Yet another survey has found that there is much consumer confusion over interactive television and what it can offer. A new report from Cahners In-Stat/MDR says that whilst the iTV market is now beginning to take shape, the greatest obstacle to growth is a broad misunderstanding of what the platform actually is. This was also the finding of a recent survey by GartnerG2, which showed that half of British adults are not aware that their iTV service will allow them to buy products via the TV set (see UK Interactive TV Penetration To Reach 40% By 2003, Says GartnerG2).
Nevertheless, In-Stat forecasts that the iTV market is poised for growth, particularly in North America. Digital TV’s capability of two-way transmission is helping cable, satellite and terrestrial broadcasters alike to develop their interactive offerings.
“After years of trials and tentative service introductions, the past year has seen interactive services become a common sight on most pay-TV networks,” says Mike Paxton, a senior analyst with In-Stat/MDR.
On-demand applications such as video on-demand and personal video recording are generating the most industry interest at present as they are the most likely to be adopted by TV viewers, says the report. These findings mirror those of an earlier survey of US iTV attitudes by Statistical Research (see Forecasts).
The number of television households using on-demand services worldwide will jump from 1.3 million in 2001 to over 33 million in 2005, forecasts In-Stat. North American video on-demand service revenues are predicted to grow from $86 million in 2001 to over $1.75 billion in 2005.
The GartnerG2 research forecast that iTV would reach 40% penetration in the UK by the end of this year, leading the way in Europe.
The Cahners In-Stat/MDR report, Interactive TV: On-Demand Services Prime the Pump, examines the availability and the development of interactive television services, with a special emphasis on the emerging ‘on-demand’ services.
