Figure 1.1 Global communications revenues Growth 4yr % 1yr%

£1200bn £1,132bn 14.9% 3.4% £1,088bn £1,095bn £29bn £1,049bn £31bn £28bn £986bn £31bn £1000bn £239bn £30bn £221bn £222bn £211bn Radio £194bn -4.0% 5.0% £800bn

£600bn 23.2% 7.7% Television

£836bn £846bn £864bn £400bn £762bn £807bn 13.5% 2.2% Telecoms £200bn

£0bn 2006 2007 2008 2009 2010 Source: Ofcom analysis based on data taken from PricewaterhouseCoopers Global Entertainment and Media Outlook 2011-2015 @ www.pwc.com/outlook for television and radio. IDATE / industry data / Ofcom for US and UK TV revenues and all telecoms revenues. Interpretation and manipulation of data are solely Ofcom's responsibility. Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010. Note: Net TV advertising revenues for Russia have been calculated by discounting 15% of TV advertising spending to remove agency fees and production costs. Figure 1.2 Source of global revenues for telecoms, radio and TV services Growth 4yr % 1yr%

£984bn £1,049bn £1,086bn £1,094bn £1,131bn 14.9% 3.4% 100% £25bn £25bn £25bn £26bn £26bn £115bn £120bn £119bn £109bn £119bn

80% 6.4% 1.0% Public licence fee

60% 3.4% 9.1% Advertising £959bn £986bn 40% £845bn £904bn £941bn

20% 16.7% 2.8% Subscription

0% 2006 2007 2008 2009 2010 Source: Ofcom analysis based on data taken from PricewaterhouseCoopers Global Entertainment and Media Outlook 2011-2015 @ www.pwc.com/outlook for television and radio. IDATE / industry data / Ofcom for US and UK TV revenues and all telecoms revenues. Interpretation and manipulation of data are solely Ofcom's responsibility. Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010. Note: Net TV advertising revenues for Russia have been calculated by discounting 15% of TV advertising spending to remove agency fees and production costs. All telecoms revenues have been allocated as subscription revenues. Figure 1.3 Communications sector revenues in 2010

Telecoms Television Radio

UK 27 11 1 £39bn FRA 32 10 1 £44bn GER 35 11 3 £49bn ITA 24 8 0 £33bn CAN 21 4 1 £22bn AUS 16 4 £20bn ESP 20 5 £26bn NED 8 2 £11bn SWE 4 2 £6bn IRL 2 1 £3bn POL 6 2 £8bn BRA 34 11 £45bn RUS 19 4 £23bn IND 12 7 £19bn

£0bn £10bn £20bn £30bn £40bn £50bn

USA 188 94 12 £294bn

JPN 79 29 3 £110bn

CHN 66 10 9 £85bn

£0bn £50bn £100bn £150bn £200bn £250bn £300bn Revenue £bn Source: Ofcom analysis based on Ofcom / IDATE data for telecommunications/TV and Ofcom analysis based on data taken from PricewaterhouseCoopers Global Entertainment and Media Outlook 2011-2015 @ www.pwc.com/outlook for radio. Interpretation and manipulation of data are solely Ofcom's responsibility. Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010. Notes: the UK radio industry figure is sourced from broadcaster returns made to Ofcom. Telecoms revenue excludes revenue from narrowband internet and corporate data services and broadband revenues for BRA, RUS, IND and CHN.

4 Figure 1.4 Communications sector revenue, per head: 2010

Telecoms Television Radio

UK 432 181 18 £630ph FRA 489 159 20 £668ph GER 429 135 37 £601ph ITA 393 133 7 £533ph USA 607 304 38 £949ph CAN 620 118 32 £770ph JPN 624 226 21 £871ph AUS 739 162 28 £929ph ESP 429 107 11 £547ph NED 469 141 23 £634ph SWE 440 165 33 £639ph IRL 430 194 43 £667ph POL 156 57 3 £216ph BRA 168 52 2 £222ph RUS 137 201 £158ph IND 1060 £16ph CHN 49 77 £64ph

£0 £200 £400 £600 £800 £1,000 Revenue / head (£) Source: Ofcom analysis based on Ofcom / IDATE data for telecommunications/TV and Ofcom analysis based on data taken from PriceWaterhouseCoopers Global Entertainment and Media Outlook 2011-2015 @ www.pwc.com/outlook for radio. Interpretation and manipulation of data are solely Ofcom's responsibility. Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010. Notes: the UK radio industry figure is sourced from broadcaster returns made to Ofcom. Telecoms revenue excludes revenue from narrowband internet and corporate data services and broadband revenues for BRA, RUS, IND and CHN

5 Figure 1.5 Global advertising revenue by source

£251bn £268bn £295bn £303bn £262bn £289bn 350 Internet 300 31 37 44 Outdoor 22 18 19 250 15 37 15 16 23 22 18 21 22 17 20 Cinema 200 19 107 97 113 Radio 92 118 150 102 Television 100 30 32 34 34 26 26 Magazines 50 81 76 78 77 61 62 Newspapers 0 2005 2006 2007 2008 2009 2010

Source: Warc Data (www.warc.com).

5 Figure 1.6

Global expenditure growth rates

All Newspapers Magazines Television Radio Cinema Outdoor Internet

2009-2010 annual growth 10.2% 1.8% 1.0% 15.7% 8.2% 13.2% 6.2% 17.8%

2005-2010 CAGR 2.9% -4.2% -3.1% 5.1% -0.7% 6.4% 3.4% 24.5%

2008-2010 CAGR -1.0% -4.3% -5.0% 0.8% -1.8% 1.4% -1.5% 3.5%

Source:Warc Data (www.warc.com).

6 Figure 1.7 2010 advertising expenditure analysis Newspapers Magazines TV Radio Cinema Outdoor Internet £ bn

Global 21% 41% 7% 6% 15% 289

UK 23% 8% 30% 4% 6% 29% 14

FRA 19% 15% 32% 7% 11% 16% 10

GER 34% 14% 24% 4% 5% 20% 16

ITA 17% 11% 52% 5% 3% 11% 8

USA 16% 40% 10% 4% 18% 93

CAN 26% 7% 32% 13% 4% 17% 8

JPN 16% 7% 43% 3% 15% 16% 28

AUS 29% 7% 32% 8% 4% 19% 8

ESP 20% 7% 42% 9% 7% 14% 5

NED 29% 14% 22% 6% 4% 25% 3

SWE 40% 8% 21% 3%4% 23% 2

IRL 47% 2% 23% 9% 9% 9% 1

POL 12% 11% 41% 9% 7% 18% 2

BRA 13% 8% 68% 4%3% 5% 10

RUS 10% 9% 52% 5% 13% 12% 5

IND 39% 4% 42% 4% 7% 4% 3

CHN 28% 2% 42% 7% 7% 13% 15

0% 20% 40% 60% 80% 100% Proportion of total advertising expenditure Source: Warc Data (www.warc.com). Note: Excludes expenditure on cinema advertising in CAN, JPN and CHN

8 Figure 1.8

Fixed-line voice and mobile connections per capita, 2010 Connections per 100 population

Change -3 -19 -15 -12 -11 -5 +18 +23 +37 +27 +28 +34 since 2005

160 140 120 100

80 148 133 60 131 130 99 98 40 53 52 48 50 20 33 29 0 UK FRA GER ITA USA AUS UK FRA GER ITA USA AUS Fixed -line Mobile Source: IDATE / industry data / Ofcom

8 Figure 1.9 Fixed broadband penetration in 2010

Fixed broadband subscriptions per 100 households

Change +34 +41 +40 +22 +29 +37 since 2005 100

80

60

40 74 77 67 70 66 51 20

0 UK FRA GER ITA USA AUS

Source: IDATE. Note: Broadband calculation includes business connections

9 Figure 1.10 DTV penetration in 2010

DTV homes per 100 TV households

Change +27 +62 +42 +39 +33 +46 since 2005

100

80

60 97 93 87 40 78 75 62 20

0 UK FRA GER ITA USA AUS

Source: IDATE

10 Figure 1.11 Ownership and use of devices

100% 93 95 95 92 90 90 86 78 77 77 80% 74 75

60% 50 50 48 48 44 42 40% 34

15 20% 12 9 11 11 9 10 10 11 11 5 0% Mobile phone (inc Smartphone Digital Radio Laptop computer Tablet computer smartphone) 100%

80%

60 60% 49 46 41 37 40% 36 34 28 28 29 26 24 21 22 22 20% 14 13 10 9 8 7 8 7 7 9 6 4 6 6 6 0% DVR HDTV (any form) On-demand (VOD) TV TV can receive 3D Connected/Smart TV service broadcasts

UK FRA GER ITA USA AUS

Source: Ofcom consumer research, October 2011. Base sizes: UK=1015, France=1014, Germany=1014, Italy=1045, USA=1002, Australia = 1012. Q: Which of the following devices do you own and personally use?

12 Figure 1.12 Regular use of selected communications services / media

93 100% 93 9290 92 93 89 90 90 91 91 91 82 80 75 75 80% 72 7471 71 67 37 69 68 74 66 61 59 38 60% 52 49 46 23 42 44 41 40%

20%

0% Watch TV Listen to the radio Use mobile phone Use home fixed line Access the internet Use smartphone phone via a computer/laptop 100%

80%

61 60 58 58 55 55 55 56 60% 52 55 49 50 47 47 46 47 46 45 43 43 41 43 41 42 38 39 40 40% 37 28 21 20%

0% Read a national Read a local newspaper Read a magazine Play games on a console Listen to music on a newspaper portable media player

UK FRA GER ITA USA AUS

Source: Ofcom consumer research, October 2011. Base sizes: UK=1015, France=1014, Germany=1014, Italy=1045, USA=1002, Australia = 1012. Q; Which of the following do you regularly do (at least once a week)? Select all that apply Figure 1.13

Proposed measures to be included in the Broadband Best in Europe Scorecard

Source: Broadband Delivery UK

13 Figure 1.14 Consumers who have ever visited a social networking website and have a social network profile page Frequency of visiting SNS / Set-up SNS profile page (%) 100 91% 90 83% 82% 79% 78% 80 75% 70

60 Visited a social networking site 50

40 80% Set up a page or profile on a 78% 75% 70% 71% social networking site 65% 30

20

10

0 UK FRA GER ITA USA AUS Source: Ofcom Consumer Research October 2011. Base: All those who use the Internet. Sample size: UK=1015, France=1014, Germany=1014, Italy=1045, US=1002, Australia=1012 Q: “Have you ever visited a social networking site e.g. Facebook, Myspace, Bebo?”,“Have you set up your own page or profile on any of the following social networking sites?”

14 Figure 1.15

Consumers who have visited a social networking website, by age

UK FRA GER ITA USA AUS 100%

80%

60%

97% 92% 92% 93% 95% 91% 88% 87% 85% 86% 40% 82% 81% 78% 71% 74% 73% 65% 64%

20%

0% 18-24s 25-44s 45-64s Source: Ofcom Consumer Research October 2011. Base: For each country - all those with SNS profiles. Base: Total sample sizes (18-24s, 25-44s, 45-64s): UK=144,474,397; France=197,506,311; Germany= 192,486,336; Italy=201,534,310; US=147,189,366; Australia=152,480,380. Q: “Have you ever visited a social networking site e.g. Facebook, Myspace, Bebo?”.

15 Figure 1.16 Consumers who have visited a social networking website and have a profile (Top four sites with a profile page)

UK FRA GER ITA USA AUS

1st most Facebook Facebook Facebook Facebook Facebook Facebook popular site 83% 83% 72% 84% 89% 88%

Twitter Windows Live Stayfriends Twitter Twitter Myspace 2nd 22% 17% 22% 14% 24% 18%

Friends Copains Wer-kennt- Reunited d’Avant wen Google+ Myspace Twitter 3rd 21% 13% 21% 14% 23% 16%

VZ Myspace Twitter LinkedIn LinkedIn LinkedIn Netzwerke 4th 12% 8% 12% 20% 12% 20%

Source: Ofcom Consumer Research October 2011. Base: All those who have visited a social networking site. Sample sizes: UK=715, France=717, Germany=658, Italy=841, US=778, Australia=755 Q: “Have you set up your own page or profile on any of the following social networking sites?”

16 Figure 1.17 Frequency of visiting social networking websites, among those with a profile page Frequency of visiting social networking sites (%)

100% Don’t know 8% 7% 4% 6% 8% 9% 3% 4% 4% 4% 5% 4% 10% Once a month or less 17% 18% 80% 16% 19% 19%

29% Once every two weeks

60% 23% 28% 23% 27% 25% Weekly

40% 30% Once a day 28% 29% 24% 28% 26% 2-4 times a day 20% 24% 20% 19% 17% 20% 18% 5 or more times a day 0% UK FRA GER ITA USA AUS Source: Ofcom Consumer Research October 2011. Base: All those who have ever visited a social networking site. Sample size: UK=802, France=791, Germany=753, Italy=946, US=830, Australia=832 Q: “How often do you visit social networking sites, please think of the site(s) you visit most often?” Figure 1.18 Frequency of visiting social networking websites, by age: 18-24

Frequency of visiting social networking sites by age, 18-24 (%) 100% 1% 1% 1% 1% 1% 1% 2% 3% 4% 5% 4% Don't know 2% 4% 2% 7% 2% 1%3% 1% 12% 10% 9% 10% 11% Once a month or less 80% 20% 15% 17% 13% 21% 26% Once every two weeks 60% 36% Once a week 36% 33% 40% 30% 40% 32% Once a day

2-4 times a day 20% 35% 35% 32% 29% 31% 24% 5 or more times a day 0% UK FRA GER ITA USA AUS Source: Ofcom Consumer Research October 2011. Base: All those who have ever visited a social networking site. Sample size: UK=802, France=791, Germany=753, Italy=946, US=830, Australia=832 Q: “How often do you visit social networking sites, please think of the site(s) you visit most often?” Figure 1.19 Frequency of visiting social networking websites, by age: 45-64

Frequency of visiting social networking sites by age, 45-64 (%)

100% 2% 2% 1% 2% 1% 2% Don't know 13% 16% 14% 19% 20% 24% Once a month or less 7% 80% 7% 8% 4% 6% 7% 13% Once every two weeks 22% 22% 28% 24% 60% 19% Once a week 33% 24% 25% Once a day 40% 23% 24% 31%

2-4 times a day 20% 25% 20% 19% 18% 13% 16% 5 or more times a day 8% 9% 6% 8% 10% 0% 3% UK FRA GER ITA USA AUS Source: Ofcom Consumer Research October 2011. Base: All those who have ever visited a social networking site. Sample size: UK=802, France=791, Germany=753, Italy=946, US=830, Australia=832 Q: “How often do you visit social networking sites, please think of the site(s) you visit most often?” Figure 1.20 Devices used to access social networking profile page

Devices used to access social networking profile (%)

100

80 72% 65% 68% 66%66% 62% 56% 58% 56% 60 55% 51% 48% 43% 41% 34% 40 30% 33% 30%

20 6% 5% 5% 5% 8%6% 4% 3% 4% 2% 3% 3% 2% 4% 2% 2% 1% 1% 2% 2% 2% 3% 2% 2% 0 Laptop Desktop Mobile phone Tablet Games console Connected or Other Smart TV

UK FRA GER ITA USA AUS Source: Ofcom Consumer Research October 2011. Base: All those who have a page or profile on a social networking site. Sample sizes: UK=715, France=717, Germany=658, Italy=841, US=778, Australia=755 Q: “Which of the following do you use to access social networking sites?” Note: Mobile phone includes both “mobile phone via an app” and “Mobile phone via the web browser”

20 Figure 1.21 Number of connections / ‘friends’ on main social networking profile

Proportion of internet users 100% 12% 19% 27% 24% 200 + 33% 80% 38% 21%

23% 100 to 199 20% 60% 21% 22% 21% 21% 50 to 99 19% 19% 40% 16% 18% 18% 10 to 49 29% 26% 20% 20% 23% 18% 15% Less than 10 11% 13% 9% 6% 6% 10% 0% UK FRA GER ITA USA AUS Source: Ofcom Consumer Research October 2011 Base: (All Adults who have a page or profile on a social networking site): UK=715, France=717, Germany=658, Italy=841, US=778, Australia=755 Q: How many connections or “Friends” do you have for your Social Network profile(s) (on average), please use the site you visit most often? Note: Circled data points indicate statistically significant differences to the UK Figure 1.22 Average number of connections / ‘friends’ on main social networking website Average number of “friends” / Connections 250 216 198 200 168 160 150 137 108 100

50

0 UK FRA GER ITA USA AUS

Source: Ofcom Consumer Research October 2011 Base: (All Adults who have a page or profile on a social networking site): UK=715, France=717, Germany=658, Italy=841, US=778, Australia=755 Q: How many connections or “Friends” do you have for your Social Network profile(s) (on average), please use the site you visit most often?

22 Figure 1.23 Activities carried out on social networking sites

UK FR GER ITA USA AUS

Communicate with existing friends and family 85% 84% 69% 84% 90% 89% To look at comments, photos, other information shared by 52% 45% 50% 48% 59% 58% 'friends/connections' To reconnect with people lost contact with 49% 46% 61% 58% 61% 57%

To upload pictures 44% 21% 32% 40% 49% 40%

Communicate with people with similar interests and hobbies 27% 25% 30% 44% 28% 25%

For information on what's happening in my local area 26% 18% 38% 33% 27% 19%

For entertainment news and information 23% 29% 23% 20% 21% 21%

To upload videos 17% 13% 9% 23% 18% 14%

For information about national and global events 16% 13% 19% 30% 15% 21%

To look at campaigns and petitions 16% 10% 13% 26% 10% 13%

To network with business or professional contacts 13% 13% 24% 27% 17% 14%

Advertise to promote business 7% 5% 5% 12% 8% 9%

Source: Ofcom Consumer Research October 2011. Base: All those who have visited a social networking site. Sample sizes: UK=715, France=717, Germany=658, Italy=841, US=778, Australia=755 Q: “Have you set up your own page or profile on any of the following social networking sites?”

