Two thirds of UK channels could switch to OTT, says report

About two thirds of UK TV channels could affordably switch from broadcast to unicast over-the-top delivery five to ten from now, according to IHS Screen Digest.

According to an analysis by the research group, only 58 of the 192 channels rated by the Broadcasters’ Audience Research Board (BARB) organisation has such large audiences that moving to pure OTT delivery would not be cost-effective for the foreseeable future.

The assessment was based on the assumption that the remaining 134 channels would deliver their services in standard definition, giving them weekly CDN costs of less than €10,000.

While the figures may support a move to OTT delivery, IHS Screen Digest cautioned that any move from broadcast to OTT-only was likely to hit channels’ audience reach, meaning that a migration from broadcast to OTT is likely only to take place if accompanied by a fundamental shift in viewing patterns towards connected TV platforms.