Policy paper

Prominence - specifying internet television equipment: a policy statement

Published 24 October 2024

Preface

The Media Act received Royal Assent on 24 May 2024, and has introduced a new online prominence framework. This framework will require particular TV platforms – provided in connection with ‘internet television equipment’ – to carry and give appropriate prominence to designated public service broadcaster (PSB) TV apps and the content the PSBs provide to support the delivery of their remits. This statement sets out the Government’s policy thinking around what categories of TV devices are to be considered as internet television equipment.

The data collected and set out below was received under the previous Government. Nevertheless, this statement reflects the current Government’s policy position.

Introduction

For the purpose of this new prominence framework, a TV platform (referred to in the Act as a ‘television selection service’) is the user interface of any service which:

• (a) enables users to select and access PSB TV apps, or between programmes provided by those apps;

• (b) is provided by means of the internet; and

• (c) is provided in connection with ‘internet television equipment’.

In order for the new prominence framework to be operable, it must first be determined which categories of devices should be considered internet television equipment. As such, the Secretary of State is required to set out the descriptions of devices or categories of devices that are to be considered internet television equipment in regulations. The Secretary of State will also have the ability to amend the list (e.g. add or remove internet television equipment from the list), as well as amend the definition in the future to be able to react to new technology or shifts in viewing habits. The purpose of delegating this to secondary legislation is to enable the Secretary of State to set out further technical details on the definitions to ensure their approach is proportionate, targeted and sufficiently future-proofed. In particular, it was the intention of the legislation for the prominence framework to capture devices where a main function is the delivery of television.

A device being specified as internet television equipment does not in itself mean that the user interface of that device will be designated as in scope of the new prominence regime. The Secretary of State will only designate particular user interfaces used in conjunction with internet television equipment, following advice from Ofcom and according to set criteria.

Engagement with industry

Between October and December 2023, the department conducted engagement with industry to gain an understanding of the devices available in the market, how those devices are used, and the ways in which consumers watch TV. The department received written responses from a range of stakeholders, including PSBs, device manufacturers, pay-TV operators and games console providers. Stakeholder views were mixed, and in some cases there was limited data available, especially in relation to newer devices.

Stakeholders identified a range of devices which can be used to watch TV content, some well-established on the market including smart TVs, set-top boxes and streaming sticks, as well as some newer devices, such as smart monitors and home projectors. All but one stakeholder supported the specification of smart TVs, set-top boxes and streaming sticks as internet television equipment. While PSBs proposed the definition of internet television equipment should encompass a wider range of devices to ensure the legislation was sufficiently future proofed, platforms were generally supportive of the approach to excluding devices where watching TV was not a main function.

Based on the key criterion that one of a device’s main purposes should be the delivery of TV, and the responses we received, below this statement sets out the evidence provided and how it has informed the department’s policy thinking as to whether or not certain devices should be considered internet television equipment for the purposes of the new online prominence framework.

Policy approach

Smart TVs, set-top boxes, and streaming sticks

From the data provided, the devices used primarily to watch TV online are smart TVs, set-top boxes and streaming sticks. The TV set remains the most-used device for watching video content, accounting for 84% of total in-home video viewing in 2023, with viewing of PSB content (including on all PSB channels and on-demand services) accounting for 39% of all video viewing. Ofcom survey data, published earlier this year, showed that three quarters of respondents lived in households with a smart TV (76% compared to 67% in 2022). 

No respondents challenged the department’s suggestion that watching TV, including PSB content, is a primary function of smart TVs, set-top boxes and streaming sticks. Indeed, many respondents suggested that these devices are used by a high proportion of UK households as their main way of consuming TV. According to Barb data provided by a respondent from our engagement between July and September 2023, smart TVs accounted for 40% of total minutes viewed to PSB content online, followed by set-top boxes (25%) and streaming sticks (17%).

As a result, the department’s policy intention is that smart TVs, set-top boxes and streaming sticks should be considered internet television equipment for the purposes of this new online prominence framework.