23 Figure 1.24 Activities do less since using social networking websites

Activities do less since using social networking websites (%) 30%

20%

25% 23% 10% 21% 20% 18% 17% 17% 18% 17% 15% 15% 16% 14% 14% 14% 13% 10% 8%

0% Texting on mobile phone Watching TV Talking to friends/family on mobile/landline phone

UK FRA GER ITA USA AUS Source: Ofcom Consumer Research October 2011. Base: All those who have visited a social networking site. Sample sizes: UK=804, France=792, Germany=760, Italy=946, US=833, Australia=832 Q: “Since you’ve used social networking websites, which of the following activities do you now take part in MORE or LESS than you used to?” Figure 1.25 Media used less since using social networking websites

Activities do less since using social networking websites (%) 30%

20%

21% 10% 19% 19% 18% 18% 18% 17% 15% 15% 15% 13% 13% 13% 11% 11% 11% 11% 8%

0% Watching news on TV Reading a printed local newspaper Reading a printed national newspaper

UK FRA GER ITA USA AUS Source: Ofcom Consumer Research October 2011. Base: All those who have visited a social networking site. Sample sizes: UK=804, France=792, Germany=760, Italy=946, US=833, Australia=832 Q: “Since you’ve used social networking websites, which of the following activities do you now take part in MORE or LESS than you used to?” Figure 1.26 Activities done more since using social networking websites

Activities do more since using social networking websites (%) 50%

40%

30%

20% 39% 37% 33% 31% 30% 32% 27% 26% 25% 24% 22% 10% 19% 18% 18% 19% 18% 20% 18% 20% 15% 15% 17% 14% 12%

0% Using a computer to access Sending emails Using seach engines Socialising with friends/family the Internet

UK FRA GER ITA USA AUS

Source: Ofcom Consumer Research October 2011. Base: All those who have visited a social networking site. Sample sizes: UK=804, France=792, Germany=760, Italy=946, US=833, Australia=832 Q: “Since you’ve used social networking websites, which of the following activities do you now take part in MORE or LESS than you used to?” Figure 1.27 Those who agree they have concerns about privacy online and how personal data is used by social networking sites Base: All those who have a SNS profile - % Agree 100%

80% I have data concerns about how personal data is being used by 60% SNS

40% 77% 78% 76% 73% 74% 76% 75% 69% 72% 72% I have concerns 64% 59% about my personal privacy online 20%

0% UK FRA GER ITA USA AUS Source: Ofcom Consumer Research October 2011. Base: For each country - all those with SNS profiles/Base: Total sample size: UK=715, France=717, Germany=658, Italy=841, US=778, Australia=755 Q: “From the statements below can you please confirm how much you agree or disagree with them…. “ [Respective statements as charted] Scale of 1-5 used where 1 = Strongly disagree, 3 = neither agree nor disagree, 5 = Strongly agree. Total ‘agree charted (all those saying 4 or 5)

27 Figure 1.28 Privacy settings on social networking websites

Privacy settings when using social networking sites (%) 100

80 75% 70% 67% 63% 62% 65% 60

40 37% 30% 26% 26% 28% 20% 20

0 UK FRA GER ITA USA AUS I adjust the default settings I keep the default privacy settings

Source: Ofcom Consumer Research October 2011. Base: All those who have a page or profile on a social networking site. Sample size: UK=715, France=717, Germany=658, Italy=841, US=778, Australia=755 Q: “Do you generally amend your privacy settings when using Social Network sites or do you keep the default settings?”

28 Figure 1.29 Those who agree “social networking has significantly changed the way they communicate with people” by age

All those who agreed with statement (scoring 4 or 5 from a scale of 1-5) UK FRA GER ITA USA AUS 80%

67% 67% 67% 63% 62% 63% 63% 60% 58% 58% 52% 53% 52% 53% 49% 49% 49% 50% 45% 46% 43% 41% 43% 40% 35% 32%

20%

0% All 18-24s 25-44s 45-64s Source: Ofcom Consumer Research October 2011. Base: For each country - all those with SNS profiles Base: Total sample sizes (All, 18-24s, 25-44s, 45-64s): UK=715,130,361,224; France=717,175,370,172; Germany= 658,151,334,173; Italy=841,180,431,230; US=778,130,410,238; Australia=755,136,379,240. Q: “From the statements below can you please confirm how much you agree or disagree with them: Social networking has significantly changed the way I communicate with people”. Scale of 1-5 used where 1 = Strongly disagree, 3 = neither agree nor disagree, 5 = Strongly agree. Total ‘agree charted (all those saying 4 or 5)

29 Figure 1.30 Those who agree “I would feel out of touch without social networking sites”, by age All those who agreed with statement (scoring 4 or 5 from a scale of 1-5) UK FRA GER ITA USA AUS 60% 55% 53% 54%

46% 42% 39% 40% 39% 37% 36% 35% 35% 34% 32% 32% 29% 26% 25% 24% 22% 21% 22% 21% 20% 17% 13%

0% All 18-24s 25-44s 45-64s Source: Ofcom Consumer Research October 2011. Base: For each country - all those with SNS profiles. Base: Total sample sizes (All, 18-24s, 25-44s, 45-64s): UK=715,130,361,224; France=717,175,370,172; Germany= 658,151,334,173; Italy=841,180,431,230; US=778,130,410,238; Australia=755,136,379,240. Q: “From the statements below can you please confirm how much you agree or disagree with them: I would feel out of touch without social networking sites”. Scale of 1-5 used where 1 = Strongly disagree, 3 = neither agree nor disagree, 5 = Strongly agree. Total ‘agree charted (all those saying 4 or 5)

30 Figure 1.31 Those who regularly update social networking profile, by gender

All those who agreed with statement (scoring 4 or 5 from a scale of 1-5) 60%

40% Male

55% 49% 51% 47% 46% 43% Female 40% 42% 20% 38% 37% 32% 31%

0% UK FRA GER ITA USA AUS

Source: Ofcom Consumer Research October 2011. Base: For each country - all those with SNS profiles. Base: Total sample size (Male, Female): UK=345, 370; France=369,348; Germany= 353,304; Italy=426,415, USA=357,421, Australia=365,390. Q: “From the statements below can you please confirm how much you agree or disagree with them: I regularly update my Social networking site(s)”. Scale of 1-5 used where 1 = Strongly disagree, 3 = neither agree nor disagree, 5 = Strongly agree. Total ‘agree charted (all those saying 4 or 5)

31 Figure 1.32 Those who mainly use social networking sites to see what other people are saying and doing, by gender All those who agreed with statement (scoring 4 or 5 from a scale of 1-5) 80%

60%

Male 40% 71% 63% 63% Female 56% 54% 57% 51% 49% 51% 44% 44% 47% 20%

0% UK FRA GER ITA USA AUS

Source: Ofcom Consumer Research October 2011. Base: For each country - all those with SNS profiles. Base: Total sample size (Male, Female): UK=345, 370; France=369,348; Germany= 353,304; Italy=426,415, USA=357,421, Australia=365,390. Q: “From the statements below can you please confirm how much you agree or disagree with them: I mainly use Social networking sites to see what other people are saying and doing”. Scale of 1-5 used where 1 = Strongly disagree, 3 = neither agree nor disagree, 5 = Strongly agree. Total ‘agree charted (all those saying 4 or 5)

32 Figure 1.33 Use of social networking sites for breaking news, by age

All those who agreed with statement (scoring 4 or 5 from a scale of 1-5) UK FRA GER ITA USA AUS 80%

61% 61% 60% 53% 51% 51% 47% 47% 45% 44% 42% 38% 37% 40% 35% 36% 33% 34% 33% 30%

22% 23% 23% 22% 20% 20% 13%

0% All 18-24s 25-44s 45-64s Source: Ofcom Consumer Research October 2011. Base: For each country - all those with SNS profiles. Base: Total sample sizes (All, 18-24s, 25-44s, 45-64s): UK=715,130,361,224; France=717,175,370,172; Germany= 658,151,334,173; Italy=841,180,431,230; US=778,130,410,238; Australia=755,136,379,240. Q: “From the statements below can you please confirm how much you agree or disagree with them: I often find out about new breaking stories first via social networking sites”. Scale of 1-5 used where 1 = Strongly disagree, 3 = neither agree nor disagree, 5 = Strongly agree. Total ‘agree charted (all those saying 4 or 5)

33 Figure 1.34 Use of social networking sites for breaking news, by gender

All those who agreed with statement (scoring 4 or 5 from a scale of 1-5)

60%

40% Male

54% 53% 44% Female 43% 41% 20% 37% 38% 30% 27% 25% 27% 19%

0% UK FRA GER ITA USA AUS Source: Ofcom Consumer Research October 2011. Base: For each country - all those with SNS profiles. Base: Total sample size (Male, Female): UK=345, 370; France=369,348; Germany= 353,304; Italy=426,415, USA=357,421, Australia=365,390. Q: “From the statements below can you please confirm how much you agree or disagree with them: I often find out about new breaking stories first via Social networking sites”. Scale of 1-5 used where 1 = Strongly disagree, 3 = neither agree nor disagree, 5 = Strongly agree. Total ‘agree charted (all those saying 4 or 5)

34 Figure 1.35 Those who agree “I engage more with my local community as a result of social networking sites”, by age All those who agreed with statement (scoring 4 or 5 from a scale of 1-5) UK FRA GER ITA USA AUS 60%

46% 45%

40% 36% 37% 34% 34% 32% 32% 32% 30% 28% 27% 27% 27% 25% 23% 24% 24% 20% 21% 20% 17% 18% 15% 11%

0% All 18-24s 25-44s 45-64s Source: Ofcom Consumer Research October 2011. Base: For each country - all those with SNS profiles. Base: Total sample sizes (All, 18-24s, 25-44s, 45-64s): UK=715,130,361,224; France=717,175,370,172; Germany= 658,151,334,173; Italy=841,180,431,230; US=778,130,410,238; Australia=755,136,379,240. Q: “From the statements below can you please confirm how much you agree or disagree with them: I engage more with my local community as a result of social networking sites”. Scale of 1-5 used where 1 = Strongly disagree, 3 = neither agree nor disagree, 5 = Strongly agree. Total ‘agree charted (all those saying 4 or 5)

35 Figure 1.36 Those who agree / disagree “I trust the information on social networking sites” Base: All those who have a SNS profile 100%

80%

60% Agree 49% 44% 37% 37% Disagree 40% 34% 29% 29% 24% 22% 20% 22% 20% 17%

0% UK FRA GER ITA USA AUS Source: Ofcom Consumer Research October 2011. Base: All those with SNS profiles : UK=715, France=717, Germany=658, Italy=841, US=778, Australia=755 Q: “From the statements below can you please confirm how much you agree or disagree with them…. “I trust the information on social networking sites” Scale of 1-5 used where 1 = Strongly disagree, 3 = neither agree nor disagree, 5 = Strongly agree. Total ‘agree’(all those saying 4 or 5) and ‘disagree’ (all those saying 1 or 2)

36 Figure 1.37 Those who agree “I trust the information on social networking sites”, by age All those who agreed with statement (scoring 4 or 5 from a scale of 1-5) UK FRA GER ITA USA AUS 40%

34%

30% 30% 29% 27% 26% 25% 24% 24% 24% 24% 24% 23% 23% 22% 22% 20% 20% 19% 19% 17% 17% 16% 17% 14% 11% 10%

0% All 18-24s 25-44s 45-64s

Source: Ofcom Consumer Research October 2011. Base: For each country - all those with SNS profiles. Base: Total sample sizes (All, 18-24s, 25-44s, 45-64s): UK=715,130,361,224; France=717,175,370,172; Germany= 658,151,334,173; Italy=841,180,431,230; US=778,130,410,238; Japan=542,110,316,116; Australia=755,136,379,240. Q: “From the statements below can you please confirm how much you agree or disagree with them: I trust the information on Social networking sites”. Scale of 1-5 used where 1 = Strongly disagree, 3 = neither agree nor disagree, 5 = Strongly agree. Total ‘agree charted (all those saying 4 or 5)

37 Figure 1.38 Consumers without a social networking profile: attitude towards statement “I don’t have any interest in social networking sites” Base: All those who have not visited SNS and/or don’t have a SNS profile 100% 7% 8% 6% 9% 13% 15% 15% 80% 17% 18% 18% Don't know 22% 23%

60% Disagree

Neither agree nor disagree 40% 78% 74% 72% 72% 62% 61% Agree

20%

0% UK FRA GER ITA USA AUS

Source: Ofcom Consumer Research October 2011. Base: All those who have not visited SNS and/or don’t have a SNS profile. Sample sizes: UK=300, France=297, Germany=356, Italy=204, US=224, Australia=257 Q: “From the statements below can you please confirm how much you agree or disagree with them: I don’t have any interest in social networking sites”. Scale of 1-5 used where 1 = Strongly disagree, 3 = neither agree nor disagree, 5 = Strongly agree.

38 ICMR 2011 price benchmarking slides

September 2011 Figure 2.1 Summary of baskets used in the analysis

Mobile Mobile Fixed line Mobile ‘Typical household type’ Fixed voice Television voice messaging broadband broadband A low use household with 1 Low Low n/a n/a n/a Basic basic needs A broadband household 2 Medium Low Low Low n/a Basic with basic needs 3 A mobile ‘power user’ n/a High High n/a High Pay-TV A family household with 4 High Medium High Medium n/a Pay-TV multiple needs An affluent two person HD premium 5 Low High Medium High Medium household pay-TV

Source: Ofcom

1 Figure 2.2 Best prices available for baskets with a fixed broadband connection, including multi-play offers Monthly cost (£)

Basket 2 Basket 4 Basket 5 TV 294 300 Mobile broadband 244 64 219 219 Fixed broadband 57 200 175 22 182 31 38 170 170 Mobile 5 143 22 20 43 20 135 34 37 13 15 25 Fixed voice 93 102 3 122 147 1 143 100 14 70 131 44 143 124 55 58 59 66 2301 4 124 Fixed voice & 42 01 106 87 90 82 10 09 30 25 44 62 49 8 1 broadband access 170 221 27 22 5 8 80 1 6 8 Fixed voice, broadband 3 31 5 6 34 49 7 46 49 31 6 29 34 0 22 17 25 250 26 24 25 17 25 & mobile access Triple-pay access UK UK UK ITA ITA ITA FRA FRA FRA ESP ESP ESP USA USA USA GER GER GER Quad-play access Change since 13 1 -4 -4 -8 -10 12 -41 -4 -8 18 -7 8 -6 -17 -10 1 11 2010 (%) Source: Ofcom, using data supplied by Teligen Note: Lowest tariffs available including multi-play from any of the three largest operators by market share for each service in each country, July 2010 and July 2011; PPP adjusted; TV excludes licence fee; where a service is included in a bundle any additional usage charges are recorded separately against the relevant service

2 Figure 2.3 Best stand-alone service prices available for baskets with a fixed broadband connection Monthly cost (£) Basket 2 Basket 4 Basket 5 294 300 282 TV 223 223 57 64 208 Mobile 22 189 31 185 20 38 200 180 170 0 Broadband 150 28 154 22 55 142 190 43 34 17 40 43 14 13 25 Fixed 107 120 230 14 85 93 15 62 16 24 broadband 100 70 14 147 66 64 10 2310 120 131 122 15 143 124 124 47 10 30 34 85 87 14 90 82 Mobile 0 15 1490 19 44 62 12 22 27 22 25 44 17 29 26 24 25 30 28 26 25 24 25 26 25 0 18 13 19 14 18 10 Fixed voice UK UK UK ITA ITA ITA FRA FRA FRA ESP ESP ESP USA USA USA GER GER GER Change since 4 17 -21 6 -12 -10 8 6 -11 -3 11 -5 4 -4 -16 -2 5 11 2010 (%)

Source: Ofcom, using data supplied by Teligen Note: Lowest tariff available from any of the three largest operators by market share for each service in each country, July 2010 and July 2011; PPP adjusted; TV excludes licence fee; where a service is included in a bundle any additional usage charges are recorded separately against the relevant service

3 Figure 2.4 Comparative single service ‘weighted average’ fixed-line voice pricing

Monthly cost (£)

150 Basket 5

27 27 27 100 24 27 32 28 27 Basket 4 24 24 23 34 34 36 22 34 35 34 31 31 35 31 Basket 2 50 23 22 29 29 32 32 32 30 29 29 31 22 21 28 Basket 1 19 18 21 21 25 25 23 23 25 25 20 23 0 2011 2011 2011 2011 2011 2011 2010 2010 2010 2010 2010 2010 UK FRA GER ITA ESP USA

Source: Ofcom, using data supplied by Teligen Note: Weighted average of best-value tariff from each of the three largest operators by market share in each country; July 2010 and July 2011; PPP adjusted 4 Figure 2.5 Comparative single service ‘best offer’ fixed-line voice pricing

Monthly cost (£)

120 Basket 5 100 26 24 25 25 23 25 80 22 23 26 Basket 4 21 30 30 60 18 10 28 28 26 25 23 24 26 22 14 Basket 2 40 19 29 29 25 26 25 25 20 22 13 23 24 20 18 25 Basket 1 18 16 20 21 24 22 23 20 15 19 21 0 2011 2011 2011 2011 2011 2011 2010 2010 2010 2010 2010 2010 UK FRA GER ITA ESP USA

Source: Ofcom, using data supplied by Teligen Note: Lowest tariff available for the fixed-line voice component of each basket from any of the three largest operators by market share in each country, July 2010 and July 2011; PPP adjusted. 5 Figure 2.6 Summary of mobile connections used in the analysis Outbound voice Outbound SMS Data use per Basket Handset type minutes per per month month month Household 1 Connection 1 Basic 55 n/a n/a handsets 1 & 2 Household 2 Connection 2 Basic 55 30 n/a handsets 1 & 2 Household 4 Connection 3 Basic 55 65 n/a handset 4 Household 4 Connection 4 Basic 55 70 n/a handset 3 Household 4 Connection 5 Intermediate 169 160 n/a handset 2 Household 5 Connection 6 Intermediate 188 20 100MB handset 2 Household 4 Connection 7 Advanced 280 30 300MB handset 1 Household 5 Connection 8 Advanced 376 80 300MB handset 1 Household 3 Connection 9 Advanced 516 150 1GB handset 1 Source: Ofcom

