Digital media in Australian homes – 2006

1. Digital media in Australian homes – 2006 Conducted for ACMAby Eureka Strategic Research November 2006 ACMA | Digital Media in Australian Homes - 2006

2. This presentation • Background and objectives • Methodology • Sample characteristics • Digital media / DTTB overview • Drivers of DTTB adoption • Non DTTB households • DTTB adoption/intention segmentation • Conclusions ACMA | Digital Media in Australian Homes - 2006

3. Background and objectives • Eureka Strategic Research commissioned by ACMA in September 2006 to update data collected in 2005 • 2005 research established reference points for key indicators in the transition from analog to digital television broadcasting (DTTB) in Australia, covering... • how people are moving to digital media platforms • drivers of, and inhibitors to, the adoption of DTTB • community perceptions of digital media • Key issues to be addressed in 2006: • household take-up of digital television • consumer knowledge about digital television • community awareness of analog television switch-off • non-adopter DTTB awareness/attitudes/intentions ACMA | Digital Media in Australian Homes - 2006

4. Methodology • Telephone survey methodology repeated in 2006 • ‘representativeness’ the key goal... randomised, nationally representative calling underpinned by White Pages • Fieldwork 6 – 31 October, end sample N=1,537 • in all, 8,268 contacts with households across Australia made over this period • Primary screening question: Does your household have a television? • followed by “I need to speak with someone in your household who makes decisions or contributes to making decisions about the purchase of items such as televisions. Are you 16 years or over and a decision-maker in regard to this type of item?” • note: 0.5% of households screened out via this criterion ACMA | Digital Media in Australian Homes - 2006

5. Overview of findings Changes since 2005 • DTTB penetration significantly above June-July 2005 figures • 2005 purchase ‘reluctance’ and hesitation overcome by many households • upgrade TV? => choose DTTB • “HD” now significant in consumer vocab, as are mentions of analog switch-off • Broadband penetration also significantly above 2005 • downloading/streaming audio-visual content a significant new emerging behaviour • Overall analog switch-off awareness has made only minor gain • Non DTTB households are more ‘DTTB receptive’. However, a core of uninterested households remains... ACMA | Digital Media in Australian Homes - 2006

6. Metro v regional: 63% – 37% Disability: 13% LOTE household: 16% Have children under 16: 28% Sample characteristics Base: All households, N=1,537 ACMA | Digital Media in Australian Homes - 2006

7. This presentation • Background and objectives • Methodology • Sample characteristics • Digital media / DTTB overview • Drivers of DTTB adoption • Non DTTB households • DTTB adoption/intention segmentation • Conclusions ACMA | Digital Media in Australian Homes - 2006

8. Subscription TV overall: 26.4% Internet: 69.3% Broadband overall: 51.7% Audio-visual content streamed or downloaded from internet or on mobile device: 25.4% Hard-drive recorder: 18.2% Free-to-air digital TV: 29.6% Digital media overview Net digital households approx 41% * 54.4% of subscription TV households are also DTTB households Downloaders use:Computer monitor/laptop 88.7%Mobile phone 29.2% Personal mobile device (eg Ipod) 24.3% TV set 9.2% Base: All households, N=1,537, * assumes 90% of pay TV is now digital ACMA | Digital Media in Australian Homes - 2006

9. 2005: 13% penetration, 7% of overall stock DTTB overview 29.6% receive DTTB74% of these households have 1 set/display device that receives DTTB, 26% have 2+... Households with TV ... of the 3,564 televisions/display devices/monitors used for watching TV programs in the sample, 609 are DTTB ACMA | Digital Media in Australian Homes - 2006

10. This presentation • Background and objectives • Methodology • Sample characteristics • Digital media / DTTB overview • Drivers of DTTB adoption • Non DTTB households • DTTB adoption/intention segmentation • Conclusions ACMA | Digital Media in Australian Homes - 2006

11. Stronger driver than in 2005 (11%) Remains most prominent... 27% in 2005 New in 2006! Top 4 the same, but with some changes in positioning Less blurring with Pay TV than in 05 Drivers for DTTB adoption Base: Adopter households, n=455 ACMA | Digital Media in Australian Homes - 2006

12. Examples Better or clearer picture / picture quality I had watched my brother’s TV which was digital and the picture was far better than any picture I had seen. Bradley thought that it would give us a better picture as they have one at work that he reckons is a brilliant picture and it's digital too. Upgrading / replacing TV / needing for new TV I was buying a new TV, so figured I might as well go to the latest release in TV technology. We were setting up our first home together and decided to get digital to start off with rather than the older style of TV. Improved reception / signal So that I could get good reception. The reception in our home was awful, even with a decent aerial. The guy who came out to fix the aerialsuggested digital as a solution. Extra channels / variety and choice We can also get a few local channels now that we were unable to before. We wanted to get ABC 2. ACMA | Digital Media in Australian Homes - 2006

13. are in the 25-34 and 45-54 age groups have children are employed full-time have technical college or university qualifications report household income > $70,000pa live in house/townhouse DTTB households Statistically significant differences • More likely to have household decision-makers who... ACMA | Digital Media in Australian Homes - 2006

14. This presentation • Background and objectives • Methodology • Sample characteristics • Digital media / DTTB overview • Drivers of DTTB adoption • Non DTTB households • DTTB adoption/intention segmentation • Conclusions ACMA | Digital Media in Australian Homes - 2006

