A new report by the EY consultancy group reveals that 4.3 million households who rely solely on broadcast TV could face an extra bill of £218 per year to switch from watching broadcast TV to only viewing through internet streaming. The report titled ‘Assessing the risk of a switchover to IP-only TV Distribution’ sheds light on the potential consequences of getting rid of broadcast TV.
The full cost of this change would be in the billions, with an upfront cost of £2.1 billion and annual costs of £1 billion to access the online service. It is estimated £888 million of these ongoing costs will fall on viewers having to upgrade their internet connections where they otherwise would choose not to. With viewers facing the impact of the cost of living and increasing bills, further costs of streaming services would burden the most vulnerable communities including older people, lower-income households, those living in rural areas, and those living with a disability.
Crucially, the report also showed that the current hybrid model of free-to-air terrestrial TV alongside streaming is working well while the benefits of a fully online TV system for viewers and broadcasters remain unclear.
The report identified viewers’ current TV usage and their perspectives on the future of TV:
- 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.
Broadcast 2040+ is calling on the government to secure broadcast TV beyond 2034 when current licenses expire, ensuring accessibility and universality through a hybrid mode for the long-term. By protecting traditional broadcasting, we can embrace online services without leaving behind at-risk communities.
Source: Broadcast 2040+