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eMarketer: ITV Is the Next Killer App

13 Mar, 2002 By: Hive News

The number of US households with interactive television (iTV) will jump by 74 percent from 12.7 million last year to 22.1 million in 2002, representing more than 20 percent of all US households, says a report eMarketer released today.

eMarketer's projections, based on a review of industry trends as well as a weighted analysis of numbers from other researchers, are relatively optimistic. (Estimates range from 11 million to 23.6 million households for 2002.)

"Everyone is searching for the broadband 'killer app', but they are looking to the PC, which is the wrong spot,'' says Ben Macklin, senior analyst at eMarketer. "In the long term, iTV presents a greater opportunity for broadband than the PC.'"

In 2005, iTV will be in more than half of US households (58.2 million), Macklin predicts. In the advertising segment alone, eMarketer estimates expenditures will grow from $95.3 million in 2001 to $2.6 billion in 2005.

"After being over-hyped for years, iTV is finally reaching its potential. Internet companies, broadcast networks, advertisers, retailers, fast food outlets, telecoms, content producers, game companies, device manufacturers, software makers -- they all have a stake in the emerging iTV market,'' continued Macklin. "Think of what iTV could mean for QVC--or Pizza Hut or Sony's PlayStation. The opportunity is huge, and that has a lot of people excited, and many others scared."

The Interactive TV: Reality Opportunity Report (194 pages with 200 charts) aggregates information from research firms to provide a broad, numbers-based analysis of the fast-changing interactive television market. It covers worldwide iTV usage and revenue projections, t-commerce, iTV advertising, video-on-demand, personal video recorders and the whole range of iTV services.

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