US Digital TV: On-Demand and in High Definition

Published by: eMarketer

Published: Sep. 1, 2004 - 23 Pages

Table of Contents

Abstract

OVERVIEW

Attention: Advertising Agencies; Marketers; ISPs and Telecoms; Broadcast, Cable and Satellite Providers; Entertainment, Information, Sports, Music and Movie Producers and Home Electronics Manufacturers.

The US Digital TV spotlight report takes you onto the front lines in the battle between the networks, cable and satellite television companies. The weapons of choice in the ensuing battle will be advanced TV services such as video-on-demand (VOD), high-definition TV (HDTV) and digital video recorder (DVR) functions.

Widespread broadband Internet access is also affecting the sector, not only because broadband is blurring the distinction between traditional communications categories, allowing potential new entrants into the market, but also because broadband Internet users are increasingly satisfying their entertainment needs online and on-demand, and they are expressing the desire for the same control over their TV viewing experience.

The situation is also presenting advertisers with a host of challenges, the most obvious of which is that consumers are avoiding commercials and watching more programs out of scheduled times. Everyone's TV business model needs to evolve.

Questions Addressed by the Report:

• Will VOD be the "trump card" cable companies are hoping for?
• Do DVRs spell the end of television as we know it?
• How will advertisers adapt to the new TV environment?
• How is broadband Internet affecting the TV sector?
• What can programmers do once viewers take full control of the clicker?
• And many more...

eMarketer Reports - on-Target and Up-to-Date

Drawing on aggregated data from leading marketing research, investment banks and technology research firms, in combination with eMarketer's proprietary projections and analysis, the US Digital TV spotlight report gives you the intelligence you need to survive and thrive in the fast-changing television environment.

EXCERPT

DTV Forecasts

eMarketer forecasts the number of US households receiving digital TV services will reach 70.3 million in 2007, up from 44.2 million at the end of 2003. This equates to a rise in digital TV penetration from 40.2% of households in 2003 to 60.4% in 2007.

By way of comparison, digital TV household penetration will continue to significantly exceed broadband Internet penetration through to 2007. By 2007, approximately 47% of US households will have broadband Internet compared to 60% with digital TV.

DBS (direct broadcast satellite) and cable MSOs shared the 44 million digital TV subscribers at the end of 2003 almost equally. eMarketer predicts digital cable companies will begin to open up a lead on DBS in 2004 and beyond because of the much larger cable footprint in combination with the variety of advanced digital TV services they are beginning to offer.

With such a high penetration of cable and satellite TV in the US, the prospects for digital terrestrial and other technologies competing with the two major digital TV platforms does not look promising in the short to medium term. Nevertheless, an increasing number of integrated DTV sets are now available on the market, providing terrestrial TV viewers with the opportunity of viewing DTV without subscribing to a cable or satellite TV service. Broadband providers, such as Verizon and SBC will also begin experimenting with digital video services over the Internet in the coming years, which may provide additional competition to the traditional TV providers.

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