UK Households Buying Second Digital TV, Ofcom

In Ofcom’s morning release of its third quarter figures for digital TV (dTV) penetration in the UK, they’re reporting an estimated 55.9% of UK households now have dTV in some form.

The dominant provider of dTV in the UK is still Sky, with over 7m subscribers, although they have only added 53,000 more in the quarter.

With just short of 4m households is Freeview (the UK Free-To-Air Digital Terrestrial Television service), which exceeds the combined analogue and digital services of UK cable TV providers NTL & Telewest. Pure digital cable is running at 2.5m subscribers.

One of the big concerns with digital switch off has been going beyond the first dTV set in the house. It was fine to say that over 50% of UK households had digital TV, _but_ given that the UK average is 2.5 sets per household, what was going to happen to the analogue sets that were left? There might be a lot of unhappy people not able to watch TV the day after analogue switch off.

The latest figures bring good news to those worried about this. Around a quarter of new sales of Freeview went to homes that already have one digital TV. With the pricing of the Freeview Set Top Boxes (STB) starting from as little as £49 (~$95, ~€71), households must be finding the content on Freeview compelling enough to want also have it in the kitchen, bedroom or child’s room.

What isn’t clear from the figures, is if the original dTV set was Freeview, Sky or cable. We contacted Ofcom to dig a little deeper, only to find that they “don’t dig that deep” into the figures. One thing that did become clear during the chat, was that Sky household’s that purchase a second box are not broken out at all, but are just added to their overall subscriber base numbers.

Full Ofcom Digital Television Update – Q3 2004

NDS Threaten TiVo with DirecTV PVR

There won’t be much surprise to hear that the now Murdoch-controlled DirecTV is readying the launch it’s own PVR around Spring 2005, whose function mirrors TiVo. Added to this, NDS the creators of the rivals PVR, claim their unit will handle Pay Per View programming better – by charging for the content when it is watched, not recorded. This will give them the opportunity to speculatively tempt the viewer with lots of yummy content.

The divorce of DirecTV and TiVo has been long, protracted and painful to watch. Much like friends watching from the outside as a marriage crumbles, where everyone appears to know that it’s over, except the unhappy couple.

TiVo has already had experience of the Murdoch approach to their business, when the two ‘worked together’ to bring TiVo to the UK. It is sufficient to say that TiVo stopped selling their product in the UK after only selling 30,000 units. It’s likely that most of these, probably would’ve been brought directly from the US anyway.

The big problem for TiVo is that DirecTV is their largest single customer and it will seriously impact their business. We imagine that they’ve been expecting it since DirecTV sold its 55% stake in one lump and its vice chairman, Eddy Hartenstein, resigned from their board back in June this year.

When this news is combined with, in our view, the near suicidal idea that TiVo plan to ‘upgrade’ the software on their subscriber’s boxes to display popup banner ads when fast forwarding through the TV adverts, you have to think that TiVo is in serious trouble.

Times have changed, and what was once special about TiVo has now become commonplace, and sadly, they don’t appear to be able to add anything to their offering as magical as the original.

We’re dismayed to read in the news report that the new DirecTV device will not have the ability to skip through the adverts. While we’re not surprised that an integrated company like News Corporation want to stop their subscribers for skipping through a revenue stream, we’re saddened that a feature that was so much a selling point for the original PVR, is going to be withheld. We wonder what the reaction of the subscribers that currently have the TiVo box that will be ‘upgraded’ to the new system will be? Even if the reaction is bad and vocal, it’s highly lightly that this will be a mere blip in the media landscape stretching forward.

DirecTV
TiVo

VoD, NVoD & DVR All to Grow In Europe – Yankee

Combined Annual VoD and NVoD revenue will increase fivefold to Euro 2.2 Billion by 2008, while DVR service penetration will also increase to 20% of Western European Digital TV Homes by 2008, says Yankee Group.

Video on demand (VoD) and digital video recording (DVR) are phrases that service providers are getting very used to – because that is where their business is heading, and both will “coexist as complementary options for digital TV customers,” says Jonathan Doran, Yankee Group Broadband & Media Europe senior analyst, in yesterday’s news release.

Yankee predicts that Video-on-demand (VoD) and its variants will account for an increasing proportion of digital TV revenue in Western Europe, with products like FastWeb and arrivo accounting for a growing proportion of European pay-TV revenue in the next 3 to 5 years.

