MR 45/2005

9 November 2005

High level of satisfaction with digital free-to-air television

Thirteen per cent of Australian households have adopted digital free-to-air television since its introduction in January 2001 and 86 per cent of adopters are satisfied with the technology, mostly because of the improved picture and reception.

There are significant knowledge shortfalls about digital television however, with 45 per cent of non-adopters not knowing if digital free-to-air services were available in their area, and 17 per cent of non-adopters not having heard of digital free-to-air television at all.

The findings are contained in the Australian Communications and Media Authority research monograph Digital media in Australian homes to be launched today at the ACMA Broadcasting Conference at the Hyatt Hotel in Canberra.

‘This research identifies early benchmarks in the inevitable transition from analog to digital free-to-air television transmission in Australia,’ said Lyn Maddock, Acting ACMA Chair.

The research examines, more broadly, community perceptions of digital media, the type of digital media platforms being used in homes, and the drivers and inhibitors to the adoption of digital free-to-air television.

The main reasons for the adoption of digital free-to-air television were improvements to picture quality, better reception, and extra channels. The rate of uptake was roughly similar for capital cities and regional areas.

Four per cent of all homes reported having high-definition television (HDTV) with 92 per cent of adopters expressing satisfaction with the technology.

Digital subscription television was also reported in 13 per cent of homes, contributing to a total 22 percent of homes with either digital free-to-air television or digital subscription television, according to survey respondents.

‘This timely study will inform ACMA, the Australian Government and television broadcasters about how the Australian community is starting to move from analog to digital free-to-air television,’ Ms Maddock said.

The main reasons given by non-adopters for not being interested in digital free-to-air television were lack of interest in more television, cost of equipment, and not knowing about digital television.

At this stage, digital free-to-air television seems to be a peripheral issue for most non-adopter households. Sixty-one per cent of non-adopters were either not interested or not sure if they were interested in taking up the technology. Seventeen per cent of non-adopters said they were interested but had no plans to purchase, six per cent planned to purchase after two years, and 14 per cent said they were planning to purchase within two years.

The research report which includes a summary of the results, is available from ACMA’s website.

Media contact: Donald Robertson, ACMA Media Manager on (02) 9334 7980.

Backgrounder

Research design and consultant

The research consisted of a nationally representative telephone survey of 1,148 Australian households. The sample was boosted to achieve representative samples of 308 digital free-to-air television adopters and 237 subscribers of digital subscription television, which ensured statistically meaningful results for these sub-groups. The sample also achieved 296 households with broadband Internet. The survey was conducted between 13 June and 16 July 2005.

Eureka Strategic Research conducted the research for ACMA.

Benefits of digital free-to-air television

Digital television is a relatively new technology being introduced in Australia to operate initially alongside existing analog television services. Digital will eventually replace analog television and can offer a number of potential benefits for viewers. These benefits may include improved picture and sound quality, choice of new channels, widescreen images, and a variety of program enhancements such as electronic program guides, multiple camera angles, interactivity, time shifting, alternative audio commentaries and program-related information.

Access to digital free-to-air television

Digital television uses a standard-definition television (SDTV) signal in a widescreen format to provide better picture quality compared to current analog services. A superior picture quality is also available from high-definition television (HDTV) provided the viewer has a receiver and display screen which is capable of processing HDTV signals.

To receive the benefits of digital television, a minimum of either a digital set-top box (attached to an analog set or monitor) or an integrated digital television set is needed.

ACMA estimates that 85 per cent of the Australian population has access to all local free-to-air television broadcasts, and about 90 per cent have access to at least one digital free-to-air television service.

ACMA’s role

ACMA is responsible for managing the conversion of television transmissions from analog to digital mode. Legislative conversion schemes have been developed by ACMA to convert commercial and national television broadcasting over a period of time.

Further results

The Digital media in Australian homes report includes research results on:

• digital media equipment used in households
• differences between digital and non-digital television homes
• reasons for conversion to digital free-to-air television
• satisfaction and dissatisfaction with digital free-to-air television in adopter households
• satisfaction and dissatisfaction with free-to-air television services
• interest in digital free-to-air television by non-adopters, and intentions to adopt
• community awareness and understanding of digital free-to-air television
• digital media usage patterns in the home
• use of interactive television features

A selection of results from the study is provided below.

Table 1: Top 9 most satisfying features of digital free-to-air television

N=308 adopter households with digital free-to-air television
Percentages add to more than 100 percent due to multiple responses
Source: Digital media in Australian homes study, ACMA, July 2005

Table 2: Household penetration of digital media

N=1148 television-using households
*The penetration of digital subscription television is likely to be higher than 13 per cent. At the time of this study there was an estimated 65:35 split between digital and analog, suggesting a household penetration of about 16 per cent for digital subscription television services. This would also have a positive effect on the total penetration of digital television.
Source: Digital media in Australian homes study, ACMA, July 2005

Table 3: Segmentation of households according to interest in adopting digital free-to-air television

N=1148 television-using households
Source: Digital media in Australian homes study, ACMA, July 2005