6 Figure 2.7 Comparative single service ‘weighted average’ mobile pricing

Monthly cost (£) 0 200 400 600

UK 2010 9991015 21 35 44 55 Connection 1 2011 910101117 19 31 34 48 Connection 2 FRA 2010 11121212 23 32 55 81 103 2011 12141415 21 24 48 68 74 Connection 3

GER 2010 10141419 50 44 71 105 132 Connection 4 2011 1116 24 26 50 45 71 101 129 Connection 5 ITA 2010 9121214 34 28 59 76 92 2011 1316 22 23 37 38 56 73 81 Connection 6

ESP 2010 16 20 20 25 24 39 78 124 171 Connection 7 2011 1517 1914 37 35 79 109 114 Connection 8 USA 2010 29 34 34 38 44 56 95 125 105 2011 24 28 20 17 43 49 84 106 92 Connection 9

Source: Ofcom, using data supplied by Teligen Note: Weighted average of best-value tariff from each of the three largest operators by market share in each country; July 2010 and July 2011; PPP adjusted 7 Figure 2.8 Comparative single service ‘best offer’ mobile pricing

Monthly cost (£) 0 100 200 300 400

UK 2010 66 7 9 14 15 22 28 36 Connection 1 2011 5 81010 14 14 27 31 39 Connection 2 FRA 2010 10101010 23 28 43 70 100 2011 1011 13 13 19 24 40 66 67 Connection 3 GER 2010 9 11 11 12 46 41 67 96 94 Connection 4 2011 8 14 15 19 34 43 64 100 111 Connection 5 ITA 2010 5 8 9 10 24 18 49 58 83 2011 9 11 11 11 22 20 44 62 68 Connection 6

ESP 2010 13 15 16 20 24 24 51 81 93 Connection 7 2011 11 13 13 13 26 30 71 94 95 Connection 8 USA 2010 20 23 23 26 33 42 73 77 76 2011 18 22 21 22 37 45 67 78 69 Connection 9

Source: Ofcom, using data supplied by Teligen Note: Lowest tariff available for the mobile phone component of each basket from any of the three largest operators by market share in each country, July 2010 and July 2011; PPP adjusted. 8 Figure 2.9 Comparative pricing for mobile tariffs with 1,000 minutes and 4,000 minutes, July 2011 Monthly cost (£) Monthly cost (£) 1,000 minutes 4,000 minutes 150 500 469 403 104 400 100 95 80 300 280 72 76 63 67 57 183 46 200 50 40 29 21 74 79 80 86 67 100 47 51 52

0 0 UK FRA GER ITA ESP USA UK FRA GER ITA ESP USA Best-offer Weighted average Source: Ofcom, using data supplied by Teligen Notes: Includes 1,000/4,000 inbound and 1,000/4,000 outbound minutes and a premium handset; Call split = 17% to fixed-line local, 9% to fixed-line national, 37% to on-net mobile, 37% to off-net mobile, 0% to international; 60% weekday daytime; 19% weekday evening; 21% weekend; calculated from the lowest tariff available for the mobile phone component of each basket from any of the three largest operators by market share in each country, July 2010; PPP adjusted

9 Figure 2.10 Comparative single service ‘weighted average’ fixed-line broadband pricing

Monthly cost (£) 150

56 48 46 Basket 5 100 41 43 41 50 53 Basket 4 44 42 44 28 41 50 41 36 37 15 17 16 19 Basket 2 14 17 16 16 42 43 39 39 36 29 31 27 14 17 16 16 0 2011 2011 2011 2011 2011 2011 2010 2010 2010 2010 2010 2010 UK FRA GER ITA ESP USA

Source: Ofcom, using data supplied by Teligen Note: Weighted average of best-value tariff from each of the three largest operators by market share in each country; July 2010 and July 2011; PPP adjusted 10 Figure 2.11 Comparative single service ‘best offer’ fixed-line broadband pricing

Monthly cost (£) 150

100 46 55 Basket 5 50 43 Basket 4 41 26 24 43 50 19 31 14 16 17 28 Basket 2 14 14 19 24 23 15 14 12 12 14 41 34 31 14 15 19 14 21 19 23 0 12 12 2011 2011 2011 2011 2011 2011 2010 2010 2010 2010 2010 2010 UK FRA GER ITA ESP USA

Source: Ofcom, using data supplied by Teligen Note: Lowest tariff available for the mobile phone component of each basket from any of the three largest operators by market share in each country, July 2010 and July 2011; PPP adjusted 11 Figure 2.12 Comparative single service ‘best offer’ mobile broadband pricing

Monthly cost (£) 100 5GB per 80 46 month 33 60 24 3GB per 23 26 22 month 40 20 17 33 24 38 16 19 15 23 22 15 20 25 17 20 1GB per 11 15 14 14 22 24 20 month 15 10 14 14 14 0 7 7 7 5 2011 2011 2011 2011 2011 2011 2010 2010 2010 2010 2010 2010 UK FRA GER ITA ESP USA

Source: Ofcom, using data supplied by Teligen Note: Weighted average of best-value tariff from each of the three largest operators by market share in each country, July 2010 and July 2011; PPP adjusted 12 Figure 2.13 Comparative single service TV pricing

Monthly cost (£) 120

100 16 Licence fee 80 12 12 9 60 16 9 HD-premium 9 9 68 64 57 49 pay-TV 40 59 62 61 31 48 39 34 40 20 Basic pay-TV 22 22 14 14 11 12 17 19 13 12 17 0 10 2011 2011 2011 2011 2011 2011 2010 2010 2010 2010 2010 2010 UK FRA GER ITA ESP USA Source: Ofcom, using data supplied by Teligen Note: Basic pay-TV is defined as the minimum price required to purchase a pay-TV packages which includes channels not available over free-to-air TV; Premium TV is defined as the best package of top-league football (NFL in the US and first run films from major Hollywood studios); lowest tariff available for the pay-TV component of each basket from any of the three largest operators by market share in each country, July 2010 and July 2011; PPP adjusted.

13 Figure 2.14 Composition of Basket 1

Fixed-line voice Fixed broadband Mobile Mobile broadband Television

Connection 1 55 call minutes 223 call minutes n/a n/a Free-to-air Connection 2 55 call minutes

Source: Ofcom

14 Figure 2.15 Basket 1: ‘weighted average’ single-service pricing

Monthly cost (£)

79 80 71 72 10 71 10 TV hardware 10 9 61 58 60 54 53 3 56 49 52 16 10 1 48 1 1 16 3 9 0 TV licence 9 9 9 58 48 40 12 12 32 29 22 26 21 23 20 18 Mobile 17 18 20 25 Fixed voice 19 18 21 21 25 25 23 23 25 20 23 0 2011 2011 2011 2011 2011 2011 2010 2010 2010 2010 2010 2010 UK FRA GER ITA ESP USA

Source: Ofcom, using data supplied by Teligen

15 Figure 2.16 Basket 1: comparative ‘best offer’ pricing

Monthly cost (£) 80 68 TV hardware 61 61 10 60 10 57 TV licence 50 50 9 49 10 1 1 16 46 42 9 42 3 10 39 9 16 9 39 Fixed 40 3 10 40 35 12 9 3 broadband 12 20 18 26 20 17 5 11 18 23 Mobile 20 11 2 10 3 5 20 21 24 20 19 21 Fixed voice 18 16 17 12 12 15 0 Fixed voice & broadband 2011 2011 2011 2011 2011 2011 2010 2010 2010 2010 2010 2010 access UK FRA GER ITA ESP USA

Source: Ofcom using data supplied by Teligen Note: Lowest tariff available for each service type from any of the largest operators by market share in each country, July 2010 and July 2011; PPP adjusted; where a service is included in a bundle any additional usage charges are recorded separately against the relevant service

16 Figure 2.17 Composition of Basket 2

Fixed-line voice Fixed broadband Mobile Mobile broadband Television

Connection 1 55 call minutes 0.5GB per month, 30 SMS 428 call minutes minimum 4Mbit/s n/a Free-to-air connection Connection 2 55 call minutes 30 SMS

Source: Ofcom

17 Figure 2.18 Basket 2: ‘weighted average’ single-service pricing

Monthly cost (£)

150 TV hardware 124 127 116 112 10 115 10 104 104 107 10 TV licence 16 9 10 10 31 100 16 39 39 27 78 82 42 Pay TV 67 70 1 39 43 19 9 27 36 29 12 16 12 16 67 55 Fixed 50 14 17 32 40 23 27 27 24 33 34 broadband 18 19 Mobile 22 21 29 29 32 32 32 30 29 29 28 31 0 Fixed voice 2011 2011 2011 2011 2011 2011 2010 2010 2010 2010 2010 2010 UK FRA GER ITA ESP USA

Source: Ofcom, using data supplied by Teligen

18 Figure 2.19 Basket 2: comparative ‘best offer’ pricing

Monthly cost (£) 103 TV hardware 100 10 93 10 TV licence 77 31 80 74 23 70 68 72 63 64 10 1 66 Pay TV 9 3 3 0 54 1 1 9 10 60 49 9 9 16 16 9 1 5 3 31 25 Fixed broadband 12 16 45 44 40 12 20 22 22 23 27 5 5 Mobile 13 17 4 1 7 5 6 20 3 3 5 30 31 30 34 34 Fixed voice 21 22 23 17 25 25 25 0 Fixed voice & broadband (mobile required) Fixed voice & broadband 2011 2011 2011 2011 2011 2011 2010 2010 2010 2010 2010 2010 access UK FRA GER ITA ESP USA

Source: Ofcom using data supplied by Teligen Note: Lowest tariff available for each service type from any of the largest operators by market share in each country, July 2010 and July 2011; PPP adjusted; where a service is included in a bundle any additional usage charges are recorded separately against the relevant service

19 Figure 2.20 Composition of Basket 3

Fixed-line voice Fixed broadband Mobile Mobile broadband Television 516 call minutes 5GB over 30 days n/a n/a 150 SMS Basic pay-TV per month 1GB data

Source: Ofcom

20 Figure 2.21 Basket 3: ‘weighted average’ single-service pricing

Monthly cost (£) 250

184 193 TV hardware 200 4 1 16 173 165 151 16 151 155 18 22 15 150 19 136 127 28 TV licence 15 125 17 22 0 33 17 26 1 9 3 20 101 94 23 9 16 9 24 46 100 2 16 19 19 12 121 26 15 Pay TV 16 17 15 132 129 125 50 16 103 114 105 92 81 92 Mobile 55 74 48 broadband 0 Mobile 2011 2011 2011 2011 2011 2011 2010 2010 2010 2010 2010 2010 UK FRA GER ITA ESP USA

Source: Ofcom, using data supplied by Teligen Note: The figure for mobile broadband is the best-offer single service cost

21 Figure 2.22 Basket 3: comparative ‘best offer’ pricing

Monthly cost (£)

200 169 4 TV hardware 144 144 16 150 138 132 136 19 1 16 0 10 113 16 120 12 0 121 0 TV licence 16 22 0 105 17 0 22 23 1 9 33 22 100 9 17 10 3 20 77 80 11 19 9 46 1 26 10 24 Pay TV 122 12 15 12 13 111 50 15 16 100 94 93 95 67 83 68 76 69 Mobile 36 39 broadband 0 Mobile 2011 2011 2011 2011 2011 2011 2010 2010 2010 2010 2010 2010 UK FRA GER ITA ESP USA

Source: Ofcom using data supplied by Teligen Note: Lowest tariff available for each service type from any of the largest operators by market share in each country, July 2010 and July 2011; PPP adjusted; where a service is included in a bundle any additional usage charges are recorded separately against the relevant service

22 Figure 2.23 Composition of Basket 4

Fixed-line voice Fixed broadband Mobile Mobile broadband Television

Connection 1 280 call minutes 30 SMS 300MB data

Connection 2 169 call minutes 5GB per month, 160 SMS 593 call minutes minimum 8Mbit/s n/a, Basic pay-TV connection Connection 3 55 call minutes 70 SMS

Connection 2 55 call minutes 65 SMS

Source: Ofcom

23 Figure 2.24 Basket 4: ‘weighted average’ single-service pricing

Monthly cost (£)

304 300 267 275 26 264 4 TV hardware 161 16 245 235 242 36 18 22 221 39 28 19 15 17 44 28 9 37 TV licence 200 177 175 16 41 42 44 19 1 41 138 137 15 169 Pay TV 16 122 121 16 211 16 17 153 171 163 100 14 17 119 138 147 149 Fixed 102 99 broadband 69 68 Mobile 23 22 34 35 34 34 36 34 31 31 31 35 0 Fixed voice 2011 2011 2011 2011 2011 2011 2010 2010 2010 2010 2010 2010 UK FRA GER ITA ESP USA

Source: Ofcom, using data supplied by Teligen

24 Figure 2.25 Basket 4: comparative ‘best offer’ pricing

Monthly cost (£) 250 234 TV hardware 219 22 194 22 TV licence 200 186 31 16 175 16 157 Pay TV 25 144 149 150 9 128 10 39 Fixed broadband 114 2 5 10 103 19 3 147 121 136 122 Mobile 100 1 79 131 155 12 13 93 110 6 87 51 86 10 Fixed voice 50 62 94 8 1 4 7 10 8 Fixed voice & 4 49 7 8 46 49 34 26 26 35 24 30 25 30 26 broadband access 0 Triple-pay access

Quad-play access 2011 2011 2011 2011 2011 2011 2010 2010 2010 2010 2010 2010 UK FRA GER ITA ESP USA

Source: Ofcom using data supplied by Teligen Note: Lowest tariff available for each service type from any of the largest operators by market share in each country, July 2010 and July 2011; PPP adjusted; where a service is included in a bundle any additional usage charges are recorded separately against the relevant service

25 Figure 2.26 Composition of Basket 5

Fixed-line voice Fixed broadband Mobile Mobile broadband Television

Connection 1 376 call minutes 80 SMS 5GB per month 300MB data HD pay-TV with 3GB over 25 days 246 call minutes minimum 16Mbit/s recorder, movies and per month connection Connection 2 football 188 call minutes 20 SMS 100MB data

Source: Ofcom

26 Figure 2.27 Basket 5: ‘weighted average’ single-service pricing

Monthly cost (£)

400 TV hardware 356 350 325 334 306 10 13 10 TV licence 300 16 285 60 77 77 163 244 242 57 231 55 33 24 Pay TV 212 29 29 2 20 38 69 17 22 9 50 200 185 182 79 48 46 39 46 56 53 40 43 14 Mobile 12 12 23 39 14 59 16 25 41 41 broadband 64 17 100 11 15 149 146 163 145 181 155 Fixed 15 17 113 104 111 66 92 broadband 52 Mobile 0 23 22 24 24 27 27 27 27 32 28 24 27 Fixed voice 2011 2011 2011 2011 2011 2011 2010 2010 2010 2010 2010 2010 UK FRA GER ITA ESP USA

Source: Ofcom, using data supplied by Teligen

27 Figure 2.28 Basket 5: comparative ‘best offer’ pricing

Monthly cost (£) TV hardware 294 279 300 265 1 13 TV licence 16 235 242 244 63 1 49 202 163 Pay TV 190 55 199 60 57 38 200 96 28 29 179 24 155 97 173 22 3 20 Mobile broadband 144 32 27 46 9 33 50 43 12 23 34 12 150 5 25 14 Fixed broadband 110 1 26 143 100 43 44 137 143 105 124 4 97 119 124 Mobile 4 90 76 82 75 80 4 1 6 6 8 8 Fixed voice 26 31 32 176 25 29 34 34 23 25 0 0 0 0 Fixed voice & broadband access Triple-pay access 2011 2011 2011 2011 2011 2011 2010 2010 2010 2010 2010 2010 UK FRA GER ITA ESP USA

Source: Ofcom using data supplied by Teligen Note: Lowest tariff available for each service type from any of the largest operators by market share in each country, July 2010 and July 2011; PPP adjusted; where a service is included in a bundle any additional usage charges are recorded separately against the relevant service

28 Figure 2.29 Summary of ‘weighted average’ and ‘best offer’ basket pricing, including the TV licence fee ‘Weighted average’ single service ‘Best offer’ pricing including multi- pricing (£ per month play (£ per month) 1 UK 48 1 ESP 39 2 FRA 54 2 UK 39 3 ESP 56 3 ITA 49 4 ITA 61 4 FRA 50 Basket 1 Basket 5 USA 71 5 USA 57 6 GER 72 6 GER 61

1 UK 70 1 UK 54 2 FRA 82 2 FRA 64 3 ITA 104 3 ESP 66 4 ESP 107 4 ITA 68

Basket 2 Basket 5 USA 115 5 GER 74 6 GER 116 6 USA 93

1 UK 94 1 UK 80 2 FRA 125 2 ITA 105 Source:3 OfcomITA 127 3 FRA 113 Note: TV4 includesESP licence fee 151 4 ESP 132

Basket 3 Basket 5 USA 165 5 USA 136

6 GER 193 6 GER 169 29 Figure 2.30 Comparative ‘weighted average’ pricing of ‘single services’ for all countries, excluding the TV licence fee

Monthly cost (£)

400 350 306 300 258 264 269 78 236242 233 57 38 31 28 25 20

17 204 22 22 28 37 40

177 53 44 200 170 56 43 165 166 41 14

151 45 25 41 17

28 125

117 117 25 17

115 16 22 100 107 64 17 20 95 1 1 18 46

82 171 17 163 22 9 3

73 27 17 100 71 15 149 155 138 145 146 15 26 43 56 56 58 99 17 1 52 1 27 29 111

45 18 92 0 1 36 16 9 3 55 16 68 129 1 17 114 32 52 48 33 34 92 0 27 81 29 74 26 22 23 19 18 48 35 35 34 34 32 31 31 30 29 29 28 27 27 27 25 25 24 23 23 22 22 21 21 0 18 UK UK UK UK UK ITA ITA ITA ITA ITA FRA FRA FRA FRA FRA ESP ESP ESP ESP ESP USA USA USA USA USA GER GER GER GER GER Basket 1 Basket 2 Basket 3 Basket 4 Basket 5