Two reports, On-Demand TV, Part 1: VoD Will Grow Europe’s Pay-TV Markets, but Not Much, and On-Demand TV, Part 2: Operators Must Move Fast to Add DVR to Their Digital Proposition, mention some challenges that VoD must face. Cable operators, for example, will have to fork out for digital upgrade costs and provision of customer-premises equipment, while satellite operators won’t be able to provide true VoD services if they don’t have a return path. Furthermore, while services such as Sky+ and PILOTIME are showing strong initial appeal among early adopters, high subscription fees will deter many users.

But most importantly, Yankee says platform operators will have to recognise that VoD represents an enhancement of the digital TV value proposition rather than a core application, so that although VoD will become an intrinsic part of digital TV, it will only account for a modest share of overall service revenue.

Operator-provided DVR service faces numerous challenges, Yankee warns, like competition from standalone retail DVR and DVD-R units. However, as equipment prices continue to fall and platform operators increase their marketing push, consumer adoption of DVR service is increasing. “DVR services will be more widely and frequently used by digital TV subscribers than regular VoD offerings that are limited to the less ubiquitous cable and broadband platforms,” says Jonathan Doran.

It’s still more theoretical than practical at the moment, so many cable operators will have to play it safe and offer both VoD and DVR until a demand pattern is established.

BBC Spooks Dares to Combine Drama and Interactivity

As more people take up digital television, whether through Freeview, Sky or other means, the enhanced viewing experience becomes the norm rather than the exception.  For instance enhanced sport broadcasts, such as BBC coverage of both Wimbledon and the Olympics, offer viewers the opportunity to tailor the broadcast programming to their interests by enabling them to watch events that would not otherwise be available.  Likewise Sky’s fenhanced football allows viewers to choose the commentators and camera angles.  News multi-screen offers similar flexibility in navigating news content. Yet interactive drama programmes are often regarded as the holy grail of enhanced television.  The scripted linear narrative is seen as a barrier to interactivity.  So when producers of the Five soap Family Affairs announced that they planned to broadcast an interactive episode in May 2004, pundits were intrigued.  Theirs was the Big Brother version of interactivity – viewers were asked to vote, by phone,  on the outcome of a love triangle.  The phone vote generated extra income for the broadcaster and new viewers for the programme.  On the record, the producers were delighted to offer a television first.  However, when asked about the interactive episode off the record, a very senior executive involved at all stages of development and production said at the time,  “Never again”.  It turns out that accommodating even such a limited element of uncertainty in the narrative posed great difficulty for future storylining and production schedules.

BBC Spooks InteractiveMore recently the BBC has claimed to offer yet another enhanced drama first with interactive Spooks.  The third series of this successful spy drama began transmission on BBC1 Monday 11 October.   Unlike Family Affairs’ tentative foray into interactivity, viewers will not be voting on Spooks storylines.  (If they could, they’d most certainly vote to keep Tom Quinn, the main character played by Matthew Macfadyen who exits the show in Episode 3.)  Instead immediately after the programme, digital viewers are invited to find out if they have what it takes to make it as a spy.  Led by Harry Pearce (a crossover character from the television series portrayed by Peter Firth), participants take a series of scored tests that examine essential espionage skills such as memory, reaction and observation.  From Episode 6 viewers will be able to participate in a mission that was written by Steve Bailie, an experienced writer of television drama.  “The aim,” Sophie Walpole BBC’s Head of Interactive Drama & Entertainment told us, “is to offer fans a deeper relationship with both the programme and its characters.”  In addition, Walpole pointed out,  “fans will get something back – they’ll get to know a little about themselves.” 

According to the BBC, the number of unique users for the Spooks Website during the second series “ran into the hundreds of thousands.”  The decision to develop and produce the interactive platform was taken because the producers had such a strong proposal.  According to Walpole, “ The BBC is always looking at ways to develop its content.  But Spooks was not singled out for development in this way.  The producers had a really good proposition.”  She continued, “ The inspiration and vision of Andrew Whitehouse (the producer of Spooks’ interactive content) was incredible.  We had a great producer with a great idea.”  The enhanced TV elements are intended to complement the revamped Website so that, although the site also offers a spy training academy, the experiences are completely different. “The Spooks superfan who goes to both the Website and the interactive elements will not feel like they’ve had a similar experience,” said Walpole.  Figures for new users of the Website or users of the enhanced television platform after transmission of the first episode are not yet available.

When asked how technology affected the development of enhanced television in general, Walpole stated that while it is technically possible, the BBC opted not to transmit enhanced Spooks via broadband because they wanted it to be seen by as many viewers as possible.  “Although they continue to grow, broadband audiences are still small.”  Looking to the future Walpole said she was certain that the BBC would make this type of rich content available to broadband users, possibly as soon as next year.

