Leave no one behind: DTT’s role in future of FTA must be secured despite inevitable rise of online TV

By Dr Amal Punchihewa

To take a further deep dive into the future of TV, it is worth understanding that the term television encompasses many forms where video is produced, processed, distributed and consumed. Broadcasters have responded to technological advancements and disruptions appropriately to meet the evolving needs of their audiences. In that context, the current hot topic in broadcasting is the distribution of content.

For decades, broadcasters have offered both live and non-live content with higher and higher quality. Public service broadcasters (PSBs) offer content that can be accessed free of charge (free-to-access or FTA) without any gatekeepers.

PSB and FTA content access does not require any payment to any service provider on an ongoing basis. Gatekeepers like Internet Service Providers (ISPs) and TV receiver manufacturers should not hinder free content access. 

Traditional broadcasting utilises over-the-air (OTA) and many broadcasters around the world also offer video-on-demand (VoD) on top of their linear (scheduled) programmes. The most critical question to ask is: “Is the audience ready to access content from an online-only delivery service?”

This is a crucial decision to consider carefully as the future of television should not leave behind anyone in the streaming era.

A recent report, commissioned by the UK government and led by Exeter University and supported by the University of Leeds, MTM, 3 Reasons and Real Wireless, has reported its key findings, some of which are relevant and applicable in the Asia-Pacific region.

The report highlighted, “As the TV industry evolves and viewers increasingly shift to online platforms, the UK government is taking proactive steps to ensure that no one is left behind, especially those who rely on traditional linear TV.” This increasing trend of viewers shifting to online platforms is happening not only in the UK, but also in many other countries and regions. 

In the UK, while streaming is on the rise, 5% of UK households – roughly 1.5 million people – will still depend on traditional broadcasting by 2040 unless measures are put in place. This group, often older, lower-income, or living in rural areas, faces barriers such as the cost of broadband and a lack of digital skills. These factors contribute to their continued reliance on conventional TV services, which remain vital for keeping them informed and connected. This would be the case in a developed country too.

In APAC we have several developing countries and small island nations. In these countries, the availability and cost of broadband as revealed by various reports from telecommunication organisations is not conducive for online media consumption.

Is there any country that has done a study like the one conducted in the UK to understand the needs of its people and examine the ability to distribute essential information?

All stakeholders in respective countries, including regulators, TV broadcasters, infrastructure operators, and audience advocacy organisations, should work together to examine the implications of changing viewing habits, with a particular focus on how to balance the need for cost-effective traditional broadcasting with the growing dominance of online distribution.

Regular meetings with the aim of developing appropriate policies, and ensuring a sustainable TV ecosystem that works for both audiences and the industry should be a top priority.

While focusing on TV infrastructure and audience concerns, policy discussions should not exclude vulnerable groups from the ongoing TV revolution. 

The Digital Poverty Alliance in the UK highlighted that millions in the UK rely on digital terrestrial television (DTT) to stay informed, entertained, and connected. These people are often the most vulnerable in society. Policymakers in any country must prioritise terrestrial TV to ensure no one is left behind as the TV industry moves towards streaming.

Research such as the one led by Exeter University provides vital insights into the future of TV consumption in a given market or country, and highlights why terrestrial TV broadcasting services cannot be simply switched off. While the transition to online distribution is inevitable, the sizable number of people who depend on terrestrial TV services makes it imperative to find solutions for those who will remain dependent on traditional broadcast methods. As the industry continues to navigate this shift, it is crucial to create a future where everyone has access to quality content in a way that suits their needs.

Studies have shown that globally, more than one-third of people do not have access to any form of broadband (online) access and in APAC, the situation is worse. The digital divide must be bridged for the most vulnerable and various initiatives from the International Telecommunication Union (ITU), such as Partner2Connect, mark a significant step toward a future that ensures no one is excluded from the benefits of the changing media landscape.

The connectivity or the availability of broadband should be meaningful; that is, it should be available and affordable for the consumption of video services. 

