Paul Milsom

1
Digital Interactive TV

• Paul Milsom
• Media_at_BMRB
• The MRG
• 2nd November 1999

2
Introduction

• BMRBs Involvement and Aims
• Current take-up and Profile
• Main Motivators
• Current Intended take-up
• Interactive services
• Background
• Consumer demand

3
BMRB's Digital Update

• 8000 adults every month
• Face to Face Omnibus
• Does your household receive digital TV?
• How likely are you to access in next 12 months?
• How do you access/ intend to access?
• Proprietary questions

4
BMRBs Digital Viewer Survey

• Re-contact digital TV viewers by CATI
• Sample of 500 digital TV viewers
• Twice a year

5
The Digital Viewer Survey

• Reasons for subscription
• Channel awareness
• Attitudes towards/usage of interactive services
• Attitudes towards/ usage of PPV
• Usage of Electronic Programme Guides (EPGs)
• Impact of digital on household TV viewing Total
  media consumption
• Proprietary questions

6
Clients
Broadcasters Agencies Platform
Providers Advertisers Consultants
7
How are these surveys used?

• Broad viewing data
• Predicting market size and platform uptake
• Understanding changes in viewing behaviour and
  programme selection
• Channel awareness and trial
• Interactivity

8
Digital TV Background

• GB Launch Viewers (Sept99)
• Skydigital Oct 98 2.7m
• ONdigital Nov 98 0.9m
• Cable Soon!

9
Digital TV The First 12 Months

Percentage of GB adults who have access to
Digital TV
3.7 million
Source BMRBs Digital Update
10
Audience Profile vs Internet

• The Internet
• Early days audience was young, male, upmarket
• Today audience has broadened but remains skewed
  towards these groups
• Digital TV
• Digital no gender bias, family age groups,
  broader social spectrum

11
Profile of the Digital AudienceGender
Source BMRBs Digital Update (Sept 1999)
12
Profile of the Digital AudienceAge
Source BMRBs Digital Update (Sept 1999)
13
Profile of the Digital AudienceChildren in the
Household
Source BMRBs Digital Update (Sept 1999)
14
Profile of the Digital AudienceSocial Grade
Source BMRBs Digital Update (Sept 1999)
15
Motivators to Accessing Digital

• Picture quality 67
• Sound quality 59
• Choice of channels 57
• Source BMRB Digital Viewers Survey

16
The Next 12 Months

• A further 1 in 10 claim that they will definitely
  get/actively considering Digital TV
• Latent demand launch of cable digital will
  significantly boost numbers

17
Who will they access through?

• Skydigital 51
• ONdigital 16
• Cable 20
• (All who definitely intend to access in next 12
  months)
• Source BMRB Digital Update (Sept 1999)

18
Asburys This weeks special offers
Current balance - 53.22
To fred_at_clara.net
19
What are Interactive Services?

• Information
• Shopping
• Banking
• Gaming
• Email
• Advertising

20
Interactive Services Background

• Closed environments (e.g. Open)
• Launch Oct 1999 on Skydigital
• Potential partnerships with other platforms
• Open environments (i.e. WWW)
• NTL
• CWC
• Telewest

21
Is The Consumer Ready?
22
Internet Access Digital Viewers
Source BMRBs Digital Update (Sept 1999)
23
Consumer Interest (1)

• 22 of digital viewers mention prospect of
  interactive services as a reason for accessing
  Digital TV
• 58 are more likely than not to use interactive
  servicesIf they were free
• ...and 25 are very likely to use

24
Consumer Interest (2)

• The prospect of Interactive services that carry a
  direct charge are much less enticing
• Only 19 are more likely than not to use
  Interactive servicesIf they had to pay for
  access
• ...and only 4 are very likely to use.

25
What will Drive Demand?

• Information services - Key Driver
• The other services are also of interest
• Communication
• Entertainment
• E-tail
• Window shopping
• Buying

26
Interest in Information Services

• Information services attract most interest
• Check bank account 49
• Sports reports 39
• Weather reports 34
• TV programmes 32

27
Interest in E-mail

• 36 of digital viewers are likely to use E-mail
  

28
Interest in Entertainment Services

• 34 are likely to access film reviews
• 26 are likely to play on-line games

29
E-tail - Window Shopping

• Sourcing information on services is very
  attractive to digital viewers
• Holiday destinations 44
• Insurance quote 31
• Amongst Internet users
• 57 ever source information on product/services
• Consumer items overtaking specialist items

30
E-tail - Buying

• 12 of adults agree with the statement I am
  looking forward to services such as home shopping
  on my TV TGI 1999
• 25 of Internet users have bought on line in last
  6 months and spend an average of 690 a year
  each.

31
E-tail - Likelihood of Buying

• Holidays 34
• Cinema tickets 31
• Music/videos 29

Source BMRB Digital Viewers Survey
32
E-tail - Buying

• Nature of TV shopping compared to Internet
• Perception that services more suited than
  products (especially amongst women)
• E.g. Travel Cinema Tickets

33
E-tail Security

• Internet users have warmed to on-line security
  over time
• 1996 14 think its secure
• now 46 think its secure
• 61 of Digital TV viewers already think that
  online shopping is secure

34
Barriers to Take-off?

• New technology will not deter consumers
• Only 12 of digital viewers are put-off using a
  computer by the idea of having to use a keyboard
• 61 use EPGs and 94 of those think its easy to
  use

35
Implications for Advertising

• People have a pre-conception that they would like
  to react instantaneously to advertising
• 31 would research a product they had just seen
  advertised on TV
• 23 would buy a product seen on TV ad
• The strong interest in information services
  suggests good opportunity for advertising

36
Summary

• Strong level of demand for Digital TV and
  Interactive services
• Take up of interactive services will be increased
  if services are free and skewed towards
  information and shopping
• Signs that Interactive TV advertising will be
  well received

37
Worth watching...

• Viewing figures
• Different offerings
• Viewer is king
• Advertising
• Research issues