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.