebooks
There is a rumour recently that Amazon sold around 8 million Kindle (e-book readers) in 2010. It is the most popular e-reader on the market. With the launch of the iPad 2 and the Blackberry Playbook that may come in Q1-2011, digital books will surge quickly. There is also a new trend towards the selling of chapters of books separately from entire e-books. Prices of those devices dropped significantly recently.
AAP Reports Book Sales Estimated at $23.9 Billion in 2009
The Association of American Publishers estimates that U.S. publishers had net sales of $23.9 billion in 2009, down from $24.3 billion in 2008, representing a 1.8% decrease. In the last seven years the industry had a compound annual growth rate (CAGR) of 1.1%.
Trade sales of adult and juvenile books were steady at $8.1 billion in 2009, CAGR fell to 1.8 percent. Adult Hardbound books showed healthy growth of 6.9%, $2.6 billion in 2009, however paperbound books for adult fell 5.2% to $2.2 billion. Hardbound books in the children and young adult category fell 5.0% to $1.7 billion while their paperbound equivalent grew 2.2% to $1.5 billion.
Over the period covered by the estimated data, the CAGR for hardbound books was 1.3% for adult books and 0.6% for juvenile. Paperbound books grew 2.6% and 2.7% over the 7 years.
Mass Market paperbacks decreased 4.0% and brought the category CAGR to -2.2%. Total sales were $1.0 billion in 2009. Book clubs and mail-order fell to $588 million, a fall of 2.0%.
Audio book sales for 2009 totaled $192 million, down 12.9% on the prior year, CAGR for this category is still healthy at 4.3%. E-books overtook audiobooks in 2009 with sales reaching $313 million in 2009, up 176.6%.
Key US publishing Industry Statistics (estimates)
Key Industry Figures | 2009 | |
Industry Revenue | *30,309.8 | $Mil |
Revenue Growth | *.1 | % |
Industry Gross Product | *5,800.8 | $Mil |
Number of Establishments | *2,855 | Units |
Number of Enterprises | *2,758 | Units |
Employment | *92,264 | Units |
Exports | *2,424.2 | $Mil |
Imports | *1,941.2 | $Mil |
Total Wages | *5,012.7 | $Mil |
E-book US Sales
2009 Annual growth 2002-2009 Compound Growth Rate
$313,167 176.6% 71.0%
Amazon announced a new generation of the Kindle on July 28, 2010. While Amazon does not officially add numbers to the end of each Kindle denoting its generation, most reviewers, customers and press companies refer to this updated Kindle as the "Kindle 3".
The Kindle 3 is available in two versions. One of these, the Kindle Wi-Fi, is initially priced at US$139, and connects to the Internet exclusively via public or private Wi-Fi networks. The other version, considered a replacement to the Kindle 2, is priced at US$189 and includes both 3G and Wi-Fi connectivity.
Thus, ebook readers are becoming more affordable, and with the mobile Internet it is easier to buy ebooks.
Estimated U.S. consumer e-book purchases in 2010: 8 million
Estimated U.S. consumer e-book purchases in 2009: 3 million
Number of downloads of public library e-books and other virtual library content in 2009: 19 million
Number of downloads 2003-2008: 10 million
Increase in new users in 2009 from 2008: 36 percent
Source: http://www.publishingtrends.com/2008/10/second-annual-industry-survey/
Ebook reading devices sales projections – huge potential
2009 : 4 million devices
2010: 12 million devices
2012: 18 million devices
Louis Rhéaume
Infocom Intelligence
louis@infocomintelligence.com
Tuesday, December 21, 2010
7 trends affecting business mobility in 2011
Yankee Group proposes 7 trends affecting business mobility in 2011, based on a US survey.
1. Mobility becomes critical for customer responsiveness
Mainly for
2. Mobile professionals drive mobility forward
Can be categorized in three segments:
Individually Liable Purchases Will Continue to Influence Mobile Device Decisions (58%)
3. Enterprises embrace consumerization of mobility
For 44% of firms mobility is perceived as a good way to improve employees productivity
4. Smartphone diversity explodes
Among the leaders:
iPhone and Android have momentum.
5. Mobile applications fragment beyond e-mail
6. Cloud and mobility collide
7. 4G emerges, but slowly
More managers understand what 4G is and how important it is to enhance productivity of employees.
