Insider Reporter


Insider Report

news and views on broadcast and professional video/audio sectors, worldwide

w/e July 14, 2010 SCRI International, Inc © 1984 - 2010

INDEX

Technology News | Industry News | Company News |
Product News | People in the News | Research News

TECHNOLOGY NEWS

Touch Screen Module Revenue Forecast to Reach $14B by 2016

DisplaySearch reported that total touch screen module revenue will grow from $4.3 billion in 2009 to nearly $14 billion by 2016, a compound annual growth rate of 18%.

“Touch screen penetration is rapidly increasing in portable devices like mobile phones, media players and navigation units.Over the next several years, touch screens will undergo strong growth in large-size applications such as all-in-one PCs, mini-note/slate PCs, education/training, and kiosks for point of information and self-check in,” noted Jennifer Colegrove, Director of Display Technologies at DisplaySearch.“The touch screen industry is already a multi-billion dollar industry, and still has great growth momentum. This is what makes it so attractive.”

Resistive touch is still the leading technology in terms of unit shipments, and currently 90 companies manufacture it. However, projected capacitive technology has attracted numerous suppliers, with 56 companies currently supplying it, nearly twice as many as last year.

These two technologies are forecast to represent nearly 98% of touch screen unit share in 2010, and will continue to dominate unit shipments with 82% of unit shipments in 2016.

The touch screen industry is extremely diverse, with over a dozen touch screen technologies. About 200 companies are pursuing these technologies, and some of them, like Elo/Tyco Electronics and 3M, manufacture several different touch technologies.

In addition, some companies only produce controller ICs, such as Atmel and Cypress, while others manufacture entire modules, including the touch sensor and controller IC such as Elo/Tyco Electronics and 3M.

In-cell touch, which was commercialized in May 2009, is experiencing high growth and penetration into large size displays, is expected to take off in 2011 once the technology can achieve higher yield rates. The technology is forecast to grow to more than $600 million by 2016.

On-cell projected capacitive touch, which was also commercialized in 2009, is experiencing good growth, but yield rates remain a concern and need to be closely watched to control costs. This segment is forecast to reach $1.7 billion by 2016.

As previously forecasted, projected capacitive shipments have increased substantially. Projected capacitive touch has been popularized by Apple’s iPhone and iPod Touch since 2007. With the iPad and iPhone 4 adopting it in 2010, DisplaySearch forecasts that projected capacitive touch will surpass resistive touch technology for the first time to become the leading touch technology on a revenue basis.

Mobile phones are the biggest application for touch screens in terms of unit shipments, with two-thirds of units shipped in 2010. DisplaySearch forecasts that 531 million touch screens will ship for mobile phone applications in 2010, up 41% Y/Y. DisplaySearch forecasts that the penetration rate of touch in mobile phones will double from 25.6% in 2009 to more than 50% in 2016.

The next two largest applications—portable navigation devices and handheld games—are losing share of the touch market as smartphones and other touch-enabled mobile phones take on more functionality.

DisplaySearch forecasts that touch functionality in mini-note/slate PCs will take off after 2010, growing from 1 million units shipped to 50 million units in 2016. Touch penetration in digital still cameras and camcorders is expected to increase over the next several years as well.

Touch screens are also moving into new applications, such as e-readers and casino gaming. Touch technologies with high transmittance, low power consumption, multi-touch or gesture recognition will benefit the most.

Blu-ray Disc Association Approves Final BDXL™ Format Specifications

The Blu-ray Disc Association (BDA) announced the finalization and release of the specifications for BDXL™, the new multi-layer recordable Blu-ray Disc™ format with up to 128GB of capacity. With the completion and approval of the specification, manufacturers can now obtain licensing information and license applications needed to begin production of the high capacity write-once and rewritable discs and hardware (http://www.blu-raydisc.info/).

“By using the existing Blu-ray™ technologies, we have created a long-term and stable solution for archiving large amounts of sensitive data, video and graphic images. We expect further growth of the Blu-ray Disc™ market as the introduction of 100GB/128GB discs will expand the application of Blu-ray Disc™ technologies.”

