A taskforce backed by the UK’s public service broadcasters – the BBC, ITV, Channel 4, 5, STV and S4C – says it would be “a poor use” of money to extend the lifespan of digital terrestrial television (DTT), also known as Freeview.
The comment comes in response to an inquiry by Parliament’s Culture Media and Sport Committee into the future of the BBC.
Viewers are increasingly shifting away from broadcast platforms in favour of streaming, a move which has forced both policymakers and broadcasters to consider the viability and desirability of keeping the DTT platform operating after the current licences expire in 2034.
In its submission, the Future TV Taskforce says that axing DTT in favour of broadband delivery of channels, also known as IPTV, would deliver “an improved TV experience for all audiences and ensure they have access to the full range of services provided by the BBC and other broadcasters.”
It adds that retaining DTT would be increasingly poor value for broadcasters and, in the case of the BBC, “represent a poor use of (public) money”.
This is because “distributing a viewer hour over DTT is already an order of magnitude more expensive than delivering the same viewer hour over the internet, and as DTT viewing falls (whilst DTT costs remain fixed) this cost disparity is widening.”
“The costs of broadcasting over DTT are fixed and do not scale with viewing. When the majority of television was delivered over DTT this meant that it was an extremely cost-efficient transmission technology.
“However, now that DTT viewing accounts for a much lower share of total viewing this has reversed and it is extremely cost-inefficient – and only growing more so as DTT viewing continues to fall.
“Even if only a handful of homes continue to use DTT, broadcasters will have to continue to spend hundreds of millions of pounds to support them.”
Requiring broadcasters to continue their DTT operations would therefore reduce the money available to invest in content, negatively “impacting the quantity and variety” of programmes available to audiences.
The submission also warns that “the declining return on investment (ROI) of broadcasting over DTT also means it is becoming commercially less attractive.
“Fewer commercial channels will broadcast via DTT in the future; meaning a worse viewer experience with less choice, and higher overall costs for the BBC and other PSBs.”
According to the document, “a transition from DTT to IPTV will ensure all viewers have access to the full range of services provided by the BBC (iPlayer, Sounds, etc.) and other broadcasters.”
It highlights that around “2.8m” of homes throughout the UK cannot access the full line-up of DTT channels due to various technical and reception issues.
By comparison, “IPTV has no such limitations” and brings more choice and features, including personalised recommendations, higher picture quality, voice control and greater accessibility features.
Addressing concerns that switching off DTT would leave “millions” having to pay more for internet, the submission claims that 95% of households now have broadband, higher than the number with a TV (93%).
It adds that “of those with a fixed broadband connection 99% have speeds ≥10Mbps and 94% have ≥30Mbps,” both of which are capable of delivering HD TV to multiple users in a household.
The number of households with a TV which would have to take out a broadband subscription if DTT was switched off today is 900,000.
However the taskforce says “this cohort has been shrinking rapidly: in 2020 there were 1.9m aerial-only homes with no broadband (7% of total TV homes), and since then it has more than halved.
“This will continue and, by 2034, the impact of turning off DTT will be much reduced”
Recognising that “there will still be many TV homes without a broadband subscription in the 2030s who are paying a comparable amount for landline connectivity” the submission says “for these homes taking up broadband should not increase monthly costs” but recognises that “despite this, affordability will remain an issue for some viewers.”
It adds: “This is a society-wide issue which needs to be addressed. Whilst there are currently schemes in place to help make broadband more affordable (e.g. social tariffs) and help the digitally excluded get online…more can be done.”
The taskforce concludes: “Helping a relatively small, yet important, number of homes connect is a manageable task, one that brings wider benefits beyond television, including access to healthcare services, job opportunities, consumer savings and online public services.”
“Our view is that, with the right planning and support in place, it is possible to modernise delivery without excluding poorer or more vulnerable audiences and undermining universality.
“By acknowledging how television is already being watched today, while safeguarding access for everyone, we can futureproof universal, free access to trusted news, entertainment and world-class British storytelling for generations to come.”