Conclusion
Louis Rhéaume
Infocom Intelligence
louis@infocomintelligence.com
1. Mobility becomes critical for customer responsiveness
Mainly for
- Improving customer responsiveness (52%),
- Providing mobile access to existing applications to improve worker productivity (44%)
- Transforming business processes to improve operational efficiencies (28%)
- Providing mobile technologies to improve employees' work-life balance (19%)
- Fostering collaboration with customers and partners (18%)
- Fostering worker-to-worker collaboration (14%)
- Supporting employee-purchased mobile devices for business purposes (9%)
2. Mobile professionals drive mobility forward
Can be categorized in three segments:
- Mobile professionals (46%), Senior executives, managers, consultants, other knowledge staff, admin.
- Field Force (36%), Field salesforce, field service
- Specialty/other (17%), delivery personnel, drivers, factory staff, physicians.
Individually Liable Purchases Will Continue to Influence Mobile Device Decisions (58%)
3. Enterprises embrace consumerization of mobility
For 44% of firms mobility is perceived as a good way to improve employees productivity
4. Smartphone diversity explodes
Among the leaders:
- Blackberry OS
- iPhone
- Windows Mobile
- Android
- Palm OS
- Symbian
iPhone and Android have momentum.
5. Mobile applications fragment beyond e-mail
6. Cloud and mobility collide
7. 4G emerges, but slowly
More managers understand what 4G is and how important it is to enhance productivity of employees.
Conclusion
- It is important for organisations to make a mobility map
- In smartphones, consumer vs business is blurring.
- 4G solutions will be more important than the 4G technology.
- Cloud for mobile applications will surge a lot in 2011.
Louis Rhéaume
Infocom Intelligence
louis@infocomintelligence.com
Monday, December 13, 2010
Some key statistics on mobile growth
MobileFuture a US wireless industry group published this videos providing key stats.
http://www.youtube.com/watch?feature=player_embedded&v=6mCkbrYKQyI
In less than 3 minutes, it shows interesting exponential growth in traffic and the downloading of apps. For instance, mobile apps downloads jumped from 300 million in 2009 to 5 billion in 2010.
Louis Rhéaume
Infocom Intelligence
louis@infocomintelligence.com
http://www.youtube.com/watch?feature=player_embedded&v=6mCkbrYKQyI
In less than 3 minutes, it shows interesting exponential growth in traffic and the downloading of apps. For instance, mobile apps downloads jumped from 300 million in 2009 to 5 billion in 2010.
Louis Rhéaume
Infocom Intelligence
louis@infocomintelligence.com
Tuesday, December 07, 2010
10 wireless predictions for 2011
According to Juniper Research, here are 10 top wireless predictions for 2011, followed by my comments.
1. Surging Mobile Data Traffic Will Continue to Test 3G Network Capacity
As they predicted at the end of last year, 2010 was the year in which the surge in mobile data traffic,
driven by the consumer smartphone boom, began to place the 3G networks under severe strain. A
number of network operators have responded by introducing tiered data pricing – a trend which will
undoubtedly increase – but as smartphone adoption continues apace, network capacity will be sorely
tested in 2011. Tiered pricing (and the use of WiFi as capacity relief) may serve to alleviate the problem
to a certain extent, but until we see mass deployments of LTE networks (and, equally important, devices
that are LTE-capable), then operators face a nervous period of attempting to manage the transition.
=Fixed data plans mainly in the US, have seen the exponential growth of mobile data usage. It may become a problem to US wireless operators. 4G networks would probably charge more for data plan according to speed.
2. Augmented Reality to Enhance Mobile Games and Retail
Augmented Reality, or AR, has largely been used in local search and reference applications thus far, but is
now attracting the attention of the retail industry. Given its potential to geotag products or locations
with brand/campaign-specific information, as we near the end of 2010 a raft of major retailers and brands
(including eBay, H&M and Carlsberg) are releasing apps with an AR element. With Apple opening its
accelerometer and gyroscope APIs to mobile Safari developers, there is also an opportunity for ARenabled web-based apps. Also expect to see an increasing number of AR-based games – THQ Wireless’
forthcoming Star Wars Arcade: Falcon Gunner likely to be the first of many such titles.
=Generation X and Y are avid users of video games. Mobile games is just an extension of their needs.
