digital terrestrial television in the uk khalid hadadi bbc eu and international policy

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Digital Terrestrial Television in the UK Khalid Hadadi BBC EU and International Policy. The TV market in the UK today. Terrestrial. Satellite. Cable. Digital. 30 channels. 300+ channels. 100+ channels. 5 channels. About 50 channels. Analogue. Digital Terrestrial Television in the UK. - PowerPoint PPT Presentation

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  • Digital Terrestrial Television in the UK

    Khalid HadadiBBC EU and International Policy

  • The TV market in the UK today5 channels

    About50 channelsDigitalAnalogueTerrestrialCableSatellite30 channels300+ channels100+ channels

  • Digital Terrestrial Television in the UKWhy does DTT matter?The launch of FreeviewThe Freeview offerThe future for Freeview

  • Why does DTT matter?

  • 2002 the digital haves and have notsAround 38% of UK homes already had digital TV

    Satellite (Sky)6mDigital Cable2m(plus 1m analogue cable)DTT (ITV Digital)1mTotal Digital9m

    That left 15 million UK homes who did not have digital television services

  • 2002 the analogue audience15 million homes yet to go digitalSplit into future Pay TV customers, and future Free TV customersPositives35% / 5.1mUnsures25% / 3.7mNegatives40% / 5.8mFree TV Pay TV

  • The launch of Freeview

  • Conceived and born in 6 monthsMarch 02ITV Digital collapsedMay 02ITC publishedinvitation to applyJune 02Applications closedJuly 02Licenses awardedto BBC & Crown CastleSeptember 02Technicalreadiness30 October 02Consumer launch

  • The failure of ITV DigitalITV Digital handed back their licences for 3 DTT multiplexes in March 2002ITV Digital failed for a number of reasons:Direct competition with Sky Digital and cable for same customers, but without premium content, range of channels or interactivity. Weak technology dissatisfied consumers and high levels of churnOver payment for sports rights led to cash problems

  • The BBC-Crown Castle bid to the ITCThe basis of the BBC and Crown Castle bids to the Independent Television Commission (ITC) was three-fold:1. The technical failings of the platform would be resolved2. The proposition would be free pay cannot work on DTT3. The consortium would actively promote DTT to consumers and drive digital take-up (with Sky)

  • Why is the BBC involved with Freeview?Greater access to all the BBCs TV services for Licence Fee payers. . . . . . with no need to pay an additional subscriptionThere were 15 million non-digital UK homes - many of whom werent attracted to digital TVProtect investment BBC has made in DTT infrastructure

  • DTT in the UKDigital Terrestrial Television (DTT) is digital TV through your standard TV aerial with an adapterThere are six multiplexes:

  • Solving DTTs technical problemsTwo things have been done to improve receptionPower increasesMode change Channel order / EPG improved Improvements have led to: 9% increase in UK coverage (from 66% to 75%) Significantly more robust reception

  • Freeview coverage

  • Freeview The Offer

  • What is Freeview?Line-up of over 30 channelsOne-off purchase of TV adapter (or iDTV)Compatible with existing TVsSimple to install

    The new simple way of getting 30 channels throughyour existing TV for a one-off payment - no contract

  • Positioning Freeview

    Pay TVFree TVLess choiceMore choice

  • Freeview Moving Forward

  • Freeview performanceFreeview is in 6.5 million homes with total sales of 10.5 million- about 70% of sales are for 1st sets.Digital penetration in the UK has now reached 70%Average Price paid for a Freeview box is around 60. New TV adapter models being developed with twin tuners, DVD player and hard drive storage

  • Free-viewersFree-viewers are the digital rejectors - new digital viewers, not churnersOlder and more up-market viewers than other platforms.Viewing habits similar to terrestrial more, normal, television

  • Reasons for Freeviews SuccessCreated a new market categorySimple consumer focused proposition bigger, better normal TVBroke the concept that digital TV = Pay TVEffective consumer and retail marketingProduct diversity STBs and IDTVs

  • DTT is the 2nd largest digital TV platformSatelliteCableDTTOctober 02Dec 2005Total Digital6.3m

    8.3m

    2.0m2.7m1.0m6.5m9.3m17.5m38%70%Digital Homes

  • Planning for digital switch-overUK plans to switch off the analogue signal in 2012.Most of the 1,100 transmitter sites will be converted to digital to substantially replicate analogue coverageSwitchover will be a rolling, region-by-region process. Within each region analogue channels will probably be withdrawn over a period of monthsA PSB-led company SwitchCo has been established to manage the switchover process

  • BBCs role in switchoverThe BBC is not responsible for switchover bit it is critical for its successFour key roles:Spectrum planning, technical advice and expertiseProcuring transmission contracts ready for switchoverFounding and lead partner in SwitchCoFunding digital marketing and communications

    White Paper BBC to take a lead role in the switchover to digital.

