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Viewing report
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Digital Terrestrial TV: What's Next?
IDATE, Oct 2003, Pages: 100
At a time when digital terrestrial is in the midst of major developments, this report offers its analysis of the future of DTT: - A prospective study of the future of digital terrestrial TV - An evaluation of development potential up to 2010 - The lessons to draw from past failures, and new launch scenarios: in Europe - Germany, Austria, Spain, Finland, France, Ireland, Italy, the Netherlands, Portugal, the UK and Sweden - and in the United States and Japan
The “winning scenarios” for introducing digital terrestrial and switching off analogue broadcasting- DTT in France: the conditions for success“Digital terrestrial TV: what's next?” examines the most significant DTT initiatives, and seeks to pinpoint the mistakes that were made by the pioneer digital terrestrial services, and what appear to be the key factors for future success.Paradoxically, the successful transition from analogue to digital terrestrial TV appears to be more certain in those countries with a dense cable network:
In highly cabled countries the stakes are lower, from a social standpoint, the goal being to migrate a minority of the population to digital. Added to this, DTT offers a major advantage in these countries: access cost. In a country where virtually all households have access to some thirty analogue channels for roughly 30 EUR a month, it is more tempting to migrate to DTT which offers 20 to 30 digital channels either for free, like in Germany, or for a price that is lower than a basic cable package, as is the case in the Netherlands.
On the flipside, in those countries where analogue terrestrial broadcasting is still the predominant mode, the social stakes are higher. Given the number of households that need to be migrated, the goal is to offer a credible alternative that will provide an incentive for this majority to make a swift transition to digital, while not penalising them either in terms of coverage or access cost.Another major difference between these two country categories is channel financing. The channels that are present on DTT in Berlin and in the Netherlands are all existing channels that are financed by advertising. The challenge for these channels is to generate additional revenues through their presence on DTT that will cover broadcasting costs. In those countries where terrestrial broadcasting dominates, the difficulty lies in the fact that a great many new Free to Air channels need to be financed. The forecasts for analogue terrestrial households in the European Union’s seven largest markets between 2002 and 2010 are also included.
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