ACMA | Digital Media in Australian Homes - 2006
1
Digital media in Australian homes – 2006
Conducted for ACMAby Eureka Strategic Research
November 2006
ACMA | Digital Media in Australian Homes - 2006 2
This presentation
Background and objectives
Methodology
Sample characteristics
Digital media / DTTB overview
Drivers of DTTB adoption
Non DTTB households
DTTB adoption/intention segmentation
Conclusions
ACMA | Digital Media in Australian Homes - 2006 3
Background and objectives
Eureka Strategic Research commissioned by ACMA in September 2006 to update data collected in 2005 2005 research established reference points for key indicators in the
transition from analog to digital television broadcasting (DTTB) in Australia, covering...
• how people are moving to digital media platforms
• drivers of, and inhibitors to, the adoption of DTTB
• community perceptions of digital media
Key issues to be addressed in 2006: household take-up of digital television
consumer knowledge about digital television
community awareness of analog television switch-off
non-adopter DTTB awareness/attitudes/intentions
ACMA | Digital Media in Australian Homes - 2006 4
Methodology
Telephone survey methodology repeated in 2006 ‘representativeness’ the key goal... randomised, nationally
representative calling underpinned by White Pages
Fieldwork 6 – 31 October, end sample N=1,537 in all, 8,268 contacts with households across Australia made over this
period
Primary screening question: Does your household have a television? followed by “I need to speak with someone in your household who makes
decisions or contributes to making decisions about the purchase of items such as televisions. Are you 16 years or over and a decision-maker in regard to this type of item?”
note: 0.5% of households screened out via this criterion
ACMA | Digital Media in Australian Homes - 2006 5
Overview of findings
Changes since 2005 DTTB penetration significantly above June-July 2005 figures
2005 purchase ‘reluctance’ and hesitation overcome by many households
upgrade TV? => choose DTTB
“HD” now significant in consumer vocab, as are mentions of analog switch-off
Broadband penetration also significantly above 2005 downloading/streaming audio-visual content a significant new emerging
behaviour
Overall analog switch-off awareness has made only minor gain Non DTTB households are more ‘DTTB receptive’. However, a core
of uninterested households remains...
ACMA | Digital Media in Australian Homes - 2006 6
Sample characteristics
Metro v regional: 63% – 37%
Disability: 13%
LOTE household: 16%
Have children under 16: 28% 1
1
3
8
9
21
26
30
0 10 20 30 40
NT
ACT
TAS
SA
WA
QLD
VIC
NSW
% of sample
Base: All households, N=1,537
ACMA | Digital Media in Australian Homes - 2006 7
This presentation
Background and objectives
Methodology
Sample characteristics
Digital media / DTTB overview
Drivers of DTTB adoption
Non DTTB households
DTTB adoption/intention segmentation
Conclusions
ACMA | Digital Media in Australian Homes - 2006 8
Digital media overview
Subscription TV overall: 26.4%
Internet: 69.3%
Broadband overall: 51.7%
Audio-visual content streamed or downloaded from internet or on mobile device: 25.4%
Downloaders use: Computer monitor/laptop 88.7%Mobile phone 29.2%Personal mobile device (eg Ipod) 24.3% TV set 9.2%
Hard-drive recorder: 18.2%
Base: All households, N=1,537, * assumes 90% of pay TV is now digital
Free-to-air digital TV: 29.6% Net digital households approx 41% *
54.4% of subscription TV households are also DTTB households
ACMA | Digital Media in Australian Homes - 2006 9
DTTB overviewH
ou
seh
old
s w
ith
TV 29.6% receive DTTB
74% of these households have 1 set/display device that receives DTTB, 26% have 2+...
