Ofcom’s report highlights a significant transformation in how audiences access and consume TV content, emphasising the rise of online streaming services like Netflix, Amazon Prime Video, and YouTube. This shift has led to a decline in viewership of scheduled TV channels via traditional platforms such as Digital Terrestrial Television (DTT) and Satellite.

According to the report, the average individual now spends 25% fewer minutes per day watching broadcast TV compared to 2018, a trend expected to persist. This decline in traditional TV viewership poses financial challenges for broadcasters, as maintaining both online and traditional distribution infrastructures becomes increasingly costly.

Of particular concern is the sustainability of DTT services, with broadcasters expressing apprehensions about its long-term viability. The report suggests a potential “tipping point” where it may no longer be economically feasible to support DTT in its current form, prompting discussions on future strategies.

Examining the demographics of TV viewership, the report identifies three distinct groups: those who exclusively access TV content online, hybrid viewers who combine traditional TV with online streaming, and those reliant solely on DTT or Freesat. Notably, the latter group, comprising around 3.9 million households, tends to include older, less affluent, or disabled individuals.

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The report underscores the crucial role of broadband coverage in shaping the future of TV distribution. With 99.8% of UK households having access to minimum download speeds of 10Mbps, and initiatives like Project Gigabit aiming for widespread gigabit broadband coverage by 2030, broadband infrastructure is poised to play a role in facilitating the transition away from traditional TV distribution methods.

Ofcom proposes several potential approaches for ensuring universal access to TV services in the future. These include investing in a more efficient DTT service, reducing DTT to a core service focused on essential channels, or gradually phasing out DTT in favour of online distribution. Each approach presents its own challenges and considerations.

While Ofcom refrains from endorsing a specific approach, it emphasises the importance of initiating discussions and planning now to facilitate a smooth transition over the next 8-10 years.