15. Knowledge ‘deficit’ remains pronounced among non-adopter households (DK total = 46% in 2005) Non-adopter DTTB awareness Is digital free-to-air TV available to households in your area? Base: Non-adopter households, n=1,082 ACMA | Digital Media in Australian Homes - 2006

16. In 2005, No=48%, DK=13%, Yes=39%... significantly higher proportion of non-adopters now ‘sitting on fence’ Non-adopter interest Base: Non-adopter households, n=1,082 ACMA | Digital Media in Australian Homes - 2006

17. Only 6% in 05 Yes 29.2% Purchase intention among interested Hardware purchase intention among ‘interested’ Planning to purchase DSTB or integrated DTV? Timeframe ACMA | Digital Media in Australian Homes - 2006

18. Top 4 the same, but with some changes in positioning ‘Inevitability’ higher in 06! Reasons to adopt 2005: 36.4% 2005: 14.6% 2005: 17.9% 2005: 23.8% Base: Interested non-adopter households, n=316 ACMA | Digital Media in Australian Homes - 2006

19. Examples Better or clearer picture / picture quality As far as I am aware, it improves the quality of your picture. I'm told quality of image or picture resolution is far superior to normal free-to-air. Need it eventually / LT decision / when I have to Only because it will be the only thing available. Basically it a matter of time before analog is wiped out. It’s coming - like what happened to VCRs. Improved reception / signal ... no interference due to it being digital it doesn’t get affected by wind or weather. I think it will improve the quality of my TV reception. Extra channels / program variety and quality I understand there are other channels that you can get that may be of interest. More channels, we've talked about ABC2. ACMA | Digital Media in Australian Homes - 2006

20. On balance, some fundamental knowledge needs remain Specific/additional knowledge requirements 2005: 14.4% 2005: 13.3% 2005: 22.6% 2005: 4.9% 2005: 7.4% Base: Interested non-adopter households, n=316 ACMA | Digital Media in Australian Homes - 2006

21. Examples No perceived need for information I don’t need more knowledge I just currently cannot justify the cost. Nothing. I've not gone into it I'll wait until it becomes compulsory. Everything / more information Lots. I don't know much about it at all, other than there is a possibility it will be necessary to have sometime in the future. Everything, (from) how to use it, to how to operate it and most of all how to set it up. Cost How much it would cost and whether or not it is advisable to go to a slightly more expensive digital top box rather than one of the quite cheap ones I have seen advertised. What sort of money you have to spend to get a decent one. If there is much difference between a cheaper version and a more expensive version. What it does / benefits and features Basically what it offers, what the service provides. I need more knowledge about what it does and if I need it. ACMA | Digital Media in Australian Homes - 2006

22. Top 4 the same, but with some changes in positioning Resistance/inertia still significant, though some evidence of ‘inevitability’ New in 2006! Reasons for non-interest 2005: 20.4% 2005: 26.6% 2005: 32.0% 2005: 11.8% Base: Uninterested non-adopter households and interested households with no plans to adopt, n=865 ACMA | Digital Media in Australian Homes - 2006

23. Examples Don’t know much/anything about it Not aware of it - and don't really care. I just need time to work it all out and see what it all means, so maybe one day when I have some free time. Have to buy equipment / too expensive / not good value It is still too expensive. I don't have that much spare time to watch TV. Unless one of the boys wants to pay for it, I have no interest in it. The TV that we have works perfectly well without it. Don’t watch much TV / don’t want to watch more I hardly ever watch TV, and don't feel like spending any more money on one or on anything to modify the TV that I have. It’s not really something I have thought about. My wife and I don't watch much television and so it’s not a big interest to us. Currently satisfied / no need I like the TV I have. It works fine for how much I watch. There's no need for it. What we have is fine. ACMA | Digital Media in Australian Homes - 2006

24. This presentation • Background and objectives • Methodology • Sample characteristics • Digital media / DTTB overview • Drivers of DTTB adoption • Non DTTB households • DTTB adoption/intention segmentation • Conclusions ACMA | Digital Media in Australian Homes - 2006

25. Remains high... 20% in 2005 DTTB information sources Base: All households, except those who have not heard about DTTB n=1,317 ACMA | Digital Media in Australian Homes - 2006

26. 2005: 62% aware Awareness of analog switch-off Do you know that the current analog free-to-air television services (that is, channel 7, 9 and 10, the ABC and SBS) will be completely replaced by digital free-to-air television in the future? This will mean that you will not be able to receive any free-to-air TV services without special digital TV equipment. Note: 17.4% of DTTB households are not aware! Base: All households, N=1,537 ACMA | Digital Media in Australian Homes - 2006

27. Very positive movement in segment membership since 2005 DTTB segments 2005: 13% 2005: 42% 2005: 22% 2005: 11% 2005: 12% ACMA | Digital Media in Australian Homes - 2006

28. Low ‘category entry’ barriers, significant purchase consummation since 2005 DTTB is becoming ‘mainstream’... naturally included in TV purchase decision ‘Picture’ continues to drive adoption, but some evidence of ‘DTTB inevitability’ also entering purchase decisions More DTTB-receptive, but 2005’s fundamental information needs remain. What are its benefits? What do I need? How does it fit together? What does it cost? Is it good value? Challenge is to move non-adopter segments to a more DTTB-receptive stage. Communications in core areas above will strategically ‘partner’ the buoyancy of DTTB at the retail/purchase level. Insignificant gains in overall analog switch-off awareness Conclusions Adopters Non-adopters Strategic ACMA | Digital Media in Australian Homes - 2006