Google sets New Trend: Voice Control, Mobile Virtual Reality

google-virtual-realityGoogle launched new products overnight, notably two flagship smartphones under new brand Pixel, a mobile VR called Daydream View, and a voice controlled smart speaker Google Home (although the product was introduced back in May, and details weren’t available till now). Keys to note: We remain conservative on “Pixel” actual sell-through; the phone seems to be aimed at competing with iPhone (same price as iPhone7), but the iPhone was launched a month earlier.

We note that Google is abandoning “Nexus” brand and no longer co-branding with OEMs; the value-add for OEMs further decreases (HTC is the OEM for “Pixel”). The launch of Google’s mobile VR could accelerate the trend of supporting (more…)

YouTube Revenues to Touch $10Bn in 2016

YouTube Revenues Cross 10BnAs Per Cisco, Internet video views doubled from 2015 to 2016, and video will account for 80% of all mobile Internet traffic by 2019. Google indicated growth in watch time on YouTube has accelerated and is up at least 50% year over year for three straight years. We believe video advertising will follow usage, and global online video advertising spending is expected to increase $19bn from 2015 to 2018 (per Magna Global) to reach $35bn, creating a big opportunity for video content platforms (FB, Snapchat, etc).

Google does not disclose revenues, but indicated in 2015 that partner revenue was up 50% over last 3 years. Based on Online video ad market growth (more…)

How OTT Videos NetFlix / YouTube Red Disrupting Pay TV Market ?

OTT Videos Disrupting PayTVNetflix is one of the pioneers in stimulating on-line subscription video on demand (SVoD) consumption in the United States. The recent launch of Netflix services across 130 new countries (including Singapore, Hong Kong, and Taiwan) has generated interest amongst investors on the potential impact of Netflix on traditional video ecosystem.

Broadband infrastructure is critical for delivery of quality OTT services online. Netflix states that a minimum speed of 3 Mbps is needed to watch SD quality videos, 5 Mbps is needed for HD quality and 25 Mbps for ultra HD services. Overall broadband infrastructure (more…)

Why Xiamoi Buying Stake in iQiyi and Youku ?

Android device maker Xiaomi is considering taking a stake both in Baidu’s online video subsidiary iQiyi and in Alibaba-invested online video site operator Youku Tudou. Earlier this month on its official Weibo account, Xiaomi announced that it plans to invest US$1bn in online video content to support its smart television ecosystem. We expect Xiaomi to invest about US$300m in iQiyi to become the second largest shareholder and an US$ 8-digit figure in Youku Tudou in the secondary market.

A partnership with iQiyi and Youku Tudou will (more…)

Time Spend on Mobile / Tablets Increase, Apps the Catalyst

Mobile Time Spend Share IncreasingTime spent consuming digital media on mobile is gaining traction at the expense of time spent on the traditional desktop. This trend is not new, but when looking at the numbers, it is clear that this shift has been swift and unrelenting. In their 2Q earnings reports, GOOGL, FB, LNKD, YELP, GRUB, Z, EVDY and others, highlighted the robust growth of the mobile channel and the strategic importance of their respective apps.

Since August 2013, mobile has continued to gain widespread use as the platform for digital media consumption. Although mobile now accounts for 60% of time spent consuming digital media, consumers have adopted mobile as the forum for (more…)

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