Targeted primarily at commercial segments such as broadcasting, medical and document imaging enterprises with significant archiving needs, BDXL™ provides customers with triple layer 100GB RE (rewritable) and R (write-once) discs and quadruple layer 128GB R discs. Possible consumer applications include capture and playback of HD broadcast and satellite programming in markets where set-top recorders are prevalent.

"The BDA worked diligently to create an extension of the Blu-ray Disc™ format that leverages the physical structure of the design of the disc to create even more storage capacity,” said Victor Matsuda, Blu-ray Disc Association Global Promotions Committee chair. “By using the existing Blu-ray™ technologies, we have created a long-term and stable solution for archiving large amounts of sensitive data, video and graphic images. We expect further growth of the Blu-ray Disc™ market as the introduction of 100GB/128GB discs will expand the application of Blu-ray Disc™ technologies.”

The BDXL™ specification was developed with specific market segments in mind, and newly-designed hardware addressing such markets will play back or record BDXL™ media. However, because the new media specifications are extensions of current Blu-ray Disc technologies, future BDXL™ capable recorders can easily be designed to play back existing 25GB and 50GB Blu-ray Disc™ formats.

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INDUSTRY NEWS

BIA/Kelsey Raises Its Outlook for Television Station Revenues in 2010,

Based on encouraging indications that advertisers are returning to local television and a stronger than expected primary election year, BIA/Kelsey, adviser to companies in the local media space, has raised its outlook for the television industry in 2010. In its second edition of the quarterly “Investing In Television® Market Report,” BIA/Kelsey projects the industry will have overall revenues of $18.1 billion, a 10.9 percent increase from 2009. Revenues from online sources are expected to hit $648 million this year, representing a 25 percent growth over last year. BIA/Kelsey anticipates less dramatic positive changes in the latter half of 2010 compared with the third and fourth quarters of 2009, since the second half of last year was stronger than the first.

“There’s growing affirmation that local stations are seeing advertisers return. We see this as recognition that television is still the best method to reach large local audiences, whether the message is for a product, cause or campaign,” said Mark Fratrik, Ph.D., vice president, BIA/Kelsey. “This positive sign should help the industry invest in its infrastructure and position it for growth this decade.”

Fratrik also noted that 2010 demonstrates the television industry can sustain itself in non-presidential election years. Since 1998, non-election even-numbered years have maintained sustainable growth rates, starting with 6.3 percent that year. Four years later and coming off a recession, 2002 posted a 10.2 percent increase, while 2006 television revenues increased by 8.5 percent.

“This year holds promising revenue increases due to the unexpected competitive primary election environment, with more than expected Senate and congressional races,” said Fratrik. “This makes up for the economy not being as strong as we all would hope.”

Lionsgate Shareholders Reject the Icahn Group's Offer

Lionsgate issued the following statement in response to the announcement by Carl Icahn and certain of his affiliated entities of its final tender offer results:

At the completion of the Icahn Group's offer, holders of over 66% of Lionsgate shares have rejected the Icahn Group's offer, with only 2.1% of the outstanding shares being tendered into the offer during the subsequent offering period.

We want to take this opportunity to thank our shareholders. Lionsgate's shareholders have repeatedly confirmed their support for the Board and management's strategy to grow shareholder value by continuously rejecting the Icahn Group's financially inadequate offer.

Our focus continues to be running the business to build value for all of our shareholders. As reflected in our strong fiscal 2010 results, the Board believes that the best path for increasing the value of the Company for the benefit of all shareholders is to continue executing Lionsgate's growth strategy. We look forward to continuing to unlock the exceptional value within Lionsgate's diversified portfolio of assets.

