The multichannel TV market continues to grow at a healthy pace with the ongoing digital switchover and Freeview driving demand, however, the industry faces a number of challenges. The worsening economic situation threatens new subscription growth whilst changes in TV viewing habits have led to an increase in online viewing accounting for a higher share of adspend. Broadcasters face challenges from improvements in the provision of internet protocol television (IPTV), whilst games consoles are evolving into easy-to-use media centres.

Convergence of different technologies has enabled consumers to view TV in a number of ways and multichannel providers are constantly adapting their content for multi platforms. Whilst online viewing provides further opportunities for broadcasters to engage with their audiences, an improvement in broadband speeds also increases the threat of piracy, a serious concern for pay-TV providers. Younger consumers are key adopters of new viewing methods whilst light entertainment programmes are the most popular genre for regular viewing. The falling price of new technology has helped stimulate demand; personal video recorders (PVRs) are becoming commonplace whilst high-definition TV (HDTV) shows great potential. Multiplay bundling packages provide opportunities to attract new custom and boost retention levels.

This report explores the hypothesis: “Targeting viewers in a fragmented market”, and how multichannel providers are adapting to the changes in consumers’ TV viewing habits, and which services do consumers use, what types of programmes are preferred and what are their attitudes towards digital providers. It also explores the factors affecting market growth, identifies current trends and innovations, assesses how the market is changing and outlines future developments.

Main report themes:

How will the analogue switchover affect multichannel TV providers?

How to turn growing subscriber numbers into growing profits – bundling, packages etc.

How is the market affected by the changing TV viewing habits?

How the economic downturn will affect the market – for example, the reduction in adspend.

What are the ad innovations to combat new ways to watch TV ie Sky+?