Digital, Interactive and Web TV

Sceptics

The counter argument is shown as in the paragraph prefixed by an O.

Consumers will not buy set top decoders that can only receive programmes from a single provider.
- As of October 1999, over 1.6m homes have acquired or signed up to SkyDigital and over 0.5m to ONdigital.
- The cost issue is no longer relevant as suppliers are providing free set-top boxes.
An NOP survey in April 1997 recorded that 54% stated they would not get digital television until they could get cable, satellite and terrestrial services through one box, or through a special digital television set.
- Some manufactures are likely to develop multi-provider decoders.

After 10 years of cable, only 21% of those homes that had been passed by cable had taken up the offer.
After 8 years, only 4m UK homes have satellite dishes (BSkyB has almost 7m subscribers in total).
Only 17% of consumers say they intend to convert to digital TV, 16% are unsure and 28% say they will never convert (CIAMediaLab survey May 1999).
- One month after the launch of SkyDigital, Mark Booth, Sky's Chief Executive, told shareholders at the Company's AGM that over 100,000 subscribers have signed for Sky Digital.
- The provision of free decoders is sure to boost take-up.
- As of October 1999, over 1.6m homes have acquired or signed up to SkyDigital and 0.5m to ONdigital.
- By the end of 2000, over 5m homes had SkyDigital, 1m had ONdigital and 1m were on cable.
- This means circa 30% of UK homes are digital.
- See Number of Digital Customers
Digital TVs will cost £1,000 compared to £250 for an analogue set. Consumers will then be forced to replace their video recorders. Also satellite viewers will need to replace their dish.
- As demand ramps up the unit cost will fall - they are already down to £600.
- Very soon most new PCs are expected to have the capability to receive digital TV pictures.

An Independent Television Commission (ITC) survey revealed that around two-thirds of the population agree that "the four main broadcast channels give me all the viewing choices I want".

The decoders will cost £200 for which the viewer will receive basically the same content as at present. Although the picture quality may be slightly better that does not justify the outlay.
- The number of additional channels is expanding rapidly. Many popular sports events can now only be seen by subscription services and this is likely to extend to other interests such as pop and classical music.
- The decoders (set-top boxes) are now free.
- As of mid 2000 there are over 10 free channels on most systems plus Sky has over 70 channels plus 48 movies on near demand channels, and numerous music channels, many free; ONdigital has 24 channels; and Telewest cable has over 70 channels.
- See TV Services and Value Added Services

The channel providers will be so desperate to fill the air time and to attract the mass audience that they will role out channel after channel of repeat comedy programmes, sporting highlights, quiz shows, plus 24 hour news repeated on the hour, and other low cost programmes. Quality and expensive programmes such as drama, nature programmes, and in-depth documentaries will disappear.
- Some of the most popular programmes are nature, old TV programmes and films, so it is unlikely these will disappear. Whilst documentaries and nature programmes do cost more, in many instances they can be sold on a world-wide basis.
- The TV Services shows the wide variety of programmes available including specialist drama and natural history documentaries.
- It is agreed that currently some programmes like investigative journalism are few.

Television is a communal device, often watched by the whole family, from the sofa. PCs on the other hand are typically used by individuals sitting just 30 cms from the screen.
- Many homes now have multiple televisions with the extra sets being smaller and often watched by individuals, say in the kitchen or bedroom. These are more likely to be used for more private but infrequent interactive services. For example, looking up railway timetable, a recipe for a meal, or the weather. There are also some interactive activities that are undertaken on a more communal basis. These include selecting a holiday, buying family gifts, and helping children with their homework.
- Surveys show that Sky viewers are quicker to embrace e-commerce than PC users.
- PCs are becoming so powerful that a standard PC will soon be able to show video and television pictures. In the future it may be possible to watch the chancellor deliver his budget speech in one window, whilst in another window seeing the underlying details, having ones personal impact calculated in another, and seeing the reaction of the stock exchange in a third.

Whilst in theory a digital picture should be perfect, without ghosting and interferences, in reality if viewers are already having reception problems then there is a risk of not receiving any signal. This is in much the same way as digital phones are known to suddenly cut the line when they enter a poor area for reception. Further, the UK digital service will still be have a 625 picture lines service, compared to the US which is introducing high definition TV (HDTV).
- However, Digital TV will display wide screen pictures in the 16 to 9 ratio often used for cinema movies, compared to the analogue wide screen format of 14 to 9 that looses the edges of the picture.
- Until large flat screens become a consumer item then the picture resolution is not an issue. Philips have now launched a wide screen flat screen TV for the home.

The sound is based on MPEG audio with 2 stereo channels, similar to the existing NICAM system on analogue TV, whereas in the USA they will use Dolby® Digital system with 6 channel sound.

Next is Advertising Industry

Barnett, Steven, 1997, The TV choice we will not buy, The Independent, 11 February 1997
Newman, Cathy, 1998, Viewers at odds over analogue TV turn off, Financial Times, 27 April 1998.
Wiseman, Andrew, Television Room
- An excellent Questions and Answer page on Digital TV (68K).
Also see the full list of resources for this web site for other related resources.