UTECA predicts a good year for DTT

The three new high definition channels that will be launched could mean that 2016 will become the year of definitive takeoff of high definition in Spain.

The incorporation of six new DTT channels in the coming weeks with a significant push for free-to-air high definition, as well as experts' forecasts regarding advertising investment, predict a positive 2016 for private free-to-air television stations.

In the opinion of the Union of Free-to-air Commercial Televisions (UTECA), the awarding of six new licenses that became official in October 2015, will make 2016 the year in which the free-to-air television offer grows again.

Thanks to this award, over the next few months new channels will be launched that will provide viewers with a greater television offering and new totally free programming options on their screens. “The audiovisual panorama of 2016 appears to be more competitive than ever, with eight private audiovisual groups and public operators fighting for the open audience,” they say from UTECA.

In his opinion, the incorporation of the new offer is presented as a stimulus for investment and growth of the set of industries linked to television. Advertisers, operators, production companies, broadcast services, equipment manufacturers and other agents will feel the virtuous effect of this increase in new content and formats.

On the other hand, the three new high definition channels that will be launched could mean that 2016 will become the year of definitive takeoff of HD in Spain. Estimates place the number of HD receivers, capable of receiving high definition signals, at more than 40% of the total fleet. But this year, natural demand will be complemented by the stimulus of greater supply, as well as the celebration of two major sporting events (Olympic Games and Euro Cup), traditionally triggers for team renewal.

Regarding the advertising market, UTECA expects that advertising in 2016 will continue to grow, reaching especially positive figures for conventional media, including DTT, which is estimated to grow in 2016 around 5%, positioning itself as the medium that will attract the most investment this year. In fact, if the forecasts are met, the turnover of free-to-air television in 2016 will far exceed 2,000 million euros.

These figures are supported by two recent reports presented by different companies and consultancies in the sector. Thus, both the i2p report like the studio Zenthinela They are optimistic about advertising growth throughout 2016. And likewise, InfoAdex has confirmed that in 2015 the growth rate of conventional media was 7.5%, with television being the first medium by business volume with a 40.1% share of all conventional media, reaching 2,011 million euros.

For UTECA "these studies contemplate the incorporation of new DTT channels, which will promote greater and better audience segmentation, for the benefit of the public and advertisers, and confirm that the current natural dynamics of the television ecosystem will be maintained, which rejects highly fragmented structures, as demonstrated by the fact that in Spain, France, the United Kingdom, Italy and Germany, the two largest private TV operators exceed 70% of the advertising market share."