IDTV - capturing consumer interest - 01/2001

Digital television connections will grow from 62 million in 2001 to 350 million in 2006, according to research by Ovum, which also predicts that television commerce (t-commerce) revenues will be worth $45 billion by 2005.

Possibilities for telcos and TV broadcasters exist within the Digital TV market. As Telcos and traditional TV broadcasters are vying for market position, each sector must guard its strengths and exploit new opportunities, said Shirley Brown, Ovum's senior consultant in the New Media Group Television. Television is good at developing and delivering programming content to mass audiences. Telcos' strengths include strong customer bases, established billing arrangements, and effective customer management systems. By guarding existing revenues and building service offerings in the convergent space a market leader will emerge.
Digitization of broadcasting transmission breaks down the barriers between the Internet, traditionally a telecommunications domain, and the traditional media-oriented television sector.

Competition between telcos and TV broadcasters centers around increasing viewer numbers to gain advertising revenue; maximizing consumer expenditure on transactions (commerce); and forming alliances for popular entertainment services including movies, shows, and video games.

Once television interactive services have reached maturity they will compete head-on with the services offered by the Internet, and similarly the Internet will rival television in information.

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