Sky today publishes Stream On: The Future of UK TV, new independent research by Oliver & Ohlbaum Associates (O&O) which finds that the UK can move fully to internet-delivered TV in the 2030s, with only around 330,000 (2.2%) households left to help over the line – if Government sets a clear timetable and invests in targeted help for those most at risk of digital exclusion.

Drawing on a nationally representative survey of 1,000 UK TV viewers, in-depth consumer workshops and expert interviews, the report concludes that: 

• Every UK household could have access to internet-delivered TV by the mid-2030s, allowing traditional terrestrial distribution to be retired; 

• Most viewers have already made the switch – 94% of UK adults have internet at home and 92% use a video-on-demand (VOD) service; 

• Audiences – including older viewers – are enthusiastic about connected TV, with 93% finding its features useful, rising to 99% among those aged 70+; 

• A ‘nightlight’ DTT or satellite service would be costly and little used, with minimal audience demand; and 

• Consumers would prefer Government to focus on digital inclusion – skills and affordability – than maintaining a legacy broadcast system.

The publication comes as DCMS and Ofcom consider options for the future of TV distribution and the potential retirement of Digital Terrestrial Television (DTT) during the 2030s.

Viewers back a connected future – if everyone can come with them

The research finds that internet-delivered TV is already transforming the viewing experience, particularly for older and disabled audiences:

• 93% of connected TV users value features such as pause, rewind and watch from the beginning;

• Among over-70s this rises to 99%, and they are often more likely than younger viewers to rate features as “very useful”;

• Accessibility tools – including voice control and improved subtitling and audio description – are described by experts as “transformative” for some older and disabled viewers.

Audiences are equally clear about what they want next: better content discovery, strong safety features and a trusted, family-friendly environment. It’s important too that the increase in choice comes with simplification – audiences want simple interfaces with a variety of content shown in one place, akin to the traditional TV guide, to ensure they can easily discover their next watch.

Nick Herm, Group Chief Operating Officer at Sky, said:“This research shows that modern TV and social inclusion can go hand in hand. A full move to internet-delivered TV in the 2030s is achievable – and it can help close the digital divide rather than deepen it.

With most people already streaming, an investment from the Government in skills and affordable connectivity for the relatively small number of households who still need help to get online will have benefits far beyond TV, while saving hundreds of millions on maintaining legacy systems.”

Sky Up, Sky’s social impact programme, is one way Sky is playing its part to tackle digital exclusion. Sky has committed to supporting 70 Sky Up Hubs across the UK, helping people bridge the digital divide by providing devices, connectivity and hands-on tech training.

Examining the technological, cultural and economic factors that are reshaping how UK audiences across are consuming content, key findings from Stream On: The Future of UK TV include:

Only 330,000 households left by 2034 – if action is taken on digital inclusion

Building on DCMS-commissioned forecasts, O&O model the impact of a clear Government decision to move towards an “IP TV switchover”:

• In 2023, there were 3.9 million households not using internet-delivered TV;

• Without action, DCMS modelling suggests 1.8 million could remain unconnected in 2035;

• But evidence from the 2012 digital switchover and international experience, shows that a clear announcement around 2027, coupled with effective public communication, could reduce this to around 330,000 households by 2034.

These remaining households are more likely to be older, lower-income or disabled – groups who already experience digital exclusion across public services, work, healthcare and banking. The report argues that helping them to connect should be seen as part of the UK’s wider digital inclusion agenda, not a TV-specific fix.

Audiences do not want an interim solution

While projections suggest almost all audiences will have naturally transitioned to IPTV by 2035, the industry, Government and regulators all have an important responsibility in ensuring everyone can embrace IPTV.

The research indicates that audiences would prioritise support for vulnerable groups to transition to internet-enabled TV over investment in a ‘nightlight’ broadcast service, with 72 per cent of workshop participants preferring support with connected TV skills and affordability for those who need it.

Older audiences are embracing the switch

Audiences across demographics are positive about the future of TV, with 93 per cent of IPTV users valuing at least one of the features it provides, such as ‘watch from the beginning’ and ‘pause and rewind’.

While younger demographics have traditionally been seen to lead the shift to IPTV, older users find it even more useful. 99 per cent of IPTV users aged over 70 value at least one of the features it provides.

Choice and personalisation at the core

The greatest drivers to IPTV were found to be its ability to provide greater choice and a wider range of content and services. Audiences enjoy features that enhance the core TV viewing experience, with flexibility enhancing features allowing them to watch when they want scoring highly.

Going forward, audiences are most excited about new features that allow them to curate their experience, such as subscription bundling; a single, aggregated user interface; and greater personalisation, along with simplification to reduce the overwhelm of multiple apps.

AI will play a transformative role

Expert insight reveals that AI and visual rendering will increasingly change how audiences interact with their TVs. Advancements in technology will provide opportunities for hyper-personalised viewing – from tracking a favourite footballer’s positioning and in match-interactions to taking a virtual players seat in a favourite game show, content consumption will increasingly transition to co-creation.

This technology also has the potential to transform the viewing experience for elderly and disabled viewers. Features such as improved natural language voice control and real-time captioning provide transformative opportunities for those with accessibility needs.

TVs become the hub of the home

Other uses for the TV set are also emerging. 60 per cent of survey respondents were excited about social viewing. Nearly 50 per cent of survey respondents were excited about video calls via their TV. Around 60 per cent expressed interest in at least one lifestyle and productivity features such as: virtual exercise classes, shoppable TV experiences, interactive cooking guides, conducting GP appointments or online learning.

The full research and findings can be found in Stream On: The Future of UK TV,available here.

Notes to editors

*Based on O&O projections. 

**O&O used a mixture of methods to the conduct research for these independent findings, including data analysis, a national consumer survey, consumer workshops and expert interviews.

*** Building on previous research for DCMS, which took into account population changes, changing consumer habits, and increasing broadband network coverage, O&O assessed the additional potential impact of a government switch-off announcement and an information campaign. This significantly reduces current estimates from DCMS that 1.8 million households will be unconnected by 2035 without a switch off announcement.