Evolving technology and consumer expectations about television - Dean Martin, ACMA

Evolving technology and consumer expectations

about television

Dean Martin

Senior Research Analyst, Digital Society Policy and Research

Section, Australian Communications and Media Authority

Television and technical advances

> Pace of change in broadcast television has been relatively slow until relatively recently

> Digitalisation has seen the household entertainment staple – the television set – move

into the age of higher screen resolution, better rendering, the internet, and apps

> A number of significant developments in recent years in technical standards for

broadcasting, mainly because of the move to digital

> Introduction (or trialling, or possible introduction) of technologies to enhance consumers’

viewing experience – including HD, 3D, and ultra HD

> Cost of flat screen LCD/LED and plasma television sets dropping, making newer

technologies more affordable and more common

Why the ACMA is interested

> The ACMA is responsible for technical planning for broadcasting services

> Advances in technical standards allow for increased opportunities to enhance

the viewer experience, e.g., 3D

> Also interested in understanding viewers’ experience with digital television, to

help our planning functions and assist with consideration of technical standards:

> Receivers (television sets, set top boxes and PVRs) and associated

reception equipment (antennas, cabling, connections and signal filters and

amplifiers) are important components in determining viewing experience –

not just broadcast signal strength

> Need to be mindful about the existing household television environment when

looking at technical standards or developing advice to government

Expectations about television equipment

> How have consumers responded to technical advances – the television sets and

other reception equipment they have?

> How long do Australian consumers expect a television set to last for?

> How often do they replace their main set?

> Is this changing as the price of television sets drops and new technology

arrives?

> Are Australian households getting the best out of their televisions sets?

> How adequate are domestic antenna systems?

To find out about household television sets and replacement…

> Omnibus survey conducted nationally by Newspoll with 1,203 respondents aged 18 years

and over

> Respondents were selected via a random sampling process

> Interviews were conducted by phone 27-29 May 2011

> Results were post-weighted to Australian Bureau of Statistics data on age, highest level

of schooling completed, sex and area

> Penrith antenna stock research, involving audits of 302 homes in Penrith, also captured

information about receivers and the main television set in each household

> Research conducted in Bathurst and Orange in 2010 (500 homes) also looked at aspects

of television equipment, such as number of sets and the age of the main set

Number of TV sets in household used in last 6 months (mean 2.2)

27

38

21

10

4

0

5

10

15

20

25

30

35

40

1 2 3 4 5 or more

%

Penrith – Main TV set has a built in digital tuner, by age of TV set (observed)

59

9488

66

14

3

41

612

34

86

97

0

20

40

60

80

100

120

Less than a year old 1-2 years old 2-5 years old 5-10 years old Over 10 years old

Total Age of main TV set

%

Has a built in digital tuner Does not/don't know

Penrith – Main TV with a set top box or other digital device attached, by age of main TV

set

42

35

2830

635958

65

7270

3741

0

10

20

30

40

50

60

70

80

Less than a year old 1-2 years old 2-5 years old 5-10 years old Over 10 years old

Total Age of main TV set

%

Has STB or other digital device No STB or digital device

When was a TV set last purchased? (Mean 3.1 years)

29

41

14

5

2

7

20

<1 year 1-3 yrs 4-5 yrs 6-7 yrs 8-9 yrs 10+ yrs Never Don't know

%

Was new set purchased to replace an existing TV set, if bought less than a year ago?

80

19

1

0

10

20

30

40

50

60

70

80

90

Yes No Don't know

%

Main reasons for buying a new TV set, if last purchase less than a year ago

5

5

9

13

19

27

32

48

59

66

69

To get a 3D TV

To get a TV with parental lock

To connect to the internet or access online content via your TV

To get a TV with a built in recorder

Some other reason

To get a TV with a built in electronic program guide

Old TV stopped working

To get more channels

Because the TV signal is switching to digital

To get a better quality picture

To get a TV with a flat or bigger screen

%

Cost of new TV set – price paid if purchased in last year, and expected cost, if last

purchase more than a year ago

2

16

21

17 17

10

8

45

2

9

17

2122

13

10

4

2

0

5

10

15

20

25

Less than $250 $250-$499 $500-$749 $750-$999 $1,000-$1,499 $1,500-$1,999 $2,000-$2,999 $3,000 or more Don't know

%

Price paid if less than a year ago Amount expect to spend on a new TV, if last purchase more than a year ago

Mean cost of new TV set if purchased less than a year ago, and mean amount expect

to spend, if last purchase more than a year ago, by age group

1,400

1,186

1,031

800

1,131

1,345 1,368

1,244

1,071

1,270

0

200

400

600

800

1,000

1,200

1,400

1,600

18-34 35-49 50-64 65 and over TOTAL

Mean cost ($)

Age group

Mean price paid if less than a year ago Mean amount expect to spend on a new TV, if last purchase more than a year ago

Brand of TV set purchased, if bought less than a year ago

4

14

1

1

2

2

4

7

7

10

15

15

18

Don't know

Other

TCL

Kogan

Vivo

Soniq

Sharp

Sanyo

Toshiba

Sony

Panasonic

Samsung

LG

%

Brand of TV set most likely to buy, if last purchase more than a year ago

7

26

0

0

1

2

2

11

11

19

20

0 5 10 15 20 25 30

Other

Don't know

Kogan

TCL

Toshiba

Sanyo

Sharp

LG

Samsung

Panasonic

Sony

%

Age of TV set that was replaced, if last purchase less than a year ago (mean 8.3 years)

