Boxer DTT Knock-Out
Boxer’s withdrawal from DTT in Ireland hasn’t exactly been met with tears.The current and anticipated economic climate were reasons cited for Boxer pulling out of DTT but the real killer was a request from RTÉ for a €20m bond to operate the digital transmission network.
Within the industry the general feeling here is that neither the economic climate nor transmission fees are the problem but a realisation that a terrestrial pay TV option just will not work. I tend to agree for three strong reasons;
Firstly Ireland already enjoys over 75% digital television penetration with UPC and Sky. Why would these subscribers switch to an equivalent DTT service with fewer channels at a similar price? Of the remaining 25% without digital TV, it appears they have decided not to subscribe to any service and are happy with the terrestrial transmission offering of RTE, TV3 and TG4.
The second reason is the free availability of all the most popular channels anyway. With RTÉ’s free-to-air public service DTT network you can receive RTE, TV3 and TG4. Bolt on Freeview satellite and you’ve got BBC, ITV, E4 etc etc
The third and final reason is that pay DTT was tried in the UK and spectacularly unsuccessful. I feel a repeat of the model in Ireland is doomed to repeat the UK experience.
So what next?
Ireland’s commitment to the EU deadline of 2012 for digital switch over is still a very reachable goal. With UPC and Sky we’re three-quarters of the way there already. For the remaining 25% RTÉ continue to roll-out public service free-to-air DTT across the country. They may or may not reach full coverage by 2012 as planned but they will get a fair way toward it.
Boxer’s withdrawal from DTT is not the end of the world. If the under bidder One Vision, the Eircom / TV3 / Sentanta consortium, decline the BCI offer to pick up where Boxer left off it won’t be the end of the world either.
More on Boxers withdrawl can be seen in the Sunday Business Post.
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