A new report from Research and Markets says that the global digital media market is on the verge of massive changes owing to the convergence of telecoms, media and IT, with the changes driven by new developments in broadband technology and consumer electronics.
The report forecasts that video streaming technology will be mainstream and fully integrated into any broadband services by 2008, with video based services on broadband and interactive digital television giving advertisers more opportunities to offer personalised and one-to-one communication.
However, the research says that, because of the lack of global standards for digital terrestrial TV, it has thus far shown slow progress compared with that of the digitisation of cable and satellite services.
The study does though point out that with DSL and cable based broadband networks moving into triple play models (offering voice, data and video services) (see Cable Providers Push Triple Play Offerings), interactive TV initiatives have been pushed to the fore, with the report predicting that interactive TV and other enhanced television products will generate billions of dollars in advertising and commerce around the globe. In addition, the global market for VOD is expected to grow to over 350 million households by 2010.
The broadcasters moving into the broadband and telecommunications arenas could, through the application of broadband TV (IPTV), double the amount of revenue from the top 25% of users of high speed broadband, according to the report. Preliminary figures for Sky’s venture into broadband TV showed a strong level of uptake (see Sky Sees Strong Uptake For Broadband TV Service).
Most of these developments are rooted in lifestyle choices based around the home, and the research says that by 2015 90% of all households in the developed market will have a home media centre, with cable TV operators, telcos, consumer electronics and IT companies all fighting for the media centre business. More mass market developments are expected in this sector from 2008 onwards.
In addition, mobile TV is forecast to do well in the coming couple of years, with selected markets benefiting from it this year, followed by a mass market release in 2008. However, a recent report from Amberlight said that at the moment mobile TV penetration is being hindered by technological difficulties, with poorly designed features, high costs and low quality visibility slowing consumer uptake (see Mobile TV Up-Take Slowed By Technological Faults).
With the growth of innovative internet companies, the study predicts that more changes will occur in the telecommunication and media markets as old business models are broken down and less monopolistic market structures take their place. As the media environment continues to converge the focus will move towards content and applications, bringing with it more changes in marketing strategies.
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