Analogue switch-off continues. Digital television penetration is expected to grow by no more than half a percentage point during the quarter, driven primarily by the ongoing analogue switch off process. During the quarter, analogue service is scheduled to end in Cornwall. Two transmitters will be switched off: the first serving Torbay and south Devon; the second serving Exeter, south-east Devon, south-west Somerset and parts of Dorset (2).
Bottom line: There remain over 2 million households that rely on analogue television (3). Under-spend may exist on the Digtal Switchover Help Scheme (4), but the challenge to support the vulnerable and the elderly will increase as more regions go through the switch-off process.

Marginal shift in composition of Digital TV possible. The ongoing recession is expected to impact the composition, rather than the absolute level of gross adds, over the forthcoming quarter. With consumer spending likely to continue to be depressed, pay TV gross adds are likely to be suppressed (5), and churn, often to lower-cost packages, may increase slightly (6). Free-to-air terrestrial and satellite packages are likely to attract the highest share of gross adds. Bottom Line: Pay TV operators should maintain a sharp focus on value in order to mitigate the recessionary pressures consumers are feeling.
Bottom line: Pay TV operators should maintain a sharp focus on value in order to mitigate the recessionary pressures consumers are feeling.

HD content expected to increase albeit with limited impact on Digital TV penetration. The range of high definition television content on offer is expected to increase during the forthcoming quarter. The BBC plans to increase its HD output to 9 hours per day (7). Other HD providers are likely to follow suit.  However, as the majority of homes with HDTV are likely to have digital television already, the impact on penetration will be limited.
Bottom line: HD content is likely to become increasingly important to consumers, and broadcasters should determine how to prioritise the content they transition to HD for maximum impact.