Case study: Freeview

Media product: Freeview digital terrestrial TV service(DTT)

Success formula:

1. It is based on research which showed there were a lot of people who wanted a wider choice of television channels but did not want to pay for it. Ofcom research result shows that Freeview subscribers have overtaken those of Sky digital.

2. Freeview drew on the lessons of ITV Digital in2002 which failed due to rivalry against BskyB, technical weakness and purchase of football broadcasting rights. Freeview addressed all the issues by offering free services, more reliable technology and a platform where the risk belonged to channel providers.

3. Successful marketing makes it easy for people to switch to Freeview. There is no contract hassle, and for a relatively small one-off payment, people can get thirty channels in one go.

Implications:

As Britain has committed to Digital Switchover, it is in the interest of BBC for people to go digital via Freeview rather than BskyB.
Freeview facilitates Digital Switchover and helps BBC to continue justifying the license fee in the digital age.
The popularity of Freeview makes it hard for the government to make the BBC a pay service
4. The success of Freeview paved the way for the launch of Freesat.

Reference:
1. Ofcom website
http://www.ofcom.org.uk/media/news/2007/06/nr_20070620
2. The Guardian media section
http://media.guardian.co.uk/bbc/story/0,,2067133,00.html
3. The Guardian media section
http://media.guardian.co.uk/broadcast/story/0,,2060490,00.html
4. Insider Story/ Greg Dyke (2004), Greg Dyke, London:HarperCollins