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Quoting from a study conducted by Ernst
and Young in the US, Cradock added that
in this digital decade, it takes very little
time for people to adopt to newer technologies.
So, it took almost 16 years for mobile to
catch on, nine years for the internet, DVDs
took six years to bust the video business;
but for digital TV, it will probably take
just very little time. He added, "Across
the world more than ten per cent of the
digital TV homes have shifted to on-demand
basis. By 2010, we predict more than 50
the per cent of TV viewing is going to be
on demand basis."
The
key message here is that the consumer has
fast changed in the last five years. The
availability of increasingly sophisticated
personal media services has created a new
generation of digital savvy consumers. With
devices such as digital camera and video
phones, MP3 players, personal video players
and gaming consoles the use of WiFi to connect
to the internet, the consumer is becoming
a more and more accustomed to living in
a world where he or she can access content
anywhere.
So,
what does this mean for the consumer and
for broadcasters? Well, in the on-demand
economy, obviously content remains king
and consumer the real winner. Television
will not offer more customized content supported
by technology to go with the new multi media
solutions like internet protocol television
(IPTV) and high-definition technology. To
add on it will be features like personal
video recording, digital audio broadcasting
(DAB) and conditional access control.
Cradock
stressed the fact that there was not much
customised content for television, "Television
content, will have to be repurposed to suit
the delivery platforms. And there is a growing
cohabitative relationship between television,
the Internet and to some extent mobile too.
The challenge in the future is to make them
complimentary to each other," he said.
So,
how are broadcasters gearing up to the challenges
of Digital TV and the emergence of convergence?
Said
Cradock, "The changing face of television
is giving sleepless nights to many broadcasters,
as the order will question the fundamental
parameters of TV viewing. From the commercial
perspective, fragmented content will obviously
reduce advertising revenue. Also, they have
to make sure that consumers have the screens
which support the newer technologies. The
complex TV world will also bring about legislative
issues in the wake of digital switchover,
access rights, franchising fees, etc."
Graham
listed out the survival strategy in the
changing scenario:
Don't
get anxious. Instead, get enthusiastic about
the changes and adapt to them. Like, New
Zealand is already talking about the digital
switchover and opening up the bandwidth
to cater to interactive television.
In
IPTV, see an opportunity for delivery for
interactive TV
Fragmentad
and customized content will mean a drop
in revenues but there is a positive side
to it. Look at branded content, which will
deliver more return on investment (RoI)
for the advertisers.
For
advertisers, it will be a win-win situation;
at least now they'll get to know what works
best for them.
Remember,
earlier it was content to the consumer,
and now it is content for the consumer.
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