October 2006

~ research reveals 'try-before-you-buy' offers more important than price and content to driving take-up of broadband TV and TV-to-mobile services ~

Only 12.8% of consumers are planning to subscribe to broadband TV services and 4.5% to TV-to-mobile.

These figures would quadruple, however, if services were offered on a 'try-before-you-buy' basis.

These are the headline findings of an independent national survey of 1,022 people 1 on their attitudes to new digital TV platforms and technologies. The research was commissioned by MGt, a digital TV support services company, as part of its 'State of the Broadcast Nation' study programme.

"The research shows consumers are wary of buying into what they perceive to be immature digital TV platforms," said Jamie Mackinlay, Director of Sales and Marketing at MGt. "Broadcasters and TV service providers need to build up subscriber trust in the reliability and usability of new platforms, especially for older audiences who are much less technology-savvy. Alongside attractive trial offers, good customer service and support will be critical."

Broadband TV

• More than one third of consumers questioned (34.4%) said they would not consider buying broadband TV services if they became available in their area;
• 32.6% said they would trial broadband TV before subscribing and 12.8% would definitely sign up as soon as services became available
• Having a 'try-before-you-buy' option was rated more important than price and choice of programming as factors that would encourage consumers to consider broadband TV
• People living in the East Midlands and London are keenest to try broadband TV, whereas consumers in Northern Ireland and the South West are the least likely to subscribe

TV-to-mobile

• On average, 71.9% of consumers said they would not watch TV on their mobile; However, this figure falls to just 47.5% of 16-24 year olds
• 4.5% said they would definitely watch TV on their mobile and a further 13.6% said they would subscribe to a 'try-before-you-buy' offer (rising to 13.1% and 36.1% respectively for 16-24 year olds)
• The biggest turn-offs preventing consumers watching TV on their mobile were screen size (selected by 34.2% of respondents), cost (29.4%) and the need to upgrade handsets (23.3%). Limited choice of programming was selected by only 1.6% of those questioned
• The most popular choice of TV-to-mobile programmes by men is news (70.4% of male respondents), followed by sport (65.4%). Women's most popular choices where soaps (58.3%) and films (49.3%).The least popular choices for both sexes are chat shows and nature programmes

*** For further information about the survey or additional supporting data, please contact George Coleman or Lisa Worrall at Nelson Bostock Communications on 020 7229 4400 ***

1 The research was conducted online and by telephone by Marketing Sciences Ltd during March and April 2006