Internet to boost traditional television: Deloitte

(12 April 2008 2:30 pm)

MUMBAI: There is a good chance this year that internet television will have contributed to traditional television’s fortunes and digital protection will rise in value.

Deloitte has released its seventh annual Predictions 2008 report, a series of three reports that examine emerging developments and predict how they will shape the technology, media and the telecom sectors. The Deloitte predictions report explores a number of emerging TMT trends that will impact the markets in 2008.

This series by Deloitte has been designed to provide a diverse selection of views and thoughts that challenge, inform and engage industry leaders and executives. Each report recommends ways to best take advantage of the emerging trends in the sector.

The 2008 series are based on a research process involving discussions with industry analysts and financial institutions, conversations with senior executives from the TMT industry, feedback from senior alumni and inputs from Deloitte’s strong global TMT practice.

There are obstacles ahead for the online advertisement: Online advertising is expected to generate $41.6 billion in revenue in 2008 globally, with major events like the World Cup and Beijing Olympic Games adding an impetus to online ad spending. However, despite the positive outlook, it has been noticed that growing antipathy to online advertisements and behavioural patterns is presenting obstacles to online advertising.

The sector could fight back by methods such as testing various types of online advertisements with consumers, experimenting with radically new forms and formats, and considering online advertising as an element of the media mix within a campaign rather than as a solitary platform against traditional media.

The internet to give traditional television a boost: The global traditional television sector, despite the occasional shock, should remain in good health throughout the year, and there is a good chance that internet television will have contributed to traditional television’s fortunes globally.

Overcoming online privacy may not mean the end of counterfeit content: Steady growth in the number of broadband connections around the world has allowed online piracy to grow, and the increasing speed of broadband connections has made movie, television and software piracy feasible.

The Chinese authorities attach great importance to cracking down online piracy by closing down illegal websites, imposing fines on violators and controlling "virtue communities" of the Internet. But the rapid growth of the internet and wider access will continue to pose challenges to anti-piracy efforts.

Exploiting new media's growing need to communicate: In 2008, digital communications will become more varied, vibrant and vital to the way we live than ever before. New media companies, such as social networks, synthetic worlds and blogs, are likely to offer the services through which newer forms of communication are initiated.

However, the telecom sector should consider how to earn a greater share of revenues from communications in new media websites.

From anonymity to authenticity: It is often argued that one of the great benefits of the web is anonymity. However, in 2008, there may be an increasing clamour, from regulators, users and online traders, for the internet to provide authenticated identity every time people undertake any transaction via the web. A move to process online authentication could ultimately be good for both business and users.

The rising value of digital protection: In 2008, some owners will spend more on virus protection, online backup and insurance to enhance the lifetime of their computer. This trend could extend beyond the PC to other devices such as MP3 players, mobile phones, DVRs, external hard drives and others as all these forms hold valuable data.

Innovation blowback: Technology industries are demonstrating increased interest and investment in developing products to reach large, low-income populations in emerging economies such as India, China and Latin America. In a phenomenon called innovation blowback, Deloitte expects to see innovative products, services, or management practices be introduced back into western economies in 2008.