Quote:
Originally Posted by jfman
No, OB I simply view things rationally.
These rational capitalists in the marketplace are complaining about costs. If, as you claim, these are so high as to be unviable they could simply exit the marketplace for the majority of their broadcast hours - hardly anyone uses DTT exclusively after all. Internet is universal enough they could still reach the vast majority of consumers.
They will only exit DTT when they can close it down because they know someone else would step in because of the universal coverage it provides and low barrier to entry for its use - as Chris outlined a couple of days ago. It costs peanuts compared to all the other costs for a content provider.
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Well, yes, they are complaining about costs, which is why the broadcasters are not going to carry on using both methods of transmission. Now that the rollout of broadband is nearing completion, broadcasters will want to cut costs as soon as possible, but will probably wait until existing licences expire.
The average person spent 25% fewer minutes per day watching broadcast TV in 2023 compared to 2018, with projections indicating a further decline.
The fact that both DTT and online platforms have become increasingly expensive for broadcasters is a major factor in looking at likely developments in the years ahead. As DTT viewership diminishes, the cost per viewer escalates, challenging the economic viability of sustaining traditional terrestrial TV, which contrary to what Chris seems to think, is not a pittance. OFCOM’s 2023 report highlights that broadcasters foresee a tipping point where continuing DTT in its current form may no longer be sustainable.
We can all see with our own eyes that major broadcasters are increasingly focusing on internet-based services. For instance, the BBC is contemplating significant structural changes, including potential mergers and a stronger emphasis on digital offerings, to adapt to the evolving media landscape. They have also now developed a ‘digital first’ strategy.
I think the tipping point is likely when existing satellite contracts come to an end. Sky will then be IP only, and this change will impact on DTT due to the further loss of many of those viewers who use satellite but don’t have an aerial. Many of them are likely to transition to on demand viewing, putting further pressure on the viability of running TV channels. This will be a major factor that causes broadcasting via DTT to diminish, and ultimately close.
While it is true that new broadcasters might wish to take advantage of the bigger players leaving the platform, the viewing figures will plummet as the availability of compelling viewing will be absent.
The one thing that might impact on all this is government policy, and there’s a lot of hand wringing taking place at the moment on which way they will go.