Media Trends Seen in the Development of British Television Broadcasting Services

Driven by digitalization and advances in internet technology, television broadcasting now offers diverse services extending beyond traditional formats. Here, we explore the direction of television media development by examining the evolution of TV broadcasting services in the UK, a country that pioneered the digitalization of terrestrial broadcasting.

Why focus on the UK case?

The UK's broadcasting market structure, where the public broadcaster BBC coexists with commercial stations, is similar to Japan's. The BBC, primarily funded by license fees (equivalent to Japan's reception fees), is expected to provide highly public-interest programming and pursue advanced initiatives. This BBC, along with the three major commercial broadcasters led by ITV, forms the core of the UK's broadcasting market.

These traditional broadcasters have implemented various strategies to reach a wider audience. This contrasts with the US, where entry from other industries and tech-backed startups often disrupts existing broadcasting models. From these perspectives, the UK represents a reference market for Japan when considering the future of broadcasting services.

 

　

 

The appeal of digital broadcasting in the UK is "multiple channels"

Unlike the United States and many European countries where paying to watch television is common, the UK is characterized by the significant presence of free terrestrial broadcasting as a counterpoint to satellite and cable services, which are primarily pay-TV.

Terrestrial digital broadcasting began in the UK in 1998. A major difference from Japan, where terrestrial broadcasting achieved higher picture quality through digitalization, is that the UK focused on expanding the number of channels. In the UK, which originally had few channels, multi-channel broadcasting was seen as the most obvious benefit of digitalization. However, the initial business model, which leaned towards a pay-TV approach, was not accepted by consumers, leading to chaos including the bankruptcy of operating companies.

Consequently, in 2002, the industry branded terrestrial digital broadcasting as "Freeview" to boost its adoption. To put it bluntly, just as "Jidigi" (a colloquial term for terrestrial digital broadcasting) is widely used in Japan, in the UK, the name "Freeview" – which simply means "free-to-view" broadcasting – came to refer to terrestrial digital broadcasting itself.

The core operation of Freeview is managed by major broadcasters including the BBC and ITV. Currently, it offers 60 SD (standard definition) channels plus 15 HD (high definition) channels. Furthermore, by connecting compatible TVs or tuners to the internet, users can access the catch-up services provided by broadcasters, as described later. Through this environment, televisions have come to play a significant role in the UK as a device for accessing free online streaming services, alongside computers and smartphones.

Time Shift Channel: A Strategy for Expanding Reach

Leveraging the multi-channel environment, many commercial broadcasters launched "Time Shift Channels" in the 2000s. These channels broadcast programs and commercials exactly as scheduled, but one hour later than the original programming schedule. For example, ITV provides its time-shift channel, ITV+1, across various broadcast platforms including terrestrial and satellite. This time-shift channel is an extremely convenient service for viewers who do not own a DVR or lack broadband access, preventing them from using catch-up streaming services.

So, how widely are timeshift channels used?

Let's examine the viewership share of timeshift channels, calculated as a percentage of the combined total (parent channel + timeshift channel) set at 100%, based on full-year 2014 TV ratings data (for viewers aged 16 and over) [Figure 2]. For the three major commercial broadcasters (ITV, Channel 4, Channel 5), timeshift channel viewing accounted for 7.7% of the total.

*Channel 4 is a public broadcaster but operates on commercial advertising revenue, so it is included among commercial broadcasters in this article.

Meanwhile, among the 61 specialty channels (such as children's and documentary channels) that operate timeshift channels, this share reaches 16.0%. This suggests that when desired programs overlap, channels catering to specific interests and preferences are more likely to be watched at different times.

From the broadcaster's perspective, timeshift channels increase viewing opportunities and expand program reach. In fact, for advertising transactions, viewership on timeshift channels is combined with viewership on the main channel and is not traded separately.

While the growing use of online program distribution may eventually render timeshift channels obsolete, the move by broadcasters to utilize existing transmission paths to offer timeshift viewing opportunities themselves is highly unique. This stems from the creation of a multi-channel environment through broadcast digitization, and the fact that in the UK, viewing via recording devices like VCRs has been included in ratings measurement for up to 7 days after broadcast since 1991.

Toward Further Expansion of "Television" ~ Anytime, Anywhere, on Any Device

In response to the spread of the internet, UK broadcasters are actively streaming their programs online. The BBC pioneered this trend, launching its catch-up service "iPlayer" in December 2007. Initially available only on PCs, the service expanded its compatible devices over time. Today, it can be accessed via PCs, tablets, smartphones, and TV sets. According to January 2016 monthly usage statistics (based on access counts), device usage breakdown was: Mobile (including tablets) 41%, TV sets 29%, PCs 26%. This shows no concentration of usage on any specific device (Source: BBC, iPlayer Monthly Performance Pack, January 2016 ).

Commercial broadcasters have also successively launched similar catch-up services. Initially, a 7-day window after broadcast was standard, but in recent years, extending the availability period to within 30 days after broadcast has become increasingly common. Furthermore, beyond catch-up streaming, simultaneous retransmission of programs with cleared rights is also being implemented.

As a result, television viewing styles, which were previously limited to live viewing or recorded playback, have diversified. Among younger audiences, in particular, the tendency to watch television programs according to their own convenience has become stronger [Figure 3].