Archive for the 'Digital Terrestrial' Category

CSA takes action to boost pay-TV and HD’s fortunes on French DTT platform

The French regulator, the CSA, will shortly advertise three new pay-TV and two new free-to-air HD slots on its DTT platform. Meanwhile, France Ô, the public service channel targeted at viewers from the country’s overseas territories, will be rolled out nationally in the coming weeks.

The decisions result from a public consultation triggered by two pay-DTT channels, AB1 and Canal J, handing back their licences last year.

The new services will launch next year, and will be spread across the six existing multiplexes (R1-R6) as well as two new ones, R7 and R8, which will be opened up as a result of analogue television being switched off region-by-region between now and the end of 2011.

Farncombe’s interpretation of today’s CSA announcement is that the new DTT multiplex configuration will be as in the table below:

R1

R2

R3

R4

France 2 i>télé Canal+ HD M6
France 3 BFM TV C+ Cinéma W9
Local/
France 3
Direct 8 C+ Sport Paris 1ère
France 5 Gulli Planète NT1
France Ô Europe 2 TV TPS Star Arte HD
LCP France 24 New pay-TV slot TBA

R5

R6

R7

R8

France 2 HD TF1 New pay-TV slot TBA Gifted channel to TF1 TBA
TF1 HD LCI New pay-TV slot TBA Gifted channel to M6 TBA
M6 HD Eurosport New FTA HD slot TBA Gifted channel to Canal+ TBA
TMC New FTA HD slot TBA Other channels TBA
NRJ12
TF6
Arte

Source: CSA, Farncombe analysis (Note: Pay-DTT channels in italics, HD channels in bold)

The allocation of three new pay-DTT channels is designed to boost the attractiveness of pay-TV on the French DTT platform, which has so far performed poorly.Meanwhile, the creation of new free-to-air HD channels should make it easier for the DTT platform to compete with satellite and cable, which both enjoy superior bandwidth and much larger HD offers.

French rules which mandate the inclusion of HD DTT tuners in TV sets already favour the platform. With 46.1% of French homes owning an HD-compatible TV display at the end of 2009, the new services should be able to benefit from a mature addressable market.

ISDB-T expansion around the World - It takes many to Ginga

After choosing the Japanese ISDB-T standard for their digital terrestrial TV (DTT) system, the Brazilian authorities have invested much money and diplomatic effort in spreading the Brazilian variant ISDB-Tb and the Ginga middleware to other countries. They were partially successful: Ecuador has recently announced it will adopt ISDB-Tb, after Argentina, Chile, Peru and Venezuela. A few African countries, including South Africa, are reconsidering their previous inclination to adopt the European DVB-T standard.

However, political will is not enough to convince Brazilians it is worth buying a set-top box to watch DTT. Despite tax incentives, quotas on TVs, incentives for mobile TV handsets and intensive marketing, Brazilians continue to be confused about what ‘DTT’ means.

Farncombe recently visited several large electronics stores in Brazil, and despite the availability of integrated DTT TV sets for sale, the vast majority of salesmen confused DTT with high definition or with digital pay-TV (pay-TV operators use the European DVB standard).

Three years after launch, Farncombe estimates that less than 2% of households view DTT services, and most DTT tuner sales are “accidental”, as they are integrated into large TV sets (in which DTT tuners are mandated), mobile and portable devices.

Farncombe believes that the key reasons for the challenges faced by Brazilian DTT are:

  • Lack of exclusive DTT content: DTT services are HD versions of analogue TV ones and most cities with DTT coverage only receive the top one or two broadcasters.
  • Competition from pay-TV services: the launch of new DTH operators has decreased the pay-TV entry price and driven a 20% increase in the number of pay-TV subscribers in the last 12 months. In addition, the focus on HD as DTT’s differentiator makes DTT attractive only to HD-set-owning higher-income households, which are more likely to subscribe to pay-TV.

In spite of the slow adoption of fixed DTT in Brazil, mobile operators have launched several handset models with integrated DTT tuners and broadcasters are investing in in-fillers to improve DTT mobile reception. Meanwhile, other countries have learnt from the Brazilian experience and are allowing multichannel DTT and subsidising decoders to create an initial viewing base for DTT services.

Farncombe’s experience advising broadcasters and governments planning their transition to DTT has taught us that careful planning to ensure the platform’s attractiveness to viewers is more important than the choice of transmission standard (ISDB-T, ISDB-Tb, DVB-T or DVB-T2), which can have very similar end-user functionality depending on the network configuration. Technical specifications that are not mandated and officially certified are often ignored by most vendors, and the high degree of fragmentation of the receivers’ base makes it commercially unfeasible to offer advanced TV services.

