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Google to Surpass TV Channel Ad Revenues

Informitv reports that Lord Currie, the chairman of Ofcom, has predicted that internet delivered content will soon overtake broadcast television. He said that a new approach to regulation will be required and that this will be crucial to the future economic success of the communications industry.

The prediction from the chairman of the communications regulator in the United Kingdom came in the annual Ofcom lecture hosted by the Westminster Media Forum. Lord Currie said that 16-24 year olds are now watching 7 hours less television a week than the average, viewing less public service broadcasting than ever and spending more time online.

He said the 'on-demand' delivery of services is becoming a reality for younger consumers. He predicted that by 2012, following digital switchover, when the London Olympics is being held, this generation will be parents with young children "for whom broadcast television will have ceased to be the lead medium."

"As broadcast television overtook radio, then newspapers, so internet-delivered video content will overtake broadcast television," he said. "Advertising will follow suit, causing shifts in traditional business models."

He said that between the open internet and free-to-air television, "the world of digital distribution has created a middle ground. It looks and sounds like broadcast TV, but is delivered differently."

These comments coincide with news that Google has exceeded Channel 4 in its share of British advertising revenue. The online search company made 878 million pounds from advertising in the UK and at its current rate of growth is set to surpass ITV, the UK's main advertiser-supported television channel.

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