2. Television and audio visual

Transcription

1 2. Television and audio visual 0

2 Figure 2.1 Industry metrics UK television industry Total TV industry revenue ( bn) Proportion of revenue generated by public funds 25% 25% 25% 24% 25% 23% Proportion of revenue generated by advertising 35% 33% 32% 31% 28% 30% Proportion of revenue generated by subscriptions 35% 36% 37% 39% 41% 41% TV as a proportion of total advertising spend 30% 28% 27% 27% 28% 29% Spend on originated output by 5 main networks ( bn) Digital TV take-up 61.9% 69.7% 86.3% 87.1% 91.4% 92.5% Proportion of DTV homes paying for TV (Q1) 64% 60% 55% 53% 55% 55% Viewing per head, per day (hours) in all homes Share of the five main channels in all homes 70% 67% 64% 61% 58% 56% Number of channels broadcasting in the UK Source: Ofcom/broadcasters/Advertising Association/Warc/BARB/GfK. Note: Public funds include the DCMS grant to S4C and BBC funding that is allocated to TV; TV as a proportion of total advertising spend excludes direct mail and is based on Advertising Association/Warc Expenditure Report ( spend on originations includes spend on nations and regions programming (not Welsh and Gaelic language programmes but some Irish language). Note that digital television take-up in Q had reached 93%. 1

3 2 Figure 2.2 Total TV industry revenue, by source Revenue ( m) 11,800 11,700 11,600 +6% +12% 54m +6% 49m +1% +3% 27m 19m +5.7% 11, m 11, % 11,747m 11,300 11, m 11,100 11,000 11,109m 2009 revenue PSB NAR Subscriber revenue PSB portfolio NAR Other NAR BBC TV spending Other 2010 revenue Source: Ofcom/broadcasters

4 3 Figure 2.3 Advertising revenue, by share m 4,000 3,136m 3,486m 1-year change (%) 11.2% 3,000 2,000 1, m 51m 453m 835m 786m 216m 207m 600m 538m 1,100m 1,273m m 7.8% 11.9% 6.2% 4.3% 11.5% 15.7% GMTV1 PSB portfolio channels Other multichannels Five Channel 4/S4C ITV1/Channel 3 Source: Ofcom/broadcasters. Note: Totals may not equal the sum of the components due to rounding. ITV1/Channel 3 includes ITV Plc, STV, UTV and Channel Television. GMTV1 includes ITV Breakfast.

5 Figure 2.4 Multichannel take-up in UK households % of homes 41.7% 44.7% 48.0% 56.7% 64.9% 71.8% 80.3% 87.2% 89.6% 92.1% 93.1% TV Households (m) Q Q Q Q Q Q Q Q Q Q Q Analogue terrestrial only Digital terrestrial only Analogue cable Digital cable Free-to-view digital satellite Analogue satellite Pay digital satellite Source: Ofcom, GfK NOP research from Q1 2007, previous quarters include subscriber data and Ofcom market estimates for DTT and free satellite Note: Digital terrestrial relates to DTTonly homes.

6 Figure 2.5 Number of broadcast HD homes: BSkyB, Virgin Media, Freesat and Freeview 9,000 Homes (000s) 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Q Q Q Q Q Q Q Q Q Freeview HD Freesat HD Virgin Media Sky+ HD Source:BSkyB/Virgin Media/GfK Note: Figures represent latest available data. Freesat HD and Freeview HD figures based on HD device sales, therefore the cumulative number of HD homes is indicative only and 5 should be regarded as an upper boundary figure.

7 Figure 2.6 Usage and access to Freeview DTT services: Total Freeview enabled TVs (000) Homes (000 s) Total homes using Freeview Freeviewonly homes 0 Q Q Q Q Q Q Q Source: Ofcom estimates based on GfK research and sales data. Note: Q total Freeview-enabled TVs figure has been adjusted by Ofcom. 6

8 7 Figure 2.7 Live vs. time-shifted TV viewing, DVR homes Proportion of viewing (%) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 8% 8% 8% 7% 7% 7% 7% 7% 85% 85% 85% 86% Viewed 1-7 days after broadcast Viewed on same day Live Source: BARB. All individuals with DVRs. Note: New BARB panel introduced 1 Jan As a result pre- and post-panel change data must be treated with caution

9 8 Figure top ten programmes all channels, DVR homes Programme Channel Date Recorded viewing (m) Live viewing (m) 1 Doctor Who BBC1 25/12/ Come Fly With Me BBC1 25/12/ The X Factor ITV1 03/10/ The Royle Family BBC1 25/12/ Sherlock BBC1 25/07/ EastEnders BBC1 19/02/ Gavin & Stacey BBC1 01/01/ Strictly Come Dancing BBC1 18/12/ Britain s Got Talent ITV1 05/06/ Upstairs Downstairs BBC1 26/12/ Source: BARB. All individuals with DVRs. Includes viewing on respective +1 channels. Only highest incidence of programmes reported.

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12 11 Figure average, all time-shifted content 48% Proportion of total recorded content 52% Distribution of DVR viewing within 24 hours of broadcast Distribution of DVR viewing within one-seven days of broadcast 80 Proportion of viewers % % 14% 8% 5% 9% 6% 35% 25% 14% 9% 7% 6% 3% 0-1 hours 1-2 hours 2-3 hours 3-4 hours 4-8 hours 8-24 hours 1 day after 2 days after 3 days after 4 days after 5 days after 6 days after 7 days after Source: BARB. All individuals with DVRs. Includes viewing on respective +1 channels.