TV Mobile broadband Fixed broadband Mobile Fixed voice

Source: Ofcom, using data supplied by Teligen Note: TV excludes licence fee

30 Figure 2.31 Comparative ‘best offer’ pricing of ‘single services’ for all countries, excluding the TV licence fee

Monthly cost (£) 294 300 282 64 223 223 57 208 20 22

189 38

31 185

200 180 17 28 22 152 154 55 150 34 43 19 43

142 40 136 17

132 14 13 19 25 14 107 12 23 104 22 17 62 15 22 16 93 96 24

85 20 14 1

100 12 147 46 70 1

68 13

66 12

64 15 124 23 122 124 57 26 3 15 143 1 131 85

50 87 14 47 90 82 9 34

42 43 1 39 14 15 19 0 9 111 62 3 1 14 27 95 44 16 1 12 44 22 35 22 25 69 0 68 67 17 18 20 27 23 17 11 39 30 29 28 26 26 26 25 25 25 25 25 24 24 23 21 21 19 18 18 16 15 14 13 0 10 UK UK UK UK UK ITA ITA ITA ITA ITA FRA FRA FRA FRA FRA ESP ESP ESP ESP ESP USA USA USA USA USA GER GER GER GER GER Basket 1 Basket 2 Basket 3 Basket 4 Basket 5

TV Mobile broadband Fixed broadband Mobile Fixed voice

Source: Ofcom, using data supplied by Teligen Note: TV excludes licence fee

31 excluding the the excluding fee licence TV multi including services, price lowest of cost Comparative Figure 2.32 Figure Source: Note: TV excludes licence fee licence excludes Note: TV Monthly cost (£) Monthly cost 100 200 300 0 27 0 Ofcom UK 01611 42 Triple access &Fixedvoice broadband Mobile Broadband Mobile Total 1 Basket 1 FRA 02120 45 9 , using data supplied by -

pay access pay GER 17217 37 ITA 125183 39 ESP 015231 57 USA 021351 42 UK 223170 55 1 Basket 2 FRA 311221 58 GER 1752709 59 3 Teligen ITA 256223 66 ESP 345251 0 93 USA 025 44 231 14 68

UK 3916 104 12 Basket 3

FRA 67 26 152 19 GER 111 22 13 96

ITA 68 15 132 17

ESP 95 20 136 22 Fixed voice required) & (mobile broadband Fixed voice Fixed broadband TV USA 69 46 102 14 UK 0260 62 0 70 6 Basket 4

FRA 49 0491 170 5

GER 02407 131 135 2 13 -play, countries, all for

ITA 0258 87 3 175 0

ESP 04608 122 0 219 22 USA 0 49 1 147 0 143 0

UK 80 04 44015 182 34 Basket 5

FRA 0311 90 125 219 31

GER 0176 143 022170 37

ITA 2906 82 314 244 57 32

ESP 0348 124 020 294 64 USA 025 124 43 38 33 Figure 1 Components of the pricing comparison model

Household

Fixed voice Mobile Fixed broadband Mobile broadband Television

•Call durations •Call durations •Hours of usage •Hours of usage •Channel

•Call type •Call type •Usage volumes •Usage volumes requirements Basket distribution distribution •Session time •Session time •Technical •Time of day •Time of day •Speed limits •Speed limits requirements •Call volumes •Call volumes •Time of day •Time of day •Messages •Data use

•Connection •Connection •Speed up/down •Speed up/down •Connection •Rental •Rental •Connection •Connection •Rental Service tariffs •Allowance •Allowance •Rental •Rental •Set-top box •Call charges •Call charges •Allowance •Allowance •Recording (local, regional, (local, national, •Usage charge •Usage charge •High definition national, to on-net, off-net to •Modem / router •Modem / router •Usage cap mobile & mobile & •Usage cap •Usage cap •Licence fee international) international, •Billing system data) •Billing system •Handset

Source: Teligen

34 Figure 2 Examples of combinations of multi-play and single service offers

Household requirement

Fixed voice Fixed broadband Mobile Television

Multi-play offer Multi-play fixed voice & broadband

Single services Single mobile tariff Single TV service

Multi-play offer Triple-play fixed voice, fixed broadband & bundled TV service

Single services Single mobile tariff

Multi-play offer Multi-play landline & bundled TV service

Single services Single broadband Single mobile tariff

Multi-play offer Quad-play fixed voice, fixed broadband, mobile and TV service

Single services

Source: Teligen

35 Figure 3 Demographic characteristics and relative price levels across countries

Comparative price levels (UK = 100) Population per household 2.78 2.63 2.44 125 2.37 2.37 2.5 OECD 2.04 comparative 100 2.0 price levels, July 2010 75 1.5 (RHS) 127 116 114 50 100 101 103 1.0 Population per 25 0.5 household (LHS) 0 0.0 UK FRA GER ITA ESP USA

Source: OECD / IMF / US census bureau

36 Source: Teligen Note:Figure Some operators 4 for someOperators services only included included in multi-play analysis within the analysis

Fixed voice Fixed broadband Mobile Mobile broadband Television BT, O2, Orange, T- BT, O2, Orange, AOL/TalkTalk, BT, BT, O2, Orange, T- Mobile, Three, BT, Sky & Virgin UK Sky, TalkTalk & O2, Orange, Sky & Mobile & Vodafone Virgin Media & Media Virgin Media, Virgin Media Vodafone Bouygues, Bouygues Telecom, Bouygues, Free, CanalSat, France France Telecom, Bouygues, Orange Bouygues, Orange FRA Numericable, Telecom, Free, Free, Numericable & SFR & SFR Orange & SFR Numericable, SFR & SFR & TNT Kabel BW, O2, T- Kabel BW, Freenet, Kabel Deutschland, Home, O2, Telecolumbus, Kabel BW, O2, Telecolumbus, O2, T-Mobile & O2, T-Home & GER T-Home, United, Telecolumbus, Sky, United Internet, Vodafone Vodafone Internet, Unity T-Home, Unity Unity Media & Media & Vodafone Media & Vodafone Vodafone Fastweb, TeleTu, Fastweb, TeleTu, Fastweb, Mediaset, TIM, Vodafone & TIM, Tre, Vodafone ITA Telecom Italia, Telecom Italia, Sky & Telecom Wind & Wind Tiscali & Wind Tiscali and Wind Italia Jazztel, Movistar, Jazztel, Movistar Movistar, Orange & Movistar, Orange & Digital Plus, ESP ONO, Orange & ONO & Orange Vodafone Vodafone Movistar & ONO Vodafone AT&T, Comcast, AT&T, Comcast, AT&T, Comcast, AT&T, Sprint, T- AT&T, Sprint, T- USA DirectTV, Frontier & Frontier & RCN Frontier & RCN Mobile & Verizon Mobile & Verizon RCN Source: Teligen Note: Some operators for some services only included in multi-play analysis 37 Figure 5 Household types

Mobile Mobile Fixed line Mobile ‘Typical household type’ Fixed voice Television voice messaging broadband broadband A retired low-income 1 Low Low n/a n/a n/a Basic couple 2 A couple of late adopters Medium Low Low Low n/a Basic 3 A single mobile-only user n/a High High n/a High Pay-TV

4 A ‘networked’ family High Medium High Medium n/a Pay-TV Affluent couple with HD premium 5 Low High Medium High Medium sophisticated use pay-TV

Source: Ofcom

38 Figure 6 Average take-up and use of communications services by country

UK FRA GER ITA ESP USA

People per household 2.4 2.4 2.0 2.4 2.8 2.6 Fixed-only households per 100 6 11 16 5 12 10 households Monthly outbound fixed minutes per 317 416 363 420 274 303 access line Mobile connections per household 3.1 2.3 2.7 3.6 3.4 2.6 Mobile-only households per 100 17 13 12 34 31 29 households Monthly outbound fixed minutes per 407 343 409 304 326 389 household Monthly outbound fixed minutes per 402 312 210 418 354 1584 household Monthly outbound SMS messages per 406 309 86 283 43 1451 household Fixed broadband connections per 100 74 77 67 51 63 70 households Pay-TV subscriptions per 100 52 55 59 25 27 86 households

Source: IDATE / European Commission / Ofcom research Note: Where combined outbound and inbound calls and SMS volumes are the only data available, this total has been halved as a proxy of outbound calls / SMS messages 39 Figure 7 Alignment of average use across comparator households with average use across comparator countries

Average Average Basket 1 Basket 2 Basket 3 Basket 4 Basket 5 per across household countries Number of people 2 2 1 4 2 2.2 2.5 Fixed-only households 0 0 0 0 0 0 0.1 Mobile-only households 0 0 1 0 0 0.2 0.2 Outbound fixed minutes 51 99 0 136 57 69 376 Outbound mobile minutes 37 37 290 258 212 167 542 Outbound SMS per 0 0 150 190 70 82 794 household Fixed broadband 1 1 0 1 1 0.8 0.6 subscriptions Mobile broadband 0 0 1 0 1 0.4 0.4 subscriptions Pay-TV subscriptions 0 0 1 1 1 0.6 0.5

Source: Ofcom

40 Figure 8 Types of billing for fixed voice calls

Calculation types 1 Per second 2 Per unit 3 Per minute 4 Per second with allowance 5 Per second with initial minute 6 Per second capped 7 Per minute capped

Source: Teligen

41 Figure 9 Components of the fixed voice baskets

Basket 1 Basket 2 Basket 3 Basket 4 Basket 5 Units

Call durations Local 4 4 n/a 4 4 Mins Regional 6 6 n/a 6 6 Mins National 6 6 n/a 6 6 Mins Fixed to 2 2 n/a 2 2 Mins International 6 6 n/a 6 6 Mins Destination weights Local 67 70 n/a 68 60 % Regional 10 8 n/a 9 7 % National 16 13 n/a 14 13 % Fixed to 7 7 n/a 7 12 % International 0 2 n/a 2 8 % Time of day weights Day 58.3 58.3 n/a 59.2 55.5 % Evening 24.5 24.5 n/a 24.9 25.0 % Weekend 17.2 17.2 n/a 15.9 19.5 % Depreciation 5 5 5 5 5 years Source: Teligen Note: All fixed call types are calculated with five different durations, below and above the number of minutes indicated. 42 Figure 10 Fixed voice international call destinations for comparator countries

Call to

CAN FRA GER ITA JPN RUS SAF ESP UK USA

CAN 2.2% 2.1% 1.7% 1.0% 0.3% 6.5% 86.2% FRA 2.8% 25.2% 19.0% 1.4% 13.7% 24.7% 13.2% GER 2.7% 21.6% 20.0% 1.7% 2.3% 0.8% 8.6% 20.4% 22.0% ITA 3.4% 26.5% 30.3% 1.0% 7.0% 15.6% 16.2% JPN 4.4% 5.0% 6.8% 2.5% 1.6% 1.1% 11.5% 67.1% RUS 2.2% 8.8% 35.1% 11.8% 2.0% 3.4% 10.6% 26.1%

Call from Call SAF 4.4% 5.0% 13.9% 4.4% 1.8% 46.7% 23.7% ESP 0.8% 27.6% 23.8% 11.2% 0.7% 0.7% 0.2% 24.0% 10.9% UK 6.2% 18.1% 19.5% 8.7% 2.8% 2.7% 8.0% 34.0% USA 47.9% 5.6% 12.2% 4.6% 8.7% 1.3% 0.8% 2.2% 16.7%

Source: Teligen Note: Vertical axis is “from”, and horizontal is “to”.

43 Figure 11 Types of billing for mobile voice calls

Calculation types 1 Per second 2 Per unit 3 Per minute 4 Per second with allowance 5 Per second with initial minute 6 Per second capped 7 Per minute capped

Source: Teligen

44 Figure 12 Components of the mobile baskets Basket 1 Basket 2 Basket 3 Basket 4 Basket 5 User 1&2 User 1&2 User 1 User 1 User 2 User 3 User 4 User 1 User 2 Call durations Local 1.5 1.5 1.7 1.8 1.8 1.5 1.5 1.7 1.8 Mins National 1.5 1.5 1.7 1.8 1.8 1.5 1.5 1.7 1.8 Mins On-net 1.6 1.6 1.9 1.9 1.9 1.6 1.6 1.9 1.9 Mins Off-net 1.4 1.4 1.8 1.7 1.7 1.4 1.4 1.8 1.7 Mins Voicemail - - 1 1 1 1 1 1 1 Mins International 2 2 2 2 2 2 2 2 2 Mins Destination weight Local 16 16 8 11 13 20 20 13 20 % National 8 8 5 6 7 10 10 7 10 % On-net 38 38 37 33 34 30 30 29 30 % Off-net 38 38 37 33 34 30 30 29 30 % Voicemail 0 0 7 7 12 10 10 8 10 % International 0 0 6 10 0 0 0 14 0 % Time of day weight Day 48 48 60 50 50 48 48 60 50 % Evening 25 25 19 24 24 25 25 19 24 % Weekend 27 27 21 26 26 27 27 21 26 % Calls per month 37 37 290 159 99 38 38 212 109 Calls Messages - 30 150 30 160 70 65 80 20 SMS On-net 50 50 50 50 50 50 50 50 50 % Off-net 50 50 50 50 50 50 50 50 50 % Peak 48 48 60 50 50 48 48 60 50 % Off-peak 52 52 40 50 50 52 52 40 50 % Data usage Volume/month - - 1000 300 - - - 300 100 MB Time/month - - 500 200 - - - 200 100 Mins Days/month - - 30 30 - - - 20 15 Days Handset type Basic Basic High High Medium Basic Basic High Medium Source:Depreciation Teligen 3 3 3 3 3 3 3 3 3 Years Notes: Mobile call types are calculated with five different durations, around the number of minutes indicated. 45 Figure 13 Mobile voice international call destinations for comparator countries

Call to

CAN FRA GER ITA JPN RUS SAF ESP UK USA

CAN 2.2% 2.1% 1.7% 1.0% 0.3% 6.5% 86.2% FRA 2.8% 25.2% 19.0% 1.4% 13.7% 24.7% 13.2% GER 2.7% 21.6% 20.0% 1.7% 2.3% 0.8% 8.6% 20.4% 22.0% ITA 3.4% 26.5% 30.3% 1.0% 7.0% 15.6% 16.2% JPN 4.4% 5.0% 6.8% 2.5% 1.6% 1.1% 11.5% 67.1% RUS 2.2% 8.8% 35.1% 11.8% 2.0% 3.4% 10.6% 26.1%

Call from Call SAF 4.4% 5.0% 13.9% 4.4% 1.8% 46.7% 23.7% ESP 0.8% 27.6% 23.8% 11.2% 0.7% 0.7% 0.2% 24.0% 10.9% UK 6.2% 18.1% 19.5% 8.7% 2.8% 2.7% 8.0% 34.0% USA 47.9% 5.6% 12.2% 4.6% 8.7% 1.3% 0.8% 2.2% 16.7%

Source: Teligen

46 Figure 14 Components of the broadband baskets

Basket 1 Basket 2 Basket 3 Basket 4 Basket 5 Units

Type of service None Fixed Mobile Fixed Fixed Mobile Usage time - 10 160 50 50 150 Hours/month Usage volume - 0.5 5 5 5 3 GB/month Session duration - 20 20 20 20 20 Mins Minimum speed - 4 1 8 16 1 Mbit/s Usage/day - 30 30 30 30 30 % Usage/evening - 40 40 40 40 40 % Usage/weekend - 30 30 30 30 30 % Depreciation - 3 1 3 3 1 Years

Source: Teligen

47 Figure 15 Components of the television baskets

Basket 1 Basket 2 Basket 3 Basket 4 Basket 5 Units

Antenna reception No No No No No n/a HD capable No No No No Yes n/a DVR included No No No No Yes n/a Football channels No No No No Yes n/a Movie channels No No No No Yes n/a Depreciation 3 3 3 3 3 Years

Source: Teligen

48 Figure 16 Purchasing Power Parity conversion rates

Exchange rate Comparative price PPP adjusted rate Country Currency August 2010 to July level (July 2010) (£) 2011 (£) UK GBP (£) 1.00 100 1.00 FRA EUR (€) 1.11 106 1.17 GER EUR (€) 1.11 98 1.09 ITA EUR (€) 1.11 91 1.01 ESP EUR (€) 1.11 93 1.03 USA USD ($) 1.61 80 1.28

Source: Teligen, using OECD data

49 3. Television and audio-visual 3. Key Market Developments Figure 3.1 TV industry metrics 2010 UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL BRA RUS IND CHN

TV revenue (£bn) 11.3 10.4 11.0 8.1 94.0 4.0 28.6 4.7 5.0 2.4 1.5 0.9 2.2 10.6 3.5 6.7 9.9

Revs change (%, YOY) 8.5 8.8 2.0 6.6 6.3 0.9 6.2 9.9 11.0 0.4 5.8 4.0 10.7 17.6 16.6 17.7 13.6

Revenue per cap (£) 181 160 135 133 304 119 226 218 106 139 170 189 57 53 25 6 7

from advertising 59 46 41 65 116 63 105 109 40 39 51 52 21 32 20 1 4

from subscription 78 82 46 44 187 42 81 78 25 63 84 99 36 19 5 4 3

From public funds 44 31 48 24 1 15 39 31 41 37 35 38 1 1 0 0 0

TV licence fee¹ 146 103 185 93 n/a n/a 175 n/a n/a n/a 185 137 40 n/a n/a n/a n/a

Platform DSat DTT DSat DTT DCab DCab ACab DTT DTT DCab ACab DSat DSat DSat ATT ACab ATT Largest TV platform % of homes 42% 38% 34% 41% 39% 44% 25% 43% 69% 42% 37% 52% 43% 39% 36% 59% 33%

TV viewing (mins/day)² 242 212 223 246 283 230 n/a 188 234 191 166 196 245 222 226 119 158

No.1 channel share (%) 21 25 14 21 7 13 n/a 18 16 22 23 23 19 42 17 9 7

DTV take-up (%) 97 93 62 78 87 78 66 75 98 68 63 83 56 59 34 29 33

Pay TV take-up (%) 52 57 63 26 88 91 60 31 28 98 93 77 76 18 55 82 52

DSO date 2012 2011 2008 2012 2009 2011 2011 2013 2010 2006 2007 2012 2013 2016 2015 2013 2015

Source: IDATE / industry data / Ofcom / Mediametrie, Eurodata TV Worldwide. Figures have been converted to GBP using IMF 2010 average exchange rates. ¹The Japanese licence fee costs £102 in terrestrial households or £175 to receive a larger number of channels via satellite.²Refers to average TV viewing per head, per day.

