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Media buyers welcome potential of Freeview Plus, but warn networks not to over-promise

Ian Perrin

Ian Perrin

Australia’s major media buyers have welcomed the launch of hybrid broadcast broadband TV (HbbTV) platform Freeview Plus but cautioned the networks to be realistic about the time it will take to achieve a critical mass of audiences and changing consumer behaviour.

Speaking to Mumbrella ahead of the formal launch of the service, which will offer consumers a new aggregate platform for watching broadcast and catch up TV on their home televisions, senior media agency bosses said they were excited about the potential of the HbbTV technology but warned of several “barriers to entry” which must b addressed.

“We are seeing lots of promises and lots of presentations on the advantages it will give,” said ZenithOptimedia boss Ian Perrin. “We have been made a lot promises in the past around the future of television and obviously this technology is fantastic, but it also involves the consumers catching up and using the technology. That will take a bit longer than we would all like.”

Perrin’s comments come after industry body Freeview yesterday told Mumbrella that the German experience with its equivalent online entertainment brand Prosieben meant it was aiming for 10 per cent market penetration in the first year and up to 30 per cent within three years.Director of research for media agency group Dentsu Aegis John Alderton agreed saying: “I reckon it will be a slow burn, because there are obstacles to take-up – financial and home infrastructural.

“The carrot for consumers will be content which will be new and exciting content, But there is already exciting new content available online without buying new equipment in the form of Netflix, Youtube, catch-up TV, free or at very low prices.

As Mumbrella revealed yesterday Freeview has done extensive training and prepared sales material, including videos, ahead of the roll out. However, new set-top boxes will not be available to consumers until later in the year, whilst the number of TV makers signed up as partners for launch is understood to be small.


(Freeview training video which is being shown to sales staff in stores to help them show consumers the technology.)

CEO of media agency OMD Peter Horgan said that there was a commercial imperative driving the network push towards HbbTV but warned the technology would lead to even greater fragmentation of audiences.

“From the network’s perspective this is salvation, otherwise they would have become obsolete as distribution becomes democratised,” said Horgan.

“(Audience) fragmentation is real but there is no point worrying about it,” he said. “What you lose on the broadcast blunderbuss, in terms of the effectiveness of linear TV, a new opportunity emerges on smart targeting and much higher conversion rates when you move to targeting the individual rather than the mass.

“Clients will be interested in this but right now, with less than one per cent penetration with TVs, we are talking about the future model (of television).”

Nic Christensen 

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