Digital TV in 60% of UK households

This Is Money13 April 2012

MORE than 60% of British homes now have digital television, latest figures have revealed. In the first three months of this year, the number of UK households with digital TV grew by 643,517 to hit 15.4m.

Digital television's reach in Britain increased to 62% of the market from 53% a year ago, according to figures from communications watchdog Ofcom.

Satellite provider BSkyB remains Britain's largest digital TV platform with 7.3m subscribers. However, the fastest growth came from Freeview, the digital terrestrial company. It has passed through the 5m subscriber mark for the first time, adding more than 466,000 new customers in the first quarter of 2005.

Ofcom estimates that about 1.7m Freeview boxes, or about one-quarter of the 6.7m sold, have been bought for use on second sets by viewers who already have Freeview, satellite or cable on their main TV.

Freeview is a joint venture between BSkyB, publicly funded broadcaster the BBC and Crown Castle UK. With the purchase of a set-top box for about £50 and no ongoing subscription, consumers can receive for free about two dozen digital TV channels beyond the five main networks.

Freeview has overcome market-wide scepticism that it could succeed because of the limits of its programming compared to pay-TV rivals, its geographic reach, reception quality and an earlier failed attempt at a similar service by ITV.

The Ofcom figures show that customers of digital cable services from NTL and Telewest now account for 2.5m digital households, an increase of 30,000. The cable providers' figures show they are the slowest growing portion of the market, with combined market share of 16.5%. The two companies are widely expected to merge some time this year to improve their chances of competing against BSkyB and Freeview.

The government plans to turn off analogue signals by 2012 and progressively switch Britain over to digital TV from 2008 until then.

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