Digital TV Take-Up Will Fall Short Of 2010 Deadline
Only 78% of UK households are likely to have adopted digital television by the end of 2010 – the Government’s self-imposed deadline for the switch-off of the analogue signal.
The Government plans to terminate the analogue signal between 2006 and 2010, but only when 95% of households have DTV access. Ofcom warns that the rapid growth of digital uptake will stall without intervention and a more precise date for the switch.
A timetable is currently being drawn up by the Government and broadcasters; everyday without this goes further to hindering the proposed digital switchover date, according to Ofcom. The timetable is likely to suggest that digital is introduced gradually on a region by region basis, taking up to four years to complete.
The media watchdog is urging the Government to work more closely with broadcasters, manufacturers and retailers to make the analogue switch-off a reality. It is also calling for the creation of an autonomous body which will oversee the smooth transition from analogue to digital.
Take-up is also being constrained by lack of coverage for digital terrestrial television (DTT) service, Freeview. Until broadcast power levels can be boosted, only about three quarters of households will be able to receive DTT. This is significant because DTV uptake is around 18% points higher in DTT-enabled regions than it is where DTT is not available.
As well as the restrictions to DTT reception, the pay-TV sector needs to show development if pay-TV uptake levels are to exceed 50%. The development of digital cable networks will be key to this.
Ofcom says that these two constraints will prevent DTV penetration from continuing to grow at its historic rate. Without a decision by the Government to implement a switchover programme, penetration of DTV is unlikely ever to exceed 85%, says the regulator. If a clear date for switchover were to be set, projections show that this 85% ceiling could be surpassed, although Ofcom does not predict when.
Ofcom is attempting to increase take-up by recommending that access to free digital channels via satellite is improved, in order to encourage more viewers to invest in digital television equipment. Free-to-view programming will play an important role in increasing uptake by those who do not want pay-TV.
The regulator is also calling on the Government to provide public service broadcasters with a clear and unambiguous commercial incentive to drive switchover, given that digital will increase competition and reduce advertising revenues.
Affordability is currently a significant barrier for the 30% of households with the lowest incomes. The cost during the transition period is likely to be a burden and there is even a risk of excluding some homes from television altogether, once the switchover is made. Ofcom says that this will become less of a problem over time as the cost of digital converters falls.
The communications watchdog recommends a gradual switchover process, with one or two terrestrial channels being switched off first so that the digital signal can be boosted. This should prevent television screens from going blank overnight and would help raise DTT availability to near universal levels.
Last week Ofcom chief executive, Stephen Carter, also proposed changes to the BBC’s Charter to ensure the Corporation’s commitment to the delivery and roll-out of switchover is on the same footing as other terrestrial broadcasters’. He is calling on the BBC to ensure that its promotion of the digital switchover is neutral and favours no particular digital platform.
MediaTel INSIGHT subscribers can access more information and forecasts for the DTV sector in the
Executive Report.