13 Figure 2.12 Average online catch-up TV requests, 2010 Average monthly sessions per person Universe Reach (%) BBC iplayer 4OD ITV Player Sky Player Source: UKOM/ Nielsen. Home and work panel. Applications included. Note: Universe reach is the percentage of all UK internet-accessible persons (aged 2+) who visited the site or used the application in the average month. Internet-accessible is defined as anyone who has access to an internet-enabled computer within the time periods covered. These figures are based on averages across each calendar month of

14 13 Figure average monthly online catch-up TV requests, by age group 100% 90% 80% 70% % 50% % 30% 20% 10% 0% BBC iplayer Channel 4oD ITV Player Sky Player Source: UKOM/ Nielsen. Home and work panel. Applications included. These figures are based on averages across each calendar month of

15 14 Figure average monthly online catch-up TV requests, by gender 100% 90% 80% 70% 60% Male 50% 40% 30% 20% 10% Female 0% BBC iplayer Channel 4oD ITV Player Sky Player Source: UKOM/ Nielsen. Home and work panel. Applications included. These figures are based on averages across each calendar month of 2010

16 15 Figure 2.15 Age profile of those who have a games console at home Any games console Fixed games console Handheld/ portable games player Total Source: Ofcom residential tracker, w Base: All adults 16+ (3,474). Which of the following do you, or does anyone in your household, have in your home at the moment?

17 16 Figure 2.16 Age profile of those who personally use a games console Any games console Fixed games console Handheld/ portable games player Total Source: Ofcom residential tracker, w Base: all adults 16+ (3,474). And do you personally use.

18 17 Figure 2.17 What consumers use games consoles for online gaming 19 Watching DVD/ Blue Ray DVDs 11 Browsing the web/internet 9 Watching programmes on BBC Iplayer 4 Watching 'live' TV programmes/content 22 Watching video content 10 IPTV Source: Ofcom residential tracker, w Base: all adults 16+ with access to a games console at home (1,793). QB4 (QB4) Which, if any, of these do you use your games console for?

19 Figure 2.18 Size of the children s television audience by time of year % of viewing audience Average Audience, 000s 06:00-06:30 07:30-08:00 09:00-09:30 10:30-11:00 12:00-12:30 13:30-14:00 15:00-15:30 16:30-17:00 18:00-18:30 19:30-20:00 21:00-21:30 22:30-23:00 Average Audience % iof viewing audience Source: BARB

20 19 Figure 2.19 Average hours of weekly TV viewing by children Average weekly viewing (Hrs, Mins) Children Children 4-9 Children Source: BARB

21 Figure 2.20 Proportion of time-shifted viewing by children, by daypart 25 % of viewing Children Children :00-07:00 07:00-08:00 08:00-09:00 09:00-10:00 10:00-11:00 11:00-12:00 12:00-13:00 13:00-14:00 14:00-15:00 15:00-16:00 16:00-17:00 17:00-18:00 18:00-19:00 19:00-20:00 20:00-21:00 21:00-22:00 22:00-23:00 23:00-24:00 Children Source: BARB

22 Figure 2.21 Proportion of total viewing in the child s bedroom, by daypart % of viewing Children Children :00-07:00 07:00-08:00 08:00-09:00 09:00-10:00 10:00-11:00 11:00-12:00 12:00-13:00 13:00-14:00 14:00-15:00 15:00-16:00 16:00-17:00 17:00-18:00 18:00-19:00 19:00-20:00 20:00-21:00 21:00-22:00 22:00-23:00 23:00-24:00 Children Source: BARB

23 Figure 2.22 Total TV industry revenue, by source Revenue ( m) 10,030 10,502 10,619 11,041 11,157 11,109 5,000 4,000 3,000 3,410 3,699 3,795 3,431 3,615 3,462 4,064 4,277 3,576 3,470 4,596 4,839 3,136 Growth: 11,747 3,486 1 year 5.7% 5% 11% 5yr CAGR 2% 6% -1% Subscription revenue Net advertising revenue 2,000 1,000 2,443 2,464 2,525 2,622 2,623 2,663 2, % 2% 3% 0% BBC income allocated to TV Other revenue Source: Ofcom/broadcasters Note: Figures expressed in nominal terms and replace previous Ofcom revenue data for TV industry, owing to restatements and improvements in methodologies. Subscription revenue includes Ofcom s estimates of BSkyB, Virgin Media, BT Vision, TalkTalkTV, Setanta Sports (until its closure), ESPN and Top Up TV television subscriber revenue in the UK (Republic of Ireland revenue is excluded). It also excludes revenue generated by broadband and telephony. Other includes TV shopping, sponsorship, interactive (including premium-rate telephony services), programme sales and S4C s grant from the DCMS. The BBC restated licence fee revenue in Totals may not equal the sum of the components due to rounding. 22

24 23 Figure 2.23 TV industry revenues, by share TV industry revenue shares (%) 10,030 10,502 10,619 11,041 11,157 11,109 11, % 40% 41.4% 40.8% 34.0% 35.2% 35.7% 36.8% 38.3% 30% 34.2% 34.4% 32.6% 32.4% 28.2% 31.1% 29.7% Subscription revenue Net advertising revenue 20% 10% 24.4% 23.5% 23.8% 23.7% 23.5% 24.0% 22.7% BBC income allocated to TV 0% 7.4% 6.9% 7.9% 7.1% 7.1% 6.4% 6.2% Other revenue Source: Ofcom/broadcasters Note: Figures expressed in nominal terms and replace previous Ofcom revenue data for TV industry, owing to restatements and improvements in methodologies. Subscription revenue includes Ofcom s estimates of BSkyB, Virgin Media, BT Vision, TalkTalkTV, Setanta Sports (until its closure), ESPN and Top Up TV television subscriber revenue in the UK (Republic of Ireland revenue is excluded). It also excludes revenue generated by broadband and telephony. Other includes TV shopping, sponsorship, interactive (including premium-rate telephony services), programme sales and S4C s grant from the DCMS. The BBC restated licence fee revenue in Totals may not equal the sum of the components due to rounding.

