With digital terrestrial television (DTT) subscriber numbers forecast to expand from less than 36 million in 2006 to 89 million in 2012, and broadcasters preparing for digital switch-over, the market dynamics of local and regional over-the-air video transmission are quickly changing, according to a new report from ABI Research.
ABI says that the result of this will be growth in consumer equipment and core-network markets for digital-video equipment.
Michael Arden, ABI Research’s principal broadband analyst, said that broadcasters stand to benefit in several ways: “Not only does digital broadcasting allow them to do targeted local advertising more easily, it also allows them, using their existing spectrum license and allocation, to add extra sub-channels, which could contain specialty content or HDTV programming.”
Arden adds that digital broadcasting offers real business advantages. The ability to create localized content (such as news and sports) on a limited budget and to resell it to cable companies and others is quite significant.
The uptake of DTT will coincide with digital switchover, although there are several DTT formats in use around the world, and political/economic as well as technological considerations enter into the decision-making process in various countries.
ABI adds that DTT will emerge as a tool for providing video to undeserved markets and to supplement other services.
A recent report from JupiterResearch said that Freeview will be the UK’s digital switchover winner in the next five years, forecasting that pay-TV companies are set for a struggle to win customers (see Freeview To Be Digital Switchover Winner).
Meanwhile, Ofcom’s most recent Communications Market: Digital Television Progress Report showed that by the end of September 2006, almost three out of every four UK television households, or 73.3%, viewed digital television on their main TV set (see Digital TV Shows Strong Growth).
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