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PERSPECTIVE Part of the Ingenious Consulting Network. Tim Suter DTT and Programme Content 22 May 2008. Agenda. Progress towards Digital Switch-Over DTT: services and audiences Future content and service issues HD TV Mix of pay and free. UK’s DSO Plan.
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PERSPECTIVEPart of the Ingenious Consulting Network Tim Suter DTT and Programme Content 22 May 2008
Agenda • Progress towards Digital Switch-Over • DTT: services and audiences • Future content and service issues • HD TV • Mix of pay and free
UK’s DSO Plan • DSO phased over 4 years – Region by Region • Border Region will be the first: 6th November 2008: complete by June 2009 • London will be among the last to switch in 2012 • 6 Mulitplexes: 3 public (2 x BBC, 1 x commercial PSBs) 3 commercial • Requirement that coverage of the public muxes be the same as analogue terrestrial: 98.5% • Commercial muxes to reach 90.0%
TV Platform Share: main sets, all sets Platform shares in main sets Platform shares in all sets
2. Services available on DTT • Public muxes: • Mux 1: BBC1,2,3/CBBC, BBC News 24, BBC data/text • Mux 2: ITV1,2,3,4/CITV; C4, E4, More4, C4+1; Teletext; Radio x2 • Mux B: BBC4/CBeebies, BBC Parliament; BBC interactive and text/data: BBC Radio x10 • Commercial: • Mux A: Five (PSB); Shopping x3; Top-up TV (pay: entertainment and sport); text/data; Radio x 2 • Mux C: News x 2; Entertainment x 3: text/data; Radio x4 • Mux D: Music x 2; Entertainment x 3; Shopping x 1; Radio x9
Audience Profiles: DTT vs Pay • Channels common to both platforms have higher share in DTT homes – driven in part by more limited choice of channels • PSBs have highest comparative share • Shared channels are also watched more in DTT homes than in satellite – with the exception of Sky’s own channels • Audience for all shared channels is significantly older on DTT platform • It is also slightly more female and slightly more upmarket
3. Future Content Issues #1: HD • Constraints in current system: • MPEG 2 across all muxes – but MPEG 4 could double capacity • DVB2 across all muxes – but DVB 2+ could increase capacity by 30% • No HD on DTT – risks being stranded if / when HD becomes transmission standard of choice • Opportunities provided by DSO • Guarantee that 70% of cleared spectrum to be reserved for DTT • Capacity of DTT system to increase, as a result of technical and transmission upgrade, by 20% - equivalent to one mux
Ofcom’s Proposals • Clear one PSB mux to be converted to MPEG 4 and DVB 2+ • Redistribute services onto other PSB muxes where possible • Comparative selection process restricted to PSBs • 3 HD sized blocks of spectrum now – ready for use in 2009/early 2010 • 1 HD sized block awarded in 2010 – ready for use in 2012, on completion of DSO
3. Future Content Issues #2: Pay vs free • DTT had a troubled start in the UK with On-Digital’s mix of pay and free services • Lack of access to premium content • Sky removed from original consortium by regulator • Poor consumer experience • Aggressive commercial response from Sky • Following the demise of On-Digital, the platform was rescued by a distinctive platform proposition • Clear consumer proposition • No contract, no dish – plug and play STB • Marketing and brand power of BBC behind it • Reintroduction of pay services has been limited • Top-up TV launched in 2004 – limited range of entertainment channels • Setanta launched sports service within the last year • BT Vision using DTT to launch limited pay TV
BSkyB’s proposal • Replace current 3 FTA Sky channels with 5 pay channels: • Sky Sports 1 • Sky Movies SD 1 • Sky One • Plus 2 third party pay channels retailed by Sky: 1 x children's, 1 x factual • Consumers would need to purchase new set-top box: proposed service not compatible with existing pay-TV STBs
In favour Extends consumer choice – premium sport and movies available on DTT DTT now a well established platform Introduces competition between pay providers on DTT Against May result in Sky becoming the single pay provider on DTT – as well as on satellite Consumer confusion in needing more than one STB Balance of arguments