TV licence holders could have BBC and ITV terrestrial channels 'cut off'

People who have a TV licence could lose BBC and ITV channels as havits change. Terrestrial TV is reaching a “tipping point” that risks leaving older audiences with less choice and reduced quality, Ofcom has warned as it releases a bombshell new report.

A sharp decline in traditional TV viewing had prompted broadcasters including the BBC, ITV and Channel 4 to place an ever-growing focus on their streaming services. The shift risks leaving many viewers – particularly older ones who rely on terrestrial – left behind if the move to streaming is “unmanaged”.

The BBC has said it could switch off terrestrial services by 2030, while Channel 4 has also outlined plans to become a digital-first broadcaster by the end of the decade. In its report, which was delivered to the Department for Culture, Media and Sport, Ofcom said it was for the Government to decide the best approach, but urged ministers to act quickly.

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The watchdog said: “It is clear to us that this question of setting out a long-term vision is a pressing one that needs to be addressed in the next one to two years to allow time for sufficient preparation to ensure audiences do not lose out.

“Digital Terrestrial Television faces big long-term challenges and audiences who rely on it deserve a solution that is sustainable and fit for the future,” stated Ed Leighton, Ofcom’s Director of Strategy and Policy. “It requires a new vision and planning across industry and Government.

"We’ve set out three broad approaches for how this could be achieved in the long term, and we’ll continue to support Government with further analysis as it considers options for the future.” The average person spent 25% fewer minutes per day watching broadcast TV in 2023 than in 2018.

The trend is expected to continue, with watching on scheduled TV channels through Digital Terrestrial Television and satellite forecast to drop from 67% of total long-form TV viewing in 2022, to 35% by 2034 and 27% by 2040.