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The Parliamentary Under-Secretary of State for Culture, Media and Sport (Stephanie Peacock)
It is a pleasure to serve under your chairship, Mr Twigg. I begin by congratulating the right hon. Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell) on securing this important debate on the future of terrestrial television. It is really welcome.
I will start by highlighting the important role that television still plays in our society. It is one of the most powerful and accessible ways to inform, entertain and bring people together across the UK. Whether they are global moments like the world cup and the Olympics, or the King’s speech on Christmas day—or indeed, as has been mentioned, “Gavin and Stacey” on Christmas day—or one of my favourite programmes, “Only Fools and Horses”, mentioned by the Liberal Democrat spokesperson, the hon. Member for Cheltenham (Max Wilkinson), these moments bring us together. They create shared cultural experiences. Television has the power to unite across generations, communities and nations.
I will of course address some of the points and questions put to me, but first I shall discuss some of the broad issues, and the action that the Government are currently taking. Public service broadcasters, commercial networks and independent producers all contribute to a rich, dynamic television ecosystem that is a huge source of national pride. Audiences can access world-class content that reflects our diverse society and upholds our democratic values. The system also underpins a thriving creative economy, generating thousands of jobs and driving innovation nationwide. It helps tell the story of the four corners of our United Kingdom, to ourselves and the world.
But the way we watch TV is changing rapidly. Over the past decade, we have seen significant shifts in how content is delivered and consumed. Increasing numbers of viewers are moving to internet-based platforms, both for on demand content and, increasingly, for live programming. That shift is being driven by viewers themselves. Ofcom data shows that over two thirds of UK households now use subscription video on demand services, which is a huge leap from just one in seven in 2014. However we access television in the future, it is clear that TV over the internet is increasingly playing a central role. As such developments gather pace, we must not lose sight of those who still rely on digital terrestrial television as their main way of watching TV. That is especially true for people without access to fast, reliable broadband, as has been discussed in this debate. That is why the DCMS is leading a major project on the future of TV distribution. As technology and viewing habits evolve, that project enables us to take clear evidence-based action with a strong commitment to universal TV access. I will outline the work of the forum in a moment.
Support for public service broadcasters is important as part of a diverse mix alongside commercial broadcasters and streamers. They must be able to innovate and thrive in a changing market. I heard that at first hand when I visited STV in Glasgow last week. I take this opportunity to acknowledge that ITV will turn 70 next week. I congratulate it on that anniversary. As media Minister, I have been pleased to work with and visit our PSBs including, of course, the BBC, S4C, Channel 4 and Channel 5.
Equally, infrastructure providers require certainty to make the long-term investments needed for digital terrestrial and internet TV. I heard that at first hand when I visited the Emley Moor mast with Arqiva a few years ago. It is a Yorkshire landmark just up the road from my Barnsley constituency.
As has been mentioned, DTT is guaranteed until at least 2034. Before making any decisions, we will carefully consider the challenges for public service broadcasters and, importantly, the impact on loyal daily viewers, especially those who rely on digital terrestrial services. Broadcasters want to focus their spending on content that truly reaches audiences. However, as digital terrestrial TV audiences fall, the cost per viewer rises, making it harder for channels, big or small, to sustain distribution.
I would like to directly address the issue put to me by the right hon. Member for Dumfriesshire, Clydesdale and Tweeddale and others of why the Government do not simply commit to extending the licences past 2034. The cost of DTT to the PSBs is substantial. As fewer people rely on DTT, the cost per house is going up and will continue to do so. I am aware from my visits and meetings with providers that as part of the network reaches the end of life, investment would be needed to carry on even the current services. The right hon. Member for Maldon (Sir John Whittingdale), a former media Minister, referred to that tipping point. I say that while very clearly saying that no decisions have been made; these are complex issues.
We must ensure that the system remains viable so that audiences can continue to access a diverse and vibrant range of channels. Ofcom’s recent review of public service media made it clear: this is not just about how we watch TV; it is about the future of the UK’s cultural identity, creative economy and democratic life. That is why early strategic planning is essential and why DCMS has made that a priority. Of course, we need to bring that decision together with the BBC charter, ensuring that the BBC continues to provide universal services in a way that is sustainable for the long term.