2 Figure 3.2 Global TV revenues

Revenue (£bn) 250 £239bn £222bn £211bn £221bn £194bn 200

150

100

50

0 2006 2007 2008 2009 2010

Source: Ofcom analysis based on data taken from PricewaterhouseCoopers Global Entertainment and Media Outlook 2011-2015 @ www.pwc.com/outlook. IDATE / industry data / Ofcom for US and UK revenues. Notes: Net TV advertising revenues for Russia have been calculated by discounting 15% of TV advertising spending to remove agency fees and production costs. Interpretation and manipulation of data are solely Ofcom’s responsibility. Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010. Figure 3.3 TV industry revenues, by source YOY CAGR (4yr) £194bn £211bn £221bn £222bn £239bn 7.7% 5.4% 100%

80% £90bn £99bn 9.9% 1.6% Advertising £93bn £97bn £97bn

60% £19bn £19bn 1.3% 2.2% Public funds £18bn £18bn £18bn 40% 7.1% 9.8% Subscriptions £96bn £105bn £113bn £121bn Proportion of of revenues Proportion 20% £83bn

0% 2006 2007 2008 2009 2010 Source: Ofcom analysis based on data taken from PricewaterhouseCoopers Global Entertainment and Media Outlook 2011-2015 @ www.pwc.com/outlook. IDATE / industry data / Ofcom for US and UK revenues. Notes: Net TV advertising revenues for Russia have been calculated by discounting 15% of TV advertising spending to remove agency fees and production costs. Interpretation and manipulation of data are solely Ofcom's responsibility. Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010. Figure 3.4 Take-up of digital and analogue television, 2010

Proportion of TV homes (%) 100% 3% 2% 7% 13% 17% 22% 22% 25% 38% 34% 32% 37% 80% 44% 41%

66% 71% 67% Analogue 60%

97% 93% 98% 40% 87% 83% 78% 78% 75% Digital 62% 66% 68% 63% 56% 59% 20% 34% 29% 33%

0% UK FRA GER ITA US CAN JPN AUS ESP NED SWE IRE POL BRA RUS IND CHI Year-on-year change (pp) +3 +13 +12 +7 +4 +9 +2 +14 +14 +10 +6 +18 +8 +20 +9 +6 +8

Source: IDATE / industry data / Ofcom

5 Figure 3.5 Timeline for digital switchover, by country and date

Switchover underway

FRA UK AUS CHN Switchover complete ITA RUS Switchover deadline NED SWE GER USA ESP CAN IRL POL BRA JPN IND

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: IDATE / industry data / Ofcom Figure 3.6 Percentage point change in the take-up of DTV, 2009 and 2010

2009 2010 24 20 20 18

16 14 14 14 13 13 12 12 10 10 10 9 9 9 8 8 8 8 7 8 7 7 6 7 6 6 6 5 5 5 4 4 3 4 2 Percentage point point change Percentage 2

0 UK FRA GER ITA US CAN JPN AUS ESP NED SWE IRE POL BRA RUS IND CHI 2 year change +8 +22 +25 +15 +9 +16 +4 +23 +28 +19 +10 +24 +15 +25 +15 +13 +18

Source: IDATE / industry data / Ofcom

7 Figure 3.7 IPTV take-up on main TV sets in countries where take-up exceeded 4% in 2010 Take-up (% of TV homes) 25% 24% FRA

20% 18% SWE

15% 14% NED 12% 10% 10% 9% 8% US 7% 8% 8%

4% 5% 6% 5% 4% 5% ESP 2% 3% 4% 3% 3% 2% 3% 1% 3% GER 0% 1% 2004 2005 2006 2007 2008 2009 2010 Source: IDATE / industry data / Ofcom. Notes: Only countries where IPTV take-up exceeded 4% of television homes in 2010 are shown in the chart. Figure 3.8 Growth in the number of HD television homes

Take-up (% of TV homes) Growth 60% 60% 1 yr 3 CAGR 54% 50% 44% 326% FRA 45%

39% 42% 21% 39% US 40% 40% 40% -2% 0% JPN 30% 29% 28% 122% 358% ITA 20% 21% 20% 14% 52% 95% UK 13% 14% 10% 7% 94% 264% GER 3% 5% 7% 0% 2007 2008 2009 2010

Source: IDATE / industry data / Ofcom. Figure 3.9 Number of HD homes, by platform and country, end 2010 70 62m 60 13.2m 50 DTT 4.8m

40 IPTV 34m 25.0m 30 10.8m Cable Subscribers (m) Subscribers 20m 20 4.8m 4.5m 8.8m Satellite 0.6m 10 19.3m 13.4m 11.1m 0 US UK, FRA, GER, ITA JPN

Source: IDATE / industry data / Ofcom. Notes: Paying and FTA HD homes; no data available for IPTV take-up in Japan. Figure 3.10 Claimed DVR take-up and year-on-year changes in take-up

Change year on year (pp) +4pp +3pp +2pp -1pp +2pp 50%

41% 40% 36%

up (%) 28%

- 30% 22% 22% Take 21% 20%

10%

0% UK FRA GER ITA USA AUS Source: Ofcom Consumer Research October 2011 Base: Total sample size: UK=1015, France=1014, Germany=1014, Italy=1045, US=1002, Japan=1015, Australia=1012. Q: Which of the following devices do you own and personally use? Figure 3.11 Claimed take-up of connected televisions and 3D-ready TVs

Take-up (%) Connected or smart TV 3D-ready TV 15% 13%

12% 10% 9% 9% 8% 7% 7% 7% 6% 6% 6% 6% 6% 4%

3%

0% UK FRA GER ITA USA AUS

Source: Ofcom Consumer Research October 2011. Base: Total sample size: UK=1015, France=1014, Germany=1014, Italy=1045, US=1002, Japan=1015, Australia=1012. Q: Which of the following devices do you own and personally use? Figure 3.12 Accessing TV content over the internet

Proportion of respondents that access online TV (%) Ever Weekly 60% -1 50% 44% -1 -4 40% +1 36% 33% +3 31% +2 +2 29% 30% 27% -2 24% +2 23%

20% 17% +1 17% 17% 11% 10%

0% UK FRA GER ITA USA AUS

Source: Ofcom Consumer Research October 2011 Base: Total sample size: UK=1015, France=1014, Germany=1014, Italy=1045, US=1002, Australia=1012 Q. Which of the following activities do you use your home internet connection for? Note: Australia not included in 2010 research Figure 3.13

Accessing TV content over the internet, by age

Proportion of respondents accessing online TV weekly(%) 50%

40% 38% 36% 33% 29%

30% 27% 25% 24% 23% 21% 21% 21% 21% 19% 18% 18% 17% 17% 20% 17% 15% 15% 13% 13% 13% 13% 13% 12%

10% 8% 6% 5% 3%

0% UK FRA GER ITA USA AUS 18-24 25-34 35-44 45-54 55-64

Source: Ofcom Consumer Research October 2011. Base: UK=1015, France=1014, Germany=1014, Italy=1045, US=1002, Australia=1012 Q: Which, if any, of the following activities do you use your home internet connection for?

14 3. TV and Audio Visual Industries Figure 3.14 TV industry revenues among comparator countries Growth (%) Total revenues (£bn) YOY CAGR (5 yr) £158bn £168bn £179bn £192bn £200bn £200bn £215bn 7.7% 6.4% £100bn £89 £94 £86 £89 £90bn 6.3% 5.3% USA £79 £80bn £68 £73 £70bn £57 6.2% 3.5% Europe / £60bn £52 £54 £54 Canada £48 £50 £50bn £45

£40bn £31 £32 £32 £33 £32 £31 £33 6.7% 0.9% Japan / Australia £30bn £31 £20bn £25 £27 £18 £21 16.2% 14.3% BRIC £10bn £14 £16 £0bn 2004 2005 2006 2007 2008 2009 2010 Source: IDATE / industry data / Ofcom. Notes: Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010. Revenues include advertising, subscriptions and sources of public funding only. Europe includes the European countries in this analysis – UK, France, Germany, Italy, Spain, Netherlands, Sweden, Republic of Ireland and Poland. BRIC is Brazil, Russia, India and China. Figure 3.15 TV industry revenue among European countries and Canada

Total revenues (£bn) Growth (%) £45bn £48bn £50bn £52bn £54bn £54bn £57bn YOY CAGR (5 yr) £12bn £11.3 £10.7 £10.8 £10.9 £10.9 £10.8 2.0% 0.5% GER £10.3 £11.0 £10bn £10.4 8.5% 3.0% UK £10.3 £10.4 £10.4 £9.8 £9.8 £9.6 £9.3 £9.4 8.8% 5.7% FRA £9.0 £8bn £8.1 6.6% 3.7% ITA £7.8 £7.9 £8.1 £7.8 £7.4 £7.6 £7.1 11.0% 4.3% ESP £6bn £6.7 £6.1 £4.7 £4.9 £4.9 £5.0 £4.5 0.9% 4.1% CAN £4.0 £3.8 £3.7 £4bn £3.5 £3.7 £3.2 £3.3 £4.0 £4.0 0.4% 3.1% NED £2.3 £2.3 £2.4 £2.4 £2.0 £2.0 £2.1 10.7% 9.1% POL £2bn £1.5 £1.7 £2.0 £2.0 £2.2 £1.2 £1.4 SWE £1.4 £1.5 £1.5 £1.5 5.8% 3.4% £0.8 £1.3 £1.4 £0.7 £0.8 £0.9 £0.8 £0.9 £0bn £0.5 £0.6 4.0% 8.0% IRL 2004 2005 2006 2007 2008 2009 2010 Source: IDATE / industry data / Ofcom. Notes: Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010. Revenues include advertising, subscriptions and sources of public funding only. Europe includes the European countries in this analysis – UK, France, Germany, Italy, Spain, Netherlands, Sweden, Republic of Ireland and Poland. Figure 3.16 Total TV industry revenues among BRIC countries Growth (%) Total revenues (£bn) YOY CAGR (5 yr) £14bn £16bn £18bn £21bn £25bn £27bn £31bn 16.2% 17.7% £12bn £10.6 17.6% 14.8% Brazil £10bn £9.1 £8.3 £9.9 £8bn £7.3 £8.7 16.6% 17.5% Russia £6.9 £8.2 £6.7 £6.2 £5.7 £6bn £5.4 £6.8 £6.0 £5.0 17.7% 20.7% India £5.3 £4.1 £4bn £4.6 £3.3 £2.6 £2.4 £3.4 £3.5 13.6% 9.8% China £2bn £2.8 £3.0 £2.1 £1.2 £1.6 £0bn 2004 2005 2006 2007 2008 2009 2010 Source: IDATE / industry data / Ofcom. Notes: Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010. Revenues include advertising, subscriptions and sources of public funding only. BRIC is Brazil, Russia, India and China. Figure 3.17 TV revenues among comparator countries by source, 2005 and 2010 Revenues (£bn) 0 2 4 6 8 10 12 14 2005 3.62 2.46 3.70 £9.8bn UK 2010 3.67 2.76 4.89 £11.3bn 2005 2.77 1.54 3.60 £7.9bn

FRA 2010 3.02 2.06 5.37 £10.4bn 2005 3.37 4.00 3.35 £10.7bn

GER 2010 3.33 3.91 3.73 £11.0bn 2005 4.00 1.27 1.47 £6.7bn ITA 2010 3.96 1.44 2.70 £8.1bn 2005 1.89 0.50 0.91 £3.3bn

CAN 2010 2.13 0.50 1.41 £4.0bn 2005 2.00 0.58 1.01 £3.6bn Advertising

AUS 2010 2.36 0.67 1.69 £4.7bn revenues 2005 2.41 0.57 1.05 £4.0bn

ESP 2010 1.87 1.91 1.18 £5.0bn 2005 0.670.580.79 £2.0bn Public funding

NED 2010 0.660.63 1.08 £2.4bn 2005 0.58 £1.3bn

SWE 2010 0.76 £1.5bn Subscription fees 2005 £0.6bn IRL 2010 0.46 £0.9bn 2005 0.56 0.76 £1.4bn

POL 2010 0.79 1.37 £2.2bn 2005 3.63 1.71 £5.3bn

BRA 2010 6.44 3.92 £10.6bn 2005 1.40 £1.6bn

RUS 2010 2.78 0.71 £3.5bn 2005 0.74 1.88 £2.6bn

IND 2010 1.46 5.08 £6.7bn 2005 3.39 2.83 £6.2bn

CHN 2010 5.95 3.98 £9.9bn

2005 35.33 36.92 £72.6bn

USA 2010 35.92 57.98 £94.2bn 2005 15.04 4.44 8.68 £28.2bn

JPN 2010 13.34 5.00 10.22 £28.6bn 0 10 20 30 40 50 60 70 80 90 100 110 Source: IDATE / industry data / Ofcom. Notes: Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010. Revenues include advertising, subscriptions and sources of public funding only. Different scale used for USA and Japan due to larger size.

1 Figure 3.18 TV revenue per head, by source, 2010

Revs per cap (£) 181 160 135 133 304 119 226 218 106 139 170 189 57 53 25 6 7 Change YOY (£) 7.2 -0.2 -1.8 -1.7 14.8 14.6 15.1 29.8 23.6 2.1 13.4 -0.5 8.4 31.6 25.9 90.4 6.4 100% £1 £1 £1 £15 £31 £31 £24 £39 £35 £38 £5 £44 £37 Public £48 funding 80% £41 £19 £3 £42 £187 £78 £44 £81 £36 60% £4 £78 £82 £84 £99 Subscription £25 £63 £46 40% £20

£32 £4 £63 £65 £105 £109 20% £116 £40 £59 £21 £46 £41 £39 £51 £52 Advertising £1

0% UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL BRA RUS IND CHN Source: IDATE / industry data / Ofcom. Notes: Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010. Revenues include advertising, subscriptions and sources of public funding only; figures inside the bars represent industry revenue per head by source. Figure 3.19 Changes in components of TV revenues per head: 2009 to 2010 Change (£) Advertising Subscription Public funding UK 8.18 3.69 1.37 £13.23 FRA -0.29 8.20 4.23 £12.14 GER -1.94 2.73 2.09 £2.89 ITA 3.25 3.56 0.55 £7.36 USA -0.16 10.14 6.21 £16.20 CAN -2.75 -0.45 3.29 £0.08 JPN 5.86 6.08 1.81 £13.74 AUS 12.47 2.85 1.93 £17.25 ESP -0.65 -3.46 14.15 £10.04 NED -0.86 0.41 0.40 -£0.05 SWE 7.87 1.13 0.12 £9.12 IRL -5.73 10.19 0.93 £5.39 POL -0.44 0.66 5.34 £5.57 BRA 5.36 1.21 0.79 £7.36 RUS 2.68 1.00 £3.69 IND 0.15 0.48 0.16 £0.79 CHN 0.60 0.25 £0.86

-£6.00 -£4.00 -£2.00 £0.00 £2.00 £4.00 £6.00 £8.00 £10.00 £12.00 £14.00 £16.00 £18.00 Source: IDATE / industry data / Ofcom. Notes: Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010. Revenues include advertising, subscriptions and sources of public funding only; the bars represent changes in industry revenue per head, by source. Figure 3.20 Cost of a TV licence fee

Cost of standard TV licence fee (£) Increment for DTH TV licence (£) Pay TV take-up (%) £200 100 90 £160 80 £73 70

£120 60 (%) up annum £185 £186 50 £80 40 £146 £137 30 £103 £93 £102 Cost per Cost

£40 20 TV Pay - take

No feeNo feeNo feeNo feeNo feeNo £40 feeNo feeNo feeNo feeNo 10

£0 feeNo 0 UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL BRA RUS IND CHN

Source: IDATE / industry data / Ofcom. Notes: Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010; Prices as of end 2010. Note: The Japanese licence fee costs £102 in terrestrial households or £175 (rounded) to receive a larger number of channels via satellite Figure 3.21 Latest reported revenues from selected free-to-view TV operators, 2010 Annual revenue for latest available period (£bn) £5bn £4.5bn £4bn £3.5bn £3bn £2.5bn £4.9bn £4.8bn £2bn £1.5bn £2.9bn £2.7bn £2.7bn £2.6bn £2.6bn £1bn £2.2bn £2.0bn £1.8bn Revenues (£bn) Revenues £0.5bn £1.0bn £0.7bn £0bn £0.4bn NHK RTL Fuji BBC Mediaset FT P7S1 RAI ITV TF1 RTVE ABC PBS Territory JPN EUR JPN UK ITA FRA GER ITA UK FRA ESP AUS USA YoY change 3.2% 8.4% -6.4% 1.5% 8.6% 7.4% 8.7% 3.0% 8.4% 11.4% -0.2% 1.4% 13.7%

Source: IDATE / industry data / Ofcom. Notes: Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010; Comparisons should be regarded as indicative only due to the possibility of differences in financial reporting between broadcasters. From 2009, RTL figure includes its key European markets; Mediaset includes Italian business and from 2005 FTA and pay TV (year ending Dec 31) BBC represents its income allocated to TV; RAI figures include licence fee (split between radio and TV unknown), TV advertising and sponsorship; ProSieben, group revenues (years ended Dec 31); France Televisions is licence fee and advertising; TF1 includes French channels (years ended Dec 31); PBS and the ABC are total revenue to year ending June 30; Fuji TV is broadcasting and production, year ending March 31; RTVE is advertising and public funding (as of year ending Dec 31) . Figure 3.22 Latest reported revenues from selected pay-TV operators, 2010

£14bn £13.8bn £13.1bn

£12bn Cable £10bn £8.2bn Satellite £8bn

£6bn £5.3bn £4.0bn £3.9bn £4bn £3.3bn Revenues (£bn) Revenues £2bn £1.2bn £1.1bn £1.0bn £0.7bn £0bn Comcast DirecTV Dish BSkyB Canal+ Virgin Media Sky Italia Foxtel Sogecable Sky Perfect Sky Deutschland

Territory USA USA USA UK FRA UK ITA AUS ESP JPN GER YoY change 2.5% 8.5% 8.5% 13.2% 3.5% 1.9% 1.2% 10.3% -15.3% 0.6% -1.0%

Source: IDATE / industry data / Ofcom. Notes: Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010; where possible we have reported revenues related to the TV services only (including advertising). Comcast includes video and advertising revenues; Time Warner Cable includes video and advertising revenues; BSkyB include retail, wholesale and advertising revenues; KDG includes cable access and TV/radio revenues; Virgin Media includes consumer and content revenues; Sky Italia revenue based on IDATE's estimate from News Corporation's annual report; Canal+ represents Canal Plus Group pay-TV revenues; Sogecable’s platform is Digital Plus. Figure 3.23 Pay-TV ARPU, 2005-2010

ARPU (£) 0 100 200 300 400 500 600 700

2005 332 UK 2010 366 2005 327 2005

FRA 2010 357 2005 131 2010

GER 2010 152 2005 384 ITA 2010 455 2005 399

USA 2010 569 2005 89

CAN 2010 123 2005 382

JPN 2010 365 2005 572

AUS 2010 695 2005 312

ESP 2010 278 2005 118

NED 2010 151 2005 168

SWE 2010 176 2005 214

IRE 2010 395 2005 132

POL 2010 134 2005 410

BRA 2010 524 2005 14

RUS 2010 28 2005 29

IND 2010 48 2005 23

CHN 2010 22

Source: IDATE / industry data / Ofcom. Notes: Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010. ARPU is average revenue per user, representing the average revenue generated per pay TV subscriber.

