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Uncertain times for broadcasters and streaming services

Posted on 2nd October 2022 by Andrew Nairn
Last updated on 3rd July 2023 Filed under Opinion

In the coming days many households will hear how their energy costs will rise.

Mortgage rates are expected to rise noticeably in the coming months.

Add on the effects of inflation on day-to-day spending and some will simply be watching the pennies or finding ways to save money.

Meanwhile few will get a pay rise which comes close to matching inflation.

Faced with economic uncertainty like this, many will be weighing up their household spending carefully.

Will subscriptions to pay TV channels and streaming services suffer?

Naturally the question of value for money will vary from household to household. But inevitably some pay for channels they don’t watch or services they do not use routinely.

It would also be interesting to know how many people pay good money for pay TV packages even when most of the channels they watch are on Freeview and Freesat.

For some, cutting out Netflix or a pay TV package could be an easy saving.

It also reminds you what value for money the TV Licence is at barely £3 a week and of the importance of the three main commercial PSBs.

Yes, the weekly cost of a TV Licence is roughly the same as a decent coffee or a quality newspaper on a Saturday or Sunday. Its imperfections seem minor when the cost is expressed in these terms.

Still high inflation poses challenges for the BBC – just like it does for anyone on a fixed income.

Meanwhile the free-to-air commercial channels will be anxious in case there is a downturn in advertising.

This is a real risk. Anyone expressing a view on whether the PSBs should be allowed more advertising needs to consider questions of sustainability.

Over the summer the Competition and Markets Authority held a consultation on whether to allow ITV to change the way advertising time is sold. The aim is to harmonise arrangements between the former Granada and Carlton regions.

The CMA provisionally decided to allow this and is likely to confirm this soon.

Meanwhile the consultation by Ofcom on whether to look at raising the permitted amount of advertising ends next week.

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PICTURED: money graphic. COPYRIGHT: Unknown.

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Tags: Advertising, Licence Fee, Ofcom, Pay TV, Streaming Services

Dates for the Diary

November/December 2023: World Radiocommunications Conference (WRC-23).

8th Jan 2024: SD versions of BBC channels close on satellite.

End of March 2024: BBC Radio 4 LW closes.

2024: BBC Radio 4 Extra goes online-only.

2025: BBC Four and CBBC go online-only.

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