Freeview Set To Reach 6 Million Homes By Year End

The growth in popularity of Freeview shows no sign of slowing, with new research and forecasts from Continental Research predicting that the service will be in use by 6.1 million of the nation’s homes by the end of the year.

The company’s Digital TV Report for spring 2005 predicts that Freeview will continue to close the gap on Sky, with the satellite service expected to reach a subscriber base of 8.2 million in the same period.

The predictions follow growing momentum in Freeview sales, with figures released by the BBC Earlier this year demonstrating a surge in set-top box purchases in the run up to Christmas. According to the Corporation’s estimates, around 1.5 million digital terrestrial boxes and integrated TV sets were sold in the three months to 25 December (see Christmas Shoppers Push Freeview Into Five Million Homes).

Continental Research’s report also indicates that Freeview-based pay-TV offering, Top-Up TV, will reach a break even point of 250,000 subscribers by early 2006. The service is currently used by an estimated 170,000 subscribers, the report states, with predicted growth of 70,000 and above over the next year.

Meanwhile, Sky’s Freesat offering looks set to perform well, with a survey conducted by Continental indicating that awareness of the free-to-air satellite service is roughly uniform across all age groups, but much higher for AB’s. The research states, therefore, that given Sky’s relatively low AB penetration (23%) Freesat could provide the broadcaster with a route to more affluent TV viewers, potentially winning them over to a monthly subscription service in the long term.

Continental also found that adults in Freeview homes are likely to be older than those in Sky Digital or Cable Digital homes, with 22% aged 65+ compared to just 10% in Sky Digital and 13% in Cable Digital. Cable homes are most likely to skew ABC1, according to the report, at 66% compared to 53% for Sky and 58% for Freeview. However, Freeview viewers are more likely to fall into the AB category than their Sky counterparts, ad 27% versus 23%.

The latest predictions cast doubt on the claim by Top-Up TV chairman, David Chance, last year that Freeview homes will outnumber their Sky Digital counterparts by December this year. However, the TV boss also stated that increased interest in pay-TV from terrestrial viewers was fuelling growth in his company’s low-cost premium channel offering, an assertion which has proved, at least in part, to be based in truth (see Freeview Penetration Set To Equal Sky Next Year).

Continental Research: 020 7490 5944 www.continentalresearch.com

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