2 Figure 3.24 Latest reported ARPU for selected pay-TV operators, end 2010

£1000

Cable £800 Satellite £600 £1001

ARPU (£) £400 £696 £669 £570 £569 £508 £476 £200 £442 £429 £311 £286

£0 Comcast DirecTV Foxtel Virgin Media Dish BSkyB Canal+ Sky Italia Sogecable Sky Sky Perfect Deutschland Territory USA USA AUS UK USA UK FRA ITA ESP GER JPN

YoY change 9.1% 4.9% 4.4% 4.9% 4.7% 3.3% 3.6% -2.3% 1.7% 10.1% -0.3%

Source: IDATE / industry data / Ofcom. Notes: Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010; latest available company reports; ARPU is average revenue per user; figures are indicative only as definitions of ARPU may differ and some operators include telecommunications revenue in annual ARPU. Platform represents main distribution method. 3. The TV and audio-visual consumer Figure 3.25 Take-up of digital television – top nine comparator countries

Growth Take-up 1 yr 5 yr 2010 CAGR 100 98% 16% 27% ESP UK ESP 97% 3% 7% UK 80 IRE US 93% 17% 25% FRA ITA

FRA 87% 5% 10% US 60

83% 29% 16% IRE CAN Proportion of homes (%) 40 78% 10% 15% ITA AUS NED 78% 13% 12% CAN

20 75% 22% 21% AUS

68% 17% 31% NED 0 2004 2005 2006 2007 2008 2009 2010 Source: IDATE / industry data / Ofcom

28 Figure 3.26 Take-up of digital television – the next eight comparator countires

Growth Take-up 1 yr 5 yr 2010 CAGR 100 66% 3% 8% JPN

63% 10% 13% SWE 80

62% 24% 25% GER JPN 60 SWE 59% 52% 18% BRA

GER 56% 17% 35% POL Proportion of homes (%) POL 40 BRA 34% 34% 66% RUS IND 20 RUS 33% 34% 91% CHI

CHI 29% 28% 48% IND 0 2004 2005 2006 2007 2008 2009 2010 Source: IDATE / industry data / Ofcom

29 Source: IDATE / industry data /Ofcom / industry Source: IDATE 100% Proportion of TV households (%) Figure 3.27 Figure The two most popular DTV platforms, by country, by platforms, DTV popular 2010 most two The 20% 40% 60% 80% 0% UK Terrestrial Satellite FRA Terrestrial IPTV GER Cable Satellite ITA Terrestrial Satellite USA Cable Satellite CAN Cable Satellite JPN Cable Terrestrial AUS Terrestrial Satellite ESP Terrestrial Satellite 30 NED Cable Satellite SWE Cable Satellite IRL Satellite Cable POL Satellite Cable BRA Terrestrial Satellite RUS Cable Terrestrial IND Cable Satellite CHN Cable Terrestrial 50% platform Largest platform largest Second Figure 3.28 Take-up of DTV, by platform and country: 2010

Proportion of TV homes (%)

100% 1% 2% 2% 1% 2% 3% 5% 0%3% 6% 3% 4% 5% 8% 3% 4% 10% 12% 7% 10% 15% 13% 10% IPTV 24% 22% 19% 24% 22% 80% 33% 17% 15% 23% 21% Digital cable 39% 44% 30% 8% 2% 42% 12% 39% 3% 59% 42% 2% Analogue cable 60% 32% 25% 27% 23% 13% 37% 21% Digital satellite 43% 43% 4% 41% 22% 40% 52% 6% 22% 69% 32% Analogue satellite 34% 31% 25% 20% 40% 38% 15% Digital terrestrial 26% 17% 33% 36% 33% 21% 25% 13% 23% 6% 15% 6% Analogue terrestrial 12% 8% 11% 0% 3% 4% 4% 5% 5% UK FRA GER ITA USA CAN JAP AUS ESP NED SWE IRL POL BRA RUS IND CHN

Source: IDATE / industry data / Ofcom

31 Figure 3.29 Changes in platform take-up (pp) by country and technical platform

Source: IDATE / industry data / Ofcom

32 Figure 3.30 Proportion of main sets connected to DTT since platform launch

70 UK FRA 60 GER 50 ITA USA 40 JPN 30 ESP NED 20 Proportionof homes (%) SWE AUS 10 BRA 0 1 2 3 4 5 6 7 8 9 10 11 12 Years since launch

Source: IDATE / industry data / Ofcom

33 Figure 3.31 Number of HDTV homes, by platform and country, end 2010

Take-up (% of TV homes) Growth 60% 60% 1 yr 3 CAGR 54% 50% 44% 139% FRA 45%

39% 42% 21% 22% US 40% 40% 40% -2% 0% JPN 30% 29% 28% 122% 149% ITA 20% 21% 20% 14% 52% 49% UK 13% 14% 10% 7% 94% 117% GER 3% 5% 7% 0% 2007 2008 2009 2010

Source: IDATE / industry data / Ofcom. Figure 3.32 Percentage point change in the take-up of HD decoders connected to main sets

UK FRA GER ITA US JPN

Satellite 3.1 2.8 3.0 7.5 4.0 0.9

DTT 1.7 5.9 0.0 8.2 0.7 -1.4

Cable 2.4 1.2 2.9 0.0 2.8 0.1

IPTV 0.0 8.6 0.9 0.0 2.0 0.0

Net increase 7.2 18.5 6.8 15.7 9.5 -0.3

Source: IDATE / industry data / Ofcom. Notes: Paying and FTA HD homes; no data available for IPTV in Japan

35 Figure 3.33 Number of HDTV channels and HD penetration, end 2010

Satellite Cable IPTV DTT Proportion of TV homes with HD

200 70% 187 60% 175 160 60% 150 54% 50% 40% 40% 100 88 28% 30% 21% 54 14% 49 48 20% 50 42 Number of of Number HD channels 28 28 19 19 21 10% 9 9 4 5 4 6

0 0 0 0 0 Proportion of TV HH with HDTV (%) 0 0% UK FRA GER ITA USA JPN

Source: IDATE / industry data / Ofcom. Figure 3.34 Increase in the number of HD channels available, by platform, 2009 - 2010

UK FRA GER ITA USA JPN

Satellite 17 3 21 12 37 30

Cable 10 5 2 0 45 17

IPTV 0 10 4 0 42 17

DTT 0 0 0 1 0 0

Source: IDATE / industry data / Ofcom.

37 Figure 3.35 Take-up of digital video recorders, connected TVs and 3D-ready TVs

Take-up (%) DVR Connected or smart TV 3D-ready TV

50% 41% 40% 36%

30% 28% 21% 22% 22% 20% 13% 10% 8% 9% 10% 7% 6% 7% 6% 6% 7% 6% 4%

0% UK FRA GER ITA USA AUS

Source: Ofcom Consumer Research October 2011 Base: Total sample size: UK=1015, France=1014, Germany=1014, Italy=1045, US=1002, Japan=1015, Australia=1012 Q: Which of the following devices do you own and personally use? Figure 3.36 Take-up of pay television among groups of comparator countries

Proportion of households (%) 100

37% 80 46% 44% 52% 52% 48% 54% 52% 57% 60% 55% 56% 60 Pay 84% 89% 89%

40 63% Free 54% 56% 48% 48% 52% 46% 48% 20 43% 40% 45% 44%

16% 11% 11% 0 2005 2009 2010 2005 2009 2010 2005 2009 2010 2005 2009 2010 2005 2009 2010

Total UK Europe BRIC North America

Source: IDATE / industry data / Ofcom.Note: ‘Europe’ in this context means those European countries within our comparator set. ‘Total’ in this context means the 17 countries in this report’s comparator set.

39 Figure 3.37 Take-up of pay and free-to-air television, end 2010

Proportion of households (%) 100% 18% 26% 31% 28% 80% 52% 55% 52% 57% 63% 60% 76% 60% 77% 82% Pay 88% 91% 98% 93% 40% 82% 74% 69% 72% Free 48% 45% 48% 20% 43% 37% 40% 24% 23% 18% 12% 9% 0% 7% UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL BRA RUS IND CHN

Source: IDATE / industry data / Ofcom

40 Figure 3.38 Percentage point increases in pay television take-up, 2009 - 2010

7 2008 2009 6.4 6 5.5 5.0 5.1 4.6 5 4.24.4 3.8 4.0 3.9 4 3.4 3 2.5 2.2 1.8 1.8 1.8 2.0 2 1.5 1.1 1.3 1.3 0.8 0.8 1 0.5 0.5 0.1 0.2 0

-1 -0.6 -0.6 -0.6 Percentage point point change Percentage -1.4 -2 -1.5 -1.6 -2.2 -3 UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL BRA RUS IND CHN 2 year 2.6 5.4 -2.1 2.9 -0.4 2.8 6.3 2.1 1.2 -1.1 -1.9 3.3 6.9 5.4 10.4 9.4 8.6 change

Source: IDATE / industry data / Ofcom

41 Figure 3.39 Pay television take-up in 2005 and 2010, millions of homes

5yr Lower than average CAGR Higher than average

14 4% UK 11 2010 15 7% FRA 11 24 2005 -2% GER 26 6 10% ITA 4 12 2% CAN 10 31 6% JPN 23 3 8% AUS 2 5 6% ESP 3 7 1% NED 7 4 5% SWE 3 1 3% IRL 1 11 13% POL 6 9 18% BRA 4 28 25% RUS 9

0 10 20 30 40

197 9% CHN 125 117 12% IND 66 102 2% USA 93

0 40 80 120 160 200

Source: IDATE / industry data / Ofcom Homes (millions) 3 Figure 3.40 Daily TV viewing per head, 2009 - 2010

Change in minutes of viewing per person per day, 2009 - 2010 7.6% 3.4% 5.2% 3.4% 1.1% 6.0% 2.7% 3.5% 3.8% 0.6% 5.9% 2.1% -2.2% -0.9% -13.8% 0% 300 283

246 245 250 242 234 223 230 222 226 212 191 196 2010 average 200 188 211 mins 166 158 150 119 100

Minutes per Minutes per person day 50

0 UK FRA GER ITA USA CAN AUS ESP NED SWE IRL POL BRA RUS IND CHN

Source: Médiamétrie, Eurodata TV Worldwide. The figure for Canada relates to the viewing in non- Quebec households. 43

43 Figure 3.41 Patterns of viewing among the top five TV channels Change in share of top five channels Top channel Second and third most popular Fourth and fifth most popular 2009 - 2010 0 20 40 60 80

2009 21 25 12 58 -5.2% UK 2010 21 24 11 55 2009 26 29 14 69 -5.8%

FRA 2010 25 27 14 65 2009 13 25 17 55 +1.8%

GER 2010 14 26 16 56 2009 21 31 18 70 -5.7% ITA 2010 21 28 18 66 2009 7 13 8 28 0%

USA 2010 7 13 9 28 2009 11 12 7 29 +17.2%

CAN 2010 13 14 8 34 2009 22 37 16 75 -2.7%

AUS 2010 18 31 24 73 2009 16 30 15 61 -8.2%

ESP 2010 16 26 14 56 2009 20 25 14 58 +1.7%

NED 2010 22 24 13 59 2009 21 28 15 64 0%

SWE 2010 23 27 14 64 2009 24 22 10 56 -3.6% IRL 2010 23 23 8 54 2009 21 31 19 71 -4.2%

POL 2010 19 30 19 68 2009 43 29 8 80 -1.3%

BRA 2010 42 29 8 79 2009 18 30 15 63 0%

RUS 2010 17 30 15 63 2009 14 9 8 31 -9.7% IND 2010 9 11 8 28 2009 n.a. n.a

CHN 2010 7 8 6 21 Source: Médiamétrie, Eurodata TV Worldwide. The figure for Canada relates to the viewing in non-Quebec households.

4 Figure 3.42 Viewing of publicly funded channels

Change in viewing share between 2009 and 2010 (percentage points) +1 -1 -1 0 0 +2 +1 -2 +1 +4 -3 -2 +1 -3 -4

60 2009 2010 48 50 47 2010 45 45 4443 41 42 42 42 41 40 40 38 37 3635 36 36 35 31 30

20 17 16 15 11 9 10 7 Viewing share (%) 2009 - Viewing 1 1 1 2 0 UK FRA GER ITA USA CAN AUS ESP NED SWE IRL POL BRA RUS IND

Source: Médiamétrie, Eurodata TV Worldwide. The figure for Canada relates to the viewing in non- Quebec households.

45 Figure 3.43 Terrestrial versus multi-channel share

Proportionate change in terrestrial share, 2009 – 2010 (%) -5.2% -7.2% +4.3% -5.5% -8.0% 100% 23 32 29 80% 45

60% 75 Multi-channel

40% 77 68 71 55 Terrestrial 20%

Viewing share (%) 2010 Viewing 25 0% UK FRA GER ITA USA

Source: Médiamétrie, Eurodata TV Worldwide. The figure for Canada relates to the viewing in non-Quebec households.

46 Figure 3.44 Use of video-on demand services, and changes in use over time

-2 +4 +2 +3 +3 40% 34%

30% 29% 24%

20% 14%

10% 9% 8%

0% UK FRA GER ITA USA AUS Source: Ofcom Consumer Research October 2011 Base: Total sample size: UK=1015, France=1014, Germany=1014, Italy=1045, US=1002, Japan=1015, Australia=1012. Note: Australia not included in 2010 research

Figure 4.2: Changes in radio revenues by country between 2006 and 2010

Change in revenue (£m) £27,000 £26,743

£26,000

-£2,178

£25,140 £25,000 £358m £215m -£227m £155m -£3m £111m £24,565 £70m £24,568 -£171m £30m £38m £24,414 £24,338 £24,335 £24,194 £24,232 £24,302 £24,000 £24,164 2006 USA JPN UK Other SWE ITA IND GER BRA CAN CHN 2010 revenue revenue

Source: Ofcom analysis based on data from PricewaterhouseCoopers Global Entertainment and Media Outlook 2011- 2015 @ www.pwc.com/outlook. Interpretation and manipulation of data are solely Ofcom's responsibility. Note: Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010. UK figures are taken from Ofcom’s operator data

1 Figure 4.3: Growth in radio revenue, by country: 2006 – 2010

Proportional change in revenue (%) 100% 100%

80% 64% 66% 60%

40% 24% 20% 10% 8% 10% 4% 0.2% 0% -2% -4% -4% -8% -20% -15% -18% -15% -18%

UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL BRA RUS IND CHN

Source: Ofcom analysis based on data from PricewaterhouseCoopers Global Entertainment and Media Outlook 2011- 2015 @ www.pwc.com/outlook. Interpretation and manipulation of data are solely Ofcom's responsibility. Note: Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010. UK figures are taken from Ofcom’s operator data

2 Figure 4.4: The most substantial changes in radio revenue, by component: 2006 – 2010

Absolute change in revenue (£m)

JPN -£327m £100m

Advertising UK -£74m £97m Licence Fee

£358m CHN Subscriptions

USA -£3039m £856m

-£4,000 -£3,000 -£2,000 -£1,000 £0 £1,000

Source: Ofcom analysis based on data from PricewaterhouseCoopers Global Entertainment and Media Outlook 2011- 2015 @ www.pwc.com/outlook. Interpretation and manipulation of data are solely Ofcom's responsibility. Note: Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010. UK figures are taken from Ofcom’s operator data

3 Figure 4.5: The smaller revenue swings, by component: 2006 – 2010

Proportionate change in revenue (£m)

IND £70m RUS RUS-£47m BRA £155m POL -£32m £10m IRL-£12m £5m Advertising SWE £3m £27m NED -£23m £6m Subscriptions ESP ESP-£96m Public funding AUS £41m CAN £106m £109m ITA £38m GER £27m £84m FRA FRA-£85m £62m

-£100 -£50 £0 £50 £100 £150 £200 £250 Source: Ofcom analysis based on data from PricewaterhouseCoopers Global Entertainment and Media Outlook 2011- 2015 @ www.pwc.com/outlook. Interpretation and manipulation of data are solely Ofcom's responsibility. Note: Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010.

4 Figure 4.6 Use of the internet to listen to the radio/ download audio content (music tracks/ podcasts) Listen to the radio online Listen / download audio content (music tracks /podcasts) Change from 2009 0% -2% -4% -7% -3% -1% 0% -2% -4% -2% N/A N/A 50%

40%

30%

46% 42% 20% 38% 37% 38% 32% 32% 33% 29% 30% 27% 10% 19%

0% UK FRA GER ITA USA AUS Source: Ofcom consumer research, October 2011 Base: Total sample size UK=1015, France=1014, Germany=1014, Italy=1045, US=1002, Australia=1012 Q: Which, if any, of the following activities do you use your home internet connection for? Listening to the radio / listening to or downloading audio content (e.g. music tracks or, podcasts).

5 Figure 4.7 Using a mobile phone to listen to MP3 tracks, FM radio or Podcasts

MP3 FM Radio Podcasts

% adults using mobile phone to listen to: MP3 tracks, FM Radio, or podcasts 40%

30%

20%

30% 29% 28% 24% 26% 26% 10% 20% 19% 15% 16% 14% 9% 5% 5% 4% 5% 4% 6% 0% UK FRA GER ITA USA AUS

Source: Ofcom consumer research, October 2011 Base sizes (all adults who use the internet) UK=1015, France=1014, Germany=1014, Italy=1045, US=1002, Australia=1012 Q: ‘Which of the following activities do you use your mobile for, listening to: FM radio, MP3 player, podcasts?’

6 Figure 4.8 Global radio industry revenues: 2006 – 2010

Revenue (£bn)

£35bn Annual £31.0bn £30.3bn £30.3bn Growth £29.0bn £30bn £27.6bn 4.9% Total

£25bn £22.6bn £22.4bn £21.5bn £19.7bn £18.6bn £20bn 5.7% Commercial revenue £15bn

1.2% £10bn £7.1bn £7.2bn £7.4bn £7.5bn Public radio £7.0bn licence fees £5bn £0.9bn £1.3bn £1.6bn £1.6bn £1.8bn 13.3% £0bn Satellite radio subscription 2006 2007 2008 2009 2010

Source: Ofcom analysis based on data from PricewaterhouseCoopers Global Entertainment and Media Outlook 2011-2015 @ www.pwc.com/outlook. Interpretation and manipulation of data are solely Ofcom's responsibility. Note: Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010.

7 Figure 4.9 Radio industry revenue: 2010

Change from £31m £38m £4m 31m £913 m £63m -£30m £35m -£10m £9m £7m -£12m -£5m £39m £23m £14m £88m 2009: 2.8% 3% 0.1% 8% 8.3% 6% -1.1% 6.3% -2.2% 2.5% 2.3% -6.8% -4.1% 10.8% 11.8% 11.2% 10.8% £3bn £10.8bn £11.9bn

£2bn

£3.0bn £2.7bn

£1bn radio revenues (£bn ) £1.3bn £1.1bn £1.1bn £0.9bn 2010 £0.5bn £0.4bn £0.5bn £0.4bn £0.1bn £0.1bn £0.3bn £0.2bn £0.4bn £0.2bn £0bn UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL BRA RUS IND CHN

Source: Ofcom analysis based on data from PricewaterhouseCoopers Global Entertainment and Media Outlook 2011- 2015 @ www.pwc.com/outlook. Interpretation and manipulation of data are solely Ofcom's responsibility. Note: Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010. UK figures are taken from Ofcom’s operator data

8 Figure 4.10 Radio industry revenue annual average growth: 2006 – 2010

1 year change 3.6% 3% 0.1% 8% 8.3% 6% -1.1% 6.3% -2.2% 2.5% 2.3% -6.8% -4.1% 10.8% 11.8% 11.2% 10.8%

15% 13% 11% 2006 - 2010 9% 18.9%

7% 13.1% 13.4% 5%

3% 5.6% 1.0% 1% -0.4% 2.4% 1.8% 2.5% -1% -0.1% -2.0% -1.1% -0.9% -4.1% -4.7% -4.1% -4.7% -3%

rate rate annual growth Average -5% UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL BRA RUS IND CHN

Source: Ofcom analysis based on data from PricewaterhouseCoopers Global Entertainment and Media Outlook 2011- 2015 @ www.pwc.com/outlook. Interpretation and manipulation of data are solely Ofcom's responsibility. Note: Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010. UK figures are taken from Ofcom’s operator data

9 Figure 4.11 Proportion of radio industry revenue by source: 2010

Satellite subscription Public radio licence fees Advertising

Proportion of total revenue (%) 100% £10m £1720m £124m

£61m 80% £162m

£685m £799m £1698m

60% £2348m £259m

£418m £589m £450m £398m £220m £141m £903m £111m £10175m £978m 40% £107m £217m

20% £438m £502m £955m

£610m £61m 0% UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL BRA RUS IND CHN

Source: Ofcom analysis based on data from PricewaterhouseCoopers Global Entertainment and Media Outlook 2011- 2015 @ www.pwc.com/outlook. Interpretation and manipulation of data are solely Ofcom's responsibility. Note: Ofcom has used an exchange rate of $1.546 to the GBP, representing the IMF average for 2010. UK figures are taken from Ofcom’s operator data

10 Figure 4.12 Radio industry revenues per head, 2010

Satellite subscription Public radio licence fees Advertising Total revenues per head £18 £20 £36 £7 £38 £32 £21 £27 £10 £22 £36 £34 £3 £2 £2 £0.1 £1 £40 £6

£30 £4 £12

£29 £29 £20 £10 £33 £12 £29 £13 £11 £27 (£ per head) £10 £21 £0.3 £13 £10 £3 £7 £8 £7 £7 £8 £7 £2 £2 £1

Industry revenuesper capita £0.1 £0 UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL BRA RUS IND CHN

Source: Ofcom analysis based on data from PricewaterhouseCoopers Global Entertainment and Media Outlook 2011-2015. @ www.pwc.com/outlook. Manipulation and interpretation of data is solely Ofcom’s responsibility. Figures in this chart are rounded. Population figures used in this calculation are taken from the US Census Bureau end of year estimates from mid- year values. Note: Ofcom has used an exchange rate of $1.546 to the pound, representing the IMF average for 2010. UK figures are taken from Ofcom’s operator data

11 Figure 4.13 Radio advertising as a proportion of total advertising spend: 2010, and licence fee as a share of all radio funding

Public licence fee funding share of radio revenues (%)

100% SWE GER 80% JPN FRA 60% UK NED IRL 40%

20% POL ESP IND BRAITA CHN AUS USA CAN 0% RUS 0% 2% 4% 6% 8% 10% 12% 14%

Radio as a proportion of total advertising expenditure (%)

Source: Radio as a proportion of total advertising spend sourced from Warc (www.warc.com). Public licence fee funding share of radio revenues is Ofcom analysis based on data from PricewaterhouseCoopers Global Entertainment and Media Outlook 2011-2015. Ofcom has used an exchange rate of $1.546 to the pound. Interpretation and manipulation of data is solely Ofcom’s responsibility. Figures in this chart are rounded. Note that the UK radio industry figure is sourced from broadcaster returns made to Ofcom

12 Figure 4.14 Proportion of adults listening to the radio on at least a weekly basis, by country: 2011

% adults 100%

80%

60%

40% 75% 74% 67% 72% 71% 69%

20%

0% UK FRA GER ITA USA AUS

Source: Ofcom consumer research, October 2011. Base sizes (all adults who use the internet) UK=1015, France=1014, Germany=1014, Italy=1045, US=1002, Australia=1012 Question: Which of the following do you regularly do (at least once a week): Listen to the radio. For detailed information on the UK radio market, please refer to The Communications Market Report 2011 where figures reported are from RAJAR

13

Figure 4.16 Recorded Music Sales - Top 20 Markets Summary

Market Split (trade value) Rank Country Retail Value (£m) % change Physical Digital Perf Rights 1 USA 49% 49% 2% £4,366.0 -10.0% 2 Japan 73% 25% 2% £3,455.9 -8.3% 3 Germany 81% 12% 6% £1,278.3 -4.1% 4 UK 67% 25% 8% £1,228.0 -11.0% 5 France 74% 17% 9% £810.0 -5.1% 6 Canada 66% 29% 5% £335.0 -13.5% 7 Australia 68% 27% 5% £370.2 -12.4% 8 Netherlands 70% 8% 22% £194.7 -2.6% 9 Italy 75% 15% 10% £212.9 -2.3% 10 Brazil 75% 17% 8% £214.5 -1.2% 11 Spain 65% 20% 15% £156.6 -21.0% 12 South Korea 45% 55% - £233.9 11.7% 13 Switzerland 79% 16% 5% £132.5 -13.3% 14 India 41% 34% 25% £153.8 16.5% 15 Belgium 79% 9% 12% £134.0 -6.7% 16 Sweden 61% 28% 11% £124.8 -7.1% 17 Mexico 76% 23% 1% £136.8 0.9% 18 South Africa 93% 5% 2% £118.8 -7.3% 19 Austria 76% 14% 10% £136.9 -12.0% 20 Norway 65% 25% 10% £113.1 -7.5% Global 66% 29% 5% £15,116.3 -8.4%

Source: Ofcom calculations based on IFPI data, 'Recording Industry in Numbers' report. 5. Internet and web-based content Figure 5.1 Internet and web-based content: key international statistics

UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL BRA RUS IND CHN

Online universe 38.7 40.6 48.1 28.6 199.9 n/a 61.9 14.8 22.4 n/a n/a n/a n/a 44.9 n/a n/a n/a (m)* Fixed broadband 74 77 67 51 70 83 66 66 63 89 64 68 37 25 36 5 32 connections per 100 HH† Cellular broadband 8 4 5 10 n/a 3 8 20 7 4 32 12 9 n/a n/a n/a n/a connections per 100 population† Mobile-only broadband HH 5 2 9 14 6 n/a n/a 19 n/a n/a n/a n/a n/a n/a n/a n/a n/a (%)‡ Internet access via a mobile 46 39 38 40 41 n/a n/a 43 n/a n/a n/a n/a n/a n/a n/a n/a n/a phone(%)‡

Source: IDATE / Industry data / Ofcom, Nielsen *Nielsen, month of July 2011, home and work panel, applications included. † IDATE / Industry Data / Ofcom, 2010. ‡Ofcom international research, October 2011.

2 Figure 5.2 Use of mobile phone to access the internet

Mobile subscribers (%) 50% 46% 2008 2010 2011 41% 43% 39% 38% 40% 40% 37% 37% 36% 31% 30% 27% 21% 18% 20% 14% 14% 15% 10% N/A 0% UK FRA GER ITA US AUS

Source: Ofcom research, October 2008, 2010 and 2011. Base: All adults aged 18+ who use the internet (UK=929, France=914, Germany=945, Italy=989, USA=902, Australia=957). Which, if any, of the following activities do you use your smartphone / mobile phone for?

3 Figure 5.3

Internet access via mobile phone among internet users, by age

Take-up (%) 80 18-24 25-34 35-44 45-54 55-64 6161 6163 60 56 57 49 47 49 45 45 4445 43 38 39 3840 38 40 33 31 32 25 2527 26 24 22 19 19 20

0 UK FRA GER ITA USA AUS +8 +8 +3 +12 +16 -6 +3 +7 +10 +10 +13 +14 +12 +3 +14 +5 +12 +15 +2 +5 -5 +7 +6 +7 +0 N/A

Source: Ofcom consumer research October 2011. Base: (All Adults who own a smartphone and/or a mobile phone) UK=929, France=914, Germany=945, Italy=989, US=902, Australia=957 Q10. Which, if any, of the following activities do you use your mobile phone for?

4 Figure 5.4 Use of selected internet/data services on mobileChange phones since 2010 Emails (not SMS) +8pp 32% +8pp 31% 29% +9pp 29% +9pp 33% +6pp 29% N/A Playing games +2pp 31% 20% -10pp 30% No change 27% -4pp 29% +3pp 34% N/A Social Networks 29% +6pp 25% +12pp 23% +5pp 26% +8pp 26% +1pp 29% N/A Downloading 23% +6pp Apps 17% UK +1pp 18% +6pp 19% +9pp 23% FRA 25% +6pp GER N/A Instant 21% +5pp messaging 21% ITA +1pp 11% +3pp 21% USA +4pp 18% 22% -2pp AUS N/A Watching video 15% -1pp clips 18% +2pp 13% +5pp 13% -1pp 16% -4pp 13% N/A Watching TV No change 5% programmes 11% +1pp 4% +1pp 4% No change 6% No change 3% N/A

0% 10% 20% 30% Take-up % Source: Ofcom research, October 2011. Base: All adults aged 18+ who use the internet UK=929, France=914, Germany=945, Italy=989, USA=902, Australia=957. Q10. Which, if any, of the following activities do you use your smartphone / mobile phone for? Note: Change since 2010 may be understated due to a1 change in the way in which the question was asked. In 2008 and 2010 we asked respondents to classify whether they had “ever” used their mobile phone for activities; in 2011 we simply asked what activities they used their mobile phone for. Figure 5.5 Proportion of mobile subscribers with smartphones in Europe Mobile subscribers (%) 50 46 45 40 39 40 35 32 33 30 30 24 24 20 16 18

10

0 UK FRA GER ITA ESP EU5 Feb-10 Aug-11

Source: comScore MobiLens , 3 month averages ending February 2010 and August 2011, mobile subscribers ages 13+, EU5 is UK, FRA, GER, ITA and ESP Note: MobiLens data is derived from an intelligent online survey of a nationally representative sample of mobile subscribers age 13 and above. Data on mobile phone usage refers to a respondent’s primary mobile phone and does not include data related to a respondent’s secondary device.

6 Figure 5.6 Smartphone platform share across Europe, the US, and Japan EU5 JPN USA

3.5% 1.9% 1.9%

12.9 20.3 % % 21.7 20.3 % % 40.0 37.8 % % 5.7% 22.3 % 47.1 % 41.8 9.4% 6.7% % ■ Apple ■ Google ■ Microsoft ■ RIM ■ Symbian ■ Other* Source: comScore MobiLens, aged13+ Note: MobiLens data is derived from an intelligent online survey of a nationally representative sample of mobile subscribers age 13 and above. Data on mobile phone usage refers to a respondent’s primary mobile phone and does not include data related to a respondent’s secondary device. EU5 (UK, FRA, GER, ITA, ESP) 3 month average ending July 2011, USA 3 month average ending July 2011, JPN data March 2011. *Other includes all platforms not featured7 in respective pie chart. Figure 5.7 Operating system share of smartphone sales

Share of smartphone sales (%) 100% 7.3 6.7 8.3 11.1 5.4 6.2 11.8 9.8 14.6 13.8 23.1 21.2 10.0 31.7 21 80% 25.8 7.3 11.6 47.0 20.1 14.9 47.8 5.6 60% 8.7 68.3 62.9 48.8 71.8 31.1 6.6 48.3 16.8 51.4 40% 26.9 47.8 8.5 38 8.9 54.9 8.7 20% 6.3 37.1 33.8 32.7 32 29.4 25.4 24.6 9.6 20.8 17.2 22 15.7 18.9 7.7 0% 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011

UK FRA GER ITA USA AUS ESP

Apple Google Microsoft RIM Symbian Other Source: Kantar Worldpanel 12 weeks ending 5 September 2010 and 12 weeks ending 4 September 2011 Note: Microsoft includes both Windows Phone 7 and Windows Mobile operating systems. Data labels for operating systems with less than 5% share not shown.

8 Figure 5.8 Internet share of total advertising expenditure

Internet share of all advertising spend (%) CAGR 30% 1Yr 5Yr UK 16% 25% NED 14% 43% SWE 15% 24% GER 20% 17% 58% AUS 21% 30% USA 15% 16% POL 7% 58% CAN 15% 30% 10% JPN 12% 17% FRA 7% 46% ESP 22% 38% ITA 18% 49% 0% IRL* 2003 2004 2005 2006 2007 2008 2009 2010 7% 60% Source: Warc data (www.warc.com) Note: Data do not include mobile advertising, a small but growing new market. This is particularly relevant to Japan where in 2009 mobile advertising accounted for approximately 2% of total advertising expenditure. *Ireland data prior to 2009 exclude paid-for search advertising. Ireland internet data from 2009 include display, classified, search and email and are therefore not directly comparable with those of previous years. Figure 5.9 Internet ad spend per head

80 2005 2006 2007 2008 2009 2010 70

60

50

40

30

20

10

0 UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL* POL

Internet advertising spend per (GBP) capita advertising Internet 5 Yr 24% 45% 59% 48% 15% 29% 17% 28% 36% 42% 24% n/a% 59% CAGR Source: Warc data (www.warc.com). Currency conversions represent the IMF average for 2010. Population per head US Census Bureau (EoY estimates from mid-year values). *Note: Ireland data prior to 2009 exclude paid-for search advertising. Ireland internet data from 2009 include display, classified, search and email and are not comparable with those of previous years. Figure 5.10 Internet advertising spend, by category Classified, Display, Other Search 100% 90% 29 31 32 35 34 80% 38 40 45 39 41 42 40 40 49 51 53 47 46 70% 59 60 57 60% 50% 40% 71 69 68 65 66 30% 62 60 55 61 59 58 60 60 51 49 47 53 54 20% 41 40 43 10% 0% 2008 2009 2010 2008 2009 2010 2008 2009 2010 2008 2009 2010 2008 2009 2010 2008 2009 2010 2008 2009 2010 UK FRA GER ITA USA CAN JPN Source: PricewaterhouseCoopers Global Entertainment and Media Outlook: 2011-2015 @ www.pwc.com/outlook. Note: Interpretation and manipulation of data are solely Ofcom's responsibility. Figure 5.11 Mobile internet advertising expenditure

GBP Millions GBP Millions 90 900 2006 2007 2008 2009 2010 80 800 70 700 60 600 50 500 40 400 30 300 20 200 10 100 0 0 YoY UK FRA GER ITA CAN AUS ESP NED SWE IRL POL BRA RUS CHN USA JPN Growth 118% 45% 34% 12% 82% 75% 33% 29% 50% 100% 20% 33% 40% 57% 55% 16% 09/10 Source: PricewaterhouseCoopers Global Entertainment and Media Outlook: 2011-2015 @ www.pwc.com/outlook. Note: Interpretation and manipulation of data are solely Ofcom's responsibility. Figure 5.12 Mobile internet advertising expenditure per head

GBP/head GBP/head £1.40 2006 2007 2008 2009 2010 £7.00

£1.20 £6.00

£1.00 £5.00

£0.80 £4.00

£0.60 £3.00

£0.40 £2.00

£0.20 £1.00

£0.00 £0.00 UK FRA GER ITA USA CAN AUS ESP NED SWE IRL POL JPN 3 Yr 69% 58% 37% 3% 69% 169% 65% 25% 81% 65% n/a 82% 39% CAGR Source: Expenditure data PricewaterhouseCoopers Global Entertainment and Media Outlook: 2011-2015 @ www.pwc.com/outlook; and population data US Census Bureau (EoY estimates from mid-year values) Note: Interpretation and manipulation of data are solely Ofcom's responsibility. Figure 5.13 Broadband connections per 100 households 5 Year Connections per 100 households Change 0 20 40 60 80 100

+34 UK 40 74 +41 FRA 36 77 +40 GER 27 67 +22 ITA 29 51 +29 USA 41 70 +26 CAN 57 83 +21 JPN 45 66 2005 +37 AUS 29 66 2010 +29 ESP 34 63 +31 NED 58 89 +21 SWE 43 64 +49 IRL 19 68 +25 POL 12 37 +17 BRA 8 25 +32 RUS 4 36 +4 IND 0 5 +22 CHN 10 32

Source: IDATE / Industry Data / Ofcom Note: this calculation includes business broadband lines,2 and therefore the figures in the analysis do not equate exactly to household fixed broadband take-up. Figure 5.14 Mobile broadband subscribers per 100 population

Mobile Broadband connections per 100 population 2008 2009 2010 35 32 30

25 20 20 19

15 13 12 10 10 10 9 10 8 8 7 7 7 7 6 7 7 5 5 4 4 4 4 4 5 3 3 2 3 3 3 3 2 2 2 1 0 YoY UK FRA GER ITA CAN JPN AUS ESP NED SWE IRL POL Growth 17% 31% 31% 52% 19% 3% 47% 69% 33% 73% 26% 66% 09/10 Source: IDATE / industry data / Ofcom Note: this calculation includes business broadband lines, and therefore the figures in the analysis do not equate exactly to household fixed broadband take-up.

