Researcher Datamonitor expects the global broadcast market to experience significant revenue growth from $284.1 billion in 2007 to $326.2 billion by 2010. However, it is expected that growth will only be secured through revenue diversification from value-add and bundled services including Internet service provision, HD content, on-demand solutions, interactive applications and multi-platform distribution.Consumers are faced with an unprecedented number of methods to watch and obtain video content. "From personal media players (PMPs), to TV sets, to mobile phones, people will access media content on a variety of different devices over a multitude of communications networks," says Chris Khouri Media and Broadcasting Analyst at Datamonitor and author of the report. "As such, broadcasters are faced with strong pressure to adapt to multi-platform entertainment provision."
Datamonitor says there were around 149.5 million households subscribing to a digital television service in Western Europe and the US in 2007. Of the total digital TV households, digital cable services accounted for a 32 per cent share, satellite 43 per cent digital terrestrial television (DTT) 22 per cent and IPTV at around 3 per cent. By 2010 Datamonitor estimates 193.5 million households in the US and Western Europe to be connected to a digital television service. In terms of absolute growth, the two largest gainers will be DTT and digital cable growing by an estimated 13.3 million and 14.5 million households, respectively.
In terms of market share, Datamonitor expects IPTV and DTT to show the strongest percentage growth with a 2.7 per cent and a 3.7 per cent increase, respectively. Considering this, digital TV players will face a challenging year as they look to attract new customers and reduce churn.