acma | digital media in australian homes - 2006 1 digital media in australian homes – 2006...

ACMA | Digital Media in Australian Homes - 2006

1

Digital media in Australian homes – 2006

Conducted for ACMAby Eureka Strategic Research

November 2006

ACMA | Digital Media in Australian Homes - 2006 2

This presentation

Background and objectives

Methodology

Sample characteristics

Digital media / DTTB overview

Drivers of DTTB adoption

Non DTTB households

DTTB adoption/intention segmentation

Conclusions



Eureka Strategic Research commissioned by ACMA in September 2006 to update data collected in 2005 2005 research established reference points for key indicators in the

transition from analog to digital television broadcasting (DTTB) in Australia, covering...

• how people are moving to digital media platforms

• drivers of, and inhibitors to, the adoption of DTTB

• community perceptions of digital media

Key issues to be addressed in 2006: household take-up of digital television

consumer knowledge about digital television

community awareness of analog television switch-off

non-adopter DTTB awareness/attitudes/intentions


Methodology

Telephone survey methodology repeated in 2006 ‘representativeness’ the key goal... randomised, nationally

representative calling underpinned by White Pages

Fieldwork 6 – 31 October, end sample N=1,537 in all, 8,268 contacts with households across Australia made over this

period

Primary screening question: Does your household have a television? followed by “I need to speak with someone in your household who makes

decisions or contributes to making decisions about the purchase of items such as televisions. Are you 16 years or over and a decision-maker in regard to this type of item?”

note: 0.5% of households screened out via this criterion


Overview of findings

Changes since 2005 DTTB penetration significantly above June-July 2005 figures

2005 purchase ‘reluctance’ and hesitation overcome by many households

upgrade TV? => choose DTTB

“HD” now significant in consumer vocab, as are mentions of analog switch-off

Broadband penetration also significantly above 2005 downloading/streaming audio-visual content a significant new emerging

behaviour

Overall analog switch-off awareness has made only minor gain Non DTTB households are more ‘DTTB receptive’. However, a core

of uninterested households remains...



Metro v regional: 63% – 37%

Disability: 13%

LOTE household: 16%

Have children under 16: 28% 1

1

3

8

9

21

26

30

0 10 20 30 40

NT

ACT

TAS

SA

WA

QLD

VIC

NSW

% of sample

Base: All households, N=1,537


This presentation


Methodology




Non DTTB households


Conclusions


Digital media overview

Subscription TV overall: 26.4%

Internet: 69.3%

Broadband overall: 51.7%

Audio-visual content streamed or downloaded from internet or on mobile device: 25.4%

Downloaders use: Computer monitor/laptop 88.7%Mobile phone 29.2%Personal mobile device (eg Ipod) 24.3% TV set 9.2%

Hard-drive recorder: 18.2%

Base: All households, N=1,537, * assumes 90% of pay TV is now digital

Free-to-air digital TV: 29.6% Net digital households approx 41% *

54.4% of subscription TV households are also DTTB households


DTTB overviewH

ou

seh

old

s w

ith

TV 29.6% receive DTTB

74% of these households have 1 set/display device that receives DTTB, 26% have 2+...

... of the 3,564 televisions/display devices/monitors used for watching TV programs in the sample, 609 are DTTB

13% penetration, 7% of overall stock2005:

Other82.9%

DTTB17.1%


This presentation


Methodology




Non DTTB households


Conclusions


2.9

0.4

1.8

2.0

2.6

3.1

3.1

3.7

4.0

4.4

4.6

5.3

6.8

9.7

12.7

14.7

15.6

19.6

28.4

36.5

0 5 10 15 20 25 30 35 40

Other

Digital recording of TV (hard drive)

More functions / information

Child wanted it

[I f TV Purch] No choice / 'forced', for TV to work

Not sure / no particular reason

Better sound

Partner / adult wanted it

Gift / free

Good deal or part of package

High Definition

Other's recommendations / encouragement

Better / better quality

Larger picture (widescreen)

Need it eventually / change-over / long-term decision

New / latest / best technology

Extra channels / variety and choice

Improved reception/signal

Upgrading / replacing TV / needing for new TV

Better or clearer picture / picture quality

% mentioning this reason

Drivers for DTTB adoption

Base: Adopter households, n=455

Stronger driver than in 2005 (11%)

Remains most prominent... 27% in 2005

New in 2006!

Top 4 the same, but with some changes in positioning

Less blurring with Pay TV than in 05


Examples

I had watched my brother’s TV which was digital and the picture was far better than any

picture I had seen.