Onstream Media Receives NASDAQ Non-Compliance Letter

Onstream Media Corporation (Nasdaq: ONSM), anonline service provider of live and on-demand digital media communications and applications, announced that it received a letter from The NASDAQ Stock Market dated June 24, 2010 indicating that the Company does not currently comply with Listing Rule 5605 (c) (2) (A). This rule provides that the audit committee of a NASDAQ-listed company have at least three members, each of whom is independent and meets certain other specified criteria. On June 14, 2010, the Company was notified that Mr. Robert J. Wussler, a director and a member of its audit committee, had passed away on June 5, 2010. He has not at the present time been replaced on the audit committee, which currently has two independent members. In accordance with Listing Rule 5605 (c) (4) (B), NASDAQ has provided the Company with a "cure period" until the earlier of its next annual shareholders' meeting or June 5, 2011 to regain compliance. Until that time, the Company's shares will continue to be listed on the NASDAQ Capital Market.

Randy Selman, Onstream's President and CEO, stated, "As we recently announced, we have already taken the necessary steps to comply with NASDAQ's requirement for an independent majority on our Board of Directors. We are in the process of evaluating independent candidates to fill the vacancy left as a result of Mr. Wussler's passing, both on the Board as well as the audit committee. We will make that selection as soon as possible, but in any event, the Company expects to be in compliance with the NASDAQ Listing Rules within the cure period."

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COMPANY NEWS

Wegener Q3 Down

Wegener Corporation, a provider of products for television, audio and data distribution networks worldwide, nnounced final operating results for the third quarter ended May 28, 2010.

Final operating results for the third quarter of fiscal 2010 were revenues of $2.1 million and a net loss of approximately $(487,000) or $(0.04) per share compared to revenues of $2.9 million and a net loss of $(883,000) or $(0.07) per share for the same period in fiscal 2009. The operating results for the nine months ended May 28, 2010 were revenues of $6.3 million and a net loss of approximately of $(2.0) million or $(0.16) per share compared to revenues of $9.8 million and a loss of approximately $(2.1) million or $(0.16) per share for the same period ended May 29, 2009.

“While the revenues do not yet reflect it, we are making progress. During the third quarter, we booked a two million dollar multi-year order with an international customer. We are traveling extensively to meet with customers and new prospects as we work to strengthen our position as their strategic partner. It is worth noting that the bookings for the first nine months of this fiscal year are $6.9 million compared to $5.5 million for all of fiscal 2009. The third quarter bookings of $3.0 million are 55% of the total bookings for fiscal 2009. The bookings during each of the first three quarters of fiscal 2010 have improved over the comparable quarter one year ago.

“Although we are disappointed that our current revenue and earnings performance do not currently reflect our intensified efforts, we remain cautiously optimistic. WEGENER has a number of significant opportunities both internationally and domestically and our team is highly motivated to book these orders and improve our operating performance. We also believe that new bookings will be forthcoming as we close the deals currently in process; it will clearly demonstrate our ability to be a viable strategic partner with existing and new customers.”

Vizrt Completes Acquisition of Adactus

Further to the announcement of February 2, 2010, Vizrt Ltd. announced today, the completion of its acquisition of the remaining 71% in Adactus A.S. for a consideration of NOK 21.30 million (approx. USD 3.34 Million). The consideration is to be paid in cash and values Adactus at NOK 30.0 million (approx. USD 4.71 million).

"The acquisition of Adactus brings additional powerful tools to the expanding Vizrt product suite and specifically targets the emerging world of mobile distribution", stated Martin Burkhalter, Vizrt's CEO. "With more than 1,700 video capable cell and smart phones on the market today, mobile TV is the fastest growing delivery medium for video and is already a common platform for many viewers. While broadcasters and other owners of compelling video content deliver via the web, mobile distribution promises substantial revenue growth. With a comprehensive and easy to use set of tools, Vizrt is uniquely positioned in the market to enable broadcasters and others to efficiently distribute to mobile devices."

Trondheim (Norway) based Adactus is a software company offering solutions for delivery and presentation of adapted multimedia for mobile terminals, such as smart phones, tablet PCs and smart TVs. Based on the MPEG-21 standard, the company offers custom designed and easy to use applications that enable content distribution and content gathering for Mobile TV as well as Internet TV.