From what I’ve seen so far, the BBC has reason to be proud of interactive Spooks.  By recognising that interactive drama doesn’t necessarily infer gimmicky phone votes (aka viewer extortion) or ceding control of the narrative to the audience, they deftly avoided the traps that frustrated at least one Family Affairs executive.  The production values on Spooks are really very high indeed.  And the spy training modules transmitted after Episode 1 were good fun.  Most importantly, they lend themselves quite nicely to a shared experience – an element of the interactive experience that  is essential for television audiences.  The aim of providing a way for fans to develop a closer relationship with the programme is definitely achieved.  If the enhanced Spooks disappoints at all, it is that the enhancements are extremely limited.  The spy training takes approximately 30 minutes to complete – that’s a bit too long.  Unfortunately, there’s no way to navigate through the game; participants must start at the beginning and move through to the end to get scores.  Also, the training modules will be repeated after Episodes 2 through 5 and the narrative mission transmitted after Episode 6 will be repeated after Episodes 7 through 10.  While this offers viewers the opportunity to practice their skills it means that, in effect, there are only 2 unique enhancements throughout the 10-week run.  That’s a great shame because they’ve done such a good job of creating enhanced Spooks that I really would have liked more!


In the UK, Episodes 3 – 10 of Spooks will be broadcast Mondays at 21.00 on BBC1.  Episodes are repeated on Saturdays at 21.10 on BBC3 followed by an advance transmission of the next episode at 22.10.  The interactive elements are broadcast immediately after transmission on both channels.

BBC Sppoks site

TV-B-Gone – Rid your world of unwanted TV

Think of all the waiting rooms where you have had to endure mindless soaps, the bars where you have been silenced into submission by a cocktail of football or MTV – depending on which end you sit.  If you have ever wished for a gizmo that would quell the cacophony then your wish has been granted.

A gadget cunningly disguised as a car alarm remote clandestinely switches off television sets by the simple press of a button now exists.  Get your hands on one of these and going for a pint could yet again become the social event that it was fifty years ago – before the art of conversation was subsumed by wide-eyed silence punctuated by disjointed roars.

The gadget with the moral dimension has a name with a biblical ring – TV-B-Gone, and like the parting of the Red Sea it will silence the attention sapping scourge in any public area. When activated, the universal remote control with a mission will spend about a minute flashing out 209 different codes to turn off televisions, attacking the most popular brands first. There is an American-Asian model and a European one, using different codes.

TV-B-Gone’s inventor Mitch Altman, who was recently interviewed by Steven Bodzin for Wired, already has a pretty impressive track record.  He wrote an Apple video game in 1977, which became a military training module, worked on virtual reality systems in VPL in the 1980’s, and more recently patented hard-drive controllers developed in his Silicon Valley data-storage maker company, 3Ware.

TV-B-Gone has just gone on sale so perhaps unwanted ambient TV may become a thing of the past, a social pariah we will tell our grandchildren about.  Question is are the TV manufacturers going to fight back?  Or, will it be the start of a whole new battle of wits like that between the computer security industry and the hackers, spammers and virus writers?

TV-B-Gone

Microsoft Announces Plans for Your Digital Living Room and 22 New Security Flaws in Windows Products

Microsoft began the latest phase of its big push for consumers’ digital lives by unveiling Windows XP Media Centre Edition 2005 (MCE) and a host of products designed to work alongside it.

Bill G and Queen Latifah demonstrated the most recent features in MCE at an event in Los Angeles, highlighting integration with Windows Media Player 10 and a compatibility with a range of new hardware devices.

To coincide with the do, Microsoft’s main press release describes a hypothetical family and how they might use digital media across the day – from recording TV programmes via their web browser to broadcasting music around the home using a Media Centre Extender.

The company also announced 22 new security holes in its Windows range whilst issuing an update to address them. One of the new flaws managed to affect Macintosh OSX users.

By promoting MCE as a digital hub, the company hopes to show consumers that they can view, share and store their movies, music and pictures around the home and on the move. To reinforce their view of the future, the company also announced a number of devices from partners like HP, Dell and Creative Labs.

Music is a very important part of MS’s plans, with Windows Media 10 and MSN Music receiving another PR boost. Amongst the devices promoted by MS were new Digital Audio Receivers from Dlink, Roku and MoniFi which are designed to play digital music from a central source in any room of the house. Creative, Gateway, iRiver and other also announced new digital media players for the Christmas season, with capabilities ranging from simple music to full video playback.

Will Poole, senior vice president for the Windows Client division at Microsoft said in a statement: “For years, many in the consumer electronics industry have viewed digital entertainment as a field of dreams: if you provide consumers with a solution, they’ll build it into a larger experience – regardless of cost or complexity. Windows XP Media Centre PC and all of these other devices and services make it possible, for the first time, for the average consumer to enjoy digital entertainment anywhere, anytime and in any way.”

