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December 11, 2007 - Scala Commended for Strong Growth and Dominant Market Share by Frost & Sullivan
December 10, 2007, Exton, PA -- Scala, Inc., the leading provider ofend-to-end solutions for the Digital Signage market announced that
Frost and Sullivan has placed Scala, Inc. at 35.4% worldwide market
share of the Digital Signage software industry.
In a newly released research report entitled "World Digital Signage
Markets," Frost & Sullivan undertakes a strategic analysis of the
worldwide Digital Signage industry and makes strategic recommendations
for growth in the industry.
According to the report the World Digital Signage Systems market grew
21.3% in revenue in 2006. Scala significantly outpaced this growth with
an increase in sales of 59% (vs. 2005). Frost & Sullivan expects the
World Digital Signage Systems market to grow from $313.9 million in
revenues in 2006 to over $1 billion in 2012 at a compound annual growth
rate (CAGR) of over 20% and Scala expects to continue to outpace this
growth rate. The overall ease of installment, network flexibility and
management, the ability to remotely control multiple screens, and increased
reliability are driving growth in the market.
The report identifies three tiers of Digital Signage software providers, of which,
Tier I is comprised of software vendors with a global presence and a large
capital base. Frost and Sullivan places Scala squarely in the Tier I category.
The revenues of Tier I companies far exceed that of Tier II and Tier III companies.
With Tier I companies holding more than 60% of the market -- Scala commands
a 35.4% overall market share position. With as many as 50 competitors in the
Digital Signage market, Scala is the only Digital Signage software company that
Frost & Sullivan positions with the highest ability to deliver multifactor solutions
and the highest market penetration.
Frost & Sullivan suggests that ultimately, the success of a Digital Signage network
is based on its ability to deliver relevant content to customers at the right time and
location. Digital Signage provides a unique opportunity for brand building as well as
a strategic channel to influence customer behavior. Digital Signage can create a
stimulating environment where the customer's long and short-term behavior can
be shaped, which ultimately results in sales lifts that can justify the initial
implementation costs according to Frost & Sullivan.
"Scala has built on the success of its InfoChannel 3 product, with the June 2006
launch of InfoChannel 5. The combination of powerful tools for content creation
and network management pushed Scala to 35+% market share for 2006," stated
Rufus Connell, Vice President - Information and Communication Technology for
Frost & Sullivan.
"The Frost & Sullivan report not only confirms the dominant market share Scala
has earned in the global Digital Signage Industry but forecasts healthy continuous
growth," said Scala CEO Gerard Bucas. "With tremendous growth for the past 2
years and sales into more than 60 countries, Scala continues to solidify its position
as the global leader in the Digital Signage industry. This report reinforces that position."
The Frost & Sullivan report focuses on digital signage deployments whose business
model revolves around merchandising or advertising, and excludes digital signage
applications that focus on corporate communications, flight simulation displays, security
and cable TV. It is important to note that Scala is seeing growth in these excluded areas
as well, and expects them to continue to grow at aggressive rates.
About Frost & Sullivan
Frost & Sullivan, the Growth Consulting Company, partners with clients to accelerate their
growth. The company's Growth Partnership Services, Growth Consulting and Career Best
Practices empower clients to create a growth-focused culture that generates, evaluates
and implements effective growth strategies. Frost & Sullivan employs over 45 years of
experience in partnering with Global 1000 companies, emerging businesses and the investment
community from more than 30 offices on six continents. For more information,
visit http://www.awards.frost.com/.
