IPTV "shot in the arm" for falling broadcast ad revenues?

A report published this week by the Advertising Association points to declining revenues for broadcasters in the UK. This follows reports in the US that broadcasters are struggling to sell commercial slots for the upcoming Autumn TV season with the impact of digital video recorders cited as a primary concern.

According to the Advertising Association broadcast ad revenues fell last year by 4.7 per cent from 2005 levels to £4.59 billion. Television has the second largest share of the total £19 billion UK advertising market at 24.1%, after print media with 43.7%.

So, another week and another set of statistics showing the decline in broadcast ad revenues. Audience fragmentation means now that the question is not whether it is a sustained downward trend but rather whether broadcasters can slow the decline.

As broadcasters move to IPTV platforms they will be able to target viewers in micro-segments and take advantage of interactive capabilities, creating a clear business case for advertisers. IPTV will prove to be a shot in the arm for broadcasters.

Operators need to provide new TV services much more quickly

Yesterday’s news that Comcast is to drop Microsoft’s cable-TV guide will not come as a shock to many. Operators across the world are realising that the ability to provide new TV services quickly and effectively could be a key differentiator in attracting and retaining consumers.

TV providers don’t want to be locked into technology solutions that provide little flexibility. In fact, we’re speaking to many operators who believe that only open standards client applications will enable them to take back control of when and how content is distributed. So, I think we’ll soon see a backlash against closed-systems.

The heart of the matter is that people want personalized TV, not just more TV. Content needs to be tailored and simple to access. Functionality needs to be easy to use and more importantly it needs to be relevant to the viewer.

Consumers in the future will expect more new and personalised services and many operators realise that they need to use open standards browsers in order to deliver these services to customers quickly and easily. Frequent introduction of new services is critical to operators keeping customers and increasing revenue.