Bradley thought that it would give us a better picture as they have one at work that he

reckons is a brilliant picture and it's digital too.

I was buying a new TV, so figured I might as well go to the latest release in TV technology.

We were setting up our first home together and decided to get digital to start off with

rather than the older style of TV.

So that I could get good reception.The reception in our home was awful, even

with a decent aerial. The guy who came out to fix the aerial suggested digital as a solution.

We can also get a few local channels now that we were unable to before.

We wanted to get ABC 2.


Upgrading / replacing TV / needing for new TV

Improved reception / signal

Extra channels / variety and choice


DTTB households Statistically significant differences

More likely to have household decision-makers who...

are in the 25-34 and 45-54 age groups

have children

are employed full-time

have technical college or university qualifications

report household income > $70,000pa

live in house/townhouse


This presentation


Methodology




Non DTTB households


Conclusions


Non-adopter DTTB awareness Is digital free-to-air TV available to households in your area?

Base: Non-adopter households, n=1,082

No5.5%

Don't know - have heard about DTTB

36.6%

Don't know - have NOT heard about

DTTB20.3% Yes

37.5%

Knowledge ‘deficit’ remains pronounced among non-adopter households (DK total = 46% in 2005)


Non-adopter interest

Yes29.2%

No39.2%

Don't know/undecided

31.5%

Base: Non-adopter households, n=1,082

In 2005, No=48%, DK=13%, Yes=39%... significantly higher proportion of non-adopters now ‘sitting on fence’


Purchase intention among interested Yes

29.2%

Yes68%

No13%


19%

Within 12 months25.6%

1 to 2 years23.3%

> 2 years22.3%


28.8%

Hardware purchase intention among ‘interested’ Planning to purchase DSTB or integrated DTV?

Timeframe

Only 6% in 05


3.8

0.9

1.3

1.3

1.6

1.6

3.8

5.1

5.7

6.3

6.3

7.0

10.4

16.8

16.8

27.2

36.4

0 5 10 15 20 25 30 35 40

Other

Digital recording of TV (hard drive - pause, replay)

Partner / adult wants it

More functions / information / interactivity

Child wants it

High definition

Better sound

Lower price / budget availability

Better / better quality

Larger picture (widescreen)

New / latest / best technology

Not sure / Don't know the difference / no specific reason

When upgrading / replacing TV set

Extra channels / program variety and quality

Improved reception/signal

Need it eventually / long-term decision / when I have to



Reasons to adopt

Base: Interested non-adopter households, n=316


2005: 36.4%

2005: 14.6%

2005: 17.9%

2005: 23.8%

‘Inevitability’ higher in 06!


Examples

As far as I am aware, it improves the quality of your picture.

I'm told quality of image or picture resolution is far superior to normal free-to-air.

Only because it will be the only thing available.Basically it a matter of time before analog is

wiped out. It’s coming - like what happened to VCRs.

... no interference due to it being digital it doesn’t get affected by wind or weather.

I think it will improve the quality of my TV reception.

I understand there are other channels that you can get that may be of interest.

More channels, we've talked about ABC2.


Need it eventually / LT decision / when I have to

Improved reception / signal

Extra channels / program variety and quality


Specific/additional knowledge requirements

Base: Interested non-adopter households, n=316

2.8

1.3

1.3

1.6

2.5

3.8

4.1

5.1

5.1

6.6

7.6

8.2

10.1

11.1

13.9

20.6

23.7

0 5 10 15 20 25

Other

Need demonstration (eg friends, retailer)

Number and types of channels / programs (any new ones)?

Durability and longevity of technology

Changeover - why and when?

Technical information / How it works

Quality/ improvement of picture, reception / guaranteed?

Information about set-up

Whether/when digital signal (reception) available in their area

Information about using it

What is required (eg equipment, aerial, compatability, old TV ok?)

What options are available/best? (eg equipment, brands, features)

Don't know / Not specified

What it does / benefits and features (vs analog)

Cost (initial, ongoing, will prices fall?)

Everything / more information

No perceived need for information


2005: 14.4%

2005: 13.3%

2005: 22.6%

2005: 4.9%

2005: 7.4%

On balance, some fundamental knowledge

needs remain


Examples

I don’t need more knowledge I just currently cannot justify the cost.

Nothing. I've not gone into it I'll wait until it becomes compulsory.

Lots. I don't know much about it at all, other than there is a possibility it will be necessary

to have sometime in the future.

Everything, (from) how to use it, to how to operate it and most of all how to set it up.

