Can Traditional British TV Survive Competition from US Streaming Giants?

In a posh dining room at the Charlotte Street Hotel in London’s Soho, the BBC’s director general recently met with TV creatives and executives to discuss the future of British TV. Among the topics discussed was the potential merger of BBC Studios and Channel 4, as a way to compete with streaming giants like Disney Plus and Netflix.

While this merger idea hasn’t been put into action, it highlights the urgent need for British broadcasters to come up with solutions to the funding crisis brought on by global streaming services. Some industry insiders believe that consolidation or more collaboration among broadcasters like BBC, ITV, Channel 4, and Channel 5 is necessary to ensure the survival of British-focused TV.

Former ITV Chairman Sir Peter Bazalgette warns that without a strategy for survival, public service broadcasting in the UK could be in jeopardy within the next decade. Mergers may be part of the solution, with suggestions that ITV, Channel 4, and Channel 5 should merge to create fewer, more powerful broadcasting companies.

However, not everyone agrees with this approach. Channel 5 President Sarah Rose argues that maintaining distinctiveness and plurality in British TV is crucial for viewers. She believes that having multiple broadcasters like Channel 5 offers a wider variety of content for British audiences.

As viewing habits continue to shift, the traditional model of terrestrial TV is expected to evolve by 2035, with a likely shift to digital-only video on-demand services. This shift away from traditional broadcasting could mean a battle between UK streaming services and their US counterparts. It raises questions about the future of British TV and what audiences will be watching.

Looking ahead to 2035, we can expect technological advancements in TV viewing experiences, with more immersive and interactive content. The communal experience of watching TV on a big screen is likely to remain, albeit with voice-activated controls. Platforms like YouTube are already seeing a shift towards more TV-based viewing, indicating a trend towards larger screens for content consumption.

UK broadcasters face intense competition from US-based media companies with different business models, particularly in the streaming space. The financial power of companies like Netflix, Disney, Apple, and Amazon poses a challenge for traditional UK broadcasters who are struggling to keep up.

The UK’s terrestrial channels are finding it difficult to compete financially with the deep pockets of streaming giants. The decline in the value of the BBC’s license fee and ITV’s struggles with advertising revenue are just some of the challenges facing British broadcasters in the new streaming landscape. To survive and thrive in this new era of TV, UK broadcasters will need to adapt, innovate, and find ways to remain competitive in a rapidly changing media landscape.