Pay television companies will launch targeted advertising in three to five years, a leading industry chief has predicted.

Abe Peled, chief executive of News Corporation's pay TV technology arm NDS, said set-top boxes combining broadcast technology and broadband access would make targeting possible.

He added it was necessary for television to keep up with the internet in advertising technology.

Peled explained: "There is no question that TV advertising has to change, and I think the hybrid medium is the way to do that."

He said targeting adverts was "a win-win" as viewers could watch less, more relevant adverts while companies made more money.

NDS has already introduced hybrid boxes in Israel and, Peled said, they would develop in the US and Europe in coming years.