Connected Consumer second-quarter 2013: analysis and outlook

Credit: Greg

1 Summary

The shift in consumer media consumption from fixed, dedicated platforms to open, IP-based platforms caused problems for both in the second quarter. The period also saw a courtroom showdown between Apple and the Justice Department over ebook prices and a setback for 3D TV.

Among the highlights from the quarter:

  • Sony and Microsoft unveiled what are likely to be the last heavy-duty, dedicated game consoles for the living room. They now face a ticking clock to try to cash in as consumers increasingly adopt mobile platforms for games.
  • A peering dispute arose between Cogent and Verizon after Cogent began carrying Netflix traffic. This was reminiscent of a similar dispute in 2010 between Level 3 and Comcast. Verizon calls it business as usual but Cogent is crying foul.
  • There’s more to cord cutting than simply cutting the pay-TV cord. A growing number of younger TV households are never plugging in the cord in the first place, and some are even abandoning the TV altogether in favor of other screens.
  • Apple managed to put some dents in the government’s ebook price-fixing case against it at trial, but it still faces a significant threat to its future business if the verdict goes against it.
  • Live sports were supposed to drive consumer adoption of 3D TV, as it helped drive adoption of HDTV. So when ESPN pulled the plug on its dedicated 3D channel in the second quarter, the handwriting seemed to be on the wall for the format.

Source: flickr user Greg