Deloitte Digital Index: January 2009 update |
| Oct 2008 | Jan 2009 | ||
| Telecoms | Fixed broadband (h) | 61.5% | 62% |
| Total mobile (p) | 84% | 84% | |
| Consumer Voice over IP (VoIP) (p) | 2% | 2% | |
| Mobile internet (p) | 22% | 23% | |
| Technology | PC (h) | 76% | 76% |
| Digital video recorder (h) | 28% | 29% | |
| DVD player (h) | 64% | 64% | |
| MP3 player (p) | 47% | 48% | |
| Media | DAB radio (h) | 24% | 25% |
| Digital TV (h) | 90.5% | 91% | |
| Online video (h) | 23% | 23% | |
| Mobile TV (p) | 1% | 1% |
Key:
(h) = penetration of UK households
(p) = penetration of UK population
Commentary
The fourth update of the Deloitte Digital Index, for the quarter to January 2009, shows a rise, albeit small, in 7 of the 12 indices. Against a backdrop of recession, demand for digital products and services amongst UK consumers appears healthy.
Indeed, the government’s recent interim Digital Britain report estimated that the average British adult now spends almost half their waking hours using digital technology.
That proportion may rise further, as UK citizens spend more time at home, not just for cost reasons, but also as many UK homes now boast an ample, diverse range of entertainment options.
Thus a key trend for 2009 is likely to be ‘in-tertainment’. UK consumers can gather around the digital television to play games; watch pre-recorded favourites thanks to their DVD players, and increasingly DVRs; and access myriad
digital distractions, from social networks to shopping via their broadband-connected computers and smart phones.
But while digital demand remains strong overall, digital alone is no panacea. Whilst certain digital products and services have proved, or are proving, a major success, a few are challenged:
- Demand for mobile television remains weak. In a recession it may become commercially challenging for providers to continue giving mobile television the benefit of the doubt.
- Consumer VoIP remains niche given the increasingly competitive nature of switched telephony voice tariffs and
mobile bundles. - The enduring appeal of analogue radio, combined with the growing appeal of internet radio, may slow DAB
radio’s progress, particularly in an environment of falling advertising revenues across most media.
In the long term, overall demand for digital products and services is likely to rise, even though some of the products and services currently tracked on the Deloitte Digital Index may fall by the wayside.
Download a printable copy of the January 2009 update (PDF, 60KB)
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