TV distribution is a complex challenge with no easy answers. We are carefully assessing the costs and trade-offs of different distribution methods to make an informed, sustainable decision, ensuring that key stakeholders and robust evidence are involved in every step of the process. We also recognise that any decision on the future of TV distribution should encourage a competitive TV sector for public sector broadcasters and commercial channels and that the distribution method should, within reason, allow for any channel to be shown. There should not be an industry gatekeeper.
The Media Act 2024, which I and the right hon. Member for Maldon spent many hours in Committee discussing, was a major step forward. It ensures that public service broadcasters get the visibility they deserve on platforms via the internet, making it easier for audiences to find trusted, high-quality content in a crowded digital world.
I acknowledge the concerns about what a shift to internet-based TV might mean for audiences. I heard the issues and concerns that Members raised today. We know that there are groups of people who are more likely to be digitally excluded. They are often older, living in rural areas, more likely to be on lower incomes or living alone, or they may have a disability. Those are the people who rely most on television, not just for news and entertainment, but for connection and companionship.
Around 4.5 million households still face real barriers to accessing TV over the internet, whether due to a lack of broadband, unconnected TVs, or a preference for traditional linear viewing. To understand those challenges, we commissioned researchers who spoke directly with a representative range of viewers across demographic groups, from DTT-only users to hybrid users, who use both DTT and IPTV, and full internet TV adopters. Building on the University of Exeter’s research, this in-depth work shows that many are interested in IPTV once they understand it better, but concerns remain about cost, internet reliability and technical confidence, even among those with broadband. We are using those insights to understand how different groups are affected and to explore what the Government and industry can do to support fair and inclusive access to television.
Digital inclusion remains a top priority for the Government. It is essential for unlocking long-term economic growth and is being led by the Department for Science, Innovation and Technology. The DSIT-led Project Gigabit, the Government’s programme to enable hard-to-reach communities to access lightning-fast gigabit-capable broadband, is key to ensuring fair and inclusive access for all.
I want to answer some of the other points. Ofcom noted the importance of any decision, but it has not made a recommendation. It is part of our TV forum. DCMS is doing a full assessment of the costs of all the options, informed by our work with the stakeholder forum. We will publish that assessment when a decision is made.
Experts are at the centre of our work on the future of TV distribution. Our stakeholder forum brings together Ofcom, industry and audience representatives in a co-ordinated effort to explore the future of television delivery. It provides the space to identify challenges, discuss potential solutions and make real progress in shaping policy.
Running for at least 12 months, the forum meets quarterly, having already held four sessions with a final meeting planned for November. To support it, we have established three working groups, each focusing on a core part of the landscape: the TV sector, the infrastructure that underpins it, and the audience perspective. Together, these groups ensure that we are looking at the full picture—technical, commercial and, most importantly, viewers.
Membership spans the entire TV distribution ecosystem, from major broadcasters and infrastructure providers to trade bodies, advocacy groups and sector experts from across the UK. It includes organisations that represent people most likely to be unconnected or digitally excluded, such as the Digital Poverty Alliance, the Rural Services Network, Good Things Foundation and Silver Voices. This approach is producing a rich evidence base.
The forum plays a vital role in helping DCMS to test assumptions, understand practical implementation challenges and assess the technical feasibility of different approaches. It is not expected to reach a single view, but it will help to build consensus around the viable options and the evidence behind them before the Government make any decision. I am committed to transparency in this area: we will publish papers from this forum, set out clearly the evidence we have collected, and consult further ahead of any decision. Before any possible change, Parliament would be fully engaged and involved in any legislative process.
Let me close by reaffirming the Government’s strong commitment to a future for TV that is sustainable, innovative and inclusive; a future that supports our creative economy, protects access for every viewer, and encourages our broadcasters and platforms to keep creating world-class content for audiences here and around the world.
We also know this is not an easy decision. The choices ahead are complex and must be guided by evidence, and that is why we are taking the time to get them right, drawing on data, research and the views of people across the sector and across the country. We know this work cannot happen in isolation; it is a joint effort that requires extensive collaboration across Government, industry and audience groups—one that balances expertise and lived experience, that listens as much as it leads, and that keeps our clear commitment that no one gets left behind. As we look to the future, we must ensure that our television sector remains a cornerstone of British life: accessible to everyone, rich in diversity and confident in its place on the global stage.
Derek Twigg (in the Chair)
We are about to vote, so I would like to put the question as soon as we can, but it is up to the right hon. Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell).