Slow take-up for DTT in Brazil

As predicted here and elsewhere, it looks like expensive receivers are ensuring that the launch of DTT services in Brazil are to blame for a very slow take-up of the new services. A report on Advanced-Television.com last week that only 10,000 households have made the switch to digital since the launch of services in Sao Paulo at the beginning of December. At this rate the analogue switch-off target date of 2016 looks amibitious.

Meanwhile, DVB-T receivers continue to fly off the shelves in Spain, France, the UK and elsewhere... Cheap receivers are a necessary pre-requisite for quick take-up of newly launched DTT services - ISDB-T (the Japanese system adopted by the Brazilians) is not synonymous with cheap set-top boxes. An average DVB-T zapper box is now selling for less than USD $40 in many markets across the world.

Brazil - Price Update

The Brazilians launched their DTT services earlier this month based on the Japanese ISDB-T system, with a few local variations (and using MPEG-4 video). Indications are that it will be some time yet before receivers reach a price that will be affordable for the masses.

For a Standard Definition box, i.e., one with MPEG-4 decoding but outputting only 480i the price seems to be around 500 BRL, which is about $280 USD.

For a High Definition box, with 720p and 1080i video output (over HDMI) the price leaps to $44o USD.

Brazilian STB to cost more than US$350

A report on a Brazil-based website quotes the president of the National Association of Manufacturers of Electronic Products as saying that the first set-top boxes to be used for terrestrial DTV in Brazil will be priced at around BRL 700, which equates to around US$ 380 or €UR 270 at today's rates. He attributes this high price to the fact that volumes will not be high enough to make prices fall - in fact, he doesn't expect prices to fall until five years after services launch.

Of course none of this should be surprising - the Brazilians chose to adopt the Japanese ISDB-T system and create their own local variant of it, called SBTVD. The Japanese system isn't used anywhere other than Japan, which means it doesn't benefit from the economies of scale that DVB-T (or even ATSC) does. (A basic DVB-T STB has been available recently for about €UR 15 in the UK!)

It looks like the average Brazilian person is going to have to postpone joining the DTV revolution until well into the next decade.

First DVB-T adoption in Latin America...

I spotted on the newswires this morning that the Uruguayan president has signed a decree that adopts DVB-T and DVB-H for terrestrial DTV in that country. This is rather significant because Latin America, a potentially huge market for DTT, is still something of a virgin territory. The Brazilians have (rather bizarrely) thrown their lot in with the Japanese by deciding to implement a local variation of the ISDB-T system. None of the other countries, however, have yet made a decision on which DTT standard to use. The Americans have been pushing ATSC in the region of course, but it's a system that's seen as being not as technologically advanced as either DVB-T or ISDB-T....

It'll be interesting to see whether this decision in Uruguay pushes the issue up the agenda in Argentina and Chile, which will probably be the next countries to make decisions. Should one or other of those opt also for DVB-T, it's fair to say that the system could spread to the rest of Latin America. Which will mean more good news for receiver prices.

Receiver trouble in Brazil

This recent report from AdvancedTelevision.com suggests that the decision to go with a variant of the Japanese system for DTT in Brazil may not be boosting the manufacturing industry there in the way the Brazilian authorities hoped it would.

"The Brazilian Government has threatened to liberalise imports of digital TV decoders from China if Brazilian manufacturers do not succeed in meeting the December 2 deadline (when DTT broadcasts are set to initiate) and offer boxes which do not cost more than $100. The issue will be discussed this week by the Committee for the Development of the Brazilian Digital Television System (SBTVD). Manufacturers claim that it will be difficult to produce the set-top boxes which will permit the reception of digital TV on conventional (analogue) TV sets for less than $200. The industry has requested tax benefits that could reduce costs by up to 36 per cent. For its part, the Government says it could import equipment from China for $75."


I don't know much at this point about the prices consumers are paying in Japan for ISDB-T set-top boxes - I'll do some research and report in a future post - but a quick glance at the ISDB-T entry in Wikipedia suggests that the bottom end of the market is around 125 €UR, or US$ 165. Maybe the US$ 100 target in Brazil is a little ambitious...?