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

Evolving technology and consumer expectationsabout televisionDean MartinSenior Research Analyst, Digital Society Policy and ResearchSection, 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) 40 38 35 30 27 25 21 % 20 15 10 10 5 4 0 1 2 3 4 5 or more

Penrith – Main TV set has a built in digital tuner, by age of TV set (observed) Has a built in digital tuner Does not/dont know 120 94 97 100 88 86 80 66 59 % 60 41 40 34 20 12 14 6 3 0 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

Penrith – Main TV with a set top box or other digital device attached, by age of main TVset Has STB or other digital device No STB or digital device 80 72 70 70 65 63 58 59 60 50 42 41 % 40 35 37 28 30 30 20 10 0 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

When was a TV set last purchased? (Mean 3.1 years) 41 29 % 14 7 5 2 2 0 <1 year 1-3 yrs 4-5 yrs 6-7 yrs 8-9 yrs 10+ yrs Never Dont know

Was new set purchased to replace an existing TV set, if bought less than a year ago? 90 80 80 70 60 50 % 40 30 19 20 10 1 0 Yes No Dont know

Main reasons for buying a new TV set, if last purchase less than a year ago To get a TV with a flat or bigger screen 69 To get a better quality picture 66 Because the TV signal is switching to digital 59 To get more channels 48 Old TV stopped working 32 To get a TV with a built in electronic program guide 27 Some other reason 19 To get a TV with a built in recorder 13 To connect to the internet or access online content via your TV 9 To get a TV with parental lock 5 To get a 3D TV 5 %

Cost of new TV set – price paid if purchased in last year, and expected cost, if lastpurchase more than a year ago Price paid if less than a year ago Amount expect to spend on a new TV, if last purchase more than a year ago 25 22 21 21 20 17 17 17 16 15 13 % 10 10 10 9 8 5 5 4 4 2 2 2 0 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 Dont know

Mean cost of new TV set if purchased less than a year ago, and mean amount expectto spend, if last purchase more than a year ago, by 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 1,600 1,400 1,368 1,400 1,345 1,244 1,270 1,186 1,200 1,131 1,071 1,031 1,000 Mean cost 800 800 ($) 600 400 200 0 18-34 35-49 50-64 65 and over TOTAL Age group

Brand of TV set purchased, if bought less than a year ago LG 18 Samsung 15 Panasonic 15 Sony 10 Toshiba 7 Sanyo 7 Sharp 4 Soniq 2 Vivo 2 Kogan 1 TCL 1 Other 14 Dont know 4 %

Brand of TV set most likely to buy, if last purchase more than a year ago Sony 20 Panasonic 19 Samsung 11 LG 11 Sharp 2 Sanyo 2 Toshiba 1 TCL 0 Kogan 0 Dont know 26 Other 7 0 5 10 15 20 25 30 %

Age of TV set that was replaced, if last purchase less than a year ago (mean 8.3 years) 35 33 30 25 20 19 % 16 15 10 9 5 2 1 0 3 years or less 4-5 years old 6-7 years old 8-9 years old 10 or more years old Dont 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 12 10.4 10 8.2 8.4 8.3 8 6.8 Mean age 6 (years) 4 2 0 18-34 35-49 50-64 65 and over TOTAL Age group

What was done with the old TV set? Kept 35 Put in recycling or council collection 18 Gave to family or friends 18 Threw away or taken to dump 14 Gave to charity 4 Sold 2 Dont know 2 Something else 8 0 5 10 15 20 25 30 35 40 %

Length of time before need to replace current TV set if purchased less than a year ago(mean 7.4 years) 35 30 29 25 25 20 18 % 15 15 10 7 5 5 0 3 years or less 4-5 years 6-7 years 8-9 years 10 or more years Dont know

How long a new TV set expected to last for if last purchase more than a year ago(mean 8.7 years) 35 33 30 29 25 22 20 % 15 10 9 5 5 2 0 3 years or less 4-5 years 6-7 years 8-9 years 10 or more years Dont know

How long expect a new TV set to last 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) 35 33 33 30 29 29 25 25 22 20 20 19 18 % 16 15 15 10 9 9 7 5 5 5 2 1 0 3 years or less 4-5 years 6-7 years 8-9 years 10 or more years Dont know

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

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

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