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Just how free is UK television?

Freeview? Freesat? Free and Easy? Where does the over 9 billion pounds a year for non-subscription TV come from?

Freeview and Freesat logos  Photograph: Freeview, Freesat
Freeview and Freesat logos Photograph: Freeview, Freesat
published on UK Free TV

The English language is a wonderful thing.   One word, free, can mean many different things:  not under control, unfixed, having no obligations, not in use, unrestrained, unconventional…

Or, without payment.

The business model used by much of the internet these days is based on telling us “everything is free”.   They tell us reading, watching and listening is free: once you have paid your Internet Service Provider.

 


Freeview and Freesat

Freeview and Freesat are the names used in the UK for the digital television services using either big transmission towers, or satellites in space.       Both services were called “free” after the failure to make a subscription non-satellite TV service work.

Sky’s offer has always been “free dish and box” when you sign up to pay for their subscription service.   Of course, the business is now highly profitable on the back of a decade of giving away equipment.

Freeview and Freesat offer an affordable receiver box with no contract. 

 

Free: but you need to pay the TV License

Freeview and Freesat aren’t entirely free as you must have a TV Licence every year.  

These are provided for free for homes where anyone is aged 75 or over.  By 2020, it will be the remaining paying licence payers who will be providing the “free” ones.

Even though you need to have a TV Licence for any broadcast TV, all of the money goes to the BBC. 

So, the Licence Fee accounts for £3.7 billion [4] of the £9 billion of non-subscription TV income.  

 

Free: but you must buy stuff

There are many shopping channels on Freeview and Freesat such as QVC.  These make the money they need to broadcast on Freeview from the sale of the products on offer.

It is worth noting that Liberty Interactive, owners of the world-wide QVC brand, have an annual revenue north of $10 billion.

 

Free: but others pay for you watching the adverts

“Half the money I spend on advertising is wasted; the trouble is, I don't know which half.” - John Wanamaker (1838-1922)

Commercial TV (meaning non-BBC channels) are paid for by the retail companies that pay to run 12 minutes per hour of spot advertising.   In total they pay £5.28 billion a year (of the £9 billion).  

According to the Thinkbox [4] people, collectively as adults, we watch 19 adverts per hour when watching commercial TV.    If you one of the 11.6 million “C2DE” women, that means 71 adverts a day!

 

They tell you that it’s free, but it costs £9 billion and one way or another, you are paying for it.

 Do you think you are getting good value for your share of the £9 billion? Tell me in the comments below.

 

References 

[1] https://www.thinkbox.tv/News-and-opinion/Newsroom/5-28-billion-pounds-invested-in-TV-advertising-in-2016
[2] http://www.itvplc.com/investors/results-centre/reports-and-results-archive/2017
[3] https://www.thinkbox.tv/Getting-on-TV/Useful-resources/Audience-profiles#download
[4] http://downloads.bbc.co.uk/aboutthebbc/insidethebbc/reports/pdf/bbc-annualreport-201617.pdf



Help with TV/radio stations?
Can I receive British Eurosport for free?1
Can I receive DAB radio too?2
Can I get E4 with this service?3
Is sky|one going on Freeview?4
Can I watch for free Financial channels such as CNBC or Bloomberg?5
In this section
We will still need Freeview in 20421
Who is still watching TV?2
When will your favourite Freeview TV shows move to subscription streaming TV?3
How long will Freeview and Freesat continue?4

Comments
Wednesday, 18 October 2017
B
Banacek
1:23 PM

Receiving notice of the government's rejection of the petition to scrap the licence fee, today, I still object to the profligacy and Left wing political stance of the BBC. I rarely watch the main BBC channels and especially avoid their news but I do enjoy many programmes on BBC4. The rest of our viewing is Freeview: we do not have satellite or cable.
BK

link to this
Banacek's 6 posts GB
B
Barneygoogle
8:05 PM

I only have a B&W TV. So, the licence fee is low and I can watch Freeview (I only normally watch SkyNews). I can also watch catchup (but not BBC), via my laptop, or tablet - although I rarely do so. I rarely watch the advertising, on SkyNews, so I do not contribute much to the system.

link to this
Barneygoogle's 2 posts GB
M
Michael Ward
10:59 PM

Yes. Freebies is brilliant as is the B BC. Sky is crap.

link to this
Michael Ward's 1 post GB

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