Digital TV penetration will continue to rise, with the next wave of growth in Europe being driven by the roll-out of DTT.
HDTV (High Definition TV) broadcasts will become commonplace, although growth in HDTV penetration will be slow to begin, reliant on the replacement cycle for TV sets. In the US, HDTV is further advanced and also makes an incrementally far greater boost in viewing quality (due to differences between PAL and NTSC standards), thus penetration of HDTV sets will grow faster there than elsewhere.
Standalone PVRs will lag, with most of PVR growth being driven by those incorporated into integrated set top boxes (e.g., as part of the satellite/cable box, as for Sky+). PVRs will become mainstream in the US and UK, and well on the way towards it in others, thanks to cable/satellite operators bundling PVR functionality with their standard offering. Advances in PVR functionality will focus on connectivity – to home networks (e.g., as a screen for sharing pictures, music), to the Internet (to enable remote access, downloading video from the Internet) – and on providing greater flexibility for transferring recordings to portable devices or streaming to other screens.
Streaming of live TV broadcasts over the Internet will be common for channels such as News, Music and Sports-related (with the latter most probably with subscription fees/PPV type arrangements). IPTV, which enables broadcast-level “video on demand” to be delivered over the Internet will grow too, especially for niche programming, out-of-home viewing (e.g., via Internet on work PCs) and in markets where cable VOD is not widespread. IPTV will advance fastest for in-home viewing when TV screens are networked, enabling people to watch IPTV from the locations where they normally watch TV.
Live broadcasts to Mobile devices will become more widespread although growth will be slowed somewhat by the standards battle currently underway (which affects handset manufacturers). In 3 years, most new phones will have a TV receiver built-in enabling them to receive live broadcasts.
