DIGITAL DZONGA LAUNCH

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					The South African Digital TV Migration
   and the Future for Broadcasters

            Yusuf Nabee                           Jennifer Daniel
DTT Project Leader SABC   G M Audience Strategy and Research e.tv
CONTENTS
 1.   History of TV in South Africa
 2.   Television share – Free to Air and Pay TV
 3.   What is DTT
 4.   Managing the Migration
        Time line 2005 – 2010
 5.   Learnings from the migration process to date
 6.   DTT progress in the rest of the world
 7.   The Future for Broadcasters
 8.   Conclusion
 9.   DTT Trial Research results
           Key Landmarks in the History of Television
                       in South Africa

                                                                                                         Expected DTT
                                                                                                        Launch 1st Half
                                                                                  1998                     of 2010
                                                                                 e.TV
                                                                             First FTA TV
                                                                             Station in SA
                                                          1995
                                                           DSTV
                                        1986                                                        2007
                     1982               M-Net                                                  5 Pay TV Licences
                   TV 2/3 SABC                                                                     awarded:
                                                                     1996                    Telkom Media, ODM,
                                                                  SABC channels                eSat , Multichoice
                                                                  relaunched as
       1978                                        1992              S1, S2,S3                        WOW
  Commercials TV                                  TV 2/3/4
                                 1984           incorporated
                                 TV 4             into CCV




    1976
5Hrs of TV/Day
No Advertising
Growth of Number of TV Channels in S.A.
        TV Households - 2008
       9,074 000 (82% of Households)




                                   FTA
                              5%
                                   DSTV Premium, Select and Easyview
78%   22%                          DStv Compact
                    16%            M-Net households
                              1%
                                                  TELEVISION
                                                 Yesterday Viewership            16,758




                                                                        12,099
                                                              11,802



                                                      7,986



                              4,541

         980
                           DStv




Source: AMPS 2008 Main Branded AB (Jan 08 – Dec 08)
What is DTT?



 A definition:
  “Bigger, better, enhanced television”
What are the primary benefits?

 • Better quality picture

 • Better sound quality

 • More channels

 • New services



              BIGGER, BETTER, ENHANCED TELEVISION
What is DTT?

     ANALOGUE (CURRENT)                      DIGITAL (FUTURE)

                                  SABC 1
                                  SABC 2
 SABC 1
                                 SABC 3
                 [Roof-top      SABC Sport
                   aerial]      SABC News
                             SABC Entertainment
                              SABC Education                    [Roof-top
                                                                  aerial]
                    TV
                                                                 STB
 SABC 2
                 [Roof-top
                   aerial]

                                                                 TV

                    TV
• ICASA’s proposals indicate there will be
   − at least 21 channels (but no HD channels)
   − space reserved for new players




     Multiplex One            Multiplex 2            Multiplex 3
       22Mbps                  22Mbps                 22Mbps

  9 SABC video-streams   6 e.tv videostreams     5 M-Net video-streams
  1 community TV         Rest reserved for new   Rest reserved for new
                         players                 players
Why DTT?

 • Migration to DTT happening worldwide – analogue will not be
  protected from interference after 2015

 • 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
Digital Terrestrial Television ( DTT)
    Has this been done anywhere else in the World?

                   31,109m (27%)
  • All countries will do the migration to ensure ongoing co-ordination
    and protection from interference.
  • Some Countries that are advanced in their migration process
    are:
     − United Kingdom
     − New Zealand
     − Sweden
     − United States
     − France
     − Mauritius
         Countries that have completed Analogue switch off




Table 3:DTT Penetration versus Coverage
Selected Countries: Digital TV Migration
Selected Countries: Digital TV Migration
What SA TV will look like in DTT
What TV in SA will look like in the future

 • Additional language services

 • Mobile Broadcasting through technologies such as
   DVB-H

 • The increasing penetration of PVR decoders

 • The roll-out of Video-on-demand services

 • Enhanced access to affordable bandwith
• …There will be data services, including an EPG…
             Sweden   UK            Australia


                           • ….Channels will be
                           marketed under a
                           common brand

                           • This has proved a
                           key driver for
                           success in other DTT
                           markets….




