SBJ/March 27 - April 2, 2006/SBJ In Depth

Predictions: What lies ahead on the sports media landscape?

World Congress Panelists
Bobby Betros
Founder, CTO
Digital Orchid
Rich Bilotti
Managing director
Morgan Stanley
Terry Denson
Vice president, programming and marketing
Verizon FiOS TV
David Levy
Turner Sports
Tony Petitti
Executive vice president, executive producer
CBS Sports
Steve Solomon
President, CEO
SJS Sports
Consumers have more choices than ever when it comes to new media platforms and how to get their television shows, sports scores or music. A comparison of some of the fastest-growing platforms reveals that satellite radio has had some of the fastest uptake of any of the new media. In just four years on the market, Sirius and XM have racked up 9 million subscribers.

That’s about equal to the penetration of digital video recorders, which is on a higher growth curve now that cable and satellite operators are offering the service directly. In terms of new television technology, the most ubiquitous is video-on-demand, available in over 27 million homes by the end of last year and expected to grow to nearly 40 million by the end of 2008. The least prevalent of the major new platforms is HDTV.

Meanwhile, broadband Internet has rapidly become a mainstay in the American home. While basic Internet penetration has slowed, the percentage of homes using broadband technology has increased at least 10 percentage points annually each of the past three years. On the mobile front, the changeover where phones become multimedia devices has clearly begun.

But has this impinged on America’s taste for TV? No. The average American is watching about a half-hour more television per day than 15 years ago.

In this section:

Platforms on the rise
Tracking growth in broadband households
Worldwide G3 users / Sales of MP3 players
Broadband use
U.S. video game revenue and projections
DVD unit sales and projections
Average time spent watching television each day

Platforms on the rise

Sources: National Cable & Telecommunications Association; PricewaterhouseCoopers LLP; Wilkofsky Gruen Associates; SEC filings

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Tracking growth in broadband households

Sources: Company reports, Magna Global Research; Pricewaterhouse-Coopers LLP; Wilkofsky Gruen Associates

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Worldwide G3 users / Sales of MP3 players

3G Source: Maravedis
MP3 Source: Consumer Electronics Association

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Broadband use

% of Internet homes using broadband
Time per household
February 2003
25 hours, 33 minutes
February 2004
27 hours, 52 minutes
February 2005
27 hours, 50 minutes
February 2006
30 hours, 36 minutes

Source: Nielsen/NetRatings, March 2006

Increased broadband penetration has promoted the growth of accessing streaming media online at video sharing sites.

Web traffic to video sites, February
Video site
Unique audience (millions)
Change from Feb. 2005
MSN Video
Google Video

NA: Service not available in February 2005
Source: Nielsen/NetRatings, March 2006

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U.S. video game revenue and projections

Source: PricewaterhouseCoopers LLP, Wilkofsky Gruen Associates

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DVD unit sales and projections

Source: EPM Communications’ “The DVD Statistical Report, 7th Edition”

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Average time spent watching television each day

* Through Feb. 26. Nielsen’s TV season runs September through August.
   Source: Nielsen Media Research

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