The requirements of the viewing public should be a prime consideration for digital terrestrial television licence bidders. So says a report by market research group, Taylor Nelson Sofres (TNS), which provides food for thought to those parties applying to take over the DTT multiplexes vacated by ITV Digital earlier this year.
The research, carried out for set-top box manufacturers, Pace Technology, deduces that broadcasters face a difficult challenge in trying to attract viewers to new platforms whilst remaining cost-effective.
Broadcasters facing dilemna Of those questioned, 38% of respondents agreed that a greater choice of free-to-air channels would encourage them to switch to digital. However, with the TV market becoming increasingly fragmented, broadcasters are under pressure to deliver quality programming and higher ratings.
“Learn from past mistakes,” said Dario Betti, an analyst at Ovum. “Digital television needs solid backing, better signal strength, wider coverage, but also more content. Repeating what is available on analogue terrestrial, cable or satellite simply is not enough.”
Results of the survey show that consumers could be lured to digital television by the prospect of big box office films and sport. 44% of respondents said they would be encouraged to switch if they were able to watch the latest release movies while 36% said they would be tempted by high profile sporting events.
The failure of ITV Digital has cast doubt on the feasibility of subscription channels although 36% of those surveyed claimed that they would be willing to switch to digital TV if offered a free-to-view package with the possibility of a Pay TV upgrade.
ITC verdict imminent The ITC will decide this week which company is set to take over the running of the digital television licences formerly run by Carlton and Granada. Merrill Lynch has already come out in favour of the joint ITV/Channel 4 bid which provides for a pay-TV option (see ITV/Channel 4 Digital Bid May Have The Edge, Says Merrill Lynch). However, a report in Sunday’s Observer claimed that the BBC-led consortium, which is initially offering only free-to-air channels, is favourite to land the multiplexes.
Despite reservations from a number of media agencies and researchers, the government remains committed to a deadline of 2006-2010 for switching off the analogue signal. It will be encouraged by the TNS survey which found that 59% of respondents were aware of this plan. Moreover, over a third of those questioned (38%) think that broadcasters are responsible for encouraging consumers to switch to digital as opposed to just 21% who believe it is the government’s task.
Industry observers are hopeful that whoever picks up the digital cudgel will adopt a more effective strategy than ITV Digital. Malcolm Miller, CEO of Pace Technology, concludes that “the cost to Britain of a second digital terrestrial failure would be incalcuable and could severely jeopardise the digital switch.”
