DTT DTT Development Development in Italy in Italy Egidio Viggiani Egidio Viggiani General General Secretary Secretary Sarajevo, 22 May 2008 Sarajevo, 22 May 2008
Jan 02, 2016
DTT DTT DevelopmentDevelopment in Italy in Italy
Egidio Viggiani Egidio Viggiani GeneralGeneral SecretarySecretary
Sarajevo, 22 May 2008Sarajevo, 22 May 2008
INDEX
Digital television
DTT: Regulatory Framework and Governance
Digital Terrestrial Television
Regional Switchover
Back up: Market Overview
Outstanding points
Digital Television
16,4%23,7%
36,2%42,4%
49,7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2003 2004 2005 2006 E2007
Cavo/Iptv Satel l i te Tdt Analogico terrestre
Since 2004, digital tv penetration has grown significantly thanks to the launch of dtt.
Digital tv reaches today 50% of households
In the absence of cable, satellite and dtt are the two major digital platform, while IPTV is still at an early stage.
DTT: Regulatory Framework (1/2)
Due to lack of spectrum, analogue broadcasters were allowed to build dtt multiplexes by converting analogue frequencies in their use into digital and by acquiring new frequencies on the market through trading.
The PSB (Rai) had an obligation to create at least 2 multiplexes and 3 free to air channels.
Broadcasters with more than one analogue concession must reserve 40% of transmission capacity on their muxes to third parties, in order to allow them to broadcast in dtt.
DTT: Regulatory Framework (2/2)
The activities of network, service and content providers are subject to separate licensing schemes and must be accounted for separately (the Network operator must also be a separate company).
Dtt take-off was supported in 2004 and 2005 by means of interactive STB subsidies (150€ per 700K STBs in 2004, and 70€ per 1,5 M STBs in 2005)
The deadline for the switch off is set at 31.12.2012 (postponed twice from 2006 and 2008).
At the end of 2007, a new law established that analogue tv sets can no longer be sold after April 2009, and that from February 2008 analogue tv sets must be tagged to inform consumers that they cannot receive digital signals.
“Comitato Nazionale Italia Digitale” (August 2006)
Chair: Minister for Communications
Participants: DGTVi, AGCOM, Conferenza Unificata (State, Regions, Provinces and Municipalities), National & Local Broadcasters, Cable and Satellite operators, Consumers, ‘All Digital’ Regions.
Expertise Group Co-Chair: AGCOM and DGTViParticipants: Minister for Communications, digital broadcasters, cable and satellite operators, Invited: Consumers, All Digital Regions, Enterprises (manufacturers, vendors).
Communication Research &Data
Customer Care
Networks Set Top Box RegulationLegislation &Regional S.O. Plan Contents Co-ordination
among platforms
Plan of ActivitiesMonthly report
9 Working Groups
Digital Switch Over process: Governance
Digital Switch Over Process: DGTViInstitutions
“Comitato Nazionale Italia Digitale”
Institutions
“Comitato Nazionale Italia Digitale”
Industry
Technical standards
Industry
Technical standards
Distributors & Vendors
Info Web
Distributors & Vendors
Info Web
Consumers
Info Web
Consumers
Info Web
Other PlatformsOther Platforms
DGTVi is the Italian Association of Digital Terrestrial Broadcasters (www.dgtvi.it). Since the launch of DTT it has promoted the development of an open advanced DTT Platform, with MHP middleware and interoperability of different CAS systems.
Digital Switch Over Process: DGTVi
DGTVi has promoted the use of special logos (so called “bollino blu” and “bollino bianco”), to help consumers identifying products that will work through switchover.
“Bollino blu”: certifies that a STB can receive all services offered via DTT (Fta channels, PPV offers, interactive services/MHP).Most STB manufacturers (>90% of market) have joined the initiative.
“Bollino bianco”: certifies that a Tv set, can receive Fta channels and PPV offer (integrated CAM). This logo is designed for Tv manufacturers. When applying this logo a Tv manufacturer agrees to implement the MHP standard in its Tv sets by 2009.
