Transcript Driving Forces for DTV

Network Insight Seminar
Interactive TV
Session 1 – Planning for the Future in light of trends/expereince
Mark Hughes
Partner, Digital TV and Broadband
Ph. 02 9005 5565/0413 809 088
Driving Forces for DTV
Drivers of Interactive TV
There are four driving forces that are propelling the growth of digital TV.
Driving Forces
Intensity of Competition
Grab for premium content
Competitive digital products/
services (DBS,CATV,DTT, internet,
DVD, games)
Telcos expanding into new
markets (VDSL, ADSL)
Consolidation to achieve
economies of scale
© Accenture 2001
Interactive TV Proposition
 New products & services (e.g.
VOD, TV-mail)

Greater range of content
(broadcast & interactive)

[Increase revenues by]
Continuously delivering new
products/services
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Key Customer Needs
Increasing customer buying
power
More channel access, high quality
images, and better customer
service
Globalization of business
Business Drivers – Benefits and Considerations
Drivers of Interactive TV
Interactive TV services are not a guarantee of instant profit, but not catching the trend and
being a market leader can lead to competitors providing more compelling options to
consumers.
Benefits of Interactive TV
• Increase and retain subscribers
• Penetration of internet services over TV
• Increase and retain ad revenues
• Increase revenue sources
Considerations for interactive TV plans (not an exhaustive list!!)
• Market receptivity to interactive TV services
• Consumer behaviour
• How to reduce set-top box costs?
• Content Management
• Overall increase in business complexity
• Potential new skills and organisational entities
• Technological complexity
• Consumer concerns
© Accenture 2001
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Lessons for Australia
 The importance of effective marketing
 A broad-based business case
• Interactive TV is just one channel; consider the wider play of broadband internet,
wireless and through-the-ether channels
• The Asian marketplace presents opportunities
 Collaboration is a key capability as means of managing cost and complexity
• You need content, not just technology
• You need technology to deliver the enhanced content
• Pick the right vendors!
• You need to be able to manage all of the new content and technology effectively to
avoid an explosion in costs
© Accenture 2001
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