The future of Digital Terrestrial Television (DTT) is at a crossroads, and a recent report from Ofcom has highlighted the options available for its evolution. As the media landscape shifts, the question arises: should we invest in upgrading the DTT platform, scale it back to a minimal service, or fully transition to an internet-only distribution model?
Ofcom’s report, which incorporates extensive contributions from MTM and 3 Reasons through commissioned studies and industry responses, presents three distinct paths for the future of DTT:
- Invest in Upgrading the DTT Platform: This option suggests enhancing the current infrastructure to improve service quality and content offerings.
- Slim DTT Down to a ‘Nightlight’ Service: This approach would reduce DTT’s capabilities, potentially maintaining only essential services for audiences who continue to rely on traditional broadcasting.
- Full DTT Switch-Off: The most radical option entails phasing out DTT entirely in favor of a managed transition to internet protocol (IP)-only distribution.
A central theme in this debate revolves around the increasing number of UK households adopting internet-delivered TV and video services versus those who still depend on broadcast TV through Digital Terrestrial and Satellite networks. Our forecasts indicate that by 2035, around 26.9 million homes will stream video and TV content online, a significant increase from 23.2 million in 2023. Additionally, approximately 1.9 million homes are expected to rely exclusively on DTT – assuming no policy intervention.
The passage of the UK Media Act in May 2024 sets the stage for potential changes in the management of the internet-delivered TV market. Ofcom’s research highlights an unconnected audience that may face a dwindling TV experience if they do not transition to internet-based options. Their early market report encourages the Government to consider various strategies to address this issue. Ofcom’s Media Nations 2024 report also highlights generational differences in audience viewing habits and the adoption of IP-delivered services.
Importantly, there is no viable “do nothing” option. Without intervention from industry stakeholders or the government, it is likely that users dependent on DTT will find themselves underserved, as commercial broadcasters—as well as the the BBC—shift their focus toward internet-led audiences, thereby diminishing the DTT experience.
As we navigate this critical period for DTT, MTM will closely monitor developments through the upcoming DCMS report and our biannual 3 Reasons TV industry forecast. The decisions made in the coming years will shape the future of television in the UK, and it is essential for all stakeholders to engage in this conversation.