No wonder Cisco is buying into ITV.
Interactive TV to Hit $25 Billion
multichannel.com
Cambridge, Mass. -- The shift in viewing habits that interactive-television devices allow will drain $18 billion in traditional television-advertising revenues over the next five years, according to a new Forrester Research Inc. report.
But those "smarter TV devices" -- including interactive programming guides, personal video recorders and enhanced-television set-top boxes -- will create $25 billion in new revenues, the study said.
By 2005, 87 million television households will have IPGs, 53 million will have PVRs and 65 million will be able to interact with enhanced-video programming, Forrester said Friday in a press release.
New viewer behaviors will generate $7 billion in interactive-television-services subscriptions, $17 billion in advertising and marketing fees and $23 billion in television commerce by 2005, the company predicted.
"Rather than destroy television, [smarter TV] will rejuvenate existing content and bring affluent viewers back to television," Forrester principal analyst Josh Bernoff said in the release.
"And the timing is right -- the same technologies will enable viewers to skip 30 percent of commercials in 2005, causing an unprecedented decline in traditional advertising revenues," he added.
- 7/21/00 |
