DTT issues

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DTT issues

• 24 April 2011

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What is DTT?

• A definition
• Bigger, better, normal television

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What is DTT?

• Bigger more channels
• Better better sound, better picture, additional
  data services
• Normal delivered over the air, requiring a
  normal aerial
• Only new requirement is for a STB
• DTT cannot be received on a TV set without a STB

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What is DTT?
Digital Terrestrial Television System
Digital Playout Centre
Production of digital content or digitisation
of analogue content
STB
Transmitter
TV
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What DTT is NOT

• DTT is not Satellite TV
• if you have DSTV or Top TV you may receive some
  of the new DTT channels but you will probably
  need a DTT STB in order to access all the new DTT
  channels
• DTT is multi-channel but not always Pay TV
• most new DTT channels will be provided without
  the need for a monthly subscription

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What is DTT?

• Migration to DTT happening worldwide
• Great spectrum efficiency realized from
  broadcasters moving from analogue to digital
  transmission systems
• Freed spectrum commonly known as the digital
  dividend - can be used for other services,
  including telecommunications
• This is the major reason why countries migrate
  to DTT

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Timelines for migration
Source Farncombe
Digital migration processes take on average 6
years to complete but many of those countries
already complete had low FTA terrestrial share
unlike South Africa
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UK case study

• FREEVIEW (ONLY) HHs PENETRATION OVER TOTAL HHs

• Post-DSO population coverage 75 (all 6 MUX)
• Feb 2011 500k HHs (2 of UK HHs) subsidised by
  DSO Helpscheme

Y1 6
Source Farncombe
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Spain case study

• DTT uptake in Spain was rapid, at 150 of the
  pace of average TV adoption and with a period of
  additional acceleration in the final year prior
  to switchover.

DTT uptake in Spain 2006-2010
In the final year prior to switchover, DTT growth
accelerates outside the curve as the remaining
analogue homes are forced to purchase STBs

• For the first three years, DTT in Spain follows
  an uptake curve with parameters 50 above average
  for TV

Source Farncombe
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International case studies What needs to happen
for DTT to succeed

• Government support
• Funding subsidy schemes to low income/vulnerable
  households,
• Tax exemptions for DTT deployment
• Incentives to manufacture and sell DTT end-user
  equipment

Content differentiation additional content has
proven to be the primary factor driving adoption

• Efficient cross-industry co-ordination
• Subsidy scheme succeed in lowering barrier to
  entry (direct subsidies or enable instalments,
  discounts), at the right timing
• Co-ordinated efforts for EPG, CA system,
  communications to increase consumer trust on DTT

• Clear communication strategy
• A conformance regime associated with a DTT
  brand/ logo
• Strong marketing initially advertising DTT
  benefits and later concentrating on warning about
  switch-off date
• No mention of subsidies prior to scheme launch

Source Farncombe
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The STB

• Estimated cost R500 R700
• This is a one-off cost
• Will be available in retail
• Government committed to a STB subsidy for poor
  households not yet finalised

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DTT broadcasters
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Implications for broadcasters

• Compulsory migration
• Huge additional costs
• Fragmentation of audience
• Little additional revenue

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DTT Launch

• ICASA will decide on launch date. At launch,
  there should be
• 60-70 population coverage
• Conformant STBs in retail
• Limited help-scheme
• Some new channels on-air
• Marketing and communications campaign running
  including contact centre to deal with consumer
  inquiries
• Likely to be 2012