New digital TV “adapters” are soon to be launched shortly in the UK, offering a cheap way to access free to air digital TV channels on the terrestrial platform. Pace will be the first manufacturer to sell the product (see
Forecasts), but others are expected to follow.
Strategy Analytics predicts that there are a number of factors which may inhibit the success of these products. They include the limited range and appeal of free-to-air services, general consumer confusion over digital TV, questions over compatibility with interactive services and the continued technical weaknesses in digital terrestrial broadcasting.
Strategy Analytics also forecasts some backlash from disappointed early purchasers of the technology who may be unaware of the limited free channels available.
“Low-cost devices are an important step on the road towards universal digital TV,” commented Peter King, director of broadband device strategies at Strategy Analytics. “But they also risk alienating future customers if technical problems arise.”
Strategy Analytics predicts that 79% of UK homes will have digital TV by 2008, but that analogue switch-off (see Forecasts) will not be achieved this decade without substantial investment from public or commercial investors.
| Digital TV Penetration Forecasts |
| |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
| Total Digital TV Households (000s) |
24,271 |
32,225 |
42,208 |
56,387 |
71,047 |
85,512 |
98,855 |
| Total Digital TV Penetration (%) |
15 |
20 |
26 |
35 |
43 |
52 |
59 |
| Source: Jupiter MMXI, March 2002 |
According to recent forecasts from Jupiter MMXI more European households will be watching digital TV than will be using the internet by 2006 (see Low-Cost Set Top Boxes Will Boost Digital TV Growth). Jupiter believes that this growth will be boosted by low-cost set top boxes.
