New analysis has found that transmission costs for radio broadcasters could increase by more than 50% if the government goes ahead with a switch-off of Digital Terrestrial Television (DTT) or Freeview in 2034.
The research from leading economic consultancy Frontier Economics – commissioned by Radiocentre the industry body for commercial radio – highlights the significant financial impact of a DTT switch-off on broadcast radio, given it shares many of its transmission sites with TV. The additional costs for radio would be a result of TV broadcasters no longer contributing to the cost of these sites. This cost-shock could ultimately put the future viability of some commercial radio stations at risk.
Radiocentre has outlined these concerns in response to a Department for Digital, Culture, Media & Sport (DCMS) Green Paper consultation on the future of DTT. The government is currently considering two possible timelines for a managed transition to internet-only TV services – 2034 and 2044.
Radiocentre’s response also highlights the public value delivered by commercial radio and warns of the potential consequences for broadcasters and listeners if the additional costs associated with an early switch-off are not adequately addressed. In particular, it identifies risks to local coverage, listener choice, and media plurality – especially in rural communities.
This latest contribution to the debate comes the same week that the Prime Minister Andy Burnham stated in parliament that he was “concerned” about the plans for a DTT switch-off and wished to take a proper look at the proposals.
Matt Payton, Radiocentre CEO, said:
“If the government gives a green light to DTT switch-off in 2034 there will be huge cost implications, especially for commercial radio broadcasters.
Radio plays an extremely important role in delivering trusted information to millions of people across the country. This is particularly crucial during emergencies and must not be underestimated or put at risk.
Ministers will need to consider the evidence carefully when making their decision in the coming months. Without a suitable cost mitigation package for radio to offset the higher transmission costs of an early switch-off, the government should seriously consider delaying this move.”
