Britons cut spending on pay-TV

LONDON - A fifth of people in Britain plan to cut spending on pay TV channels and additional services amid growing concerns about the economy, according to a study by Continental Research published today.

Britons cut spending on pay-TV

The report, TV 3.0: The Digital and Internet TV Report, suggests bad news in 2009 for subscription-based TV channels, including those on Sky and Virgin Media, many of which are already taking a hit from declining advertising revenues.

In contrast, Freeview, which offers free multichannel TV, is set to see a sharp rise in demand, with 13% of respondents planning to get it in the next year, in addition to the 15% that already have it.

According to the online survey of a representative sample group of 1,022 UK adults in August, 18% of consumers plan to reduce their spending on TV services in the next 12 months, and 6% have now decided not to sign up to additional services, such as movie and sports channels.

The availability of free TV and video content over the internet and low cost of obtaining Freeview were specifically cited as a reason for the decline.

Tim Barber, associate director at Continental Research, said: "One of the truisms about how consumers respond to a challenging economy is that they go out less and therefore by implication spend more time at home, watching TV.

"What is interesting about this research is that it suggests many people are looking to save money yet further by cutting back on their monthly subscriptions for additional TV channels and services."

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