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Television Commerce - Six New Reports on the Dynamics Of TV's New Revenue Stream
Myers Group, January 2010
This series of six reports on Television Commerce was developed with the idea of helping all sectors of the media industry understand the issues and opportunities presented by TV's new revenue streams. While definitions of "t-commerce" have sometimes included orders received via 800 numbers for TV offers, these reports concern themselves with only the two more advanced types of t-commerce: 1) transactions conducted by "clicking through" with the TV remote control, or 2) offers presented on television and completed with an actual transaction on a PC Web page. In keeping with Myers Reports Inc.'s ongoing efforts to make Myers Mediaenomics research as effective for its readers as possible, we are making these reports available in a way that is completely unique within the realm of media-research reports. The reports can be obtained individually, in combination with a selection of other reports within the series, or as an economical full-package ensemble. It's similar to an a la carte and prix fixe restaurant approach and will allow our readers to build a base of information in customized ways, according to their own specific needs. T-Commerce Growth Forecasts T-Commerce Business Models Myers Survey of ITV Providers and Cable Operators Consumer T-Commerce Research T-Commerce Case Studies Interactive Television Industry Directory
MYERS REPORTS ISSUES FORECAST FOR INTERACTIVE REVENUE THROUGH 2006
NEW YORK, May 9, 2001 - Domestic U.S. revenue for ITV advertising, commerce and subscriptions is unlikely to surpass $400 million this year, a figure far lower than those of other industry forecasters, according to "The Future of T-Commerce," a new Myers Mediaenomics report released by Myers Reports and available at www.myers.com. The report predicts that ITV will find deployment "difficult" until 2006, after which the industry will grow "exponentially" through 2010.
"It is dangerous and irresponsible to project aggressively before we have actual marketplace experiences that validate basic business models," the report warns. "These are just evolving. Over-enthusiastic researchers and analysts became swept up in a whirlwind of technological hoopla."
Over-enthusiasm notwithstanding, the report points out that Myers believes "interactive television is more than a wave of change - it represents a tsunami for the broadcast and cable industries," though "real dynamic revenue growth" will not occur until 2006 and beyond.
U.S. Interactive TV Revenue
Advertising & IPG*
7,700*Interactive Program Guide
**T-Commerce: "e-commerce over TV and Web transactions instigated by TV commercials."
Source: Myers Mediaenomics The Future of T-Commerce
A survey conducted by Myers Reports among a cross section of media industry executives revealed a distinct difference in attitude among ITV companies and cable operators.
The ITV companies, which have products, services, expertise and enthusiasm to ensure progress and deployment, express great optimism over the potential of interactive television services. The cable operators, meanwhile, are viewing ITV developments with a "healthy skepticism."
Cable operators "are well aware of the revenue potential of t-commerce but, as people who are in direct contact with their customers and have a fair idea of consumer behavior, they seem to believe that consumers will not embrace t-commerce quickly enough to justify their investments," the report says. "Since it is up to the cable operators to develop the necessary physical infrastructure, this could hamper the proliferation of ITV and t-commerce platforms. ITV service companies must assist cable operators with consumer adoption as well as offer incentives for them to build out infrastructure and implement these platforms.