25 Figure 2.24 Total TV industry revenue by sector Revenue ( m) 12,000 10,030 10,502 10,619 11,041 11,157 11,109 11,747 Growth 5yr 1 year CAGR 5.7% 2% 10,000 8,000 6,000 3,410 3,699 3,795 4,064 4,277 4,596 1,239 1,300 1,477 1,650 1,726 1,619 4,839 1,755 5% 8% 6% 6% Platform operators Commercial multichannels 4,000 2,843 2,906 2,725 2,603 2,420 2,123 2,359 11% -4% Main commercial PSB channels 2, ,538 2,597 2,622 2,725 2,734 2,768 2, Publicly-funded channels Source: Ofcom/broadcasters Note: Figures are nominal. Main commercial PSB channels comprise ITV1, STV, UTV, Channel Television, GMTV1, Channel 4, Five and S4C. Commercial multichannels comprise all multichannels including those owned by ITV1, Channel 4 and Five. Publicly-funded channels comprise BBC One, BBC Two, the BBC s portfolio of digital-only television channels and S4C. S4C is listed under publicly-funded and commercial analogue channels because it has a mixed advertising and public funding model. The BBC restated licence fee revenue in Totals may not equal the sum of the components due to rounding. 1% 1% 24

26 25 Figure 2.25 TV net advertising revenues, by source Net advertising revenue ( m) ,239m 3,431m 3,615m 3,462m 3,576m 3,470m 3,136m 3,487m Growth 1 year 5yr CAGR m 640m 758m 105m 173m 759m 803m 276m 386m 808m 459m 786m 453m 835m 507m 11% 6% 12% -1% 2% 24% Commercial multichannels Commercial PSB portfolio channels ,563m 2,686m 2,684m 2,427m 2,387m 2,204m 1,896m 2,144m 13% -4% Main commercial PSB channels Source: Ofcom/broadcasters. Note: Figures expressed are in nominal terms and replace previous data published by Ofcom. Main commercial PSB channels comprise ITV1, STV, UTV, Channel Television, 1/DaybreakGMTV1/Daybreak, Channel 4, Five and S4C; Commercial PSB portfolio channels include, where relevant, ITV2, 3, 4, Men & Motors, CiTV, E4, More 4, Film 4, 4Music, Five USA and Fiver (and their +1 channels). For previous years closed channels have also been included. Sponsorship revenueis not included. Totals may not equal the sum of the components due to rounding.

27 26 Figure 2.26 TV net advertising revenue market shares: Proportion of NAR by broadcaster (%) 100% 80% 60% 40% 20% 0% Total = 3,470m Total = 3,136m Total = 3,486m 23.3% 25.1% 24.0% 13.2% 14.4% 14.5% 1.6% 1.6% 1.6% 7.8% 6.6% 6.2% 18.1% 17.2% 17.2% 36.1% 35.1% 36.5% Other multichannels PSB portfolios GMTV1 Five Channel 4/S4C ITV1/Channel 3 Source: Ofcom/broadcasters. Note: ITV1/Channel 3 includes ITV1, STV, UTV and Channel Television.

28 Figure 2.27 Breakdown of other / non-broadcast revenue: 2010 Total non-broadcast revenue = 732m (2.7%) Other Revenue 125m (7%) Sponsorship 178m (-6%) TV Shopping 190m (16%) Programme Sales 36m (39%) Interactive 53m (-21%) Other Public Funding (S4C) 102m (-1%) Pay-per view 48m (-17%) Source: Ofcom/broadcasters. Note: Percentage figures in brackets represent year-on-year change. TV shopping represents aggregate operating margin of products sold via television. Percent figures represent year-on-year change. Totals may not equal the sum of the components due to rounding. Owing to the nature of these revenue components, annual changes may be a function of a higher number of broadcaster returns being made by the time of writing, rather than material changes in the contributions that these revenue components are making to total industry income. 27

29 28 Figure 2.28 Revenue generated by multichannel broadcasters, by genre: 2010 Total revenue = 4,100m across the eight genres included (10%) News 64m (-52%) Leisure 54m (-22%) Movies 561m (4%) Music 104m (-4%) Entertainment 1,200m (11%) Sport 1,800m (17%) Factual 201m (36%) Children's 164m (3%) Source: Ofcom/broadcasters Note: Percentage figures in brackets represent year-on-year change. The figures in this chart include all sources of revenue accruing to multichannels and are expressed in nominal terms. This includes those set out in Figure 1.22 plus wholesale subscriber payments from platform operators.

30 Figure 2.29 Spend on network TV programmes: m 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, ,972m 5,108m 5,107m 191m 219m 224m 378m 528m 623m 840m 802m 868m 205m 149m 224m 210m 216m 206m 361m 357m 507m 467m 672m 755m 856m 810m 799m 1,166m 1,199m 1,338m 5,369m 162m 204m 230m 348m 475m 716m 847m 869m 1,546m yr change Source: Ofcom/broadcasters. Note: Figures expressed in nominal terms. Figures do not include spend on nations and regions output. BBC digital channels includes BBC Three, BBC Four, BBC News Channel, BBC Parliament, CBBC and CBeebies (but not BBC HD). Other digital channels include all genres (excluding Sports and Films). Programme spend comprises in-house commissions, productions, commissions from independents, spend on first-run acquired programmes, spend on rights and on repeats (originations or acquisitions). 5% 9% -3% 12% -3% 2% -5% 5% 9% 16% Five Other PSB portfolio channels BBC digital channels BBC Two Channel 4 Other digital channels ITV1 + GMTV1 BBC One Film/Sport channels 29