... of the 3,564 televisions/display devices/monitors used for watching TV programs in the sample, 609 are DTTB
13% penetration, 7% of overall stock2005:
Other82.9%
DTTB17.1%
ACMA | Digital Media in Australian Homes - 2006 10
This presentation
Background and objectives
Methodology
Sample characteristics
Digital media / DTTB overview
Drivers of DTTB adoption
Non DTTB households
DTTB adoption/intention segmentation
Conclusions
ACMA | Digital Media in Australian Homes - 2006 11
2.9
0.4
1.8
2.0
2.6
3.1
3.1
3.7
4.0
4.4
4.6
5.3
6.8
9.7
12.7
14.7
15.6
19.6
28.4
36.5
0 5 10 15 20 25 30 35 40
Other
Digital recording of TV (hard drive)
More functions / information
Child wanted it
[I f TV Purch] No choice / 'forced', for TV to work
Not sure / no particular reason
Better sound
Partner / adult wanted it
Gift / free
Good deal or part of package
High Definition
Other's recommendations / encouragement
Better / better quality
Larger picture (widescreen)
Need it eventually / change-over / long-term decision
New / latest / best technology
Extra channels / variety and choice
Improved reception/signal
Upgrading / replacing TV / needing for new TV
Better or clearer picture / picture quality
% mentioning this reason
Drivers for DTTB adoption
Base: Adopter households, n=455
Stronger driver than in 2005 (11%)
Remains most prominent... 27% in 2005
New in 2006!
Top 4 the same, but with some changes in positioning
Less blurring with Pay TV than in 05
ACMA | Digital Media in Australian Homes - 2006 12
Examples
I had watched my brother’s TV which was digital and the picture was far better than any
picture I had seen.
Bradley thought that it would give us a better picture as they have one at work that he
reckons is a brilliant picture and it's digital too.
I was buying a new TV, so figured I might as well go to the latest release in TV technology.
We were setting up our first home together and decided to get digital to start off with
rather than the older style of TV.
So that I could get good reception.The reception in our home was awful, even
with a decent aerial. The guy who came out to fix the aerial suggested digital as a solution.
We can also get a few local channels now that we were unable to before.
We wanted to get ABC 2.
Better or clearer picture / picture quality
Upgrading / replacing TV / needing for new TV
Improved reception / signal
Extra channels / variety and choice
ACMA | Digital Media in Australian Homes - 2006 13
DTTB households Statistically significant differences
More likely to have household decision-makers who...
are in the 25-34 and 45-54 age groups
have children
are employed full-time
have technical college or university qualifications
report household income > $70,000pa
live in house/townhouse
ACMA | Digital Media in Australian Homes - 2006 14
This presentation
Background and objectives
Methodology
Sample characteristics
Digital media / DTTB overview
Drivers of DTTB adoption
Non DTTB households
DTTB adoption/intention segmentation
Conclusions
ACMA | Digital Media in Australian Homes - 2006 15
Non-adopter DTTB awareness Is digital free-to-air TV available to households in your area?
Base: Non-adopter households, n=1,082
No5.5%
Don't know - have heard about DTTB
36.6%
Don't know - have NOT heard about
DTTB20.3% Yes
37.5%
Knowledge ‘deficit’ remains pronounced among non-adopter households (DK total = 46% in 2005)
ACMA | Digital Media in Australian Homes - 2006 16
Non-adopter interest
Yes29.2%
No39.2%
Don't know/undecided
31.5%
Base: Non-adopter households, n=1,082
In 2005, No=48%, DK=13%, Yes=39%... significantly higher proportion of non-adopters now ‘sitting on fence’
ACMA | Digital Media in Australian Homes - 2006 17
Purchase intention among interested Yes
29.2%
Yes68%
No13%
Don't know/undecided
19%
Within 12 months25.6%
1 to 2 years23.3%
> 2 years22.3%
Don't know/undecided
28.8%
Hardware purchase intention among ‘interested’ Planning to purchase DSTB or integrated DTV?
