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By Lisa Burroughes, 27 August 1998 17:41

NEWS Digital television will kill off demand for Net connections from home PCs, according to a study by Ovum. In a report due out next month, the research group claims the Internet, which has driven demand for home PCs, is merely a testing ground for interactive services and digital TV is where they belong. John Moroney, principal consultant for New Media at Ovum and author of the study titled 'Digital Television: How to survive and make money', said: "We believe PCs have penetrated the home market for interactive services as much as they will." But James Eibisch, senior analyst at Input, disagrees: "The growth of PC ownership in the home will not flatten off overnight because there is huge momentum which will continue over the next couple of years caused in part by the fall in prices. Also the Internet is not the only driving force behind home PCs." However, he added: "In the long-term future for the home non-PC devices will outstrip PCs in numbers." Moroney claims broadcasters, "will need to fight to keep customers in their environment - within their walled garden". As a result broadcasters will create portal services similar to those being created by Internet browser companies such as AOL and Excite, giving customers less reason to surf the Web, Moroney said. However, Ovum claims there is still room in the market for Internet service providers (ISPs). Although satellite and terrestrial channels will dominate the market, ISPs will gain a more moderate, but growing market share over the next seven years as long as "they develop the same walled garden approach", Moroney said.