The full integration of Adactus solutions into the Vizrt product suite enables content providers to easily manage both mobile distribution and mobile contribution to their existing workflows. With the acquisition of Adactus, Vizrt now offers the only proprietary platform in the marketplace that can produce the required video streams for the various display devices, broadcast, web and mobile, all in one seamless workflow.

Adactus products have been chosen, among others, by organizations such as Turner Broadcasting Systems, Etisalat and BBC World Service, for their live and recorded video streaming and news-gathering operations.

Vizrt's cooperation with Adactus began in October 2005 when the Company made an investment as a commitment to the joint development of a project for a graphics engine for mobile devices. The two companies have maintained a close relationship at both the technical and business levels, which will ensure a smooth integration of the Adactus operations into Vizrt.

Dalet Acquires Gruppo TNT

Dalet Digital Media Systems, a publicly traded company on Euronext which designs, develops, and sells Media Asset Management (MAM) and digital media solutions to broadcasters and content providers, announced that it has signed a definitive agreement to acquire Gruppo TNT S.R.L., a privately held Italian company that specializes in advanced broadcast solutions. The acquired business further expands the Dalet product offerings built around an open, IT-centric framework, and provides additional functionalities that can be easily incorporated into its flagship product Dalet Enterprise Edition. Gruppo TNT's revenues in 2009 were €4.9 million.

"We are very impressed with Gruppo TNT's deep knowledge and experience in advanced technologies that are complementary to Dalet and that improve broadcast workflows, especially in live event programming and fast-paced content production environments. Gruppo TNT has an impressive list of accomplishments at major Italian broadcast operations, including Mediaset, Sky Italia and RAI," said David Lasry, CEO of Dalet. "The inclusion of TNT's innovative technologies will further enhance the Dalet product portfolio, particularly in News, Sports and MAM."

"Our products and technology expertise have been proven at the largest and most demanding broadcasters in Italy in a variety of programming settings," comments Giuseppe Bonariva, President of Gruppo TNT. "Now, backed by the worldwide resources of the Dalet sales, support and professional services teams, we will be able to bring these highly scalable, advanced solutions to the much larger global marketplace."

Dalet expects to implement some elements of Gruppo TNT technology into Dalet Enterprise Edition for demonstrations at the upcoming IBC tradeshow in Amsterdam (September 2010).

Fujinon Restructured to Drive Market Growth

FUJIFILM Holdings America Corporation, announced that FUJINON INC. will be restructured into two subsidiaries – one will report into FUJIFILM North America Corporation and the other into FUJIFILM Medical Systems U.S.A., Inc. This restructuring of Fujinon into two subsidiary companies will support Fujifilm’s objective of strengthening its sales organizations to realize future growth.

“The addition of the new subsidiaries will reinforce our objectives and align business resources to drive growth in the optics and endoscope markets here in the U.S.”

“The restructuring of Fujinon furthers Fujifilm’s global objective to build organizations that optimize resources to strengthen our ability to aggressively compete,” said Ryutaro Hosoda, president FUJIFILM Holdings America Corporation. “The addition of the new subsidiaries will reinforce our objectives and align business resources to drive growth in the optics and endoscope markets here in the U.S.”

Led by president and CEO, Hank Hayashi, FUJINON INC. is a world leader and highly respected provider of optics and lens assemblies to the broadcast, digital cinema and industrial markets as well as binoculars, security/surveillance lenses and customized precision optics for a variety of uses. Fujinon also leads the medical market with high quality, technologically advanced video endoscopes, including Super CCD high definition imaging, multi-band spectral imaging software, and the Double Balloon Endoscopy® System.

Four divisions within FUJINON INC. – Broadcast and Communications Products, Closed Circuit TV (CCTV), Industrial Optics and Special Products – will form FUJIFILM Optical Devices U.S.A., Inc., and become a subsidiary of FUJIFILM North America Corporation. Broadcast and Communications Products distributes lens assemblies for the broadcast, cinema and industrial markets. The line of television zoom lenses are used in virtually every segment of the broadcast industry, including electronic newsgathering, studio and field production and high definition television. CCTV markets lenses for security/surveillance and factory automation/machine vision. Industrial Optics distributes front-view/rear-view automobile cameras lenses, digital cinema projection lenses, laser-focusing lenses, and lenses for scanners and digital cameras. Special Products markets high-end binoculars including stabilized binoculars to the government and marine markets.