31 30 Figure 2.30 Spend on first-run originated output on the five main networks m 3,000 2,636m 2,633m 2,598m 2,616m 2,413m 2,522m Growth 1 year 5yr CAGR 5% -1% 2,500 2,000 1, m 321m 323m 303m 335m 285m 246m 239m 615m 620m 603m 646m 266m 256m 185m 208m 614m 628m 4% 13% 2% -5% -9% 0% Regional Late night Day time 1, ,349m 1,407m 1,427m 1,427m 1,358m 1,420m 5% 1% Peak time Source: Ofcom/broadcasters. Note: Figures are expressed in 2010 prices. They include GMTV1, spending in the nations and regions on Englishlanguage programming (and a small amount of Irish-language programmes) but do not include the BBC s digital channels.

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33 Figure 2.32 Hours of first-run originated output on the five main channels Growth 1 Year 5 yr CAGR 32,866 33,379 34,048 33,045 30,485 30, % -1.8% 35,000 30,000 25,000 12,114 11,825 11,859 11,912 10,439 11, % -1.8% Regional 20,000 15, % -2.5% Non-peak network 15,142 16,021 16,646 15,536 14,632 13,316 10,000 5,000 5,610 5,533 5,543 5,597 5,414 5, % 0.2% Peak-time network Source: Ofcom/broadcasters. Note: Figures include GMTV1 but do not include the BBC s digital channels. Regional hours exclude Welsh and Gaelic-language programming but do include a small proportion of Irish-language programmes. 32

34 33 Figure 2.33 First-run originated output by the PSBs per week, all day and peak time All Day Peak-Time Hours per week BBC digital channels Five Channel 4 ITV1+GMTV1 Hours per week BBC digital channels Five Channel 4 ITV1+GMTV BBC Two BBC One BBC Two BBC One Source: Ofcom/broadcasters. Note: Figures do not include spend on nations and regions output.

35 Figure 2.34 Genre mix on five main PSB channels in peak time, by hours Proportion of total hours 100% 80% 60% 7,933 7,936 7,929 7,923 7,978 7,964 1,395 1, , ,935 1, ,954 1,277 1, ,952 1,833 1, ,746 8, , ,648 Sport Light Entertainment & Modern Music Films Drama Education General Factual 40% 2,105 2,253 2,149 2,370 2,365 2,656 2,512 Religious/Ethics Children's 20% 0% Arts & Classical Music Current Affairs Source: Ofcom/broadcasters. Note: Includes five main channels including GMTV1, figures do not include hours of nations and regions output. News 34

36 35 Figure 2.35 Genre mix on five main PSB channels in daytime Proportions of total hours 100% 80% 60% 21,668 21,553 21,313 21,703 21,612 21,597 21,654 1,958 1,837 1,753 1,687 1,796 1,505 1,650 2,810 2,713 2,491 2,370 2,435 2,814 2,596 1,811 1,716 1,593 1,645 1,557 2,080 2,464 2,056 1,797 2,654 2,759 2,817 2,590 2, Sport Light Entertainment & Modern Music Films Drama Education 40% 3,150 3,512 3,744 4,368 4,637 4,775 5,232 General Factual Religious 4,906 4,575 4,333 4,275 Children's 4,074 4,137 4,214 20% Arts & Classical Music ,299 3,191 3,041 3,068 2,901 2,881 Current Affairs 2,793 0% News Source: Ofcom/broadcasters. Note: Includes five main channels plus GMTV1. Figures do not include hours of nations and regions output.

37 36 Figure 2.36 The BBC s digital channels genre mix by hours: all day Output (hrs) Investment ( m) 100% 80% 60% 40% 32, m 233m 223m 224m 216m 206m 230m 1,738 1,690 2,210 1,788 1,576 1,622 1,588 1,143 1,452 1,478 1,386 1,743 1,569 1,532 1,768 1,167 1,077 1,048 1,182 1,077 1,296 2,297 2,482 2,503 2,335 2,471 2,629 2,405 8,021 8,033 7,957 8,326 8,347 8,406 8, ,838 32, , ,168 1,331 1,339 1,472 Other Light Entertainment & Modern Music Arts & Classical Music General Factual Children's 20% 17,890 17,674 16,762 16,740 16,593 16,546 16,460 Current Affairs 0% Source: Ofcom/broadcasters. Note: BBC digital channels include BBC Three, BBC Four, BBC News 24, BBC Parliament, CBBC, CBeebies. Investment figures are in 2009 prices. Other includes: Education, Drama, Film, Religion and Sports. The BBC allocated Parliamentary coverage to the Current Affairs genre in the data for 1998 to From 2004, it has been allocated to either News or Current Affairs. News

38 37 Figure 2.37 Total multichannel hours and first-run originations/acquisitions, 2010 Proportion of hours by channel genre (%) Total = 1,544,668 Total (2009 = 1,562,613) Total = 250,253 (Total 2009 = 250,819) 1 year change % Total First Run 100% 171,074 17,598 4% 206% Movies 80% 281,280 34,045 1,496 6% -15% Music 32, ,884 81,042-65% -60% Leisure 60% 40% 20% 0% 224, , , ,615 All Hours 50,271 5,085 6,729 53,987 First-Run Hours 6% -10% 46% 46% -15% -64% -17% 9% 0% -5% News Source: Ofcom/broadcasters Note: Broadcast hours exclude Sky Box Office and barker channels, which promote TV content. First-run hours include first-run in-house, commissioned and acquired content. Sport Factual Kids Entertainment

39 38 Figure 2.38 Content spend by commercial multichannels in key genres: m 2,500 2,000 1,500 Total 2,086m 23m 59m 100m 279m 32m 56m Total 2,322m 23m 23m 71m 42m 99m 257m 518m 1 year change % 2% -29% -24% Music Leisure Children's 479m 19% Factual 1,000-1% News m 1,289m -8% Films % 22% Entertainment Sport Source: Ofcom/broadcasters. Note: Excludes BBC digital channels.

