NewsLine Feature: Freeview Shoots For The Sky
Channel 4’s announcement yesterday that it will launch E4, and its timeshifted counterpart E4+1, via the burgeoning Freeview platform could mark a turning point in the take-up of digital TV throughout Britain, as the first must-have digital channel to join the platform provides the potential for massive take-up.
Along with the launch of More4, scheduled for launch across all digital platforms in October, E4 and the forthcoming launch of ITV4 look set to bring a new wave of Freeview adopters, providing a much more credible threat to BSkyB’s dominance (see Channel 4 Sets Autumn Date For More4 Launch).
However, at the recent MediaTel Digital TV Seminar, delegates debated the UK’s switch to digital TV, anticipating a rise in custom for both Sky and Freeview from newly-turned digital households, choosing the platform best suited to their requirements.
The new Freeview channel offerings will do nothing to dent Sky’s superiority in sports coverage or children’s programming, for instance, while Sky’s monthly fees will continue to deter a hard core of refuseniks, unwilling to commit to a subscription.
The new channels, particularly E4 and ITV4, showing a mix of dramas and contemporary programming for 16-34 year-old audiences may, however, boost awareness of Freeview amongst young audiences.
Continental research recently found that, amongst those aged 25-34, 83% were aware of Freeview’s existence, the lowest awareness rating of any age group, and while 16-24 year-olds were more aware, at 89%, this is still some way below the older audiences typically interested in free-to-air TV, and is the only demographic to see awareness decline.
| Awareness Of Freeview By Demographic Segment | |||||||
| Demographic segment | Jul-02 | Jan-03 | Aug-03 | Jan-04 | Jul-04 | Feb-05 | % Point Change* |
| All | 39% | 58% | 68% | 80% | 84% | 88% | 5 |
| Men | 45% | 65% | 73% | 82% | 86% | 88% | 2 |
| Women | 33% | 51% | 63% | 78% | 81% | 87% | 6 |
| 16 – 24 | 42% | 50% | 69% | 77% | 84% | 89% | 3 |
| 25 – 34 | 43% | 60% | 69% | 82% | 85% | 83% | -2 |
| 35 – 44 | 41% | 63% | 76% | 86% | 87% | 91% | 4 |
| 45 – 54 | 42% | 64% | 69% | 83% | 87% | 93% | 6 |
| 55 – 64 | 42% | 67% | 70% | 85% | 85% | 89% | 4 |
| 65+ | 27% | 46% | 56% | 72% | 76% | 84% | 8 |
| AB | 46% | 60% | 75% | 84% | 87% | 94% | 7 |
| C1 | 41% | 59% | 68% | 81% | 88% | 89% | 1 |
| C2 | 38% | 59% | 70% | 82% | 86% | 87% | 1 |
| DE | 33% | 54% | 60% | 75% | 74% | 81% | 7 |
| Source: Continental Research – Spring 2005 Digital TV Report | |||||||
| * Since Jul 2004 | |||||||
MediaTel Insight recently carried out a survey of the UK’s leading media agencies, asking for predictions of future BSkyB and Freeview take-up, as the switchover process gets under way. The results show that, by 2008, the number of households will reach an average of 9 million Sky and 8.1 million Freeview, giving Sky a clear lead despite recent market growth, driven by Freeview.
The attraction of the British public to Freeview is clear, although BSkyB’s offering, FreeSat, could impact on its future growth, especially in AB households, where awareness of the service is highest, but uptake of Sky’s paid-for services is low, according to Continental Research.
| Percentage Of Adults In The UK With Sky Digital, Digital Cable & Freeview | ||
| Percentage of UK population with Sky Digital | Percentage of UK Adults Aware Of FreeSat* | |
| Male | 48% | 31% |
| Female | 52% | 28% |
| 15-24 | 14% | 31% |
| 25-34 | 21% | 28% |
| 35-44 | 23% | 29% |
| 45-54 | 18% | 31% |
| 55-64 | 14% | 29% |
| 65+ | 10% | 29% |
| AB | 23% | 39% |
| C1 | 30% | 30% |
| C2 | 26% | 25% |
| DE | 21% | 24% |
| Source: Continental Research – Spring 2005 Digital TV Report | ||
| * As at Feb 2005 | ||
Sky has remained publicly upbeat concerning its position against Freeview, with the announcement of massively increased subscriber figures earlier this year prompting chief executive James Murdoch to dismiss the threat posed by free to air terrestrial TV (see Sky Confident Subscriber Rise Can Quash Freeview).
Speaking at the release of Sky’s strongest quarterly results since 2002, the satellite boss said: “[Analogue customers] had not paid for TV before but we managed to acquire them and we manage to acquire them today from free-to-air customers as well as from pay competitors.”
He added: “Freeview is more about routes to the market. Clearly its very, very strong digital receiver sales in the Christmas quarter did not impact our ability to have our strongest quarter for two years”
Sky currently leads the way in terms of digital TV penetration, with the latest figures from Ofcom showing that 30.8% of the nation’s homes are equipped to receive Sky’s signals. This compares with 10.1% of homes which subscribe to digital cable services, and 18.5% which are equipped to receive Freeview.
Subscribers to MediaTel Insight can access the Digital TV Executive report, giving full breakdowns of the latest industry forecasts as well as the results from the recent Digital TV Survey.
BskyB: 0207 705 3000 www.sky.com Freeview: 08708 80 99 80 www.freeview.co.uk MediaTel Group: 0207 439 7575 www.mediatelgroup.co.uk