Digital TV UK – Will it be able to brace the increase in prices especially VAT

As people get more and more hooked on to digital television, rising prices and taxes are making things for limited income earners even more difficult. This increase in prices and VAT is likely to make people calculate even more as to how to save upon money while continuing with their digital TV subscriptions.

At present, UK has Sky TV, BT and Virgin Media amongst the leading TV providers which provide customers with TV boxes, TV packs and other related services. The customers have to renew their TV packs on a monthly basis and they are bound by a 12 month contract. On the other hand, you also have Freesat TV which offers you just the TV box through which you can view a limited number of TV channels ( at present 140) for a lifetime. Customers with Freesat are not required to pay monthly subscription charges.

The choice of TV programmes offered by Freesat and other digital TV providers differs to a great extent. Freesate offers a limited number of channels which the customers have to make do with. On the other hand, digital TV providers such as BT, Sky TV and Virgin Media offer a vast choice in TV programmes, special packs for sports, movies and a vast range of on demand programmes while Freesat does offer on demand programmes but to a limited extent.

The choice of digital TV boxes plays yet another vital role in determining the digital TV provider for Sky offers two boxes viz. Sky Plus Box and Sky +HD box while the Standard Sky Box is offered to its Multiroom subscribers. On the other hand Virgin Media offers the V HD box and V+HD box to its subscribers while BT is known to offer the Vision +Box. With HD boxes on offer along with HD packs, it comes as no surprise they are preferred by most of the people. Freesat does offer state of the art TV equipment but on a slightly limited basis for instance, you get an HD TV box, a HD TV, SD box which air limited channels and on demand programmes.

Apart from this, bearing the monthly direct debit mode of payment in mind, people are likely to simply click away the payment option and proceed with viewing TV, but it is when they sit to calculate on annual basis, the payments seem large and unnecessary. On research, it has been inferred that most people have been simply paying for TV and not actually making most of the TV subscription. Coupled with the increase in prices due to VAT it is very much likely that people are going to think twice before they proceed with renewing their digital TV subscription and begin on a look out for a cheaper alternative over digital TV subscription.

On the other hand, Digital TV providers such as Sky, BT and Virgin will have to churn out much more attractive and enticing TV offers and bundles in order to retain their customers and make profits as well.