Source: CapGemini
Managing the Migration
Managing the Migration

 • Migration to DTT an enormous challenge for many countries
 • Challenge is made particularly hard in developing countries
   by the extent of the resources required e.g. dual illumination

 • Migration is also complex and time-consuming

 • For these reasons, a Digital Migration Office
   is usually appointed to manage the migration
 • A DMO can do things broadcasters and government alone
   cannot easily achieve
Managing the Migration

 • In SA, the DMO is called the Digital Dzonga
 • Digital Dzonga overseen by an Advisory Council made
   up of 14 non-executive members representing
   key role-players of the DTT value chain

 • Wide range of experience and expertise on the Council
    − Has been in existence since June 2008
    − Funded by government
    − First staff joining 3rd quarter 2009
 • Digital Dzonga has also started a number of working
   groups which interested parties may join
DTT Progress to Date

 • Digital Migration process has been underway since
   2005
   ‐ June 2005 – Nov 2006: Appointment of Digital Migration
     Working Group (DMWG) consisting of industry, labour,
     community and government representatives to make
     recommendations on the migration process
   ‐ March 2007 – Aug 2008: Government consultation on
     digital migration policy and STB specification
   ‐ June 2008: Appointment of Digital Dzonga to oversee
     migration
   ‐ Nov 2008: Start of broadcaster trials
DTT Progress to Date

  • Jan – June 2009: Regulator consultation on and finalisation
    of DTT regulatory framework
  • June 2009: Finalisation of STB standards
  • July 2009: Go Digital Call-centre and website go live


  Next steps

  • Aug 2009: Finalisation of frequency plan
  • Nov 2009: Conformance scheme put in place
  • Jan 2010: Start of full scale “Go Digital” communications
    campaign
  • April – June 2010: Targeted commercial launch window
Phases of Digital Migration

          PHASE ONE                     PHASE TWO                  PHASE THREE

                                 • To make DTT services        • To begin phased
• To begin first phase             available to the market         switch-off of the
   rollout of transmitter                                          analogue network
   network                       • To expand transmitter
                                   network to full             •   Reduced dual
• To allow for feedback,           coverage                        illumination as
   refinement and                • Analogue and digital            analogue is switched
   evaluation                      networks running in             off
                                   parallel                    •   Maintenance of DTT
• To prepare and test                                              network
   services                                                    •   Planning for digital
                                                                   dividend
                                                               •   Mass rollout of help
                                                                   schemes
                                          DUAL
          PILOT PHASE                ILLUMINATION              MIGRATION PHASE
                                         PHASE
Pilot                          Public                        Begin                        Final
switch                         launch                        switch                       switch
on                                                           off                          off
                 We are here

 Nov 08                        Apr 2010                      Nov 2011?                    2014
Learnings

  • A Digital Migration office must be put in place that is
    tasked with driving the migration. All affected stakeholders
    must be represented
  • Allow time for consultation on the policy, regulatory
    framework and technical standards – it can take longer
    than envisaged
  • At launch, a critical mass of viewers must have access to
    the DTT signal (SA targeting 60% at launch)
  • There must be some new channels available at launch to
    drive consumer take-up of the STB
Learnings

   • Budget for an extensive marketing and
     communications campaign – this is one of the major
     costs. Make sure it clearly outlines the benefits of
     digital TV and provides clarity on what end-user
     equipment is required
  • A Contact Centre must be provided to answer any
     consumer queries
  • A conformance scheme must be put in place to test
     STBs so that only conformant product is sold to
     consumers
Future for Broadcasters


 • Increased Competition

    – After Dual illumination has taken place , Icasa will license
      more channels
    – The available space on the mux’s will be taken up by
      competitors to the FTA channels
Future for Broadcasters


 • Fragmentation of audiences

    – Audiences will have a much wider choice of channels
    – The measurement of these audiences will be a challenge
    – Increase in available inventory which will drive down rates
    – The above will result in a decrease in advertising revenue.
Future for Broadcasters


 • Higher Costs of Programming

    – Multiple channels will necessitate much more money being
      spent on producing local programming and purchasing
      international content
    – The amount of money broadcaster will be willing to spend per
      program will decline. This may impact on the quality of local
      content .
Future for Broadcasters continued



 • Broadcasters will have to diversify and will have to look for
   other forms of revenue as the reliance on fee-to-air advertising
   revenue will no longer be adequate.
Conclusion

 • DTT brings many advantages to the viewer:
    − For a reasonable one-off cost, viewers will receive many
      more new television channels and other services

 • It is clear that DTT will transform SA television and the
   experiences of all viewers.

 • Broadcasters will be faced with many challenges
DTT Pilot

  • The DTT pilot phase was started on 1 November 2008
     • SABC led free-to-air DTT trial
     • Parallel MNet Pay TV trial

  • Free-to-air trial available in JHB, Pretoria and Durban only

  • Approximately 2500 participants on trial to date, including a
    DTT trial research panel of 1500 households
DTT Pilot

  • Includes 9 TV channels and 19 radio stations:
     − SABC 1,2,3
     − SABC Entertainment
     − SABC Sport
     − SABC Education
     − SABC News International
     − eTV
     − eTV Classics
     − All SABC radio stations + YFM
GENERAL RESEARCH APPROACH
            TO THE DTT TRIAL
    DTT TRIAL - RESEARCH APPROACH



•   Objectives

    – To test the DTT service, infrastructure and functionality of the set-top boxes.

