Growth forecast for media tech biz
Success based on content, digital TV
HOLLYWOOD -- The market for media technology service providers in North America and Europe is expected to triple to $27 billion by 2007, according to a new study commissioned by BBC Technology.
Philip Langsdale, CEO of BBC Technology, issued the forecast of the financial outlook for the technology and media industries Wednesday. He said growth is especially going to help companies in the Internet streaming media, broadcast IT and technology consulting and systems integration realms, as traditional and new broadcasters will need suppliers to meet sharply rising demand for outsourced tech services over the next five years. The research was conducted by consultancy Analysys.
Langsdale also said a company's success in harnessing new media technologies will be based on buying the right content, the rapid conversion to digital television and exploiting technological advances that can drive down production costs.
But compelling interactive content is key.
'Great content' essential
"There's no value in new distribution platforms like DSL or 3G without great content," Langsdale said. "I would argue that compelling content is going to be essential for commercially successful interactive broadcast applications. And understanding what's compelling means understanding what the consumer is really interested in."
While digital television will change the way consumers view and interact with their televisions, linear television will remain crucial in reaching mass audiences.
"Water-cooler TV is not dead," Langsdale said. "People still like the idea of being bound together by events. There is no contradiction between the continuing significance of mass audience, low-cost media delivery and the developments that interactive TV and personalized mobile communications offer. The BBC's experience in reaching millions through its interactive television services for sport and factual programming proves that.
"Companies may still be reeling from the consequences of burnt-out expectations of a technology revolution. But now is the time to grasp the potential of this fast-moving market."
