By 2006, more European households will watch digital television than will access the web, predicts Jupiter MMXI, which believes that most current forecasts concerning the dTV market underestimate its potential for expansion.

Explaining its optimism, the research firm cites several factors:

* The continued conversion of customers of cable and satellite pay-TV operators from analogue to digital.

* The launch of more free-to-air digital channels broadcast terrestrially, and the introduction of cheap set-top boxes able to pick them up.

* The proliferation of interactive services, including video on demand and personal video recorder. By 2007, predicts Jupiter, 91% of digital households will make use of such features.

"Until recently, the industry had underestimated the potential of digital terrestrial free-to-air TV," argued Daniel Stevenson, author of Jupiter's Forecast Report to 2007. "Interactive services, although at present basic, will develop rapidly and will transform the way TV is used."

Data sourced from: Daily Research News Online; Jupiter MMXI; additional content by WARC staff