16

2

19

9

33

1

0

5

10

15

20

25

30

35

3 years or less 4-5 years old 6-7 years old 8-9 years old 10 or more years old Don't know

%

Base: Those who have purchased a new set in last year, to replace an existing set, and were involved in decision (n=213)

Mean age of TV set replaced, if new set purchased less than a year ago, by age group

6.8

8.2 8.4

10.4

8.3

0

2

4

6

8

10

12

18-34 35-49 50-64 65 and over TOTAL

Mean age (years)

Age group

What was done with the old TV set?

8

2

2

4

14

18

18

35

0 5 10 15 20 25 30 35 40

Something else

Don't know

Sold

Gave to charity

Threw away or taken to dump

Gave to family or friends

Put in recycling or council collection

Kept

%

Length of time before need to replace current TV set if purchased less than a year ago

(mean 7.4 years)

15

29

18

5

25

7

0

5

10

15

20

25

30

35

3 years or less 4-5 years 6-7 years 8-9 years 10 or more years Don't know

%

How long a new TV set expected to last for if last purchase more than a year ago

(mean 8.7 years)

5

29

22

9

33

2

0

5

10

15

20

25

30

35

3 years or less 4-5 years 6-7 years 8-9 years 10 or more years Don't know

%

How long expect a new TV set to last

5

29

22

9

33

2

15

29

18

5

25

7

16

2019

9

33

1

0

5

10

15

20

25

30

35

3 years or less 4-5 years 6-7 years 8-9 years 10 or more years Don't know

%

If last set purchased more than a year ago (mean 8.7) If last set purchased within the past year (mean 7.4)

Age of TV set replaced if less than a year ago (mean 8.3)

What does this mean?

> There are many different models of television sets currently in people’s homes, and providing advice

specific to a model is difficult

> Most had bought a new set in the last 3 years, so the technical specifications of many existing sets

will be current

> The majority of purchases where to replace an existing set (80 per cent), but many of these were

expected to serve a second life

> To get a better viewing experience was the main reason people gave for buying a new TV set

> The switch to digital, and to get more channels were also significant drivers

> For most, the price paid for a new TV set was lower than what was expected

> Older age groups were more likely to replace a TV set when it was older (10 or more years old) and

pay less for a new one – so the technical specifications of TV equipment in older people’s homes is

likely to be less current

> On average, a new TV set was expected to last 7 to 8 years

Domestic antenna systems and reception

> ACMA has conducted two studies into domestic antenna stock:

> Phone interviews and in-house audits of 500 households in Bathurst and

Orange in 2010

> In-house audits of 302 households in Penrith in 2011

> First study examined different methodologies for collecting data on antenna

stock, in a regional area

> Second study used the preferred methodology and applied it to a fringe

metropolitan area, to understand if there are particular issues in such a location

> Antenna systems are an important but often neglected part of the reception

chain, that ends with the picture displayed on the television screen

Digital households—adequacy of antennas, Bathurst and Orange, 2010

Quality of reception—Penrith, 2011

mySwitch – Penrith coverage http://myswitch.digitalready.gov.au/

Domestic antenna systems

Age of antennas

> In Penrith antennas were typically quite old, with around half being assessed as

being over 10 years old

> In Penrith, 42 per cent had two or more antennas – 11 per cent in Bathurst-

Orange

> In Bathurst and Orange, 46 per cent of antennas were assessed as being less

than 5 years old – this could be because this region is switching over to digital

sooner than Penrith

> Generally, reports by respondents underestimated the age of the antenna, and

over-estimated its condition

Antenna direction in Penrith – Sydney and Illawarra services

> Use of services from adjacent transmission sites was relatively common in

Penrith, mainly for historical reasons

> 95 per cent of households had at least one antenna directed towards Gore

Hill/Willoughby/Artarmon, the main Sydney metro transmitters

> 30 per cent had at least one antenna directed towards Illawarra, the main out of area

service

> 45 per cent of households with an antenna pointed towards Gore Hill/Artarmon with

inadequate or marginal reception had the wrong antenna type – generally one that could

not receive all digital channels (n=106)

> For antennas pointed towards Illawarra, the reasons for inadequate or marginal reception

were more likely to be because of inadequate gain (no or poor masthead amplifier – 62

per cent) or because the antenna direction was incorrect (17 per cent) (n=24)

Conclusions about antenna stock and reception

> Antenna stock research indicated that about 7 per cent of households in Bathurst and

Orange, and also in Penrith, had inadequate digital reception

> Inadequate reception was for many reasons, including the antenna type and condition

> also because of built and natural landscape features

> in Penrith, patchy coverage was also a factor

> Those with inadequate or marginal digital reception may need to look at replacing or

improving their antenna system – as many were originally installed before digital

transmissions started

> Consumer focus is much more on the TV set, and less on the other components of the

reception chain, including antennas, cabling and outlets

> Information from the antenna stock studies will help the ACMA’s engineers with

planning, and help inform advice provided to consumers