Media Agencies Uncertain Of Digital Switchover

Sarah Pearce – MediaTel NewsLine

MediaTel Group has carried out the first survey of the UK’s top media buying and planning agencies on the future of the TV landscape, finding a wide disparity in respondent’s views as to the winners and losers in the digital age.

Sky and Freeview growth are predicted to cover around 17 million homes between them by 2008, with only three out of the total number of respondents expecting Freeview to be in more households than Sky in the next three years.

The study was carried out in February/March 2005 by the MediaTel INSIGHT team amongst a panel of managing directors and broadcast directors at the UK’s leading media agencies.

Other key findings from the report include only two respondents forecasting multi-channel broadcasting to achieve less than a 30% share, while just one predicting the medium to enjoy a share of almost 40% by 2007, compared to 2004’s 26.3% share.

Respondents to the survey estimate that the BBC and ITV will lose out in equal measure in terms of audience share when the switchover is completed. ITV was recently awarded Crown Castle’s empty Freeview slot allowing the broadcaster to further extend its presence on the free-to-air terrestrial platform (see ITV Scoops Crown Castle’s Extra Freeview Capacity).

Compared to agencies thoughts on the BBC and ITV, a number believe that Channel 4 can hold its own, however only one respondent is shown to predict an increased share.

Recently Channel 4 has been looking eagerly to acquire properties in order to secure its position in the multi-channel future. One such expansion possibility is the launch of new channels on the Freeview platform.

Last month, the broadcaster revealed its capacity for four channels on the service, meaning that broadcaster has space to bring in two more channels, one of which, speculation suggests, could be premium entertainment offering, E4 (see Channel 4 Bets On Drama For Spring Schedule).

More than half of the agencies surveyed in the MediaTel INSIGHT report believe that Five will increase its audience share over the next three years, compared to just one major buyer predicting a gloomy future for the broadcaster.

The survey reveals that the agency world seems less than convinced of the reality of Government dates for the switch from analogue to digital, which is set for 2012 (see Digital Switchover To Begin In Three Years). However, last month, the Welsh villages of Ferryside and Llansteffan were the first to enter the digital realm, with the Government switching off the analogue signal to nearly 500 homes (see First Welsh Villages To Drop Analogue TV Tonight).

The MediaTel INSIGHT survey revealed that some agencies feel there are “too many barriers to be overcome for complete switchover by 2012”, citing the cost of converting every set in households and consumer resistance as problematic.

Meanwhile, others feel that the “BBC’s aggressive marketing of Freeview is testament to the governments commitment to achieving these switch off targets.”

More details of the survey are included in MediaTel INSIGHT’s Spring Edition of the Digital TV Executive Summary, which can be ordered online – price – £225. www.mediatelinsight.co.uk/reports

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