The global active base for Digital Terrestrial Television (DTT) Receivers is projected to reach 2.4 billion units by 2018, driven by TV digitisation in BRIC (Brazil, Russia, India, and China) countries, according to GIA research. Future growth in the demand for DTT Receivers will also be driven by the widespread adoption of digital TV standards across various consumer electronic devices.
Many Western European countries such as Denmark, France, Germany, Norway, Sweden, and Spain have already become fully digitalised by successfully completing DSO. Other major markets such as Italy, UK, Japan, Canada, Portugal, and South Korea are poised to complete ASO in 2012. By the year 2015 some of the most populated countries in the world such as China, India, Mexico, Romania, Russia, and the US aim to completely switch over to digital format in all forms of broadcasting.
GIA suggests the fortune of the global market for DTT receivers is poised to chart a growing pattern on the demand graph in future, primarily driven by the widespread popularity of free terrestrial television. In fact, free terrestrial TV continues to find favor among a large number of consumers, especially in developed nations, in spite of the growth in the adoption of pay TV in recent times.
The affordability of free terrestrial TV is the major factor responsible for this trend, as consumers are only required to pay a single upfront amount for the receiver with no additional subscription costs. Additionally, with terrestrial digitalisation garnering widespread popularity on a global scale, emerging countries such as China, South Africa and Brazil are projected to witness a surge in demand for DTT receivers in future. China alone is projected to account for a substantial amount of users in the coming years.
GIA points out that the DTT Receivers market is being driven by the digitisation of television across the globe. Television continues to strengthen its position in the global media market by cornering a greater share of viewer attention and revenues, despite the growing competition from alternate media channels. The potential for growth is immense given the fact that about 50 per cent of the world’s population is yet to be touched by the television boom. Emerging markets, particularly India and China, offer enormous growth prospects.
Over the years, Multiple Systems Operators (MSOs) have been making enormous investments for delivering and supporting enhanced video, voice and data services such as VoD and HD digital video. MSOs have been offering bundled broadband service packages in order to gain an edge over providers of digital broadcast satellite services and telecom companies. The need to compete effectively is essential given the fact that content providers are offering increasingly personalised content through the Internet and to multiple user devices. This led MSOs to upgrade their networks by using Networked (PVRs) which allow them to shift video storage to the networks from the set top boxes thereby adding more capacity. MSOs are also placing increased emphasis on offering time-shifted television to consumers. These efforts have led to numerous technological advancements, which have proven beneficial for the global television industry. A case in point is online TV content and Digital Video Recorders (DVRs) that have played a critical role in boosting overall viewership.
The US and Europe account for nearly two-thirds of the global active base for DTT Receivers. However, with these markets nearing saturation, emerging markets such as China, India, Russia, and Brazil are expected to drive the market for DTT Receivers in future as these countries embark on digitisation of TV.