To know more about Farncombe’s experience in DTT transition please contact us at strategy@ftl.co.uk

MHP was no GEM: the jewel in interactive TV’s crown is likely to be the Internet

Europe’s TV standards group DVB has designated GEM as its primary middleware technology in place of MHP - after standardisation body ETSI adopted it as a self-contained specification.

GEM - which stands for Globally Executable MHP - was, as its name suggests, a DVB-independent derivative of MHP (Multimedia Home Platform), a Java-based system originally proposed as a common European interactive TV platform.

Now, GEM becomes a standard in its own right, eclipsing MHP.

The original idea behind MHP was that its inclusion of a Java Virtual Machine would enable interoperability of interactive TV applications across different digital TV platforms. But in practice, MHP implementations turned out to be stripped-down, customized affairs that were only nominally independent of the platforms that deployed them.

MHP boxes also generally cost more than ones using interactive technologies such as OpenTV or MHEG, a factor which was exacerbated by an unexpected hike in licensing-fees in March 2006. MHP interactive environments also proved costly to maintain.

Thus, apart from MHP’s success in colonizing the Italian DTT market (the result of a government subsidy being made available for interactive set-top boxes), the middleware was never widely adopted.

GEM has now emerged as the more significant technology: (a) it is incorporated into the high-definition optical disc standard Blu-Ray; (b) it forms the basis for the US Opencable standard (under the brand ‘tru2way’); and (c) it underpins Brazil’s interactive middleware standard Ginga-J.

GEM is also compatible with the US and Japanese digital terrestrial broadcasting standards.

DVB claims that GEM/MHP technology is currently in around 50m devices worldwide, the vast majority of which are likely to be Blu-Ray players, in Farncombe’s view.

However, the trend towards hybrid decoders and connected TVs indicates that such broadcast-specific interactive TV platforms have probably had their day. In the future, interactivity on the TV is likely to use the broadband link and to derive from existing, tried-and-tested Internet technologies, with new standards such as Europe’s HbbTV and the UK’s Canvas pointing the way.

Higher TV viewing: DVRs may be the reason

The UK regulator, Ofcom, has released international comparison data showing that the UK witnessed the highest average increase in TV watching during 2008 across 11 major economies, up by 3.2% to 3.8 hours a day. Ofcom also noted that the UK remained the country with the highest proportion of households with digital TV on their main set, at 88%.

It has generally been assumed that TV viewing is a counter-cyclical activity, because in a recession, consumers tend to cut down on going out and are therefore more likely to stay at home watching TV. However, the recession only began half-way through 2008, and although it was deeper in the UK than most other economies, this may not tell the whole story.

Ofcom’s second data-point suggests an additional factor: as digital TV penetration has increased in the UK, so has penetration of digital video recorders (DVRs) - and owners of DVRs watch more TV. Evidence from BSkyB’s Skyview panel suggests that users of DVRs watch in the region of 17% more television than their ‘linear’ counterparts.

Farncombe’s calculations (based on Ofcom’s quarterly digital TV reports), show that the number of DVRs in the UK (excluding Freesat) increased by 60% in 2008, putting DVRs in nearly a third of UK homes at the end of last year. This is no doubt contributing to the TV viewing increase noted by Ofcom.

This underlines the positive contribution on-demand consumption can make to viewing-levels increasingly under pressure in a traditional linear broadcast environment.

French DTT in HD by 2015? Bonne Chance!

The French regulator, the CSA, has suggested that France’s entire DTT platform could be broadcast in HDTV by 2015. The comments came from CSA member Alain Méar at a recent debate on the future of DTT in Paris, hosted by NPA Conseil.

Currently, there are 31 channels broadcasting across six DTT multiplexes, only five of which are available in HD (these are simulcasts of the Canal+ premium channel, public channels France 2 and Arte, and commercial channels TF1 and M6).

Since under French broadcasting rules, the standard-definition channels are broadcast in MPEG-2 and the HD ones in MPEG-4, there is scope for spectrum savings if simulcasting is stopped and all the channels are converted to MPEG-4.

Even so, the CSA’s proposals are challenging: eleven DTT multiplexes would be required, alongside another two to be reserved for mobile broadcast TV. The CSA itself has already complained that government plans to harmonize the so-called 800MHz band in line with EC recommendations - which would require part of the expected digital dividend from analogue switchoff to be allocated to mobile services - would endanger plans to migrate the DTT platform to HDTV. (The risk is real: a recent position paper by the EBU warns of the technical obstacles harmonization could place in the way of European analogue switchoff plans).

One answer would be to migrate to the use of the next-generation standard DVB-T2, which offers potential efficiency savings of at least 40% over DVB-T (the standard currently used in France for both standard-definition and high-definition services). DVB-T2 has been adopted in the UK in response to a similar conundrum.

However, during the debate, which Farncombe attended, it was not clear that the use of DVB-T2 was being considered by the CSA. It is difficult to see how the regulator can square the circle without it.