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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:  3 Spanish households that have PPV and is now used by 50% of them. However, as is evident, the success of a new product within the audio-visual market does not only depend upon the technology available, but is also fundamentally affected by the marketing strategies employed in the launching of this new product (Flichy, 1999, 34). Without doubt, PPV increases the range of choice open to the television viewer within the catalogue of products which are on offer, and completes the breaking-up process of the traditional model of television which began with the introduction of pay TV (Richieri, 1994). Were VOD systems to be in general use for all television programmes, the viewers would be able to create their own programme schedule, which would consist of different programmes that they would buy individually. D’Arcy could already foresee this tendency towards individualisation when, in the mid-nineteen seventies, he concentrated his analysis on the potential of cable as a means of distribution which would bring an end to the limitations which are necessarily characteristic of hertzian-wave broadcasting (D’Arcy, 1974). Other authors (Clark, 1998) have considered that increased viewer satisfaction would be principally responsible for ensuring the success of PPV. From a sociological point of view, theme or specialised television, of which PPV is the greatest example, is a reflection of the individualistic nature of society and implies the rebirth of liberal theories and modernity. In contrast to this attitude is a feeling of belonging to society, in the traditional sense, which in itself provides an argument for the survival of general television (Wolton, 1999). Despite the existence of multichannel pay television in Spain since the nineteen eighties, distributed by hundreds of “illegal” cable operators (the “Telecommunications via Cable” law was not passed until December 1995), it was the digital satellite TV which introduced PPV into Spain. “Canal Satélite Digital”, whose major shareholders are “Canal + Francia” and “PRISA”, the Spanish multimedia group responsible for publishing the newspaper “El Pais”, launched the first pay-per-view service in Spain in March 1997, with an initial offer of 9 different channels which has now been increased to 25. In September of the same year “Via Digital”, whose major shareholder is the Telecommunications company, “Telefónica”, began broadcasting, and launched their PPV service the following November, which has reached a similar number of channels. Cable operators, however, introduced PPV at a later date; “Ono” in 1998, and the “AOC” group of cable operators, made up of a number of companies connected with “Endesa”, a company which produces electricity, halfway through the year 2000. The digital terrestrial package, “Quiero”, began PPV in the summer of 2000 with a publicity campaign based on the broadcasting of Spanish League football matches at the price of 1 Euro per match. At the time when our fieldwork was carried out, in September 1999, a total of 1,125,072 Spanish householders had PPV services, all of them being subscribers to multichannel satellite television (76.8% subscribed to “CSD” and 33.2% to “Via Digital”). It is difficult to specify the number of cable TV subscribers who had PPV at this time, although it is possible that there were no more than 3,000 in the whole country. At the beginning of 1999, spending on films on PPV in Spain was 9.8% of the total amount for Europe, with Spain holding the third position in the European ranking behind the United Kingdom (48.1%) and France (30.5%) (Screen Digest, 1999A: 11). However, these figures for PPV did not include spending on football matches, which was of considerable importance in Spain. For example, in 1998, 44% of the income generated by PPV for the

Authors: Garitaonandia, Carmelo., Fernandez, Emilio. and Oleaga, Jose.
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Spanish households that have PPV and is now used by 50% of them. However, as is
evident, the success of a new product within the audio-visual market does not only depend
upon the technology available, but is also fundamentally affected by the marketing
strategies employed in the launching of this new product (Flichy, 1999, 34).
Without doubt, PPV increases the range of choice open to the television viewer
within the catalogue of products which are on offer, and completes the breaking-up process
of the traditional model of television which began with the introduction of pay TV
(Richieri, 1994). Were VOD systems to be in general use for all television programmes,
the viewers would be able to create their own programme schedule, which would consist of
different programmes that they would buy individually. D’Arcy could already foresee this
tendency towards individualisation when, in the mid-nineteen seventies, he concentrated his
analysis on the potential of cable as a means of distribution which would bring an end to
the limitations which are necessarily characteristic of hertzian-wave broadcasting (D’Arcy,
1974). Other authors (Clark, 1998) have considered that increased viewer satisfaction
would be principally responsible for ensuring the success of PPV. From a sociological
point of view, theme or specialised television, of which PPV is the greatest example, is a
reflection of the individualistic nature of society and implies the rebirth of liberal theories
and modernity. In contrast to this attitude is a feeling of belonging to society, in the
traditional sense, which in itself provides an argument for the survival of general television
(Wolton, 1999).

Despite the existence of multichannel pay television in Spain since the nineteen
eighties, distributed by hundreds of “illegal” cable operators (the “Telecommunications via
Cable” law was not passed until December 1995), it was the digital satellite TV which
introduced PPV into Spain. “Canal Satélite Digital”, whose major shareholders are “Canal
+ Francia” and “PRISA”, the Spanish multimedia group responsible for publishing the
newspaper “El Pais”, launched the first pay-per-view service in Spain in March 1997, with
an initial offer of 9 different channels which has now been increased to 25. In September
of the same year “Via Digital”, whose major shareholder is the Telecommunications
company, “Telefónica”, began broadcasting, and launched their PPV service the following
November, which has reached a similar number of channels. Cable operators, however,
introduced PPV at a later date; “Ono” in 1998, and the “AOC” group of cable operators,
made up of a number of companies connected with “Endesa”, a company which produces
electricity, halfway through the year 2000. The digital terrestrial package, “Quiero”, began
PPV in the summer of 2000 with a publicity campaign based on the broadcasting of
Spanish League football matches at the price of 1 Euro per match.
At the time when our fieldwork was carried out, in September 1999, a total of
1,125,072 Spanish householders had PPV services, all of them being subscribers to
multichannel satellite television (76.8% subscribed to “CSD” and 33.2% to “Via Digital”).
It is difficult to specify the number of cable TV subscribers who had PPV at this time,
although it is possible that there were no more than 3,000 in the whole country. At the
beginning of 1999, spending on films on PPV in Spain was 9.8% of the total amount for
Europe, with Spain holding the third position in the European ranking behind the United
Kingdom (48.1%) and France (30.5%) (Screen Digest, 1999A: 11). However, these figures
for PPV did not include spending on football matches, which was of considerable
importance in Spain. For example, in 1998, 44% of the income generated by PPV for the


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