Digital Broadcasting Forecast

Initiative Media have issued a forecast on the future of digital technology within television.

Initiative Media state that digital technology will enhance the quality of sound and vision as well as offering the consumers more channel choice and a variety of interactive services. However, IM warn the advertising industry that the pace of take up of digital technology will be relatively slow due to the cost of decoders and television sets.

With reference to Channel 5, IM state that the new channel will offer the advertiser more choice and create competitive pressure in the marketplace. IM highlight the importance of a terrestrial TV network with the example from the USA. Fox, who own the big four networks, have taken their audience share from 60% in 1990 to 75% in 1995. and Disney have paid $19bn for ABC/Capital cities.

IM have advised ITV and Channel 4 that they should recognise the importance of programming investment as the key determinant of their success.

Initiative Media: 0171 636 3377.