The UK study has conducted quality data collection at a deeper analytical level. Most households in the UK already have the capability to watch online (Internet-delivered) TV on their main TV set. In 2023, 87% of TV households had an internet-enabled primary TV set and within this cohort, approximately 18% already used the internet exclusively as their TV access mechanism on their primary set.

In 2023, 17% of households relied on DTT, implying that an almost similar number watched TV on either DTT or online.

Based on existing market dynamics, the study group estimates that by 2040, 95% of households will have installed the capability to watch TV over the Internet. They expect 71% to rely exclusively on internet (online) delivery and 24% to be hybrid homes combining internet-delivered TV with DTT or digital satellite.

In the UK, superfast broadband will reach at least 99.65% of homes by 2030. However, without intervention, by 2040, 5% of homes (1.5 million) will still rely on DTT. The industry needs to find a solution to distribute content to these 1.5 million people, who cannot be ignored. 

There are strong supply and demand drivers of online (Internet-delivered) TV. On the demand side, new and augmented services are available over the Internet that are not available on broadcast TV, such as TV series or subscription services like Netflix, as well as innovations in user experiences (for example, start over, playlists, and personalisation) that can drive viewer engagement.

Integrated Broadcast-Broadband (IBB) services using the Hybrid Broadcast Broadband TV (HbbTV) engine have been successfully deployed in countries such as New Zealand through Freeviewplus. Some public service broadcasters are also simulcasting linear streaming TV services, which require an Internet-supported TV.

One of the most significant supply-side drivers is TV set sales and a partner in the UK study – 3 Reasons  – anticipates that 100% of TV sets sold in the UK will be Internet-capable by 2025.

The UK study also showed that the 17% of households that rely on DTT for their TV services in 2023 tend to have lower incomes, are more likely to be disabled, older, living alone, female, and geographically in the north of England, Wales, Scotland and Northern Ireland. Analysis of the barriers to uptake of internet-delivered (online) TV suggests that in 2040, the 5% of households that remain reliant on DTT will continue to share these characteristics.

Future research should focus on understanding these barriers and, if there is a case for switching off DTT, explore potential interventions to support these households in switching to internet-delivered TV. 

There has been much discussion around the challenges presented by online TV delivery, including scalability and latency (and jitter). The UK study authors believe that the technology for online (the Internet) TV delivery is mature and will have the capacity to manage all TV viewing via the Internet by 2040. However, the lack of control by service providers over the access network and in-home network may create problems such as reliability.

Internet-delivered TV would require more reliable end-to-end networks to match current DTT networks’ performance.

The UK’s DTT network continues to use transmission and encoding technologies from the 1990s — DVB-T and MPEG2 — for most of its services. Similar technologies in Australia for Freeview DTT services started in the mid-2000s. In New Zealand, Freeview DTT services started around the same time but use more efficient compression technology, AVC — Advanced Video Coding or MPEG-4 part 10 with first-generation DVB terrestrial standard. 

In 2024, almost all services were full HD. In the UK, more efficient second-generation technologies — DVB-T2 and MPEG4 — are used for Freeview HD channels. In Europe, most countries are retaining DTT because of its reliability and the need to maintain access for vulnerable audiences, and are replacing DVB-T and MPEG2 with newer, more efficient technologies to offer higher resolution and/or a greater choice of services.

With World Television Day celebrated on 21 November 2024, it is timely that we reflect on the value TV continues to offer. With 2025 now upon us, organisations such as the Asia-Pacific Institute for Broadcasting Development (AIBD) will continue to take the lead in facilitating a wide range of discussions from an Asia-Pacific perspective, for the Asia-Pacific region.

There is plenty to look forward to, including BroadcastAsia 2025, which will take place in Singapore from May 27-29, offering APAC’s broadcast industry the opportunity to strengthen the collaboration among key stakeholders.

While challenges lie ahead, 2025 promises to be an exciting time for APAC’s broadcast and media industry.