Monday, 21 October 2024

Broadband TV News: Terrestrial switch off would require 4.3 million households to spend £218 a year

Story from Broadband TV News:

A new report claims that 31% of viewers could not afford the additional costs needed to allow a switch to internet broadcasting.

Consultancy EY, which produced the report for campaign group Broadcast 2040+ estimates the cost of a move away from terrestrial and satellite transmissions towards internet streaming would be £218 per year for each of the 4.3 million households, who solely rely on broadcast TV.

David Coulson, Partner, Economic Advisory at EY, said: “If a switch were made to distribute TV exclusively over the internet, even by 2040 approximately 4 million homes would still need broadband and set-top-box upgrades.

“This is forecast to cost government and consumers over £2 billion to set-up, plus a further £900 million each year to cover ongoing broadband fees and to support vulnerable users.”

The Broadcast 2040+ coalition, whose members include the Digital Poverty Alliance, the Rural Services Network and transmission company Arqiva is campaigning against the possible switch off of terrestrial services.

“This report lays bare the hidden cost of any proposed switch-off of terrestrial TV. It would mean vulnerable people being asked to pay more, risk disconnecting millions from universal access to TV and burden the taxpayer with new financial liabilities,” said a Broadcast 2040+ spokesperson.

“The report also makes clear that this costly disruption is not necessary. The UK’s current hybrid model of TV, with terrestrial operating alongside online streaming as complementary services, works well and gives us the best of both worlds.

EY also found:

  • 59% of viewers do not want to be forced to have a high-speed broadband internet connection to watch TV.
  • 31% of viewers say they cannot afford to pay more than they currently do to access broadband and TV services.
  • 40% of viewers said a switchover to IP-only would be bad or very bad use of government funding.
  • In May, communications regulator Ofcom, the UK’s communications regulator, has warned that terrestrial TV could be switched off over the next decade. However, it has warned it would require careful planning to ensure that no one is left behind.
  • Broadcasters are already making plans. BBC director-general Tim Davie has previously described an internet-only BBC at the heart of an internet-driven UK Media Market that would focus around a simple, single brand in the UK and abroad, while Sky’s satellite transponder contracts with SES will expire before the end of the decade.

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