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Amsterdam (pte016/07.03.2003/11:40) - Interactive digital TV (iDTV) is predicted to bring in low turnover in the coming five years, according to a recent study by Forrester Research http://www.forrester.com .
Business with digital services and applications for iDTV in Europe will achieve a low volume of 18bn euros (250 euros per household) by 2007, the report forecasts. The main part of turnover will be generated by interactive TV shopping (tRetail), which is to bring in an estimated 8bn euros. Last year this area achieved a volume of 234m euros. Travel bookings through iDTV are expected to grow to four million euros by 2007, but even then they will only equal seven per cent of turnover in the online travel business.
"Our analyses show that the turnover prognosis for iDTV will remain bleak," said Forrester analyst Hellen K. Omwando (corr). At a market share of 61 per cent, the betting business is the current cash cow in interactive television. However, as online betting is illegal in countless continental European countries, growth is limited to France and Scandinavia.
Forrester predicts that single and multi-player games will bring in a turnover of 1.4bn euros in continental Europe and another 917m euros in Great Britain by 2007. In total, games, votings, competitions and betting are expected to reach a volume of only seven billion euros.
One of the few segments expected to grow significantly is the interactive advertising business (iAds), which is predicted to reach two billion euros in Europe by 2007, with 60 per cent located in Great Britain. In 2002 BSkyB only broadcast 200 interactive commercials - the highest amount in Europe.
The slow start of the interactive TV business may simply be due to its lack of presence. The Forrester study "Making Money From iDTV" questioned 32 iDTV businesses (stations, dealers, other providers), as well as 12 iDTV technologies producers.
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