For the consumer there are many benefits. Not only will the services offered change, but also the manner in which they are marketed and distributed. The digitalization of television and the spread of IPTV will above all have far-reaching consequences for private TV channels funded by advertising revenue. Substantially more broadcasters and channels – and spread across more broadcast platforms – will see the hitherto homogenous mass audience divided into many fragments. As a result it will become increasingly difficult for the advertising industry to reach its target groups on a mass scale. This will tend to curb advertising on television, undermining the classic business model of private broadcasters and making it all the more important for them to develop new sources of revenue. The aim will be to develop digital content which can be bundled quickly and easily into different packages and can be marketed and sold over a broad range of media.
Der Fernsehmarkt im Umbruch - Digitalisierung und Internet als Motoren des Wandels
Given the growing individualization of media usage, a question much discussed is whether this trend means the end of mass communication. As we see it, the passive consumption of ready-made content is unlikely to lose its attraction to any substantial degree – even though technical improvements are increasingly facilitating the use of interactive services and the young generation is growing up quite naturally with the new media.
Our Working-Paper No. 68 „Der Fernsehmarkt im Umbruch – Digitalisierung und Internet als Motoren des Wandels“ contains a full analysis of this subject and can be downloaded at:
Only available in German