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Interactive TV Shows Steady Growth, Says US Study

Interactive TV Shows Steady Growth, Says US Study

The major broadcast and cable television networks in the US have been ‘quietly but steadily’ turning to enhanced, interactive TV programming in greater numbers and with higher frequency, according to a new report from BrightLine Partners.

The study notes that many commentators had dismissed early predictions that interactive programming and advertising would revolutionise television, turning attention instead to advancements in video on-demand, digital video recorders and high-definition television. Despite this, it reports that programmers have now ceased to simply experiment with interactivity and are committing to enhanced programming in rising numbers.

It says that programmers are using interactive capabilities to differentiate networks, retain live viewing audiences and provide advertising opportunities to marketers. Over 30 networks, including all major broadcast and most major cable networks, now air some form of one-screen or two-screen enhanced programming.

“Programmers are showing a greater commitment to digitally enhanced single-screen content. This is reflected, for example, in the impressive growth over the past few years in the number of enhanced programming hours aired per week,” says the report.

BrightLine estimates that the number of enhanced programming hours has more than doubled since 2000, from approximately 2,000 weekly enhanced hours to as much as 4,250 weekly hours currently.

Interactive advertising opportunities As iTV programming increases, so do the number of interactive advertising opportunities. This is illustrated in changes to the way interactive ads are being sold, with the responsibility shifting from internal interactive departments over to broadcasters’ traditional ad sales teams.

BrightLine is predicting that iTV opportunities will become a more common component in media packages sold to advertisers in 2004.

iTV holds on to important live viewers One of the key drivers in producing interactive programming elements is the desire to hold on to live viewers, according to the report.

“Evidence suggests that more and more programmers believe an ability to create compelling interactive programming is playing an essential role in driving viewers to watch programs in real-time. Interactivity is generating higher viewer retention during commercials, better brand recall, and a more loyal fan base; all of which translates into more valuable on-air inventory and revenue from the sale of interactive components.”

BrightLine says that iTV programming and advertising in the US is now at the beginning of a sustained development. If News Corp is successful in its acquisition of DirecTV (see Murdoch Puts The Case For Sky America) – and BrightLine believes that it will be – it is likely that DirecTV will begin to market interactivity aggressively, in line with News Corp’s other satellite companies.

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