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To: Black-Scholes who wrote (41095)	5/14/1999 4:32:00 PM
From: John Rieman	Respond to of 50808

34M DTV households by years end.......................... digitaltheater.com 34 million homes switch on to digital TV Date:13-May-99 M2 PRESSWIRE via NewsEdge Corporation : * Powerful new platform for interactive services emerges, say analysts Digital television is proving a resounding success, according to consultants Strategy Analytics. Their latest research shows that nearly 20 million homes worldwide had switched on to digital TV by the end of 1998, and that a further 14 million will join them this year, creating a powerful new platform for interactive services. These findings are presented in a worldwide survey recently released by Strategy Analytics to subscribers to its strategic advisory service, "The Interactive Home". This service provides leading players in the electronics, communications and new media industries with insights into key market, technology, and consumer behaviour trends. Satellite operators are leading the way, with a forecast 26 million subscribers by the end of this year. But the cable industry is starting to catch up, and will have switched on more than seven million homes by December 1999. Only 1% of digital homes will have chosen digital terrestrial TV. Personalisation and quality are driving uptake of digital services, according to Strategy Analytics. "Consumers value the new dimension of choice, variety and convenience offered by digital TV," says David Mercer, Senior Analyst with Strategy Analytics. "The evidence from these early success stories is clear: multichannel digital television lets operators offer enhanced services which drive revenue growth." Strategy Analytics forecasts that digital TV revenues to service operators and manufacturers of set-top boxes will reach $16bn in 1999, an increase of 60%. By 2005, the industry will have annual revenues of $54bn. North America accounts for 50% of digital television viewers today, but will decline in importance as the European and Asian regions take off. By 2005, Europe will account for 32% and Asia-Pacific 28%, with North America's share declining to 31%. Many of today's digital TV operators already offer interactive services, such as near-video-on-demand, information services and home shopping. Further technology enhancements will support the introduction of more advanced capabilities in the next year or so. "Digital is a vital element in television's defence strategy against the threat of the Internet," says Mercer. "High quality Internet video is likely to become a reality in the next few years, and the television industry must take action to ensure it continues to meet customer expectations." Company Background: Strategy Analytics provides information and insights which help competitors develop strategies in home electronics and new media, Mobile and fixed communications, personal computing, automotive electronics, and enabling technology business. Working on a global basis, Strategy Analytics delivers planning support in published and consulting formats to meet the decision support needs of clients in North America, Europe, Japan and the Far East. <> CONTACT: David Mercer Tel: +44 (0)1582 405678 e-mail: dmercer@strategyanalytics.com [Copyright 1999, M2 Communications] Source: M2 PRESSWIRE