The end of year 2001 has brought the mainstream adoption of the broadband access to the Internet. While 2002 began with more than 32 million subscribers worldwide, subscriber totals will surpass 46 million by the end of the year1, and will potentially grow to over 117 million broadband households worldwide in 20042.

North America holds the lead in broadband subscribers through 2001 with 13.5 million households (cable Internet and DSL subscribers). Current Western European household base of 4 million broadband subscribers is projected to increase to 23 million by 2005 with a projected spent on premium services of over 2.5 billion3.

With reduced costs to consumers, broadband is finally becoming a utility, not a luxury, item. Broadband connectivity will soon be the rule, not the exception, for most Internet users. Penetration of the home broadband market will rise from 21 percent of online households in 2001 to over 40 percent by 20054.

Given the demographics of the broadband user base, the willingness and ability to spend money on premium services is significantly higher than that of narrowband (dial-up) users. The projected worldwide spending on premium broadband-enabled services such as audio/video-on-demand, interactive television, interactive gaming, thick-client financial applications, etc. will surpass $100 billion by year 20053.

JupiterMedia forecasts that streaming video users will number roughly 67 million by 2006-more than double the 30 million users at the beginning of 2002 with number of consumers willing to pay for streamed content by 2006 about seven million.

Recent launch of next-generation video technologies-including RealNetworks' Helix, Microsoft's Windows Media 9 Beta, and Apple's QuickTime 6 Beta-has focused interest on live online broadcast and Internet video on demand. Although streaming has yet to capture the hearts and minds of consumers, increasing broadband penetration, coupled with improved streaming technology, will yield an ever increasing market for on-demand video.

EMG enables its content owner/publisher partners to penetrate the exploding broadband marketplace. EMG addresses content publishers' concerns about deployment costs, complexity, and commercial flexibility by utilizing the best of breed latest technologies that provide several enhancements-improved compression, flexible business-model support, and content controls and by taking on the full burden of content storage, security and delivery. Capabilities such as real-time encoding, DVD-quality encoding for high quality video content, variable bit-rate encoding, and higher compression schemes are common enhancements that will be employed by EMG and provide additional value to retail customers and enhance profitability for content owners.

Despite the inherent security of streaming, content publishers remain wary of releasing content assets into unsecured systems. As such, EMG is committed integrate Digital Rights Management (DRM) technology deeply into its architecture and work flow for creating and delivering streaming and on-demand content.

1 Source: In-Stat/MDR
2 Source: eMarketer
3 Source: McKinsey & Company
4 Source: JupiterMedia
  • 32 Million users as of 2002.
  • 117 Million users projected as of 2004.
  • Up to 40% of Internet connections will be broadband by 2005.
  • By 2005 broadband marketplace estimated at $100 Billion per year.
  • Set-Top Devices currently being introduced will move VoD from PC to TV.
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