Millions of UK households could be hit with an extra annual bill of £218 as part of a potential shift to internet-only TV, according to a new report.
The study warns that families reliant on free-to-air terrestrial TV, which currently operates via an aerial, may face steep costs if forced to switch to broadband-based services.
The report, by consultancy firm EY, highlights that terrestrial TV is only guaranteed until the early 2030s when current licences expire.
After that, there’s growing speculation that the government could phase out the service entirely, pushing all TV consumption online.
With the share of traditional TV viewing already dipping below 50%, some industry experts believe that a complete move to internet-based platforms could be on the horizon.
If that happens, households currently using terrestrial TV could be looking at an additional cost of £18.17 per month – amounting to £218 per year – to maintain their access to television through a broadband connection.
This would affect millions, especially in areas where broadband is less reliable or unavailable.
The report also estimates that by 2040, there will still be around 4.3m homes without access to high-speed internet, meaning these households would face both the cost of upgrading to broadband and the purchase of new TV equipment.
The total set-up cost for the Government and consumers could exceed £2bn, with an ongoing £900m bill annually for broadband fees, particularly for supporting vulnerable users.
Broadcast 2040+, a coalition of 35 organisations, is calling on the Government to protect terrestrial TV services until at least 2040.
A spokesperson for the campaign warned that phasing out terrestrial TV would “risk disconnecting millions” and increase costs for vulnerable households, stressing that the current hybrid model – where terrestrial TV runs alongside streaming services – offers a more balanced solution.