    – To assess the appeal of new channels.



•   Research Approach

    – A household panel.

    – The research trial consists of several phases expected to continue into April 2010.

    – Each participating household given a STB.

    – A Call Centre (toll-free), was established by the SABC.

    – Self-Completion Diaries (7 Days)
    DTT TRIAL - RESEARCH APPROACH


•    Universe
     – The TAMS (Television Audience Measurement Survey) Universe -
       Universe for South African Television Households .
     – Sample:
         • The sample comprises Households that have TV licence
         • The DTT Trial signal three transmitters (Johannesburg, Pretoria and
           Durban). Currently no “gap-fillers” support these transmissions.
         • 1460 Households – 4244 individuals age 13+
         • Mnet subscribers 20 households , DSTV 198 households
         • Rural Households are not included in the sample.
DTT RESEARCH CHALLENGES
RESEARCH TRIAL - CHALLENGES ENCOUNTERED

 ‐   No DTT Universe.

 ‐   Signal Coverage Constraints:
      • The limited coverage of the test signal, further studies needed to test DTT
        in rural areas
      • Signal frequencies have been unstable. Households become frustrated
        some have disconnected their STB as a result. The incidence of this will be
        measured.

 ‐   Limitations in Audience Measurement Methodology:
      • No“metered” panel possible due to time and cost constraints, and a 7
        Day Diary method was adopted instead.
      • DTT Audience measurement must have the capacity to distinguish
        between analogue and DTT viewership.
RESEARCH TRIAL - CHALLENGES ENCOUNTERED



 ‐   Broadcasting additional channels via DTT, prior to roll-out, is expensive.

 ‐   Technical Assistance to the Panel is Required
      • A Call Centre was also established to assist with the installation process.

 ‐   Controlling Software Upgrades

 ‐   Stock delivery; ”Swap-Outs” and Stock retrieval

 ‐   Auditing the Panel

 ‐   Communication with the panel
DTT INSTALLATION RESEARCH - FINDINGS
    INSTALLATION RESEARCH - PROJECT OVERVIEW

•   Background
    – Ease of Installation is a milestone in the DTT Trial
•   Objectives
    – Identify factors which inhibit and hinder installation
    – Audit the research panel (establish which households have been
      installed, and which have not)
•   Sample
    – 1039 Households (74% of Full Panel) with 1089 Installation Attempts
•   Method
    – Computer Aided Telephone Interview (CATI)
•   Field Period
    – Commenced in March 09 and is ongoing
SUCCESSFUL VS UNSUCCESSFUL INSTALLATIONS: (TECHNICAL ANALYSIS)
BY MANUFACTURER AND SUBSCRIPTION                    Surprisingly, there are no correlations
                                                                 between Type (Manufacturer) of STB and
                                                                 installation success. The same holds for
   Base: All Installation Attempts (n=1084)                            Satellite Subscription vs. Non-
                                                                              Subscription.

                    By Manufacturer

                                                                  By Subscription




                                                             (831)                 (214)



                             (689)
                               (400)
SUCCESSFUL VS UNSUCCESSFUL INSTALLATIONS: (DEMOGRAPHIC ANALYSIS)
BY AREA
                  Base: All installation Attempts (n=1089)

                            By Area                      As expected, Durban has
                  Gauteng                                 the lowest installation
                                                          success rate. This may
                                                           be attributed to the
                                                          “mountainous” terrain
                                                         which negatively affects
                                                             signal reception.

                                                              Success levels in
                                                            Gauteng, where the
                                                          terrain is relatively flat,
                                                           increase significantly
                                                         when viewed on its own.
SUCCESSFUL VS UNSUCCESSFUL INSTALLATIONS: (DEMOGRAPHIC ANALYSIS)
BY LSM GROUP
                                                     Incidence of Successful Installation is
                                                                    evenly
  Base: All installation Attempts (n=1089)           distributed across all Living Standard
                                                                    Groups.

                                      By LSM Group
D.2. Would you describe the installation of this Set-top box as…. to install?

 Base: All First Successful Installations (n=650)




                                                       93% of Successfully Installed
                                                         households claim that the
                                                         installation is Very Easy or
                                                              Somewhat Easy.
                                                    This suggests that if everything is in
                                                      working order, installation is a
                                                           relatively simple task.
17.1. Were any adjustments made to the aerial during installation of the STB?
18.1. Did you contact DTT TRIAL ASSIST to make any enquiries about the installation or to assist you
with the installation?
19. Did any third party/contractor assist you with the installation?

