Print Media To Be Hit By Digital TV, Report Says

The appearance of digital TV in the UK will cause a continuing decline in readership for newspapers and magazines, a report from Oliver & Ohlbaum suggests.

UK Pay TV – Winners and Losers to 2007 predicts that the new broadcast medium will offer more news and information, which will hit newspapers, while more niche lifestyle channels could hit consumer magazines. Advertising yields, however, will hold up well as print media will provide better targeting for niche advertisers.

Other highlights of the report include:

• by 2007 the UK pay TV industry will be generating about £1.7 billion in pre-tax profits.
• there are likely to be over 12 million pay TV homes by 2007, though no single delivery system will dominate.
• the switch from analogue to digital for cable and satellite is unlikely to be complete until 2005/2006.
• existing sports subscribers are likely to lead the conversion to digital, attracted by one off events and “season ticket” football.
• pay per view movies are likely to be less popular than pay per view sport and will put pressure on premium movie channels which will have to adapt to survive.
• total pay TV revenue, including revenue, will rise from £1.8bn in 1997 to £5.1bn in 2007. Interactive TV will generate a further £1.3bn of gross revenue.
• there is likely to be a major shake out of thematic channels in 1999/2000 with at least 20% of channels merging or closing.

Oliver & Ohlbaum: 0171 229 1211