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PRODUCT NEWS

Fujitsu Announces High-Performance ASIC Technology for Digital Media Encoding

Fujitsu announced the availability of new high-performance application-specific integrated circuit (ASIC) technology optimized to meet the growing demand for 10 bit 4:2:2 encoding in the advanced H.264 (AVC) supporting all formats, including 1080P and "stereoscopic" 3D television content. The new technology will be integrated into the Fujitsu IP-9600 next-generation encoder, a new, scalable and highly flexible digital media processor and networking platform scheduled to launch in mid 2011.

"The new ASIC technology offered in our next-generation IP-9600 encoder enables users to customize their video content acquisition, processing and distribution applications to meet their specific cost, performance, scalability and flexibility requirements," said Kunio Konishi, director of product management, media solutions, Fujitsu Frontech North America Inc. "Fujitsu digital media solutions is known for its high performance, reliability and return on investment value in MPEG-4 AVC encoding technologies. The integration of an advanced ASIC core further demonstrates our ongoing commitment to offering superior technology with low latency and the highest-possible video and audio fidelity at price points that meet different budget requirements."

CodecSys 2.0 Revolutionizes H.264 Video Processing

Broadcast International, Inc. announced the availability of CodecSys 2.0, the revolutionary H.264 video optimization software platform for delivering cinema-quality HD content to all 4 Screens™ of consumer digital interaction.

CodecSys™ dramatically reduces video bandwidth requirements over satellite, cable, IP and wireless networks. By slashing bandwidth needs, CodecSys enables a new generation of applications to deliver HD video at lower bandwidth rates than previously achieved with legacy, outdated hardware encoders.

"With this release, Broadcast International is poised to accelerate its market penetration as the leading hardware-independent video optimization solution in the marketplace. It has been fully implemented with our partners, it showcases the power of delivering HD content at remarkably low bandwidth rates, and we are now moving on several implementations with customers and prospects. CodecSys 2.0 is the new encoding standard for anyone who is serious about delivering broadcast quality content to any screen a user chooses," said Rod Tiede, CEO Broadcast International.

RESEARCH NEWS

SCRI RESEARCH NEWS

2010-2011 Broadcast Pro Video Marketplace (B/PVM)TM Reports Relased @ NAB

2010-2011 Broadcast Pro Video Marketplace (B/PVM)tm Reports Series was released at NAB10. A total of 25 individual product reports as well as a macro industry overview and micro quantitative data analysis reports are available. Contact des_chas@scri.com for more information.

2010-2011 Broadcast/Pro Video Macro Industry Overview Report:

88 page report of analysis and information on the state-of-the-industry compiled from secondary online research sources including industry news sites, manufacturers sites, as well as SCRI's own weekly online News Briefs and Insider Reports.

2010-2011 Broadcast/Pro Video Micro Quantitative Product Data Report:

30-page report containing quantitative data tables, for all six verical end-user markets, as well as in total, plus a 6 page summary analysis of the quantitative data tables

2010 - 2011 Broadcast/Pro Video Product Reports (25):

Video Camcorders; ;Video Cameras; Camera Mounting Systems; Character Generators; Clip / Still Stores; Composite/Component Encoders; Digital Effects Processors; Graphics & Effects Software; Graphics & Effects Workstations; Master Control Switchers; Non-Linear Editing Systems; Production/Post Switchers; RAID Video Storage; Routing Switchers; Standards / Formats Convertors; TBC's / Frame Synchronizers; Telecine Equipment; Terminal Equipment; Up/Down Converters; Video Compression Encoders; Video Disk Recorders; Video Monitors; Video Servers; Video Test & Measurement; VTRs

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