Skip to main content

Opportunity in Transition to Digital Television

With digital terrestrial television (DTT) subscriber numbers set to expand from less than 36 million in 2006 to 89 million in 2012 and broadcasters preparing for the digital switch-over, the market dynamics of local and regional over-the-air video transmission is quickly changing.

The result will be growth in consumer equipment and core-network markets for digital-video equipment. Broadcasters stand to benefit in several ways, according to ABI Research's principal broadband analyst, Michael Arden.

"Not only does digital broadcasting allow them to do targeted local advertising more easily, it also allows them, using their existing spectrum license and allocation, to add extra sub-channels, which could contain specialty content or HDTV programming."

Digital broadcasting offers real business advantages, says Arden. The ability to create localized content (news, sports, etc.) on a limited budget and to resell it to cable companies and others is quite significant. I believe that targeting short and long-form advertising to localized niche programs will offer a unique new promotional opportunity for small businesses.

Digital terrestrial television provides a terrestrial-transmitter-based over-the-air video service and will be used in some markets to supplement Telco TV (also known as IPTV). Already gaining traction in Western Europe, DTT provides both free and subscription services while offering low-cost customer premises equipment.

The uptake of DTT will coincide with digital switchover, although there are several DTT formats in use around the world, and political or economic as well as technological considerations enter into the decision-making process in various countries. DTT will emerge as a tool for providing video to under-served markets and to supplement other services.

Popular posts from this blog

The Billions Bet on Tentative AI Demand

Gartner's latest worldwide IT spending forecast exposes a trend every CIO has already felt in budget negotiations. Total spending will climb 14.2 percent in 2026, reaching $6.37 trillion. It seems that the IT infrastructure market is simply having a strong year. However, the more useful insight is how unevenly that growth is distributed. The Headline Number vs. The Real Story Data center systems and infrastructure as a service (IaaS) are absorbing capital at a pace several multiples faster than devices, communications services, and traditional IT services. This is not incremental growth spread across a healthy portfolio. It is a wholesale reallocation of enterprise technology budgets toward AI infrastructure, made on the expectation that demand for AI workloads will justify the outlay before that demand has been fully proven. Where the Money is Going Data center systems are forecast to grow 62.5 percent in 2026, that's up from 51.6 percent growth in 2025, reaching $822 billion....