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Broadcasting Boom: Legacy TV and Streaming Find New Life

Despite fears of decline, UK broadcasting is stabilising as legacy firms embrace on-demand and streaming services eye global growth. The shift offers cautious opportunities for investors and viewers alike.

  • Traditional broadcast TV viewing fell 4% in 2024, but on-demand services stemmed further losses, with legacy media still accounting for 56% of in-home viewing.
  • Streaming giants face saturation in key markets but can grow via international expansion and price rises, with advertising revenue as another lever.
  • Analysts say legacy broadcasters that adapt—like ITV with its social media presence—can survive, while investors may need to accept slower cash flows.

The broadcasting industry, once written off as a casualty of the streaming revolution, is showing unexpected resilience. New data from Ofcom's Media Nations report reveals that traditional broadcast television viewing fell by 4% in 2024, yet the rapid adoption of on-demand services through digital platforms has largely offset the decline. Legacy media—including live channels and broadcaster on-demand services—still commanded 56% of all measured in-home viewing last year, down only slightly from 57% in 2023.

Mark Browning, CEO of Zinc Media Group, argues that while viewing habits are shifting, audiences are not abandoning the TV screen. The broadcasters best positioned for the future, he says, are those with the most developed on-demand platforms and a highly diversified audience. ITV and NBC, for example, have already revamped how they distribute content and built strong presences on social media, helping to retain viewers.

Streaming services, meanwhile, face a more mature landscape. Matthew Dolgin, senior equity analyst at Morningstar, notes that the biggest platforms have become 'somewhat saturated' in their largest markets for subscribers. However, he adds they 'definitely have room to grow' through international expansion into Asia, Latin America, Africa, and the Middle East, as well as by raising prices and introducing advertising tiers—moves that have so far not deterred customers.

For UK households, the shift carries direct financial implications. Savers and investors eyeing media stocks should note that legacy broadcasters may offer steady but declining cash flows, while streaming firms could provide growth albeit at a slower pace. Mortgage holders and those watching their household budgets may see higher streaming subscription costs as platforms test pricing power, though advertising-supported options could offer cheaper alternatives.

The FTSE 100 includes major broadcasters such as ITV and BT Group (which owns BT Sport), and their performance will reflect these trends. Analysts caution against writing off legacy firms entirely: provided they evolve and embrace new delivery methods, the underlying demand for quality content remains strong. As Ben Barringer of Quilter Cheviot puts it, the industry has moved through denial and bargaining to acceptance—a stage where investors may need to be content with gradual cash extraction rather than explosive growth.

Why this matters: UK households spend billions annually on TV licences, subscriptions, and streaming services, and the sector's health influences both household entertainment costs and the value of pension and investment portfolios.

What this means for you: Your monthly streaming bills could rise as platforms increase prices, but ad-supported options may emerge as cheaper alternatives. Media stocks in your pension or ISA may offer steadier returns rather than rapid growth.

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