40 39 Figure 2.39 Online TV revenues Revenues ( m) Annual Growth 95% 116% 14% 12% 152% Total FTV views Subscriptions PPV transactions DTO transactions Source: Screen Digest. Note: FTV = free to view; PPV = pay per view; DTO = download to own. Due to different data sources this chart is not directly comparable with previous charts.

41 40 Figure 2.40 Availability of digital television platforms Proportion of population covered (%) 100% 80% 60% 40% 20% 0% 98% 85% Digital satellite television Digital terrestrial television Digital cable television 48% Source: Ofcom research/operators. Note that the DTT coverage figures represent the availability of a service of 17 television channels. DTT coverage levels represent Ofcom estimates. Data correct as at June 2011.

42 Figure 2.41 Take-up of multichannel TV on main sets TV Households (m) Q Q Q Q Penetration of homes (%) 41.7% 44.7% 48.0% 56.7% 64.9% 71.8% 80.3% 87.2% 89.6% 92.1% 93.1% Q Q Q Q Q Q Q Digital terrestrial only Analogue cable Digital cable Free-to-view digital satellite Analogue satellite Pay digital satellite Source: Ofcom, GfK, Sky, Virgin Media. Data from Q are based on consumer research, previous quarters use platform operator data, research and Ofcom estimates. Note: Digital terrestrial relates to DTT-only homes.

43 Figure 2.42 Platform share, by TV set Penetration (%) 100% 80% 60% 40% 20% 0% Main TV set TV Set 2 TV Set 3 TV Set Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Analogue terrestrial DTT Cable Satellite Source: GfK NOP consumer research. Note: columns do not always equal 100% due to the exclusion of some services from the chart, such as TV via broadband.

44 Figure 2.43 DTT, satellite and cable net additions, year to Q Homes added (000 s) DTT-only additions Pay-satellite additions Free-to-air satellite additions Cable additions Source: Pay platform additions based on Virgin Media results and Ofcom- estimated UK figures based on BSkyB UK & Ireland results. DTT and free satellite additions based on Q and Q consumer survey results. Note: Chart uses multiple sources and is therefore intended to be considered only as a general indication of performance. *

45 Figure 2.44 Platform demographics by age, socio-economic group and viewing hours: 2010 % platform profile Average Hours per day 100% 80% 60% 40% 20% 0% AB C1 C2 DE 18% 23% 13% 11% 27% 23% 23% 44% 39% 32% 30% 31% 30% 18% 31% 18% 21% 16% 19% 24% 38% 44% 40% 30% 31% 31% 32% 27% 28% 20% 15% 13% 14% 13% 19% 25% 19% 21% 28% 26% Source: Ofcom and BARB 44

46 Figure 2.45 Average hours of television viewing per day, by age, all homes Hours viewed 6 Individuals Children Adults Adults Adults Adults Adults Adults Source: BARB. Note: due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years. 45

47 Figure 2.46 Average weekly TV reach in all homes, by channel 15-minute consecutive weekly reach full weeks (%) 100% 80% 60% 40% 20% 82% 83% 80% 79% 78% 78% 79% 77% 77% 71% 70% 69% 79% 74% 74% 63% 69% 68% 60% 61% 68% 57% 64% 57% 58% 63% 59% 62% 56% 50% 58% 55% 57% 54% 54% 41% 44% 44% 40% 42% 40% 40% Multichannels BBC One BBC Two ITV1 C4 + S4C Five 0% Source: BARB Note: due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years. Note: In 2010 C4 and S4C became two separate channels following digital switchover in Wales. For the purposes of this report the two channels remain labelled together in relevant charts. S4C weekly reach s in 2010 was 0.7%. 46

48 Figure 2.47 Average 2010 audiences, weekdays/weekends: by day part, all homes Average audience (millions) Weekend Weekday :00-07:00 09:00-10:00 12:00-13:00 15:00-16:00 18:00-19:00 21:00-22:00 00:00-01:00 03:00-04:00 Source: BARB 47

49 48 Figure 2.48 Average 2010 weekday audiences, by day part and age, all homes Average audience (millions) Children Adults Adults Adults Adults Adults Adults :00-07:00 Source: BARB 09:00-10:00 12:00-13:00 15:00-16:00 18:00-19:00 21:00-22:00 00:00-01:00 03:00-04:00

50 49 Figure 2.49 Average 2010 weekend audiences, by day part and age, all homes Average audience (millions) Children Adults Adults Adults Adults Adults Adults :00-07:00 Source: BARB 09:00-10:00 12:00-13:00 15:00-16:00 18:00-19:00 21:00-22:00 00:00-01:00 03:00-04:00

51 Figure 2.50 Channel shares in all homes: 1983 to 2010 Audience share, all homes (%) 60% 50% 40% 30% 20% 10% BBC One BBC Two ITV 1 Channel 4 + S4C Five Others 0% Source: BARB, TAM JICTAR and Ofcom estimates. Note: due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years. Note: In 2010 C4 and S4C became two separate channels following digital switchover in Wales. For the purposes of this report the two channels remain labelled together in relevant charts.s4c 2010 channel share = 0.1%. 50