OperatorOperator N. MuxN. Mux Population coverage
Population coverage
22
2+1 DVBH2+1 DVBH
22
11
>70%>70%
82%& 79%82%& 79%
87% & 75%87% & 75%
73%73%
1 1 55%55%
LOCAL TVLOCAL TV >180>180 N.A.N.A.
DTT: Multiplex coverage
Satellite
Cavo digitale/Iptv
Tdt
Analogico terrestre
0
2
4
6
8
10
12
14
16
18
20
2003 2004 2005 2006 E2007
Mln households
DTT: Growth Rates
Sustained dtt growth in 2004/05 due to stb subsidies and the launch of the ppv premium soccer offer.
Dtt growth is expected to continue at high rates until completion of S.O. in 2012.
Dtt penetration is expected to overtake satellite (pay and free) in 2008.
DTT: Devices sell out
TOTAL SELL OUT: 8.069.889 (Feb04-Mar08)
24,3%
75,7%
Stb (6.108.817)
Dtt receiver (1.961.072)
Source: Panel GfK Marketing Services Italia.
95% of STB are Mhp, thus allowing for advanced interactivity.
Total sell out is estimated to be over 11 mln at the end of 2008.
DTT: Households
DTT penetration is estimated in 26,5%, if all families owning a STB are included. If however we include only households connected to the STB, the penetration rate is 24,3% (Mar 08).
Source: Makno
giu 07 ott/nov07 mar08
4.532 4.571 5.613
4.702 4.961 6.103
Famiglie DTTDecoder DTT
DTT offer: Free to air channels
TeleshoppingTeleshopping
Public Utility ChannelsPublic Utility Channels Movie/Cinema Movie/Cinema Religion ChannelReligion Channel
Infotainment: All-news, Finance, InternationalInfotainment: All-news, Finance, International ChildrenChildren
Music ChannelMusic Channel
Sport and Sport News ChannelsSport and Sport News ChannelsFTA-TV Channels in simulcastFTA-TV Channels in simulcast
Brand new DTT ChannelsSimulcast
DTT offer: Fta channels per operator
28 channels offered on dtt, of which 9 in simulcast, 10 provided by operators already present in analogue tv, 9 provided by other operators.
3 32
1
5
3
1
12
1 1 1 1 1 1 10
1
2
3
4
5
6
7
8
Rai
Mediaset
T.I.M
edia
L'Esp
resso Dfree
Class E
ditori
Anica
Sitco
mC.E.I.
Puntosho
pBBC
Tf1-Fr
ance T
V
Canali anche analog. Canali TDT Free (no simulcast)
DTT Fta channels: broadcasters’ strategies
Incumbents: like in other countries, after some initial uncertainty due to the small return of investments in dtt, incumbents are now investing in multichannel as a way to compensate the inevitable loss of audience.
Public Service Broadcaster (Rai): greater role to be played by the PSB in the development of new dtt channels, as well as in the transition to dtt (communication/information).
New comers and smaller broadcasters are waiting to see how the platform develops. Greater certainty on the timing and regional planning of switch off and on policies and regulation in favour of dtt would help attracting investments onto the dtt platform. The absence of investment in fta dtt channels reflect the difficulty of attracting advertising resources.
DTT: the ppv business model
PPV on DTT
Smart Card at selling point
1
3
Long term Card replacement
(every two (years)
4
Easy access to events
(via remote control)
2
Smart Card re-charge
CallCentre /Web /
Voucher
Innovative business model based on “à la carte” offer of single premium events.
Prepaid, anonimous, free from subscription.
DTT STBs are open and horizontal, thus allowing to receive all ppv offers available (3 different CAS systems).
Price range:- soccer match 6€- movie (1st release) 4€- fiction/library 1-2€
At present there are three ppv offers on dtt: Mediaset premium, Pangea and La7 Cartapiù. Ppv offer accounts for around 10% of the pay tv market.
DTT value added services: interactivity and HD
Interactive services: Mhp applications (80% of all devices) allow for advanced interactivity in broadcasting, with excellent graphic performance. Most popular services are play-along games, games for kids, interactive services connected to soccer offer, original audio for movies and fiction. 50% of viewers are estimated to use these services weekly.
