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In 2005, 87 million homes will use



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In 2005, 87 million homes will use the Interactive Television service known as Electronic Program Guide, and 65 million homes will have the chance to interact with programs;




  • In 2005, the revenues generated by Interactive Television will go up to 22.7 billion dollars in t-commerce, 32.5 billion dollars in advertising and almost 9 billion dollars in subscriptions189.


REVENUES FROM INTERACTIVE TELEVISION (in $ millions) 190





1999

2000

2001

2002

2003

2004
Subcriptions




320

820

1430

1700

2000

2400

Ads

120


334

1160

4100

10200

16600

E-commerce

130


628

1720

3700

6600

10000

TOTAL

570


1782

4310

9500

18800

29000


Source: Forrester Research


REVENUES FROM INTERACTIVE TELEVISION (in $ millions) 191


A dramatic shift in television business models“ is forecasted by Forrester Research Inc. analysts, for who advanced television devices and interactive content will dramatically change how millions of viewers consume television programming.


On the other hand, the Deutsch Bank "Broadband E-battle" report, directed by Lawrance Marcus and Andrew Marcus and published in January 28th 2000, presents the following conclusions:





  • In 2004, more than 250 million set-top boxes will have the ability to provide Interactive Television programs and services.192

Advertising and t-commerce will be the major revenues source for the Interactive Television industry in a global level, but it is reasonable to expect that the percentage of each revenue source will be different in from country to country. For Portugal, the question is: will t-commerce take off as in other countries (eg. England), or the low rate of shopping in the Internet indicates that the Portuguese are not interested in shopping on-line?


To base the business strategy on shopping, as Open/ BSkyB did in England, may not have the expected results in Portugal. Even if the advertising market in Portugal is small, it is still a more predictable revenue source than t-commerce. Also, for the Interactive Television service provider to expect that the subscriptions will cover most of the costs may condemn the service to failure, since the consumer wants to pay the least as possible. As the service develops, it is reasonable to expect that the monthly fee revenues will be less significant as the video-on-demand and pay-per-view revenues
Therefore, the Interactive Television major revenue source in Portugal for broadcasters will be advertising, as it is for the traditional television. The question now is how the advertisers will adapt to the new media, or better saying, how to convince the advertisers and their clients what are the advantages of Interactive Television.





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