3. Cloud-Based Operating Systems are Launched
So far mobile operating systems have followed their PC-based cousins, the structure for which was
formulated when the web was in its infancy. Consequently, with the web having taken-off, for some time
now industry figures have been talking about the potential for applications to run from a “cloud”. Google
announced the start of new project, the Chrome cloud OS in 2009; and the latest is that it will be
launched in early 2011. With network reach and reliability reaching a point where cloud-based solutions
can be considered viable, and remote servers already being used to allow the mobile Internet and email,
we believe 2011 will see the launch of the first cloud OS for mobile.
=While for many people Cloud computing represents a hype sector, value-added for cloud computing apps are real such as Google Docs online and on mobile Internet.
4. Mobile Banking will become a “must-have” when opening a new account
Banks in developed countries will harness the power of the app and the smartphone to provide their
customers with a much improved and personalised service experience. The sign-up process will be a
simple box to tick in account opening processes (where it isn’t already) from banks that are keen to
make life easier for customers by proving the ability to manage their money on the move in what might
otherwise be dead time.
= I worked 10 years ago on a Canadian mobile banking project. The hurdles were endless. But now banks must move if they don't want mobile handsets and mobile operators becoming the new financial intermediaries. There will be less talk about mobile commerce and more actions with the global proliferation of smartphones (ie. Google's NFC chip mobile payment initiative) .
5. Mobile Devices Begin to Replace Credit Cards
2011 looks like the year when, in some countries at least, using your phone as a credit card for lower
value purchases will become a reality. Google recently announced that NFC (Near Field Communication)
technology will be supported in the next release of Android – 2.3 or “Gingerbread”; a natural step, given
it already offers several mobile commerce apps and services including shopping, coupons and products search. Also, Nokia’s C7 handset has an NFC chip included, which will be activated in 2011, and rumours
of Apple’s next iPhone including NFC refuse to die down. A word of caution: it won’t all happen at once
as stores need to deploy contactless readers, and more problematically, it is dependent on user
preference; however, as with Bluetooth and cameras, we will see NFC in new devices whether we want
it or not.
=Same as #4
6. Mobile Handsets Become Even More Sensitive
Locational and sensory features on smartphones, such as, accelerometers, gyroscopes, and GPS, have
been key drivers in application development and handset manufacturers will be keen to add more “killer”
features to their devices to give them that edge. With the aforementioned features becoming “as
standard”, vendors are already looking to incorporate others, such as, proximity, temperature,
biometrics, 3D displays, and projectors, into their handsets.
= location-based mobile apps with GPS can bring value. But, there is still a lot of uncertainty in the value of such start-ups as Foursquare where you can get the "title of mayor" of your Starbucks location after 20 visits in the month... and a $2-$3 coupon.
7. Mobile Lottery Tickets Sales to Soar Fuelled by Deployments in US, Europe, and China
With lottery sales from traditional distribution channels in decline in many developed markets – notably
the US – national/state lottery organisers are anxious to explore new means of distribution, and Juniper
Research believes 2011 is the year when mobile lotteries will hit the mainstream. As consumers across all
age ranges become more comfortable with browsing for content and making purchases via the mobile
handset, this major hurdle to mobile lotteries will begin to disappear. We expect a raft of mobile lottery
launches across the US and Europe, while VODone’s existing service in China (which already has more
than 10 million registered users) is likely to experience further significant growth.
= online gaming is huge, mobile gaming is growing and so will mobile lottery.
8. Mobile-Specific Threats Lead to Demand for Mobile-Specific Security
With the growing number of open WiFi networks, and antivirus vendor Kaspersky reporting the first
virus designed to disrupt Google’s Android operating system, the risks for smartphone users will increase
in 2011. Antivirus and firewalls have been a “must-have” for PC users for some time, and with mobile
handset featuring a wider array of connectivity options – and less secure ones – the lure for vigilantes and
criminals is even greater. In light of this, anti-virus software vendors such as Kaspersky and McAfee are
likely to make a concerted effort to sell into the mobile space in 2011.
= It is not a coincidence that Intel recently bought McAfee in 2010.
9. Buyouts Take Social Purchasing to a New Level
Google was heavily rumoured to be keen on purchasing Groupon, a company which sends users offers on
products and services, but rather than providing a coupon, manages the transaction, taking a share of the
proceeds. We expect a similar impact on this model from a Google acquisition as we saw with mobile
advertising, when it purchased AdMob.
= The intersection between mobile commerce and social network, combined with mass personalization of offers is and will create a lot of value. Groupon rejected a $6 billion offer because they sold $2 billion coupon in 2010 and think the value of the firm is much higher. An IPO at the right time in 2011, may crystallize this.