How much it would cost and whether or not it is advisable to go to a slightly more expensive

digital top box rather than one of the quite cheap ones I have seen advertised.

What sort of money you have to spend to get a decent one. If there is much difference between a cheaper version and a more

expensive version.

Basically what it offers, what the service provides.

I need more knowledge about what it does and if I need it.

No perceived need for information

Everything / more information

Cost

What it does / benefits and features


Reasons for non-interest

Base: Uninterested non-adopter households and interested households with no plans to adopt, n=865

5.7

0.6

0.8

0.9

1.0

1.2

1.2

2.0

2.0

2.1

2.3

2.8

3.2

3.8

5.1

5.2

6.2

6.5

14.7

19.4

22.0

25.4

0 5 10 15 20 25 30

Other

Want more channels / program choice

Prefer DVDs or videos

Heard of reception / picture quality problems

Lack technical knowledge / interest

No digital signal / not available in area

Access FTA channels through pay TV

Happy with current channels / programs

Current program quality / variety poor

Satisfied with current reception / picture quality

No real difference / don't see the benefit or point

(Digital) pay TV good enough

Not at the moment, but probably future

Too old

Will not purchase until required / absolutely necessary / switch off

J ust not interested / not important

Not until need to buy new TV / b/c do not need new TV

Reason not specified / DK

Currently satisfied / no need

Don't watch much (FTA) TV / don't want to watch more

Have to buy equipment / too expensive / not good value

Don't know much/anything about it / haven't thought about it



2005: 26.6%

2005: 32.0%

2005: 11.8%

Resistance/inertia still significant, though some evidence of ‘inevitability’

New in 2006!

2005: 20.4%


Examples

Not aware of it - and don't really care.I just need time to work it all out and see what

it all means, so maybe one day when I have some free time.

It is still too expensive. I don't have that much spare time to watch TV.

Unless one of the boys wants to pay for it, I have no interest in it. The TV that we have

works perfectly well without it.

I hardly ever watch TV, and don't feel like spending any more money on one or on anything to modify the TV that I have.

It’s not really something I have thought about. My wife and I don't watch much television and

so it’s not a big interest to us.

I like the TV I have. It works fine for how much I watch.

There's no need for it. What we have is fine.

Don’t know much/anything about it

Have to buy equipment / too expensive / not good value

Don’t watch much TV / don’t want to watch more

Currently satisfied / no need


This presentation


Methodology




Non DTTB households


Conclusions


DTTB information sources

Base: All households, except those who have not heard about DTTB n=1,317

6.8%

3.3%

3.4%

6.1%

7.6%

17.4%

18.6%

26.3%

27.9%

28.6%

0% 5% 10% 15% 20% 25% 30% 35%

Other

Radio talk show

Radio news

Don't know/unsure

Internet

Newspaper

Retail outlet / salesperson

HAVE NOT sought / received DTTB info

Friends/family/colleagues

TV

Remains high... 20% in 2005


Awareness of analog switch-off

Base: All households, N=1,537

62% aware2005:

Yes66.8%

No29.9%

Don't know3.3%

Note: 17.4% of DTTB households are not aware!

Do you know that the current analog free-to-air television services (that is, channel 7, 9 and 10, the ABC and SBS) will be completely replaced by digital free-to-air television in the future? This will mean that you will not be able to receive any free-to-air TV services without special digital TV equipment.


DTTB segments

Adopters29.6%

Interested but not planning to purchase

6.5%

Unsure if interested22.2%

Not interested in adopting27.6%

Interested and planning to purchase14.1%

42%2005:

11%2005:

12%2005:

22%2005:

13%2005:

Very positive movement in segment membership since 2005


Conclusions

Low ‘category entry’ barriers, significant purchase consummation since 2005

DTTB is becoming ‘mainstream’... naturally included in TV purchase decision

‘Picture’ continues to drive adoption, but some evidence of ‘DTTB inevitability’ also entering purchase decisions

Adopters

More DTTB-receptive, but 2005’s fundamental information needs remain. What are its benefits? What do I need? How does it fit together? What does it cost? Is it good value?

Non-adopters

Challenge is to move non-adopter segments to a more DTTB-receptive stage. Communications in core areas above will strategically ‘partner’ the buoyancy of DTTB at the

retail/purchase level.

Strategic

Insignificant gains in overall analog switch-off awareness

acma | digital media in australian homes - 2006 1 digital media in australian homes – 2006...

Documents

criterionacma digital

digital media platformsdrivers

australian homes

dttb penetration

dttb overviewhouseholds

dttb receptive

minor gainnon dttb households

subscription tv households