SVT and Digital switchover

Jan-Olof Gurinder Senior Adviser SVT The market

• Number of TV-house-holds; approx 4.3 million (MMS) • Number of TV-licenses; 3.3 million • Main reception for households: Cable and SMATV: 50 % (mainly analogue) Satellite: 25 % (all digital) Terrestrial: 25 % (analogue and digital) (IP-TV: at the moment negligible) • All digital reception: 50 % (MMS) SVT´s position

• Public service, financed by TV-license, no ad revenue • Obliged to broadcast terrestrial, 99,8 % coverage of permanent households • SVT1 biggest channel (share of viewing-time), total share approx 40% • 2005: 100 highest rating TV-programmes – 95 - from SVT • Highest appraisal among TV-channels; reliable, professional, diversified, quality, concering all • Highest reliance in the audience among all media Basis for switchover

• Based on a political decision and regards terrestrial network only • Other platforms are unregulated • Terrestrial switchover analogue/digital affects SVT1, SVT2 & TV4 • New distribution and service is an opportunity for all other channels (SVT included) • Terrestrial network ONE of three established platforms for SVT; terrestrial, cable, satellite (IP-networks developing) • SVT started active digital information early in 2005 Information to the public

• Close cooperation SVT, TV4, DTV-Commission and Teracom • Active use of SVTs own information information channels; programmes, tele-text, svt.se/digitaltv, chats • Participation in road-shows with all actors involved in switchover areas • SVT road-shows More information to the public

• Information in SVT (crawl) over transmitters to be switched over (targeting the right audience) • Transmission of and information in SVT and TV4 two weeks after switchover • Regional news casts • Summer 2005 special ”switchover programmes” • Switchover - issue for consumer programmes • Individual service More direct information

• Municipalities and cities • Local media • Retailers and antenna installation technicians • Joint call-center Special for SVT

• Support for free-to-air-services • Underlining the choice of free-to-air-boxes • High coverage; 99,8 % of permanent living • Caring for our big audience Additional values from SVT

• Two new channels – SVT24, Barnkanalen/ • 5.1-audio • 16:9-format • Service for the visually impaired: ”speaking subtitles” • (super tele-text) • Choice between two regional news programmes Audience reactions?

• ACCEPTING! • Almost no effect on TV-license-fee payment, some confusion about license-fee and pay-TV subscription (Boxer) • Sometimes reception problems • Most valuable support from local media (local papers) • Need for one box for every TV-set/DVD/VCR • SVT channels only in some areas (diff 99,8 % - 98 % coverage) Switchover affects cable and satellite

• Satellite already digital • All SVT regional news cast over satellite already since some years • Reception from satellite alternative in ”problem reception areas” • Switchover a business opportunity for satellite platform operators; ”SVT must be there” Switchover affects cable and satellite

• No “political” digital switchover in cable-networks, many continues analogue services • Not complete must carry legislation; need for agreements between SVT and cable operators to secure retransmission of ALL SVT channels. Copyright-costs for SVT. • Continuing analogue service excludes new digital services • The remaining ”analogue audience”? How long? How big? • Consequences for developing new channels and services? Drawbacks?

• Digital terrestrial TV= pay-TV? • Diminishing part of free-to-air TV-households a threat for TV-license-fee in longer perspective • DVB-subtitling stopped due to technical problems (boxes, cable-TV-networks) • No boxes for interactivity; SVT will probably abandon MHP • EPG - no killer-application • IP-TV (XDSL) an inferior distribution platform? The future

• Diversified services; not everything for all but something for everyone • Introduction of mobile services; DVB-H, DMB • Introduction of HDTV; Fifa World Cup 2006 in HD from SVT • Digital-digital switchover when going to MPEG4 • On demand services svt.se, IP-TV-networks • DRM, copyright • Digital dividend ; how to secure frequences for public services • How to secure financing of public service-TV and radio in the future