52 Figure 2.51 Five main PSB channels audience share, all homes Audience share (%) 80% 70% 60% 50% 40% 30% 20% 10% 0% 73.8% 70.3% 66.8% 63.6% 60.8% 57.8% 55.5% 6.6% 9.8% 22.8% 10.0% 6.4% 9.7% 21.5% 5.7% 9.8% 5.2% 8.6% 5.0% 7.8% 4.9% 6.8% 4.5% 6.3% 19.7% 19.2% 18.4% 17.8% 17.0% 9.4% 8.8% 8.6% 7.8% 7.5% 6.9% 24.7% 23.3% 22.8% 22.0% 21.8% 20.9% 20.8% Source: BARB. Note: due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years. Note: In 2010 C4 and S4C became two separate channels following digital switchover in Wales. For the purposes of this report the two channels remain labelled together in relevant charts.s4c 2010 channel share = 0.1%. Five Channel 4 + S4C ITV1 BBC Two BBC One 51

53 Figure 2.52 Five main PSB channels audience shares, by platform Audience share (%) 100% 100% 80% 60% 40% 74% 69% 65% 69% 62% 60% 65% 62% 60% 58% 49% 48% 49% 48% 48% 56% 56% 49% Terrestrial homes Digital terrestrial homes All homes 20% Cable and satellite homes 0% Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Source: BARB, all homes, all viewers, various platforms. Note: due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years. Note: In 2010 C4 and S4C became two separate channels following digital switchover in Wales. For the purposes of this report the two channels remain grouped together in relevant charts.s4c 2010 channel share (all homes)= 0.1%. 52

54 53 Figure 2.53 Channel share, by platform: 2010 Audience share (%) 60% Analogue terrestrial Digital terrestrial Digital cable Digital satellite 53% 50% 40% 37% 42% 28% 20% 0% 21% 18% 18% 17% 16% 16% 15% 11% 7% 6% 6% 6% 6% 5% 5% 4% 3% 3% BBC One BBC Two ITV1 C4 + S4C Five Other Source: BARB. Note: In 2010 C4 and S4C became two separate channels following digital switchover in Wales. For the purposes of this report the two channels remain labelled together in relevant charts.s4c 2010 channel share (all homes) = 0.1%.

55 Figure 2.54 PSB and portfolio channel shares in multichannel homes Audience share (%) 100% 80% 60% 40% 20% 35.1% 33.1% 31.2% 29.7% 28.1% 28.4% 28.6% 7.4% 9.2% 11.3% 13.6% 15.9% 16.9% 17.4% 57.5% 57.7% 57.6% 56.7% 56.0% 54.8% 54.0% Other digital channels PSB portfolio channels PSB channels 0% Source: BARB. Note: due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years. Note: In 2010 C4 and S4C became two separate channels following digital switchover in Wales. For the purposes of this report the two channels remain grouped together in relevant charts.s4c 2010 channel share = 0.1%. 54

56 Figure 2.55 Broadcaster portfolio shares in multichannel homes Audience share (%) 100% 14.3% 14.0% 12.9% 12.8% 12.3% 11.8% 12.8% 2.8% 2.8% 2.6% 2.7% 2.6% 2.6% 3.4% 3.1% 2.9% 2.7% 2.6% 2.7% 1.9% 4.2% 4.0% 4.0% 3.9% 3.9% 4.0% 4.1% 80% 10.4% 9.3% 8.7% 7.6% 6.8% 7.4% 8.4% 5.1% 5.3% 5.1% 5.6% 5.9% 6.0% 5.9% 60% 8.6% 9.6% 11.2% 11.2% 11.7% 11.5% 11.5% 40% 21.7% 22.1% 22.0% 22.3% 22.6% 22.6% 22.7% Other Virgin Media Viacom UKTV BSkyB* Five 20% 29.5% 29.8% 30.6% 31.2% 31.8% 31.4% 32.3% Channel 4 ITV 0% Source: BARB. Note: due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years.*bskyb took ownership of VMTV in June 2010, Virgin Media TV portfolio shares are included in the BSkyB figure for the whole of ITV includes all ITV network channels, not just those owned by ITV plc. Note: In 2010 C4 and S4C became two separate channels following digital switchover in Wales. For the purposes of this report the two channels remain grouped together in relevant charts.s4c 2010 channel share = 0.1%. BBC 55

57 Figure 2.56 BBC portfolio share in multichannel homes Audience share (%) 29.5% 29.8% 30.6% 31.2% 31.8% 31.4% 32.2% 1.0% 0.4% 1.1% 0.4% 1.2% 0.5% 0.5%0.6% 0.6% 0.5% 0.6% 0.6% 0.6% 1.2% 1.3% 1.3% 0.5% 0.6% 0.8% 0.8% 0.6% 1.3% 1.3% 30% 0.6%0.7% 1.3% 1.3% 0.8% 1.1% 0.7% 0.9% 1.3% 1.4% 0.2% 0.3% 25% 6.7% 6.9% 7.1% 7.0% 6.9% 6.6% 6.9% 20% 15% 10% 19.5% 19.3% 20.0% 19.9% 20.4% 20.0% 20.2% 5% Other CBeebies CBBC BBC News 24 BBC Four BBC Three BBC Two BBC One 0% Source: BARB Note: Other includes BBC Parliament, BBC Choice, BBC HD and BBC Knowledge. Due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years 56

