A glimpse into the future of TV

It is clear that the medium is becoming far more personal, complex and dynamic. By the year 2012, South Africa will see the emergence of huge outdoor patio screens, hybrids, holo-screens and 3D screens. A household will become a multimedia hothouse with each member of the family tuning in to different media options - be it TV, satellite, personal video recorders (PVRs) or Internet movies, or a sports match on a cellphone.

"The pressure on broadcasters and advertisers alike is to be more innovative in the face of these changes," said Hitchings. "Advertising and media agencies will also have a more strategic role to play in the future, by keeping abreast of consumer trends and exploring new technologies."

SA in focus

From a single SABC channel in 1976 to the introduction of M-Net a decade later, and the recent additions of DStv, etv and Interactive TV (iTV), the South African landscape has broadened. The imminent arrival of SABC 4 and 5 means viewers and advertisers will soon have 40 channels to select from.

Of course, the changes don't stop at a plethora of choice. July 2006 sees the introduction of Overnight Ratings and there are bound to be issues on ratings and representation. M-Net's Open Time closes in April 2007 and more pay-TV competitors may be on the way when the Independent Communications Authority of South Africa (ICASA) invites new applications.

Emerging market holding the remote

Hitchings reported a strong growth in the emerging market, with 17% of DStv's premium subscribers being black. With the SABC set to focus more on community services rather than commercial stations, will traditional media still be effective for advertisers? Will entertainment become the privilege of the rich?

"Initially these new technologies will impact the upper income groups, but over time, as income levels rise, I believe this will also permeate into broader markets," answered Hitchings. "It's also important to remember that pay-TV subscribers also view terrestrial channels like SABC and etv through DStv and PVR recorders - so the issues of time-shifting and ad-skipping will effect all broadcasters."

Somebody's watching you ...

Reality TV is still what people want to watch. The popularity explosion dates back to 2000, but it can be traced back to Candid Camera in 1953 and Jerry Springer was already titillating latent voyeurism in audiences in the early '90s.

For the final episode of American Idol, 36 million people tuned in. A spot on the show set an advertiser back US$1.5m. "The attraction is the audience identification with real people - they can easily imagine themselves in a similar situation. It is also less patronising and scripted. Best of all, the viewer is able to influence the outcome in a lot of the reality shows like Idols and Big Brother. While Reality TV continues to attract huge audiences and advertising revenues, broadcasters will endeavour to find new exciting formats."

Is technology driving consumer trends - or vice versa?

Consumer trends are changing. Today's viewer wants instant gratification

TV as a medium has moved away from a one-to-many towards a one-to-one communication. Viewers can pick up media on individual devices, cellphones, iPods and PVR to go.

There is also a trend towards ad avoidance because of time poverty. Hitchings believes the solution lies in permission-based communication. This can be done by integrating commercial messages into content by way of product placement, sponsorship and branded content.

The success of brand integrations in advertisements, such as Chrysler in the recent Firewall movie and the DHL TV spot delivering the Mission Impossible III movie reel, highlight this new synergy.

Interactive rather than intrusive

According to international research and expert opinion, entertainment is no longer a one-size-fits-all scenario. The challenge is to think in terms of a broader life cycle of a show - how it will play on TV, in a game, on a phone. A new creative interface is needed with the viewer when it comes to advertising - a model that is more informative and interactive, rather than conventional and intrusive.

"Probably our best example of this is Jack Daniels," said Hitchings. "The brand ran a classic campaign alongside an interactive application or DAL (Dedicated Advertiser Location) on the DStv platform. The classic DStv campaign invited viewers to visit the dedicated Jack Daniels channel, where they had a unique brand experience and stood a chance of winning a Harley Davidson. Jack Daniels launched this campaign in 2004 and experienced 70% growth in sales volume over the same period in the year prior to that."

New on the scene

HDTV (High Definition TV) is to be tested in South Africa next year and should be fully operational by 2010. This format offers between four to ten times the picture resolution as standard TV and is Net compatible. "Costs are declining in the major markets and content is now being produced in HDTV format,' he says.

The click of a mouse could soon take the place of the remote control, with viewers watching TV on PCs, iPods and 3G cell phones. IPTV (Internet Protocol TV) is digital TV delivered via broadband Internet. Currently 100 million households worldwide are tuning in. It promises lower costs for operators and lower prices for consumers. As DVDs slowly give way to online movies, cable and satellite television will face competition from the likes of Netflix and AOL.

Soccer on your phone

With soccer fever upon us, MultiChoice has been issued a temporary licence to broadcast using DVB-H (Digital Video Broadcasting - Handheld) technology and have secured rights to show the 2006 World Cup in collaboration with MTN and Vodacom.

"MMobile, a division of MWeb, will be amongst the first in the world to broadcast DVB-H technology," he said. The channels likely to be available on DVB-H Sagem handsets include two Supersport channels, M-Net (a specially repurposed channel), MTV (Made for Mobile Channel), BBC World and CNN.

PVR in SA

The PVR (Personal Video Recorder) has taken off in the US and UK with staggering success. South Africa is not far behind. A PVR can record 80 hours of television, enables the viewer to pause "live" TV, watch two channels and record a third channel, as well as rewind, fast-forward and slow-motion commands.

Of course, with the viewer able to edit out advertising, this new technology will invariably have an impact on advertising, broadcasters and marketers. "We need to work together to come up with innovative and customised solutions," said Hitchings. "This could be sponsorship, product placements, customised shows or interactive TV."