Smartphones, laptops, tablets, and PCs

Ofcom analysis of IPA TouchPoints 2023/24  shows that smartphones and laptops are used for 6% and 5% of all weekly viewing of video content online for all adults (15+), with tablets accounting for 2%, though the type of viewing is different on each. The most popular type of viewing on mobile phones is short online video clips, e.g. social media content (47%), whilst longer form videos on social media and video sharing sites are more popular on laptops.

For smartphones specifically, Ofcom data taken from a survey in 2024, shows the most commonly undertaken online activity of consumers who are internet users is communicating via instant messaging (84%), followed by sending and receiving emails (81%) and maps, directions and travel planning (79%), compared to watching or downloading short video clips (62%) and watching TV programmes/films/sports content (38%). Meanwhile, the presence of PCs in households continues to fall from 39% in 2022 to 34% in 2024, and it has not been identified as a device primarily used to watch TV content.

Based on the data provided, we do not believe it would be proportionate to specify these devices as internet television equipment. Although they are used as a way to watch TV content, we are of the view that it is not a primary function of these devices on a par with messaging, emailing, browsing the internet and using social media. However, if viewing habits were to change considerably in the future in relation to these devices, the Secretary of State would have the ability to specify them as internet television equipment based on the evidence available at that time.

Video games consoles

The department is aware that there are some viewers who choose to access TV through their games console. Ofcom reported that 10% of respondents to a recent survey were in households that accessed content on their TV through a games console, and among that 9% of households, 73% of their weekly viewing time is through a TV set. However, Ofcom data shows that there has actually been a steady decrease in take-up of games consoles (54% of individuals had one in their household in 2011, compared to 38% in 2024). This compares unfavourably to TV sets which remained at a stable uptake between 98% and 93% from 2011 to 2024.

We have not yet received substantive data to suggest that the delivery of TV is a primary function of a games console. According to one respondent, there has not been any material growth in watching TV content on games consoles in the last five years, and they do not expect there to be significant growth in the coming years. Although there is evidence that PSB video-on-demand content is being accessed on games consoles, there is currently not enough conclusive data available to us to indicate the extent to which games consoles are used to watch TV more generally (outside of PSB) and in proportion to gaming. Indeed, one games console provider indicated users of their consoles spend considerably more time on games (59%) than on video programming (18%) in the UK, and this aligns with how the devices are typically marketed. Given the data, we are of the view that delivery of TV cannot yet be considered as a primary function of the games console and so we do not believe it would be proportionate to specify the device as internet television equipment at this stage.

Newer devices on the market which remain of interest

During our engagement we became aware of other newer devices now on the market – including home cinema projectors and portable lifestyle screens – that can also be used to access TV content and are (at least in part) marketed with this in mind. Given these devices are relatively new, stakeholders were unable to provide definitive data on their usage at this stage to support their specification as internet television equipment. Respondents, where relevant, indicated that many of these newer devices are not necessarily designed as a replacement for established devices on the market such as smart TVs, but rather offer something different for those viewers with particular needs or interests. At this stage we are not proposing to specify these newer devices as internet television equipment.

Finally, the department is also aware of a number of other smart devices currently available on the market capable of accessing TV content but where this appears to be a peripheral function. These devices include internet connected car touchscreens, virtual reality headsets, smart watches and in-home screens such as smart fridges and smart speakers with in-built screens. Although they can be used to access TV content, many of these devices are not marketed to specifically watch TV content and there is no suggestion that doing so is a primary function of them. As such, we consider that it would not be appropriate or proportionate to designate them as internet television equipment.

Next steps

The department is now in the process of implementing the new online prominence framework. The relevant regulations needed to specify internet television equipment set out in this statement have been laid on 24 October 2024. Ofcom will now consult with industry to inform their advice to the Secretary of State on what television selection services – used in conjunction with specified internet television equipment – should be regulated under the new prominence framework. More information on Ofcom’s implementation work is set out on its website.

The department recognises that this is a fast-moving area, and the devices that should be considered ‘internet television equipment’ may well change depending on future trends around what devices viewers choose to watch TV in the future. Therefore, we will review the list of internet television equipment one year after full implementation of the new prominence regime. We would also expect Ofcom to keep the framework as a whole under review as part of their ongoing monitoring role.