Interactive Services To Be Revolutionised By 2002

Consumer interactive services markets in the UK will be transformed by the advent of digital TV, but the Internet will also be unrecognisable by 2002, according to a new report from Datamonitor, Consumer Interactive Services in the UK.

The report says that interactive services will be the major differentiator in the digital TV markets. For example, the digital terrestrial TV platform will have the capacity for very few interactive services, while digital satellite will be able to deliver strong near-video-on-demand provisions. Cable will be able to offer this and Internet access, providing a key competitive advantage compared to satellite.

Datamonitor forecasts that, following its launch in 1998, the number of digital TV households will increase steadily to 2.6 million by 2002, splitting into 900,000 digital cable households, 1 million satellite households and 600,000 terrestrial ones.

The report also concludes that broadband cable access will be widespread by 2002 and will transform the scope and performance of online services. It says that cable operators will steal a lead in the UK broadband market, with cable modem internet and online access services rolling out from late 1998 or early 1999. It is said that these services will bring access speeds of 2Mbit/s, which is nearly 100 times faster than some dial-up modems, and provide services like real-time video applications.

The introduction of network interface devices (NIDs) like set-top boxes and Internet-enabled games consoles will change the market. The low-cost of NIDs will drive uptake, bringing them to the mass market – Datamonitor forecasts that there will be 400,000 internet and online subscriptions via NIDs by the end of 2002.

Datamonitor: 0171 625 8548