   Adjustments to aerial                    Contact DTT TRIAL                     Contractor Assistance
   (Self and Contractor)                         ASSIST


                                                                                                   (100)
                     (237)                                  (261)




                     (852)                                  (828)                                  (989)




            (1089)                                (1089)                                  (1089)

                 Less than a quarter of all installations involved “drastic” or
                    outside intervention. Increased intervention may, of
                       course, result in increased installation success.
17.2. What adjustments were made to the aerial?

              Base: All installations that required adjustments
                               to aerial (n=237)
CONCLUSIONS
DTT INSTALLATION - CONCLUSIONS

 • It should be remembered that this survey is a snapshot in time.
   Successful installation levels may ultimately be higher –
   especially after intervention. Interventions include help from
   professional contractors and DTT Trial Assist.
 • At first, households were left to “figure-out” installation on their
   own. Installation levels thus depict what may occur if in reality
   there is no DTT Migration Communication Strategy.
 • When everything is in working order, and the signal is available,
   installation is a relatively easy procedure.
 • Signal problems occur in mountainous terrain, as shown by
   Durban’s lower success rate in installation.
 • Overall, panel members were eager to install and “test” the DTT
   service.
APPETITE FOR DTT
3.1. How long was the 1st Set-Top box in your home before you
tried to install it?
                Base: All First Installation Attempts
               (Successful & Unsuccessful) (n=1039)



                                                              Just over 80% of
                                                           households attempted
                                                         installation within a day –
                                                        This certainly suggests high
                                                        levels of enthusiasm for the
                                                              new technology.
3.1. How long was the 1st Set-Top box in your home before you tried to install it?


Base: All Installation Attempts (n=1089)



                                                              “Enthusiasm” for the
                                                              new technology also
                                                                  appears to be
                                                                 associated with
                                                             successful installation.
                                                              Those who installed
                                                               immediately exhibit
                                                                higher installation
                                                                  success rates.




              (689)           (400)
D.7. And how much time was actually spent on the installation of the Set-Top Box?
E.7. And how much time was actually spent on the installation attempt before deciding that
the installation was unsuccessful?

      Base: All Installation Attempts (n=1089)

                                                                     Most successful
                                                                    installations were
                                                                 completed under half an
                                                                   hour, suggesting that
                                                                  installation of DTT is a
                                                                 reasonably easy process
                                                                    when “everything
                                                                          works”.

                                                                 82% of the unsuccessful
                                                                  households “gave-up”
                                                                   on the installation
                                                                    within 1 ½ hours.


                (689)           (400)
H.1. What was the first thing you did after installing and setting-up
the Set-top box?
 Base: All First Successful Installations (n=650)



                                                     After installation, an
                                                        overwhelming
                                                       majority of panel
                                                     members were keen
                                                     to explore what DTT
                                                         has to offer.
H.2. What was your feeling about the installation and setting-up processes after
accessing the new TV Channels and Radio Stations?

                    Base: All First Successful Installations (n=650)




                                                               It appears that attitudes
                                                             towards the new technology
                                                               are very positive - 87% of
                                                             respondents stated that the
                                                              installation was worth the
                                                                         effort.
CONCLUSIONS
APPETITE FOR DTT - CONCLUSIONS

 • The majority of panelists were keen to “try-out” their set-top
   boxes, and most (83%) attempted installation within the first day.
 • Enthusiasm for the new technology appears to be linked to
   increased levels of installation – 67% of successful households
   had attempted installation immediately, whereas only 59% of
   unsuccessful households had done so.
 • More than 30% of households persisted with the installation
   process between the ½ hour to the 1 ½ hour time threshold.
   These levels of persistence again point to an eagerness to
   discover what DTT has to offer.
 • 87% of households felt that the installation effort was “worth it”.
DTT RADIO RESEARCH - FINDINGS
    DTT RADIO RESEARCH- PROJECT OVERVIEW
•   Objectives

    ‐   To explore panelists’ reactions to having access to radio via the DTT platform

    ‐   To measure listenership of radio via the DTT service

    ‐   To forecast future listenership of radio via the DTT service, based on the panelists’
        reactions

    ‐   To assess sound quality of radio via the DTT platform

•   Outcomes

    ‐   Uptake of radio via the DTT platform is positive as 60% of all respondents claim to
        have listened to radio via DTT in the past 7 days.

    ‐   Persons over the age of 50 years, in particular, exhibited a disproportionately high
        incidence of past 7 day listenership.

    ‐   Furthermore, 88% of all respondents claimed that it was Very or Somewhat Likely
        that they would listen to radio via DTT in the future. .

    ‐   It appears that DTT has the capacity to deliver superior radio reception in areas
        where other platforms deliver poor reception – as shown by the Durban results.
                          Thank you


            Yusuf Nabee                                 Jennifer Daniel
DTT Project Leader SABC         G M Audience Strategy and Research e.tv
    nabeey@sabc.co.za                               jenniferd@etv.coza
The Go Digital Conformance Tick

				
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