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January 20, 2010

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TV rules as viewers turn backs on Internet

TELEVISION will dominate home entertainment again this year, showing more staying power than newspapers and even their digital reincarnation as the e-reader which could both struggle, a new report predicts.

According to the Deloitte 2010 TMT Predictions, the TV and its fixed schedule will remain a central part of the entertainment experience despite growing demand from viewers who want to watch individual programs when they want them.

The forecast contradicts many expectations as analysts have long expected the habit of downloading content on demand from the Internet to slowly spread to the way viewers also watch TV.

Moves in Britain to make TV catch-up and movie services available on the television and not just through a computer have proved hugely popular and the trend had been expected to accelerate.

But Deloitte said the traditional linear system of delivering television and radio was still easier and enough for most viewers.

If correct, the news would be a huge boost to traditional broadcasters which have seen advertising revenues slump in the last two years due to the global recession and fears about the medium's future.

"Our estimate is that over 90 percent of all television watched and over 80 percent of all audio content consumed will be via traditional broadcast," the report said.

"Linear will prevail despite the proliferation of technologies, such as digital video recorders, pay-per-view, on-demand television, podcasts, and online music services, all of which permit viewers and listeners to opt out of the broadcasters' schedules."

Changing demands are likely to result in new types of technology, but Deloitte does not expect a host of new TVs geared to the Web to rush to market.

Instead, Deloitte expects the so-called convergence to be driven by the user, with viewers accessing the Internet through laptops, Netbooks, smart phones and games consoles while they watch TV.



 

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