2010 Global Digital Media - Key Trends for Pay TV and Broadcasting

DTTV, video based services, mobile TV and 3D TV expanding the consumer experience

Digital Media developments are changing the landscape of broadcasting forever and in 2010 we continue to see new and innovative services emerge around the world. The broadcasting industry has experienced incredible changes over the past 12 months or so as the developed world moves closer and closer to all digital broadcasting. Competition across the sector is now intense and this will continue for the foreseeable future.

In particular the traditional television market has experienced a complete change in market dynamics as the offerings from other delivery platforms and models continue to improve. Pay TV is facing increased competition from Digital Terrestrial TV and video based services; and in the future mobile TV will become a competitor in the broadcasting market as well.

In 2010, the new broadband TV sets are significantly more user-friendly and there is no longer a juggle of cables, PCs, modems and TVs. IPTV operators are carefully positioning themselves for a future which involves converged technologies with home theatre systems now incorporating anything from digital TV to digital radio, multi-room DVRs, digital media adapters, STBs, Blu-ray players, telephony, game consoles etc! 3D TV is also being incorporated into the home theatre experience.

Mobile video entertainment and communication services also have a bright future – particularly once mobile broadband services allow it to become truly mass market. In 2010 mobile TV/video is commercially available in some markets, with further launches and trials taking place in all regions of the world. Asia is expected to be a key market for the future of mobile TV, particularly in the large markets of China and India.

In addition to the incredible developments taking place from a technology perspective; the traditional broadcasting industry is now also competing harder for the advertising dollar. Other broadcasting platforms have well and truly attracted the attention of marketers and over 10% of advertising spend worldwide is now directed towards online advertising. In particular, online video is becoming recognised as a powerful format for communicating online. Hulu, launched in 2008, is a growing success story and it now has over 100 advertisers using its service.

This report provides valuable insights and analysis into the key trends taking place in the broadcasting sector. The report includes an overview of the global digital TV and Pay TV market and provides insight into the competition coming from mobile TV and online video. Advertising is a key source of revenue for broadcasters and this report also provides a global overview of key developments occurring in this sector. A broad regional overview of general developments in broadcasting is also included for North America, Latin America, Europe, Middle East, Africa and Asia Pacific.

Market highlights:

• Revenue declined in 2009 for the global television sector – due mainly to a loss in advertising revenue.
• The television sector has become very competitive and Pay TV operators are working harder to retain revenues as DTTV services continue to improved and online video services grow in popularity.
• Over the next five years, digital technologies are set to spread across all segments of the entertainment and media industries.
• Countries with higher penetration levels of pay TV usually offer low-priced entry levels of good value.
• Half a million users worldwide will subscribe to digital TV services by the end of 2010.
• The arrival of 3D TV will soon see it incorporated into the home theatre experience.
• In the US, despite the free-to-air networks all offering the benefits of digital TV, such as improved picture resolution and sound, interactive services, subscription programming and HDTV, nevertheless the number of free-to-air only households continues to shrink as US pay-TV penetration, at over 87%, reaches some of the highest levels globally.
• Improvements in national and international fibre and broadband infrastructure have led to IPTV services in at least ten African countries by 2010.
• While DTH satellite TV booms, other digital media have been slow to develop in the Arab Middle East but this is beginning to change as broadband penetration increases.
• After being delayed by controversies over the standard to be adopted, DTTV is finally being deployed in most Latin American countries.
• The introduction of digital TV to Australia has the potential to offer significant benefits to the viewer. However, difficulties such as poor reception in many areas still have to be overcome.
• Across Eastern Europe there is an increasing choice of pay TV options; IPTV, DTTV, Cable, Satellite.

Data in this report is the latest available at the time of preparation and may not be for the current year.