10. More Vendors Develop a GreenHeart
Sony Ericsson’s GreenHeart mantra lead to the Sony Ericsson Elm, a handset made from recycled plastics
and free of hazardous chemicals, and comes with a low power consumption charger, reduced packaging,
some eco-aware apps and an e-manual on the phone instead of a printed guide. Given this move, we
expect other vendors to go down a similar route, in order to appeal to the increasingly-environmentally
conscious consumer.
= Becoming more green is a social pressure and a value added for customers.
Louis Rhéaume
Infocom Intelligence
louis@infocomintelligence.com
1. Surging Mobile Data Traffic Will Continue to Test 3G Network Capacity
As they predicted at the end of last year, 2010 was the year in which the surge in mobile data traffic,
driven by the consumer smartphone boom, began to place the 3G networks under severe strain. A
number of network operators have responded by introducing tiered data pricing – a trend which will
undoubtedly increase – but as smartphone adoption continues apace, network capacity will be sorely
tested in 2011. Tiered pricing (and the use of WiFi as capacity relief) may serve to alleviate the problem
to a certain extent, but until we see mass deployments of LTE networks (and, equally important, devices
that are LTE-capable), then operators face a nervous period of attempting to manage the transition.
=Fixed data plans mainly in the US, have seen the exponential growth of mobile data usage. It may become a problem to US wireless operators. 4G networks would probably charge more for data plan according to speed.
2. Augmented Reality to Enhance Mobile Games and Retail
Augmented Reality, or AR, has largely been used in local search and reference applications thus far, but is
now attracting the attention of the retail industry. Given its potential to geotag products or locations
with brand/campaign-specific information, as we near the end of 2010 a raft of major retailers and brands
(including eBay, H&M and Carlsberg) are releasing apps with an AR element. With Apple opening its
accelerometer and gyroscope APIs to mobile Safari developers, there is also an opportunity for ARenabled web-based apps. Also expect to see an increasing number of AR-based games – THQ Wireless’
forthcoming Star Wars Arcade: Falcon Gunner likely to be the first of many such titles.
=Generation X and Y are avid users of video games. Mobile games is just an extension of their needs.
3. Cloud-Based Operating Systems are Launched
So far mobile operating systems have followed their PC-based cousins, the structure for which was
formulated when the web was in its infancy. Consequently, with the web having taken-off, for some time
now industry figures have been talking about the potential for applications to run from a “cloud”. Google
announced the start of new project, the Chrome cloud OS in 2009; and the latest is that it will be
launched in early 2011. With network reach and reliability reaching a point where cloud-based solutions
can be considered viable, and remote servers already being used to allow the mobile Internet and email,
we believe 2011 will see the launch of the first cloud OS for mobile.
=While for many people Cloud computing represents a hype sector, value-added for cloud computing apps are real such as Google Docs online and on mobile Internet.
4. Mobile Banking will become a “must-have” when opening a new account
Banks in developed countries will harness the power of the app and the smartphone to provide their
customers with a much improved and personalised service experience. The sign-up process will be a
simple box to tick in account opening processes (where it isn’t already) from banks that are keen to
make life easier for customers by proving the ability to manage their money on the move in what might
otherwise be dead time.
= I worked 10 years ago on a Canadian mobile banking project. The hurdles were endless. But now banks must move if they don't want mobile handsets and mobile operators becoming the new financial intermediaries. There will be less talk about mobile commerce and more actions with the global proliferation of smartphones (ie. Google's NFC chip mobile payment initiative) .
5. Mobile Devices Begin to Replace Credit Cards
2011 looks like the year when, in some countries at least, using your phone as a credit card for lower
value purchases will become a reality. Google recently announced that NFC (Near Field Communication)
technology will be supported in the next release of Android – 2.3 or “Gingerbread”; a natural step, given
it already offers several mobile commerce apps and services including shopping, coupons and products search. Also, Nokia’s C7 handset has an NFC chip included, which will be activated in 2011, and rumours
of Apple’s next iPhone including NFC refuse to die down. A word of caution: it won’t all happen at once
as stores need to deploy contactless readers, and more problematically, it is dependent on user
preference; however, as with Bluetooth and cameras, we will see NFC in new devices whether we want
it or not.