Microsoft’s Media experience

FCC Begins Digital Television Push

The USA’s Federal Bureau of Communications has started their big consumer campaign to switch the country over to digital television by December 2006, or January 2009 depending on who you ask. Starting with an interview with chairman Michael Powell at half time during Monday Night Football, the campaign is based around a website designed to help consumers learn about digital television and assist them in their decisions when moving from analogue.

I’m trying to imagine Tessa Jowell appearing at half time during ITV News Football Extra and it’s not really working for me.

Powell said during a press conference to mark the campaign: “Although for the vast majority of American households, digital television may be uncharted territory, we will not let them go it alone. If you have questions about digital television, the FCC is ready to serve as a primary resource for quick answers. Then we hope they will get DTV — get the set, get the connection, get the content.”

The FCC certainly have a huge task in front of them if they are to be stuck with the initial 2006 date: there are only 11 million digital TV sets in the US – that’s just 10% of households, with only two years to go. The deadline may well be put back to January 2009, a date that Powell intends have the commission vote on later this year.

The FCC’s DTV site

Ofcom: A New Framework for Public Service Broadcasting

Ofcom, the UK communications regulator has published the second phase of their review of public service broadcasting. Their review contains a number of proposals intended to enhance and strengthen public broadcasting in the UK to ensure that it is not damaged by the country’s transition to a multichannel, digital market. Ofcom are also keen that the public’s subsidy of the TV market, currently standing at around UK£3 billion (€4.35 billion) should not increase.

The frame work has seven proposals and includes:

  • Supporting a independent, fully-funded public BBC
  • Channel 4 to remain as a non-profit free to air broadcaster capable of entering alliances and joint partnerships with other organisations.
  • A competition to run a new Public Service Publisher using new technologies and distribution systems to meet audience needs – though the BBC is obviously disqualified from entering.

The closing date for responses to the Ofcom report is 24th November 2004, though the review will not be completed until after Phase 3 is published.

Ofcom’s report

Akimbo Showcase Internet-toTV VOD Service, Make Deal With TBS

Still can’t find anything worth watching on TV? Akimbo have demoed their internet-to-TV video-on-demand service at the Digital Hollywook show in California this week.

The service is planned to launch in October, and will deliver thousands of hours of video content to a set-top box, the Akimbo Player via subscribers’ broadband connections.

The Akimbo system uses a “Que and View” interface and dedicated remote control to allow users to select programmes that they wish to see – for delivery to them for later viewing.

The Akimbo player holds about 200 hours of video at 1.5 megabits per second, and two of the key advantages are that it doesn’t tie up subscribers’ PCs, nor do they have to watch programmes on a monitor — they can cosy up in their front room. The service will launch at US$9.99 (€8.10) a month, and will include films, music, sports, comedy and drama content amongst others.

Akimbo, founded and managed by execs from ReplayTV, Macromedia, Microsoft and Apple, has also signed a deal with Turner Broadcasting Systems to license thousands of hours of content from CNN, Cartoon Network, TCM and Boomerang.

Kevin Cohen, senior vice president and general manager, interactive/enhanced television for TBS said in a statement: “We are pleased to work with Akimbo and are looking forward to learning how consumers respond to this new subscription on-demand technology.”

Akimbo

Two Way TV Acquires Broadcast Games

Two Way TV has acquired mobile-to-TV specialist Broadcast Games, and will incorporate the company to form Two Way Mobile. Two Way TV hope that the acquisition will bolster its existing mobile services, including a service produced with ITV earlier this year.

Founded last year by Julian Jones and Jani Peltonen, Broadcast Games bring their SAMPO mobile-to-TV interaction platform, which lets users play games, chat and interact with TV broadcasts using their mobile handsets, interactive TV button and internet connections.

Commenting on the deal, Jean de Fougerolles, the chief executive of Two Way TV, said: “We are integrating the expertise of Broadcast Games with our existing mobile-to-TV services, to create innovative and market-leading mobile-to-TV games which work on analogue services, as well as digital platforms. This is all part of Two Way TV’s aggressive growth strategy to make sure that we stay at the forefront of interactive programming and is the first in a number of strategic partnerships that we will be announcing between now and Christmas.”

Julian Jones added: “This is a really strong partnership. Broadcast Games was set up last year but in that time we’ve managed to get a platform off the ground. This deal with Two Way TV means we will become part of a substantial, growing company where mobile-to-TV games form an important component of the business.”

Two Way TV