MUMBAI: The digital television revolution in the UK will change the way people consume TV. The challenge will rest in how broadcasters and advertisers respond to a changing environment.

Bank of Ireland Corporate Banking, in conjunction with Spectrum Strategy Consultants, have presented research investigating the likely impact on the broadcasting industry of technological innovation over the next seven years.

The report Digital Disruption, investigates the likely impact on the UK television and broadcasting industry of technological innovation over the next seven years. Loss of ad revenue due to ad skipping will see revenues falling from between ?105 million to ?1.2 billion by 2012.

However, new media services appear likely to more than make up for this shortfall. One of the most exciting probabilities is that mobile television subscriptions could increase TV revenues by up to ?1 billion while video on demand spending could reach ?1.6 billion. In addition, new players such as Google and Yahoo! might emerge as competitors for on-demand TV viewing.

The report notes that new technologies offer as many opportunities as threats to the traditional revenue models to the commercial broadcasters. TV broadcasters have an exciting chance to develop more diverse ways to capture the British public's increasing appetite and share of wallet for media entertainment.

Technological convergence means that television will offer opportunities to shape and mould the industry. The winners will be those who use their platforms to encapsulate an increasing range of media.