High Definition: timing and technological standards still to be defined in detail. Rai will offer Euro 2008 Football Championship in HD (in Rome, Milan and Turin). The new industrial plan foresees one HD Mux after S.O. and the launch of one HD Channel in 2009. Mediaset will offer HD content progressively as regional switch-off takes place. TIMedia will follow the same strategy, depending on frequencies availability.
DTT value added services: DVB-H
2 DVB-H multiplexes:
1. H3G offers tv channels (2 of which – 3 Live and 3 Sport - are produced specifically for mobile tv) and on demand contents.
2. Mediaset carries contents and services aggregated by Tim and Vodafone, in accordance with various broadcasters.
While the sell out of dvb-h devices is good, there is still no official data on use and revenues from mobile services. The pay model is yet to be confirmed.
DTT: regional S.O. in Sardinia and Valle d’Aosta
MARCH ‘07 SEPTEMBER ’08 CAGLIARI
OCTOBER ’08 VALLE D’AOSTA
Switch off:
S.O. of analogue
transmissions
Switch off:
S.O. of analogue
transmissions
Switch-Off Time plan
650.000
households involved
Switch off of 2 analogue channels (Rai2 and
Rete4) in the Area of
Cagliari and Valle d’Aosta
Switch off of 2 analogue channels (Rai2 and
Rete4) in the Area of
Cagliari and Valle d’Aosta
Digital tv penetration rate has reached 89,1% in Sardinia and 92% in the area of Cagliari (December 2007).
Next All Digital Areas
• Piedmont Region and Trento Province
Nov‘08 March’09 Turin and Cuneo
October ‘09 Trento
Switch off:
S.O. of analogue transmissions
Switch off:
S.O. of analogue transmissions
Switch-Off Time plan
2.050.000
households involved
Switch off of 2 analogue
channels (Rai2 and Rete4) in the Area of Turin and
Cuneo
Switch off of 2 analogue
channels (Rai2 and Rete4) in the Area of Turin and
Cuneo
Final Switch off:
Whole Piedmont Region
Final Switch off:
Whole Piedmont Region
March ‘11
DTT: audience share in Sardegna
3,9%
43,2%
35,0%
0%5%
10%15%20%25%30%35%40%45%50%
Italia Cagliari (switch over) Sardegna
Italia Cagliari (switch over) Sardegna
Italy vs Sardinia and Cagliari
12,5%
43,2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Cagliari (february 07) Cagliari (december 07)
Cagliari before and after switch over
Audience data reveal that notwithstanding a good penetration rate the use of the dtt platform is still low. The situation is much better in the regional areas where switch over has taken place. In Sardinia and in the Cagliari area dtt audience share on all tv sets has reached 35% and 43,2% respectively. Before switch over in the Cagliari area dtt audience share was only 12,5%. National Penetration Rate of the DTT Platform: 4,6% (source: Auditel, March ’08)
DTT: frequencies planning in Sardinia
Frequencies planning in Sardinia is the result of an agreement among the Ministry, AGCOM and broadcasters on the basis of the criteria set by AGCOM and in line with Geneva 2006: safeguard of universal coverage and public service, safeguard of investments and transmission of existing broadcasters, safeguard of local tv networks, access for new entrants, development of new technologies and mobile tv.
21 UHF frequencies (>80% territory)• 14 to national broadcasters• 7 to local broadcasters
2 VHF frequencies (>80% territory) to national broadcasters6 frequencies (50-70% territory) to national broadcasters10 frequencies (sub-regional coverage) to local broadcasters
2 frequencies are reserved for new entrants and 5 sub-regional frequencies for national or bilateral negotiations.
DTT: open issues
Open issues:• Fta offer still not sufficiently attractive, and ppv offer cannot be the
sole driver in the transition to dtt • Lack of an EPG and a clear identity • Different Mux coverage• Weak role of PSB in the transition to dtt• Uncertainty on regional planning and timing of S.O.
Lessons from regional switch over:• Regional switch over and switch off is the way• Setting a deadline and working in steps allow broadcasters to plan
S.O. and work closely with the Institutions.• Partial switch off (of 2 analogue channels) was the driver for
penetration and use of dtt in Sardinia and Valle d’Aosta• Successful agreement between broadcasters and the institutions
over frequencies planning in Sardinia.