Timeframe
Only 6% in 05
ACMA | Digital Media in Australian Homes - 2006 18
3.8
0.9
1.3
1.3
1.6
1.6
3.8
5.1
5.7
6.3
6.3
7.0
10.4
16.8
16.8
27.2
36.4
0 5 10 15 20 25 30 35 40
Other
Digital recording of TV (hard drive - pause, replay)
Partner / adult wants it
More functions / information / interactivity
Child wants it
High definition
Better sound
Lower price / budget availability
Better / better quality
Larger picture (widescreen)
New / latest / best technology
Not sure / Don't know the difference / no specific reason
When upgrading / replacing TV set
Extra channels / program variety and quality
Improved reception/signal
Need it eventually / long-term decision / when I have to
Better or clearer picture / picture quality
% mentioning this reason
Reasons to adopt
Base: Interested non-adopter households, n=316
Top 4 the same, but with some changes in positioning
2005: 36.4%
2005: 14.6%
2005: 17.9%
2005: 23.8%
‘Inevitability’ higher in 06!
ACMA | Digital Media in Australian Homes - 2006 19
Examples
As far as I am aware, it improves the quality of your picture.
I'm told quality of image or picture resolution is far superior to normal free-to-air.
Only because it will be the only thing available.Basically it a matter of time before analog is
wiped out. It’s coming - like what happened to VCRs.
... no interference due to it being digital it doesn’t get affected by wind or weather.
I think it will improve the quality of my TV reception.
I understand there are other channels that you can get that may be of interest.
More channels, we've talked about ABC2.
Better or clearer picture / picture quality
Need it eventually / LT decision / when I have to
Improved reception / signal
Extra channels / program variety and quality
ACMA | Digital Media in Australian Homes - 2006 20
Specific/additional knowledge requirements
Base: Interested non-adopter households, n=316
2.8
1.3
1.3
1.6
2.5
3.8
4.1
5.1
5.1
6.6
7.6
8.2
10.1
11.1
13.9
20.6
23.7
0 5 10 15 20 25
Other
Need demonstration (eg friends, retailer)
Number and types of channels / programs (any new ones)?
Durability and longevity of technology
Changeover - why and when?
Technical information / How it works
Quality/ improvement of picture, reception / guaranteed?
Information about set-up
Whether/when digital signal (reception) available in their area
Information about using it
What is required (eg equipment, aerial, compatability, old TV ok?)
What options are available/best? (eg equipment, brands, features)
Don't know / Not specified
What it does / benefits and features (vs analog)
Cost (initial, ongoing, will prices fall?)
Everything / more information
No perceived need for information
% mentioning this reason
2005: 14.4%
2005: 13.3%
2005: 22.6%
2005: 4.9%
2005: 7.4%
On balance, some fundamental knowledge
needs remain
ACMA | Digital Media in Australian Homes - 2006 21
Examples
I don’t need more knowledge I just currently cannot justify the cost.
Nothing. I've not gone into it I'll wait until it becomes compulsory.
Lots. I don't know much about it at all, other than there is a possibility it will be necessary
to have sometime in the future.
Everything, (from) how to use it, to how to operate it and most of all how to set it up.
How much it would cost and whether or not it is advisable to go to a slightly more expensive
digital top box rather than one of the quite cheap ones I have seen advertised.
What sort of money you have to spend to get a decent one. If there is much difference between a cheaper version and a more
expensive version.
Basically what it offers, what the service provides.
I need more knowledge about what it does and if I need it.
