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Relationship between the use of PPV on digital TV and TV consumption in a household and its equipment
Unformatted Document Text:  2 Relationship between the use of PPV on digital TV and TV consumption in a household and its equipment Abstract This paper is based on the results obtained from 206 questionnaires answered by people aged 14 and above from six Spanish cities, and who have digital TV at home. Its research aim is to know the relationship between TV consumption, viewers’ favourite programmes, the electronic equipment that they have at home and the influence of these factors on the consumption of Pay-per-view (PPV) which started in Spain at the same time as digital TV, in 1997. The first important conclusion is that people who contract PPV services are great consumers of television and watch 218 minutes of TV per day; 5 minutes more than those who only receive general television stations, and 23 minutes more than those who have digital TV, but who do not contract PPV. The second conclusion is that there is no relation between computer technology (ownership of PC and consumption) and the contracting of PPV services. On the hand, contracting PPV is associated with the ownership of more modern TV equipment (screen 16/9, dual/stereo, VCR and videogame console) and audio equipment (Hi-Fi music centre). Thirdly, monthly household spending on PPV is also related to the possession of technological equipment. People who have a 16/9 TV set, or a dual/stereo TV set or teletext, spend more money than people who do not have them. On the other hand, people who do not have a PC, or a link to Internet, do not use e-mail and do not have a VCR spend more money monthly on PPV than people who do have this equipment and do use these services. Introduction The introduction of multichannel and pay TV in Spain has been responsible for the transition from a television system comprising of five national channels over the air, plus one or two regional channels in some autonomous communities (Moragas & Garitaonandia, 1999), to a system which offers more than 50 theme and general channels in its basic package, plus tiers and premium channels and also pay-per-view (PPV) digital channels. This multichannel system has provoked important changes in the habits of television consumption. In this article we specifically analyse pay-per-view television, which was introduced into Spain in 1997 by the digital TV stations “Canal Satélite Digital” and “Vía Digital” and its relationship with the general consumption of TV in households and the technological equipment to be found in them. Pay-per-view is the generic name for two different technological developments for the distribution of films, events and spectacles 2 . On the one hand there is the Near Video on Demand (NVOD), an entertainment and information service that broadcasts a common set of programmes to customers on a scheduled basis. At least initially, NVOD services are expected to focus on the delivery of films and other video entertainment. NVOD typically features a schedule of popular films and events, offered on a staggered-start basis (every 30 minutes, for example) (NCTA: 1995, 65-7). This is the system which has become generalised thanks to the introduction of digital technology in DBS satellite broadcasting, and which the ONO cable operators, “Euskaltel” and “Madritel” introduced in 1999, as did, in the year 2000, the terrestrial operator, “Retevisión,” via the digital package over the air called “Quiero”. PPV has become even more dynamic within the digital world with the introduction of Impulse PPV, a system that enables the user to contract the programmes on offer by using the remote control of the set top box. This system has been installed in all the

Authors: Garitaonandia, Carmelo., Fernandez, Emilio. and Oleaga, Jose.
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2
Relationship between the use of PPV on digital TV
and TV consumption in a household and its equipment
Abstract
This paper is based on the results obtained from 206 questionnaires answered by people aged 14 and above
from six Spanish cities, and who have digital TV at home. Its research aim is to know the relationship
between TV consumption, viewers’ favourite programmes, the electronic equipment that they have at home
and the influence of these factors on the consumption of Pay-per-view (PPV) which started in Spain at the
same time as digital TV, in 1997. The first important conclusion is that people who contract PPV services are
great consumers of television and watch 218 minutes of TV per day; 5 minutes more than those who only
receive general television stations, and 23 minutes more than those who have digital TV, but who do not
contract PPV. The second conclusion is that there is no relation between computer technology (ownership of
PC and consumption) and the contracting of PPV services. On the hand, contracting PPV is associated with
the ownership of more modern TV equipment (screen 16/9, dual/stereo, VCR and videogame console) and
audio equipment (Hi-Fi music centre). Thirdly, monthly household spending on PPV is also related to the
possession of technological equipment. People who have a 16/9 TV set, or a dual/stereo TV set or teletext,
spend more money than people who do not have them. On the other hand, people who do not have a PC, or a
link to Internet, do not use e-mail and do not have a VCR spend more money monthly on PPV than people
who do have this equipment and do use these services.
Introduction
The introduction of multichannel and pay TV in Spain has been responsible for the
transition from a television system comprising of five national channels over the air, plus
one or two regional channels in some autonomous communities (Moragas & Garitaonandia,
1999), to a system which offers more than 50 theme and general channels in its basic
package, plus tiers and premium channels and also pay-per-view (PPV) digital channels.
This multichannel system has provoked important changes in the habits of television
consumption. In this article we specifically analyse pay-per-view television, which was
introduced into Spain in 1997 by the digital TV stations “Canal Satélite Digital” and “Vía
Digital” and its relationship with the general consumption of TV in households and the
technological equipment to be found in them.
Pay-per-view is the generic name for two different technological developments for
the distribution of films, events and spectacles
2
. On the one hand there is the Near Video
on Demand (NVOD), an entertainment and information service that broadcasts a common
set of programmes to customers on a scheduled basis. At least initially, NVOD services are
expected to focus on the delivery of films and other video entertainment. NVOD typically
features a schedule of popular films and events, offered on a staggered-start basis (every 30
minutes, for example) (NCTA: 1995, 65-7). This is the system which has become
generalised thanks to the introduction of digital technology in DBS satellite broadcasting,
and which the ONO cable operators, “Euskaltel” and “Madritel” introduced in 1999, as did,
in the year 2000, the terrestrial operator, “Retevisión,” via the digital package over the air
called “Quiero”.
PPV has become even more dynamic within the digital world with the introduction
of Impulse PPV, a system that enables the user to contract the programmes on offer by
using the remote control of the set top box. This system has been installed in all the


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