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Interactive Digital TV Could Give Asia-Pacific a Lead in Next Wave of E-commerce
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5/12/00
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According to a new study on digital TV from Andersen Consulting, the Asia-Pacific region has the key elements in place to lead a second global wave of e-commerce, in which consumers will use their television sets to shop, bank and communicate electronically.
Results of the study, " Riding the Next Wave: The Strategic Implications of Interactive TV and Broadband Services in Asia Pacific " found that digital TV represents an enormous and growing opportunity in the area and could help put the region at the forefront of the development of this medium and its use for e-commerce. The study looked at eight key countries: China, Japan, Hong Kong, Taiwan, Australia, South Korea, Singapore and India. A number of factors contribute to the area's high potential, including higher rates of TV penetration than any other region in the world, and a substantial and growing broadband subscriber base already in place in some markets. According to Steve Snyder, Managing Partner for Andersen Consulting’s Asia Media and Entertainment Industry Group, " For the business world, digital TV marks the second wave of the eCommerce gold rush, and is likely to have even more profound and wide-sweeping implications for business-to-consumer commerce than the Internet."
The Asia-Pacific region, which has lagged behind Europe and the US in
business-to-business commerce over the Internet, has some key advantages in
this new e-commerce wave. Snyder added " With high television
penetration rates, extensive cable TV networks, strong growth in broadband
internet penetration, and a youthful population, the Asia Pacific region is
well positioned to carve out a leading role in a medium that will ultimately
reshape the way the world lives, works and plays. "
Governments across the region are actively encouraging the development of
digital TV by deregulating broadcasting and telecommunications industries
and opening markets to competition. The 470 million households connected to
the region's existing cable and satellite TV networks are more extensive
than those in either the US or Europe. For example in China's major cities
cable TV penetration is close to 100%. In addition, all major Asian
countries have acquired domestic satellites to meet the rising demand for
increased bandwidth for corporate data, and multimedia and Internet
services. In the more affluent countries and cities, the telecom companies
look to compete with cable via broadband entertainment offers as well.
The study describes Asia's youthful population as willing to embrace new
technologies and says businesses in the region, attracted by the high
potential TV subscriber base, are ready to develop digital content and
services. Consumers are likely to adopt digital TV in whatever forms it is
available. In the short to medium term, satellite is likely to be the most
popular due to the present limited reach of cable and telecom
infrastructure, but this is very likely to change dramatically in the next
two to three years.
However, the report does point to several uncertainties surrounding
digital TV, including the high initial cost of an integrated digital
television set, consumer comfort level with buying goods and services via
interactive TV, and the ability of broadcasters and content providers to
create engaging and entertaining content. If these barriers can be overcome,
however, digital TV will fundamentally redefine how companies and consumers
interact and do business in the future. The study concludes that similar to
the advent of the Internet revolution, the advent of digital TV will throw
the market wide open in almost every service industry, creating
opportunities for fast-moving, innovative firms to get way ahead of their
competitors.
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