Television broadcasters, mindful that production glitches produce black screens, traditionally view new technology with skepticism. Consequently, broadcasters spend less than 1 percent of their revenues on IT (three times less than telecom companies), and 78 percent of this amount goes to replace equipment. But a global survey of broadcasters¹ shows that many are warming to digital technology—both to cut costs and to enrich the viewing experience. Indeed, the industry could triple its IT spending by 2008.

Two segments, representing 41 percent of broadcasters, stand out because they perceive digital upgrades first and foremost as a way of serving viewers. Early adopters tend to be commercial, multichannel broadcasters that seek to enhance traditional television through pay-per-view and video-on-demand technologies. IT architects (mainly European public broadcasters with their own content) have more comprehensive plans for new platforms, such as the Internet, and for interactive features in existing shows. Regardless of which model proves best, viewers will at last see some of the considerable promise of digital television.