58 Figure 2.57 ITV portfolio shares in multichannel homes Audience share (%) 25% 21.7% 22.1% 22.0% 22.3% 22.6% 22.6% 22.7% 20% 1.0% 1.7% 1.2% 2.0% 0.5% 0.7% 0.9% 0.9% 1.0% 1.4% 1.4% 1.6% 1.8% 2.2% 2.0% 2.2% 2.4% 2.6% 2.6% Other CITV 15% ITV4 10% 18.9% 18.4% 17.5% 17.6% 17.2% 16.9% 16.6% ITV3 5% ITV2 0% Source: BARB Note: Other includes (when relevant) ITV Play, Men & Motors, GMTV2, Granada Breeze, Plus, ITV News. ITV1, ITV2, ITV3 and ITV4 and include +1 services share and HD services from Due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years. ITV1 57

59 Figure 2.58 Channel 4 portfolio shares in multichannel homes Audience share (%) 8.6% 9.6% 11.2% 11.2% 11.7% 11.5% 12% 10% 8% 6% 4% 2% 1.2% 7.3% 0.1% 1.6% 0.6% 0.5% 1.9% 7.9% 8.2% 0.2% 0.8% 0.9% 1.8% 7.4% 11.5% 0.3% 0.3% 0.3% 0.8% 0.8% 0.8% 1.0% 1.2% 1.2% 1.0% 1.0% 1.2% 1.8% 1.8% 1.9% 6.8% 6.4% 6.1% 4Music C4+1 More4 Total Film4 Total E4 Total C4 + S4C 0% Source: BARB. Note: due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years.e4, More4 and Film 4 respective +1 channel shares are included. Note: In 2010 C4 and S4C became two separate channels following digital switchover in Wales. For the purposes of this report the two channels remain labelled together in relevant charts.s4c 2010 channel share = 0.1%. 58

60 Figure 2.59 Five portfolio shares in multichannel homes Audience share (%) 7% 5.1% 5.3% 5.1% 5.6% 5.9% 6.0% 5.9% 6% 5% 4% 0.1% 0.6% 0.1%0.4% 0.7% 0.8% 0.6% 0.6% 0.9% 0.5% Five USA/5 USA 3% 2% 5.1% 5.3% 4.9% 4.6% 4.7% 4.7% 4.5% Fiver/5* Five 1% 0% Source: BARB Note: 5* and 5 US include their +1 service share. Due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years 59

61 60 Figure 2.60 BSkyB portfolio shares in multichannel homes Audience share (%) 12% 10% 8% 6% 4% 2% 0% 10.4% 9.2% 8.7% 7.6% 6.8% 7.4% 0.3% 0.6% 2.9% 3.1% 0.3% 0.1% 0.6% 0.5% 2.4% 2.5% 2.7% 2.2% 0.5% 2.2% 1.6% 3.6% 3.4% 3.2% 3.2% 0.5% 2.1% 1.5% 1.5% 2.6% 2.9% 2.7% Source: BARB. Note: due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years. *BSkyB took ownership of VMTV in June 2010, Virgin Media TV portfolio shares are included in the BSkyB figure for the whole of % 2.4% 8.4% 1.5% 0.0% 0.6% 2.2% 1.3% Former Virgin TV portfolio* Sky Arts/Real Lives Sky Travel Sky News Sky One/Two/Three Sky movie channels Sky sports channels

62 61 Figure 2.61 UKTV portfolio shares in multichannel homes Audience share (%) 5% 4.2% 4.0% 4.0% 3.9% 3.9% 4.0% 4.1% Other 4% 3% 2% 1% 0% 0.2% 0.2% 0.1% 0.2% 0.3% 0.4% 0.8% 1.9% 0.3% 0.3% 0.1% 0.1% 0.2% 0.1% 0.2% 0.4% 0.2% 0.7% 1.3% 0.2% 0.5% 1.2% 1.3% 0.3% 0.2% 0.6% 0.5% 0.2% 0.1% 0.4% 0.6% 0.2% 0.5% 0.4% 0.1% 0.1% 0.7% 0.6% 0.3% 0.1% 0.1% 0.2% 0.6% 0.4% 0.4% 0.4% 0.4% 0.2% 0.3% 0.3% 1.6% 1.4% 1.2% 1.1% 1.2% 1.2% UKTV G2/Dave UKTV Drama/Alibi UKTV Documentary/Eden UKTV Food/Good Food UKTV History/Yesterday UKTV Style/Home UKTV Gold/G.O.L.D/Watch Source: BARB Note: UKTV portfolio channels have evolved over the past twelve months. In the 2008 figures, new channel names and shares have been matched to old channels. Due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years.

63 62 Figure % 22% 20% 18% 16% 14% 12% 10% Aggregate shares of channel genres in multichannel homes Audience share (%) 8% 6% 4% 2% 0% Dec-04 Dec-05 Dec-06 Dec-07 Source: BARB. Note: Number of channels does not include +1 services. Due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years Dec-08 Dec-09 Dec-10 Entertainment Childrens Sport Movies Documentaries Music News Lifestyle and Culture No. of channels

64 63 Figure 2.63 The top channels by share in multichannel homes: 2009 to 2010 Share Rank Share Rank Channel Channel BBC One 20.2% 1 1 Film4 1.2% ITV1 16.6% 2 2 Dave 1.2% Channel 4 7.0% 3 3 Sky Sports 1 1.2% 13 9 BBC Two 6.6% 4 4 More 4 1.1% Five 4.5% 5 5 BBC News 1.1% ITV2 2.5% 6 6 ITV4 1.0% ITV3 2.3% 7 8 Sky One 0.9% E4 1.9% 8 7 Pick TV 0.9% BBC Three 1.4% 9 12 Channel One 0.9% CBeebies 1.3% USA 0.9% Source: BARB. Note: Includes channels +1 services. Due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years.