No perceived need for information
Everything / more information
Cost
What it does / benefits and features
ACMA | Digital Media in Australian Homes - 2006 22
Reasons for non-interest
Base: Uninterested non-adopter households and interested households with no plans to adopt, n=865
5.7
0.6
0.8
0.9
1.0
1.2
1.2
2.0
2.0
2.1
2.3
2.8
3.2
3.8
5.1
5.2
6.2
6.5
14.7
19.4
22.0
25.4
0 5 10 15 20 25 30
Other
Want more channels / program choice
Prefer DVDs or videos
Heard of reception / picture quality problems
Lack technical knowledge / interest
No digital signal / not available in area
Access FTA channels through pay TV
Happy with current channels / programs
Current program quality / variety poor
Satisfied with current reception / picture quality
No real difference / don't see the benefit or point
(Digital) pay TV good enough
Not at the moment, but probably future
Too old
Will not purchase until required / absolutely necessary / switch off
J ust not interested / not important
Not until need to buy new TV / b/c do not need new TV
Reason not specified / DK
Currently satisfied / no need
Don't watch much (FTA) TV / don't want to watch more
Have to buy equipment / too expensive / not good value
Don't know much/anything about it / haven't thought about it
% mentioning this reason
Top 4 the same, but with some changes in positioning
2005: 26.6%
2005: 32.0%
2005: 11.8%
Resistance/inertia still significant, though some evidence of ‘inevitability’
New in 2006!
2005: 20.4%
ACMA | Digital Media in Australian Homes - 2006 23
Examples
Not aware of it - and don't really care.I just need time to work it all out and see what
it all means, so maybe one day when I have some free time.
It is still too expensive. I don't have that much spare time to watch TV.
Unless one of the boys wants to pay for it, I have no interest in it. The TV that we have
works perfectly well without it.
I hardly ever watch TV, and don't feel like spending any more money on one or on anything to modify the TV that I have.
It’s not really something I have thought about. My wife and I don't watch much television and
so it’s not a big interest to us.
I like the TV I have. It works fine for how much I watch.
There's no need for it. What we have is fine.
Don’t know much/anything about it
Have to buy equipment / too expensive / not good value
Don’t watch much TV / don’t want to watch more
Currently satisfied / no need
ACMA | Digital Media in Australian Homes - 2006 24
This presentation
Background and objectives
Methodology
Sample characteristics
Digital media / DTTB overview
Drivers of DTTB adoption
Non DTTB households
DTTB adoption/intention segmentation
Conclusions
ACMA | Digital Media in Australian Homes - 2006 25
DTTB information sources
Base: All households, except those who have not heard about DTTB n=1,317
6.8%
3.3%
3.4%
6.1%
7.6%
17.4%
18.6%
26.3%
27.9%
28.6%
0% 5% 10% 15% 20% 25% 30% 35%
Other
Radio talk show
Radio news
Don't know/unsure
Internet
Newspaper
Retail outlet / salesperson
HAVE NOT sought / received DTTB info
Friends/family/colleagues
TV
Remains high... 20% in 2005
ACMA | Digital Media in Australian Homes - 2006 26
Awareness of analog switch-off
Base: All households, N=1,537
62% aware2005:
Yes66.8%
No29.9%
Don't know3.3%
Note: 17.4% of DTTB households are not aware!
Do you know that the current analog free-to-air television services (that is, channel 7, 9 and 10, the ABC and SBS) will be completely replaced by digital free-to-air television in the future? This will mean that you will not be able to receive any free-to-air TV services without special digital TV equipment.
ACMA | Digital Media in Australian Homes - 2006 27
DTTB segments
Adopters29.6%
Interested but not planning to purchase
6.5%
Unsure if interested22.2%
Not interested in adopting27.6%
Interested and planning to purchase14.1%
42%2005:
11%2005:
12%2005:
22%2005:
13%2005:
Very positive movement in segment membership since 2005
ACMA | Digital Media in Australian Homes - 2006 28
Conclusions
Low ‘category entry’ barriers, significant purchase consummation since 2005
DTTB is becoming ‘mainstream’... naturally included in TV purchase decision
‘Picture’ continues to drive adoption, but some evidence of ‘DTTB inevitability’ also entering purchase decisions
Adopters
More DTTB-receptive, but 2005’s fundamental information needs remain. What are its benefits? What do I need? How does it fit together? What does it cost? Is it good value?
Non-adopters
Challenge is to move non-adopter segments to a more DTTB-receptive stage. Communications in core areas above will strategically ‘partner’ the buoyancy of DTTB at the
retail/purchase level.
Strategic
Insignificant gains in overall analog switch-off awareness