Feature: Flipping The Digital Switch
Until now most of us would have scoffed at the mention of the Government’s plans to switch off the analogue TV signal by the proposed 2006/2010 deadline. However, the surprise success of Freeview has given the digital revolution new momentum and as uptake gathers pace it looks possible that the digital doubters might be proved wrong.
The latest figures from the ITC show that more than 41% of UK households currently have access to digital TV, and growth is expected to be accelerated over the coming years by the increasing demand for digital terrestrial services.
The growth of digital terrestrial suffered a major setback in March 2002 with the collapse of ITV Digital. However, it was reborn last October with the launch of Freeview and thanks to some high profile advertising on the BBC, the platform has become a major weapon in the battle to convert viewers to the digital cause.
According to the ITC, digital terrestrial TV experienced 29.2% growth between Q3 and Q4 last year to reach more than 1.3 million homes. The price of set-top receivers is set to fall by almost half and analysts at Merrill Lynch expect Freeview to be available to almost 6 million households by 2010.
Pay-TV, which includes BSkyB digital, cable digital and DSL, grew by a more modest 2.4% over the same period to reach almost 9.7 million households, but analysts predict this will rise to around 15 million by the time the analogue signal is due to be switched off.
This puts total digital TV penetration at around 74% by 2010, which is still some way short of the Government’s target of 95%. However, the UK currently has the most advanced multi-channel market in the world and Culture Secretary, Tessa Jowell, is confident the deadline will be met, allbeit by “the back end of 2006/2010 rather than the front end.”
There have been numerous calls for the Government to subsidise the roll out of digital TV, but Michael Starks project manager of the Digital TV Action Plan, argues: “The digital switchover is not a policy the Government can pursue by itself. It depends on the success of digital broadcasters, manufacturers and most importantly consumers.”
He emphasises: “The Government’s biggest challenge will be getting the industry to focus on what seems like a hypothetical event, which is still along way off.”
There seems to be universal agreement that the digital switch will not happen overnight. It will take time to persuade the hardcore digital refuseniks of the benefits on multi-channel services, and the process of preparing the digital infrastructure could take up to three years.
Starks adds: “We need to look at a period beginning when everyone is given advanced warning and another when the switch actually takes place. It’s no good just springing it on people.”
While manufacturers concentrate on lowering the cost of digital decoders and platform operators focus on removing subscription fees, broadcasters will need to engross themselves in creating compelling content.
This is the view of David Dorans, new media director at UKTV, who argues that high quality programming will be key to tempting viewers to jump the digital divide. Dorans still feels that the 2010 deadline is a little “over ambitious” and argues that without proper planning the Government could face a significant consumer backlash.
However, mild disbelief over the 2010 deadline seems to have given way to a guarded sense of optimism and with the ITC claiming that just 6% of the population are actively resistant to switching to digital TV, the industry appears to be moving forward with added vigour.
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