65 64 Figure 2.64 Age and gender profile of the 30 most-viewed channels in multichannel homes Older Sky Living Female Cbeebies ITV1 ITV2 ITV3 E4 5 USA BBC1 CH5 Pick TV More4 CH4 5* BBC2 BBC3 Yesterday BBC4 BBC News Sky News GOLD Film4 Sky 1 Channel One Comedy Central ITV4 Dave Sky Sports 1 Sky Sports News Male Disney Channel CBBC Younger Source: BARB Note: The profile of a channel is calculated relative to the television population in multichannel homes. Includes channel s +1 services.

66 65 Figure 2.65 Unique audiences to selected online film and TV sites Unique audience (m) Growth (%) 2.5 Apr10 Apr LOVEFiLM. com MSN Video n/a blinkbox Virgin Media Movies SeeSaw Hulu 0 Apr- 10 May- 10 Jun- 10 Jul- 10 Aug- 10 Sep- 10 Oct- 10 Nov- 10 Dec- 10 Jan- 11 Feb- 11 Mar- 11 Apr FindAnyFilm.com Source: UKOM/Nielsen, home and work panel.

67 Figure 2.66 Monthly time spent per person on selected online film and TV sites Time per person (h:mm:ss) 0:25:00 blinkbox 0:20:00 LOVEFiLM.com 0:15:00 SeeSaw 0:10:00 Virgin Media Movies 0:05:00 MSN Video 0:00:00 FindAnyFilm.com Apr- 10 May- 10 Jun- 10 Jul- 10 Aug- 10 Sep- 10 Oct- 10 Nov- 10 Dec- 10 Jan- 11 Feb- 11 Mar- 11 Apr- 11 Hulu Source: UKOM/Nielsen, home and work panel. 66

68 67 Figure 2.67 Proportion of adults with home internet who watch online catch-up TV Proportion of households (%) 50% 40% 30% 20% 40% 41% 35% 33% 31% 23% Q Q Q % 38% 35% 31% 29% 24% 24% 24% 24% 18% 14% 26% 34% 38% 21% 32% 29% 10% 10% 0% Total Male Female Source: Ofcom research Q QE12. Which, if any, of these do you or your household use the internet for whilst at home? Base: All adults who have the internet at home (n=2534 UK, , , , , , 1234 Male, 1300 Female)

69 68 Figure 2.68 Video on demand use in Virgin Media homes VoD views per month/vod reach m 53m 87m Average total VoD views per month Average VoD views per month per user 47% 52% 64% Average VoD reach Q Q Q Source: Virgin Media company results

70 69 Figure 2.69 Unique audiences to selected video-sharing sites Unique audience (m) Growth (%) Apr10 Apr Apr-10 Jul-10 Oct-10 Jan-11 Apr Total Videos / Movies YouTube Google Video MSN Video Dailymotion Bing Videos Metacafe Vimeo Yahoo! Video Source: UKOM/Nielsen, home and work panel.

71 Figure 2.70 Monthly time spent per person on selected video-sharing sites Time per person (h:mm:ss) 1:15:00 1:00:00 0:45:00 0:30:00 0:15:00 0:00:00 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Ave. Videos / Movies YouTube Veoh Dailymotion Bing Videos Metacafe MSN Video Yahoo! Video Google Video Source: UKOM/Nielsen, home and work panel. 70

72 71 Figure 2.71 Popularity of top ten most viewed UK YouTube channels Number of views (m) Subscribers to channel (000) Number of views (m) Subscribers (000) The X Factor UK BBC Britain's Got Talent Parlophone Source: YouTube statistics June BBC Worldside HDCYT ITN Showbiz AATW Eagle Rock Massagevideo

73 72 Figure 2.72 Consumer attitudes towards television programme standards, by age: 2010 % of respondents 100% 4% 8% 7% 12% 13% 17% Don't know 80% 60% 55% 59% 58% 51% 44% Improved 40% Stayed the same 20% 0% 31% All Adults (16+) 20% 28% 41% 48% Got worse Source: Ofcom 2010 Media Tracker survey. Fieldwork carried out by BDRC Continental Research. Q30 Do you feel that over the past year, television programmes have improved, got worse or stayed about the same? Base: All adults aged 16+ (2104) (643 aged 16-34, 710 aged 35-54,328 aged 55-64, 423 aged 65+)

74 73 70% 60% 50% 40% 30% 20% 10% 0% Figure 2.73 Reasons why viewers thought TV programme quality deteriorated, 2010 % of respondents. Base: All those who felt TV programme standards got worse over the past year 60% 51% 61% All Adults (16+) % 61% 42% 42% 38% 37% 35% More repeats Lack of variety General lack of quality 38% 37% 34% 31% 31% 31% 27% 26% 26% 24% More reality shows 13% 12% 10% 8% 8% 6% 6% 7% 7% 8% 5% 6% 5% 5% 2% More bad language More Violence More sex/sexual content Source: Ofcom 2010 Media Tracker survey. Fieldwork carried out by BDRC Continental Research. Q32 In what ways do you think the television programmes have got worse over the past year? Base: All adults 16+ saying programmes got worse over past year (673) (130 aged 16-34, 204 aged 35-54, 134 aged 55-64, 205 aged 65+).

75 74 Figure 2.74 PIN/password-protected TV, 2010 % of respondents. Base: All those aware of features their systems have to block certain programmes/channels 100% 80% Don't Know 60% 74% 61% 86% No 40% 20% 0% 37% 24% 13% Total Any Children in HH No children in HH Yes Source: Ofcom 2010 Media Tracker survey. Fieldwork carried out by BDRC Continental Research. Q52 Have you ever used this blocking system? Base: All adults 16+ aware of a feature on their systems enabling them to block/hide access to certain programmes/channels (1,051) (479 - Any children in household, 572 No children in household)