DTV penetration dependent on price of set-top - research

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From europmedia.net

DTV penetration dependent on price of set-top - research
30/07/2002
Editor: Duncan Alexander Kerr

The UK government's ambitions to establish digital television in households across the country has been dealt another blow following reports that one in three people would not pay GBP25 (E40) to upgrade their TV set, according to a survey conducted by Continental Research.

The research firm outlines that the rate of total digital television (DTV) penetration is set to stall at just over 50 per cent of the UK population if the free to air digital set-top boxes are to cost consumers a predicted GBP99 (E158).

However, it is understood that penetration of digital television has already reached 40 per cent of the population, with some 66 per cent of those surveyed saying they might switch from analogue to digital if the price was reduced to GBP25 (E40). But, 35 per cent still refused to consider making the switch.

"The current pricing model and existing forecasts for pay-TV suggest the free to air box will have to be virtually given away to meet the government's forecast of 95% penetration," said Dave Chilvers, the director of Continental Research, reported the Guardian newspaper.

"While familiarity with the free view concept may well increase the forecasts for sales, the giveaway idea is not that incredible. After all, that is what happened in the pay-TV market with free dishes. That one initiative gave the market the push it needed."

The free to air digital terrestrial service will be broadcasted by the BBC in collaboration with satellite operator BSkyB and transmission business Crown Castle.

The consortium was awarded the digital terrestrial broadcast licence by the Independent Television Commission (ITC) , the industry regulator, earlier in this month.