Global Digital Broadcasting - IPTV, Smart TV, Web and Mobile TV Trends

Executive Summary

Intense competition as technology advancements impact upon TV broadcasting

We are now starting to see the more widespread availability of digital TV and this has revealed a clear point of difference between the strategic directions being taken by the telecoms and broadcasting industries. Less emphasis is being placed by the broadcasters on the Internet-based opportunities and more on adding TV-based entertainment to their offerings. They do have access to good quality entertainment, which is protected through rights and royalties, and this helps them to withstand the tsunami of technology which is undermining their business model.

At this stage the effort of the broadcasting industry is clearly focussed on digital TV - but they also aware that there is a continuing shift towards Internet-based TV. Initially broadcasters feared the impact of DVR with its ad skipping capabilities and now it is to a worry that viewers will move away from traditional TV entirely in favour of Internet TV. These pressures will impact upon the broadcasters cost margins, as it will force them to pour more money into programming and marketing.

There is currently much attention on TV sets becoming Internet enabled with multiple function screens. Known as Smart TVs, these new Consumer Electronics (CE) devices are fast becoming the focus for home media centres with some already able to stream movies and content straight from the Internet and allow access to real-time data and interactive services. It is predicted that these TVs will soon rise sharply in popularity and rival the gaming consoles which currently offer this type of Internet accessibility.

The traditional broadcasters are also competing with the rise of Online Video, also known as Web TV. Web TV is where consumers view programs and videos, often user-generated, by a PC or mobile device. The growth of online video has spawned a number of different business models – some more successful than others. YouTube was one of the first to prove early-on that watching videos on the Internet, particularly user-generated videos, could be hugely popular. At first these types of short online video services were only be accessed via a PC over the Internet, but this soon grew to include mobile and tablet devices. Today, services like Netflix, allow a user to not only watch movies and TV programs on a PC, but also by streaming to TV, Wii, Xbox, PS3, mobile and other devices.

While many industry commentators have hoped during the past few years that mobile TV, representing a convergence between the mobile and broadcasting sectors, would lead to considerable changes in the way people used the technologies and services offered by both industries, this has not year really been achieved. While some mobile users may occasionally access mobile video services – a number of barriers remain which prevent consumers taking to mobile TV services in sufficient numbers for ‘tipping points’ to be reached. These include a continuing lack of awareness of the mobile TV and video services on offer, and their cost.

BuddeComm’s new report, Global Digital Broadcasting – IPTV, Smart TV, Web and Mobile TV Trends, gives the latest insights into the developments occurring in the Digital TV, IPTV, Web TV and Mobile TV sectors. The television broadcasting industry has experienced incredible changes over the past couple of years due to competitive and challenging market conditions combined with advances in technology. The networks are facing intense competition and vying for both viewers and advertising dollars as consumers have more choice based on the different transmission technologies. This report explores key issues and opportunities presented by these changes. The report includes analyses, statistics, forecasts and trends as well as a unique perspective on how the TV broadcasting sectors are unfolding differently around the world by incorporating case studies written by BuddeComm’s senior analysts.

Examples of key insights:

  • In mid 2011 there were nearly 50 million IPTV subscribers worldwide and the market had grown by around 30% between 2010/2011.
  • In recent times, viewing traditional movies and TV programs online has gained popularity and services like Netflix have emerged.
  • The developed world has moved closer and closer to all digital broadcasting and over the next five years, digital technologies are set to spread across all segments of the entertainment and media industries.
  • With the advent of digital television and the launch of a number of new digital FTA channels, Australian subscription TV (STV) operators have been feeling the squeeze as viewers were quick to take advantage of the new conditions.
  • The New Zealand government originally planned to switch off analogue TV by 2015 or when 75% of homes have digital TV service. But with digital TVs in more than 80% of homes by late 2011, the first region set for the changeover is now in September 2012 with all other regions set to be completed by late 2013.
  • A significant trend in the US digital TV market is the shift towards video-on-demand and other forms of online video viewing, a trend which will continue to strengthen along with the growth of broadband networks.
  • The principal operators in Brazil’s pay TV market are Net Serviços, Sky Brasil, Embratel, Telesp, and Oi TV.
  • In the Middle East, IPTV has expanded beyond the wealthy Gulf region, with services now also available in Turkey and Jordan. However the region is still very much dominated by satellite TV.