Select Committee on Public Accounts Third Report


1  Achievements to date

1. When ITV Digital went into administration in 2002, there was widespread uncertainty about the future of digital terrestrial television and the potentially negative effect on digital switchover. The BBC judged that a successful bid to the then Independent Television Commission to launch Freeview would provide greater certainty that digital terrestrial television would continue in the UK. As it had only six weeks to submit its bid, the BBC quickly developed its proposals and, having been awarded a licence in July 2002, launched Freeview in October that year.[6]

2. Freeview offers licence fee payers in geographical areas covered by the service the option of receiving a package of subscription-free digital television and radio services, including the BBC's channels, through a roof-top television aerial (known as digital terrestrial television). Digital satellite offers better coverage than Freeview and has more services, but the BBC's market research shows that many licence fee payers prefer to receive services through a rooftop aerial rather than a satellite dish and the BBC aims to ensure licence fee payers have a reasonable choice of ways of getting its services (Figure 1).[7]

3. Freeview has been helped by BBC marketing campaigns and, with the help of these campaigns, three out of four people are now aware of the Freeview brand.[8] In 2002 the BBC estimated that the number of households with digital terrestrial television would reach 2.1 million by 2004 and then increase steadily to 9.4 million in 2014. In the event, figures published by Ofcom in September 2004 showed that nearly four million households had digital terrestrial television,[9] and the BBC's monitoring of consumer satisfaction has shown that eight out of 10 Freeview customers say that they would recommend Freeview to a friend.[10]Figure 1: How the BBC's digital television services can be received in the UK



Note

Integrated digital televisions (iDTVs) are television sets with a built-in receiver able to decode and display a digital signal.




6   C&AG's Review, Figure 10 Back

7   Qq 10, 110 Back

8   C&AG's Review, paras 3.7-3.9; Q 11 Back

9   C&AG's Review, Figure 16; Ofcom (2004) Digital television update: Quarter 2, 2004 Back

10   Q 11 Back


 
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Prepared 3 February 2005