  • Digital Terrestrial Television in the UK

    Khalid HadadiBBC EU and International Policy

    Over the next fifteen minutes, I plan to give an overview of the BBCs perspectives on development of Digital Terrestrial Television (otherwise known as Freeview) in the United Kingdom.

    Over the last few years the BBC has launched more new TV channels and radio networks than in its entire 80 year history. This together with our continued development of our online and interactive television services has seen the BBC embrace the digital world.

    In fact far from becoming an irrelevance in the digital age, as some had predicted, the BBC is actually playing a significant role in driving digital take up in Britain.

    The BBC as a public service broadcaster has over its 80 year history always had a role in delivering to the public the benefits of new communication technologies and services. This has been underlined in the new BBC White Paper which was published this month the UK government has required the BBC to take a leading role in the switchover to digital television.

    Our involvement in promoting Freeview is consistent with our role as a public service broadcaster. With our purpose of building digital Britain and preserving the universal availability of our services.

    This does not mean that we favoured the DTT platform over other platforms. European Union law does not allow public institutions to use public funding to favour one telecommunication technology over another.

    Overview of the TV market in the UK today. I would like to provide an overview of my presentation:

    Why does DTT matter?The launch of FreeviewThe Freeview offerThe future for Freeview

    In 2002, when the BBC got involved in the Freeview Consortium, around 38% of UK homes already had digital TV. The majority of whom subscribed to Satellite pay-TV services.

    What the slide clearly shows there was already a gap between the early adopters of technology and those for whom the journey to digital hadnt even started.

    Furthermore, research by the UKs Department of Trade and Industry at the time suggested that as many as one-in-eight people will never be convinced to adopt digital TV.

    This may not be a critical issue for commercial broadcasters, who can target different groups with different programmes and services, but for the BBC it represented a huge challenge, as we have a duty to serve everyone, due to our funding by the licence fee paid by (almost) every home in the UK.

    So whats clear is that this is not going to be a single journey to a fully digital Britain. It is going to be millions of different ones, with everyone travelling at travelling at different speeds.

    One of the key challenges for the UK and the BBC is to make sure that nobody gets left behind.

    In the digital world we believe everyone should have a choice of platform whether they want free to air TV or to take out a subscription.

    So a brief synopsis of the Freeview story:

    The launch of Freeview happened very quickly indeed.

    March 2002 ITV Digital failsJuly The BBC wins the licence bid with Crown CastleOctober launch

    ITV Digital handed back their licences for 3 DTT multiplexes in March 2002ITV Digital failed for a number of reasons:Direct competition with Sky Digital and cable for same customers, but without premium content, range of channels or interactivity. A pay-TV DTT service.Weak technology dissatisfied consumers and high levels of churnOver payment for sports rights led to cash problemsThe basis of the BBC and Crown Castle bids to the Independent Television Commission (ITC) was three-fold:1. The technical failings of the platform would be resolved2. The proposition would be free pay cannot work on DTT3. The consortium would actively promote DTT to consumers and drive digital take-up (with Sky)

    Why did BBC get involved with Freeview? The short answer would be self interest.

    Indeed Freeview provided `Greater access to all the BBCs TV services for Licence Fee payers. . . . . . with no need to pay an additional subscription.

    There were 15 million non-digital UK homes - many of whom werent attracted to digital TV

    Protect investment BBC has made in DTT infrastructure.Recognition that switchover to digital would only be reached if there was a strong DTT offer.

    Digital Terrestrial Television (DTT) is digital TV through your standard TV aerial with an adapter.

    There are six multiplexes.

    A multiplex is the frequency used to simultaneously carry multiple digital services

    Mulitiplex (or mux) is an encoder that combines two or more inputs into a single output. In electronics, the multiplexer combines several electrical signals into a single signal. There are different types of multiplexers for analog and digital circuits.Multiplexes B, C & D were put back on airTwo things have been done to improve receptionPower increasesMode change Channel order / EPG improved Improvements have