=Same as #4
6. Mobile Handsets Become Even More Sensitive
Locational and sensory features on smartphones, such as, accelerometers, gyroscopes, and GPS, have
been key drivers in application development and handset manufacturers will be keen to add more “killer”
features to their devices to give them that edge. With the aforementioned features becoming “as
standard”, vendors are already looking to incorporate others, such as, proximity, temperature,
biometrics, 3D displays, and projectors, into their handsets.
= location-based mobile apps with GPS can bring value. But, there is still a lot of uncertainty in the value of such start-ups as Foursquare where you can get the "title of mayor" of your Starbucks location after 20 visits in the month... and a $2-$3 coupon.
7. Mobile Lottery Tickets Sales to Soar Fuelled by Deployments in US, Europe, and China
With lottery sales from traditional distribution channels in decline in many developed markets – notably
the US – national/state lottery organisers are anxious to explore new means of distribution, and Juniper
Research believes 2011 is the year when mobile lotteries will hit the mainstream. As consumers across all
age ranges become more comfortable with browsing for content and making purchases via the mobile
handset, this major hurdle to mobile lotteries will begin to disappear. We expect a raft of mobile lottery
launches across the US and Europe, while VODone’s existing service in China (which already has more
than 10 million registered users) is likely to experience further significant growth.
= online gaming is huge, mobile gaming is growing and so will mobile lottery.
8. Mobile-Specific Threats Lead to Demand for Mobile-Specific Security
With the growing number of open WiFi networks, and antivirus vendor Kaspersky reporting the first
virus designed to disrupt Google’s Android operating system, the risks for smartphone users will increase
in 2011. Antivirus and firewalls have been a “must-have” for PC users for some time, and with mobile
handset featuring a wider array of connectivity options – and less secure ones – the lure for vigilantes and
criminals is even greater. In light of this, anti-virus software vendors such as Kaspersky and McAfee are
likely to make a concerted effort to sell into the mobile space in 2011.
= It is not a coincidence that Intel recently bought McAfee in 2010.
9. Buyouts Take Social Purchasing to a New Level
Google was heavily rumoured to be keen on purchasing Groupon, a company which sends users offers on
products and services, but rather than providing a coupon, manages the transaction, taking a share of the
proceeds. We expect a similar impact on this model from a Google acquisition as we saw with mobile
advertising, when it purchased AdMob.
= The intersection between mobile commerce and social network, combined with mass personalization of offers is and will create a lot of value. Groupon rejected a $6 billion offer because they sold $2 billion coupon in 2010 and think the value of the firm is much higher. An IPO at the right time in 2011, may crystallize this.
10. More Vendors Develop a GreenHeart
Sony Ericsson’s GreenHeart mantra lead to the Sony Ericsson Elm, a handset made from recycled plastics
and free of hazardous chemicals, and comes with a low power consumption charger, reduced packaging,
some eco-aware apps and an e-manual on the phone instead of a printed guide. Given this move, we
expect other vendors to go down a similar route, in order to appeal to the increasingly-environmentally
conscious consumer.
= Becoming more green is a social pressure and a value added for customers.
Louis Rhéaume
Infocom Intelligence
louis@infocomintelligence.com
Monday, December 06, 2010
Does new media has actually the same value as old media?
The CEO of Business Insider suggests that new media has actually almost the same value as old media.
http://venturebeat.com/page/4/
It appears, according to Heny Blodget, that: "new media companies running the gamut from Google to Gawker Media are now collectively worth $289 billion — nearly as much as the total market value, $296 billion, of traditional media companies like Time Warner, Disney, and News Corp. The two groups are “neck and neck”.
http://venturebeat.com/page/4/
It appears, according to Heny Blodget, that: "new media companies running the gamut from Google to Gawker Media are now collectively worth $289 billion — nearly as much as the total market value, $296 billion, of traditional media companies like Time Warner, Disney, and News Corp. The two groups are “neck and neck”.
Blodget adds, content isn’t king: “Content plus distribution is king. Blodget made the observation in opening remarks for Business Insider’s Ignition 2010 conference in New York City on December 2th.
In Bloget's valuation, Google makes the most of new media value. However, It is true that growing new media such as Huffington Post is valued around $112 million by 24/7 Wall Street,
and Gawker Properties value is around $300 million, Perez Hilton, $44 million, Drudge Report. $42 million, and TechCrunch was sold for $25M to AOL recently.
Louis Rheaume
Infocom Intelligence
louis@infocomintelligence.com
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