By the end of 2007, the number of US households receiving digital television services will rise by over 60% to 70.3 million, says a new report from eMarketer.
According to the just released
US Digital TV: On-Demand and High Definition report, digital television household penetration will grow from 44.2 million households at the end of 2003, to exceed broadband internet, which will grow to 47% penetration over the next three years.
Speaking of the effect that broadband has had on the digital television market, senior analyst, Ben Mackline said: “Widespread broadband internet access is also affecting the sector. Not only because broadband is blurring the distinction between traditional communications categories, allowing potential new entrants into the market but also because broadband internet users are increasingly satisfying their entertainment needs online and on-demand, and they are expressing the desire for the same control over the TV experience.”
In the race for digital television subscribers, cable companies are expected to go out in front of direct broadcast satellite providers this year. Mackline said: “Digital cable companies will begin to open up a lead on DSB in 2004. That’s because of the much larger cable footprint in combination with the variety of advanced digital TV services they are beginning to offer.”
The report says that digital television is emerging as the new battleground for cable and satellite television companies, with the weapons of choice for winning being advanced television services such as video-on-demand, high-definition TV and digital video recorders.
According to Informa Media Group’s fourth edition Digital TV report, by 2010, the US will have the highest penetration of digital television in the world, reaching 91% of all houseolds (see Analogue Switch Off Extremely Unlikely By 2010 Says Informa).
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