A joint analysis by the BBC and Everyone TV, conducted by PwC using HM Treasury Magenta Book methodologies, reveals a significant economic opportunity in the UK's transition to internet-based television (IPTV). The report estimates that closing the digital divide and successfully transitioning to IPTV could generate £21.1-£30.8 billion annually in Gross Value Added (GVA).
Currently, 85% of UK households with televisions are connected to the internet for some or all viewing, a figure projected to rise to 97% by 2034. A significant shift is expected, with a projected tipping point in 2029 where over 50% of households will exclusively access television via the internet (3Reasons, Spring 2025).
The report highlights the need for digital inclusion, emphasizing that a managed transition is crucial. BBC Director-General Tim Davie has stressed the importance of an inclusive digital transition, and the BBC is developing a new streaming device prioritizing accessibility. This complements Everyone TV’s Freely platform and Netgem device, designed to make free-to-air channels accessible to older television sets.
Helen Burrows, Controller Digital Transition, stated: “An IPTV switchover presents an opportunity, through diligent planning and management, to drive social and economic progress. The BBC stands ready to collaborate with governmental and industry partners to facilitate this transition. However, realising this potential necessitates a government commitment to the switchover and timely support for Ofcom’s request regarding scheduling decisions, ideally by early next year.”
The report identifies three key groups at risk of digital exclusion: the unemployed, people with disabilities, and those over 75, each facing unique challenges related to affordability, accessibility, and digital literacy.