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

How Online Video Exceeded Pay-TV Revenue

The global streaming industry has spent the better part of a decade chasing subscriber counts as the primary metric of success. That era is now formally over. New market data from Omdia confirms that the industry has crossed a decisive threshold; one that shifts the competitive playing field from growth-at-all-costs to monetization discipline. For senior executives navigating media, advertising, and technology strategy, the implications extend well beyond entertainment. A Historic Revenue Crossover Online video revenue increased 13.5 percent to $176 billion in 2025, while pay-TV revenue declined 4 percent to $170 billion; marking the first time in the industry's history that streaming has surpassed legacy pay-TV in revenue terms. This is not a rounding error or a statistical artifact; it represents the culmination of more than a decade of structural disruption to the traditional broadcast and cable TV model. Global subscriptions to online video services reached 2.24 billion by the ...