Media regulator Ofcom has today warned Government that the future of Freeview remains uncertain, as broadcasters warn that the platform could become economically unviable.
- Warning that a tipping point would undermine the Freeview for those who rely on it most.
- HD channels could close and the number of multiplexes in use could be cut.
- Research suggests 27% of homes will still rely on traditional TV platforms by 2040, with the elderly and infirm most reliant on Freeview.
- Ofcom puts forward three approaches that could safeguard the platform
In response to a Government request for a report on the future of TV distribution, Ofcom has laid out three options to ensure the universal availability of TV services.
After a consultation with industry, it found ongoing widespread support across the sector for TV services continuing to be available to all, with a strong offering from public service broadcasters. However, it found there was no shared view about how to achieve this.
The BBC warned Ofcom that Freeview (technically known as Digital Terrestrial Television) in its current form faces a tipping point. As fewer audiences use terrestrial services, the less cost effective it is per viewer. Industry sources expect that broadcasters will begin to pull services from the platform as viewing drops. And as fewer broadcasters are forced to share the cost of maintaining the terrestrial platform, more will drop out due to the increased costs.
According to Ofcom, the Freeview tipping point could led to HD channels being cut and the number of multiplexes used to transmit channels being reduced. The BBC says that as costs per viewer rises, closing HD multiplex PSB3 would be a way of keeping costs down.
S4C says that under the circumstances, it would become “difficult to justify responsible use of S4C’s public funds”.
Who would be most affected?
This threatens to undermine the platform for remaining audiences, who may struggle to get online.
According to Ofcom, the number of homes watching on scheduled TV channels through Digital Terrestrial Television and satellite is forecast to drop from 67% of total long-form TV viewing in 2022, to 35% by 2034 and 27% by 2040. Much of that remaining viewing will be done by households that rely solely on DTT. These are more likely to include people who are older, less affluent or have a disability.
Ofcom’s suggestions
Ofcom has given Government three options for the future of universal free-to-air television.
A clear vision and careful planning for the long term are needed. We have set out three broad approaches. Each model has particular challenges and involves commercial or public policy trade-offs.
1. Investment in a more efficient DTT service
A more efficient, but full DTT service could be an option if audience scale and investment could be sustained over the 2030s. This option may well include supporting audiences with new equipment for more efficient broadcast signals.
RXTV analysis: Ofcom’s full report suggests making use of the new DVB-T2 standard to increase capacity. If such an upgrade was made, all current channels could continue to broadcast but using less radio spectrum. Compare this to France and other European countries who have already switched all services to DVB-T2. In France, the regulator and Government are pushing towards more Ultra HD TV on their terrestrial service. There’s little concern about providing viewers with new equipment. All smart TVs sold in the last five years are already compatible.
2. Reducing DTT to a core service
Alternatively, Ofcom suggests that Freeview could retain a minimum number of core channels. For example, this would include the main public service and news channels. This would mean viewers mainly using the internet to access TV services, while also maintaining infrastructure that could deliver radio or TV, including if there are internet outages. It could be done as a temporary transition to a fuller switch off or remain indefinitely as a provider of last resort.
RXTV analysis: This suggestion would lead to the entire Freeview service being scaled back. In fact, this reduced service is currently the reality for viewers who receive their TV service from a small relay transmitter. The smaller relays carry the main channels from BBC, ITV, Channel 4 (S4C in Wales) and Channel 5. Channels like Quest, Sky News and Talking Pictures are absent.
3. Move towards DTT switch-off in the longer term
The final option presented to Government involves a planned campaign to ensure people are confident and connected with internet services. This would allow Freeview to be switched off. It would take careful planning to ensure universality of public service media, with support for people so that no-one is left behind. This could have wider benefits for digital inclusion in other areas of society.
RXTV analysis: This is what a number of broadcasters want. The BBC’s Director General has already committed to an all-IP BBC in the future.
In all cases, Ofcom says, the broadcast and broadband industries would need to work with Government to set a common vision for how to deliver universal TV services in future. Once a decision is made, it would need to be followed by detailed planning.
An inclusive transition would take 8-10 years, according to Ofcom.
- You can read the full Ofcom statement on its website.
By: Marc Thornham