15 Figure 5.15

Take-up of home internet access platforms

Proportion of internet users (%) 100 UK FRA GER ITA USA AUS 87 82 84 80 69 69 64 60

40 19 15 14 14 20 11 13 13 9 4 5 2 6 0 Fixed broadband only Fixed broadband and mobile Mobile broadband only broadband

Source: Ofcom consumer research October 2011. Base : UK=1015, France=1014, Germany=1014, Italy=1045, US=1002, Australia=1012 Q3. Which of the following do you have in your home?

16 Figure 5.16 Devices used to access the internet

Respondents claiming to use device to access the internet (%) 75 80 72 68 6869 6365 63 64 59 57 60 54

40 31 2726252727

20 12 1314 14 9 8 8 9 8 8 8 7 7 6 7 6 5 7 5 6 6 5 6 3 3 4 3 2 4 3 0 Desktop Laptop Tablet Mobile Smartphone Games Portable Connected phone console media or Smart TV UK FRA GER ITA USA AUS player Source: Ofcom consumer research October 2011. Base: (All Adults who use the internet) UK=1002, France=1004, Germany=1005, Italy=1040, US=992, Australia=1004 Q7. Which of the following devices do you use to access the internet at home (e.g. visiting web sites, emailing, online gaming, downloading files)?

17 Figure 5.17 Use of desktop and laptop PCs to access the internet, by age

Respondents claiming to use device to access the internet (%) 18-24 25-34 35-44 45-54 55-64

100 84 84 82 80 79 79 78 78 78 77 77 77 76 75 75 74

80 72 71 71 70 70 70 70 70 70 69 69 68 68 67 67 65 64 64 64 63 63 60 59 58 58 57 57 57 57 57 57 56 55 54 54 53 60 53 50 47 45 44 44 40

40 32

20

0 UK FRA GER ITA USA AUS UK FRA GER ITA USA AUS

Desktop Laptop Source: Ofcom consumer research October 2011. Base: (All Adults who use the internet) UK=1002, France=1004, Germany=1005, Italy=1040, US=992, Australia=1004 Q7. Which of the following devices do you use to access the internet at home (e.g. visiting web sites, emailing, online gaming, downloading files)?

18 Figure 5.18 Share of internet traffic on other devices

100% 6 8 6 5 0.6 10 10 11 9 17 80%

66 61 60% 63 59 68 48 66 68 83 95 40%

20% 30 35 33 22 28 23 26 28 11 0% 5 UK FRA GER USA CAN JPN AUS ESP BRA IND

Tablets Mobile Phones Other Devices

Source: comScore Device Essentials, May 2011

19 Figure 5.19 Global online universe, July 2011

Global online universe (m) Year-on-Year % change UK 38.7 -1.0% FRA 40.6 NA GER 48.1 +7.6% ITA 28.6 +11.0% USA 199.9 +2.6% JPN 61.9 +4.0% AUS 14.8 +1.8% ESP 22.4 NA BRA 44.9 +14.3%

0 50 100 150 200

Source: Nielsen, July 2011 and July 2010 (internet applications included, home & work) Note: Due to a change in methodology in January 2011 online universe figures are incomparable for Spain between July 2010 and July 2011. Year-on-year comparisons for France are not applicable because of an anonymous high data point. Figure 5.20 Unique online audience, by gender: August 2010 and August 2011

Share of online audience (%) 100

80 45 43 49 49 50 50 48 46 46 53 53 46 47 48 60

40

51 51 50 50 52 54 55 54 57 54 53 52 20 47 47

0 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011

UK FRA GER ITA USA JPN ESP Male Female Source: Nielsen, August 2010 and August 2011, home and work panel, applications included.

21 Figure 5.21 Unique online audience by age: August 2010 and August 2011

Share of online audience (%) 100 3 3 6 7 6 7 7 8 4 4 10 11

80 48 49 53 54 54 53 54 55 56 56 48 48 60

40 25 25 36 35 29 28 27 26 30 30 20 28 27

12 12 12 12 9 9 12 12 16 16 13 13 0 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011

UK FRA GER ITA USA ESP

2-17 18-34 35-64 65+

Source: Nielsen, August 2010 and August 2011, home and work panel, applications included..

22 Figure 5.22 Unique online audience, by age and gender: August 2011

Share of online audience (%) 100 2 2 9 4 9 5 11 4 6 10 11 4 80 51 48 54 54 50 52 56 56 46 49 60 56 56

40 34 26 33 36 26 30 29 30 26 25 20 22 25 17 13 12 12 12 9 10 11 13 15 13 14 0 M F M F M F M F M F M F

UK FRA GER ITA USA ESP 2-17 18-34 35-64 65+

Source: Nielsen, August 2011, home and work panel, applications included. Figure 5.23 Average number of minutes spent online per week

Minutes online per week 2008 2010 2011 1000

800 913 839 806 794 791 756 754 600 746 709 696 694 674 665 573 543 540

400 523 449 415 414 200

0 UK FRA GER ITA USA JPN ESP 2011 YoY -1.1% -1.4% 8.9% 0.2% -1.8% -1.8% 0.6% Change

Source: Nielsen, August 2011, home and work panels, applications included. Note: 2008 data unavailable for Japan.

24 Figure 5.24 Highlighted use of home internet connection

Email 89% 91% 92% 91% 92% 92%

General website 88% 83% browsing 70% 88% 86% 88%

Shopping 82% 72% 79% 68% 78% 67% UK Banking 71% 59% FRA 73% 53% 70% GER 75% ITA Reading news online 66% USA 66% 68% 78% AUS 70% 59%

Social Networks 59% 57% 60% 69% 66% 64%

Watching TV 44% 33% (e.g. catch-up, 24% 31% broadcaster sites) 36% 29%

0% 20% 40% 60% 80% 100%

Source: Ofcom consumer research, October 2011. Base sizes: UK=1015, France=1014, Germany=1014, Italy=1045, USA=1002, Australia=1012 Q8. Which, if any, of the following activities do you use your home internet connection for?

3 Figure 5.25 Use of home internet connection Viewing UGC 40% 43% (YouTube etc) 50% 54% 48% 39% Uploading pictures 40% 31% 31% 40% 44% 43% Games 39% 36% 39% 40% 46% 39% Audio content 38% 32% (e.g. music tracks, 30% 46% podcasts) 38% 42% Instant messaging 36% 52% 31% 47% 40% UK 36% Radio 29% FRA 37% 32% 33% GER 27% 19% ITA Gambling/trading/ 25% 18% auctions 26% 13% USA 13% 22% AUS Downloading TV 24% 25% or films 18% 37% 17% 29% Voice calls 19% 26% 21% 28% 14% 23% Uploading video 13% 14% 8% 22% 17% 15%

0% 10% 20% 30% 40% 50% 60%

Source: Ofcom consumer research, October 2011. Base sizes: UK=1015, France=1014, Germany=1014, Italy=1045, USA=1002, Australia=1012 Q8. Which, if any, of the following activities do you use your home internet connection for?

4 Figure 5.26 Mobile phone uses, by country

Text messages (SMS) 77%80% 78%81% 64% 86% Voice calling 72%73% 68% 80% 69% 78% Accessing internet 39% 46% 38%40% 41%43% Emails (not SMS) 31%32% 29% 29%33% Playing games 20% 31% 27%30% 29%34% UK Social Networks 25%29% 23%26% FRA 26%29% MMS / photo messages 28% 40% GER 22% 37% 27% 33% Listening to MP3s 24%26% ITA 29%30% 19% 26% USA Downloading Apps 17% 23% 18%19% 23%25% AUS Location apps (sat nav, Google Maps) 22%23% 18% 24% 21%25% Instant messaging 21% 11% 21% 18%22% Listening to FM radio 15%20% 16% 28% 9% 14% Watching video clips 15%18% 13% 13%16% Upload pictures/videos 7% 15% 8% 13% 15%17% Banking transactions 9%12% 8%9% 16%21% Send / receive video clips 8%12% 5%7% 8%10% Video calling 7%8% 6% 11% 7%9% Gambling/trading/auctions 4%5% 3% 3%5% Watching TV programmes 5% 11% 4% 3%6% Listening to podcasts 5% 4%5% 4%6% Take-up %

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: Ofcom research, October 2011. Base: All adults aged 18+ who use the internet UK=929, France=914, Germany=945, Italy=989, USA=902, Australia=957. Q10. Which, if any, of the following activities do you use your smartphone / mobile phone for?

5 Figure 5.27 Mobile behaviour in the US and Europe, September 2011

% of mobile subscribers UK FRA GER ITA USA ESP Sent Text Message 91% 84% 80% 80% 70% 80% Used Browser 47% 35% 28% 31% 43% 35% Used Application 45% 32% 30% 31% 43% 35% (excl. pre-installed) Accessed Social Networking 35% 22% 17% 21% 32% 23% Site or Blog Played Games 34% 16% 25% 30% 29% 29% Listened to Music 26% 23% 26% 24% 21% 33%

Source: comScore MobiLens, 3 month average ending September 2011, ages 13+ Note: MobiLens data is derived from an intelligent online survey of a nationally representative sample of mobile subscribers age 13 and above. Data on mobile phone usage refers to a respondent’s primary mobile phone and does not include data related to a respondent’s secondary device. Figure 5.28 Top ten website brands, by country

UK FRA GER ITA USA- JPN ESP 1 Google Google Google Google Google Yahoo! Google MSN/Windo 2 Facebook +1 Facebook +1 Facebook +7 Facebook Facebook +1 Google wsLive/Bing MSN/Windo MSN/Windo 3 -1 -1 YouTube +2 YouTube +1 Yahoo! -1 FC2 Facebook wsLive/Bing wsLive/Bing MSN/Windo MSN/Windo 4 BBC +1 Microsoft Microsoft -1 -1 YouTube +4 YouTube wsLive/Bing wsLive/Bing 5 Yahoo! -1 YouTube +1 eBay -3 Virgilio YouTube Rakuten -1 Microsoft 6 YouTube +1 Orange -1 Amazon +1 Yahoo! Microsoft Wikipedia Yahoo! MSN/Windo AOL Media 7 Amazon +2 Wikipedia +3 -3 Libero +1 goo Blogger wsLive/Bing Network 8 eBay -2 Yahoo! -1 Wikipedia -2 Microsoft -1 Wikipedia +2 Microsoft -3 Wikipedia

9 Microsoft -1 Free -1 T-Online -1 Wikipedia Apple -1 Ameba +1 Tuenti N

PagesJaune RTL Ask Search 10 Wikipedia -1 Blogger -1 livedoor N Elmundo.es N s Network Network Source: Nielsen, August 2010. Note: Coloured font indicate brand appears more than once. Includes all internet applications. ‘+’ or ‘-’ denotes change in rank since 2010 ICMR publication, ‘-’ denotes no change, and ‘N’ denotes a new entrant to the top 10. Figure 5.29 Active reach of search engines

Active Reach (%) Google Yahoo! MSN/WindowsLive/Bing 100

89 80 85 86 87 86 82 78 73 60 65 62 65 63 58 52 50 40 43 45 36 39 39 20 24

0 UK FRA GER ITA USA JPN ESP Source: Nielsen, Search Brands per Country, August 2011, home and work panel, including applications.

30 Figure 5.30 Most searched terms on Google between August 2010 and August 2011

Country 1ST 2ND 3RD Largest increase UK facebook bbc youtube fb FRA facebook youtube bon coin dpstream GER facebook youtube berlin facebook.de ITA facebook youtube libero fb USA facebook you youtube minecraft CAN facebook youtube you minecraft JPN yahoo youtube 画像 1 東京電力 2 AUS facebook youtube google minecraft ESP facebook tuenti youtube twitter NED hyves youtube facebook ipad SWE facebook youtube google minecraft IRL facebook youtube facebook login donedeal POL nk gry allegro nk.pl BRA jogos orkut youtube facebook RUS одноклассники3 контакте4 в контакте5 гугл6 IND in download india www.facebook.com CHN qq 人人 7 游戏 8 pptv

Source: Google Insights Search Tool, August 2010 to August 2011. Notes: 1. Image 2. TEPCO 3. classmates (odnoklassniki.ru) 4. Contact (vkontakte.ru) 5. In contact (vkontakte.ru) 6. Google 7. Everyone (renren.com) 8. Games Figure 5.31 Use of home internet connection to visit social networking sites

Use of the internet to visit social network sites (%) 80 69 62 66 64 66 64 59 58 57 60 60 50 54 40 40 34 32 27 20 NA 0 UK FRA GER ITA USA AUS 2008 2010 2011

Source: Ofcom consumer research October 2011. Base: UK=1015, France=1014, Germany=1014, Italy=1045, US=1002, Australia=1012. Q8. Which, if any, of the following activities do you use your home internet connection for?

32 Figure 5.32 Use of home internet connection for social networking, by age

Use of internet for social networking (%) 100 82 82 83 79 77 79 80 7474 74 72 67 66 63 63 65 57 59 59 59 57 60 54 50 49 5148 47 42 4442 42 40

20

0 UK FRA GER ITA USA AUS 18-24 25-34 35-44 45-54 55-64

Source: Ofcom consumer research October 2011. Base: UK=1015, France=1014, Germany=1014, Italy=1045, US=1002, Australia=1012 Q8: Which, if any, of the following activities do you use your home internet connection for?

33 Figure 5.33 Use of mobile phones for social networking

Mobile owners accessing social networking sites (%) 40

29 29 30 25 26 26 23 20

10

0 UK FRA GER ITA USA AUS Source: Ofcom consumer research October 2011. Base: (All Adults who own a smartphone and/or a mobile phone) UK=957, France=914, Germany=945, Italy=989, US=902, Australia=957 Q10. Which, if any, of the following activities do you use your mobile phone for?

34 Figure 5.34 Use of mobile phones for social networking, by age

Mobile owners accessing social networking sites (%) 18-24 25-34 35-44 45-54 55-64 60 54 4749 49 47 43 42 4042 40 30 27 2827 28 24 23 19 18 20 17 16 15 13 11 9 8 10 9 7 5 7 0 UK FRA GER ITA USA AUS

Source: Ofcom consumer research October 2011. Base: (All Adults who own a smartphone and/or a mobile phone) UK=929, France=914, Germany=945, Italy=989, US=902, Australia=957 Q10. Which, if any, of the following activities do you use your mobile phone for?

35 Figure 5.35 Value of B2C e-commerce per head

Expenditure per capita 2007 2008 2009 2010 £1,000 £939 £70 £59 £792 £60 £800 £50 £600 £559 £40 £431 £412 £407 £27 £400 £30 £315 £303 £20 £202 £186 £200 £10 £8 £2 £0 £0 YoY UK FRA GER ITA USA CAN JPN AUS ESP NED BRA RUS IND CHN Growth 21% 24% 12% 42% 14% 25% 24% 21% 30% 10% 46% 30% 49% 56%

Source: IMRG B2C Global e-Commerce Overview 2011 Update 01, June 2011 Notes: Values converted from Euros to British Sterling (£1 = €1.167382). Population figures from US Census Bureau (end of year estimates from mid-year values)

36 Figure 5.36 Average minutes per visitor, and reach of retail websites

Time spent per visitor Jan 2011 (minutes) 84.1 83.2 63.8 21.4 39.7 50.2 43.7 20.4 33.7 52.4 Reach of internet users (%) 100

80 89 87 83 82 80 76 77 73 75 74 74 72 75 60 67 70 68 66 59

40 43

20

0 UK FRA GER ITA ESP NED SWE POL* RUS Europe

Jan-10 Jan-11 Average Minutes per Visitor Source: comScore Media Metrix, January 2011, user aged 15+, home and work locations.

37 Figure 5.37 Internet users ordering goods or services online

Internet users (%) 100

79 80 73 74 70 73 71 66 6768 64 63 58 60 60 57 54 50 52 2006 47 46 2008 37 40 33 34 2010 27 30 27 2224 20

0 UK FRA GER ITA ESP NED SWE POL IRE

Source: Eurostat - Community survey on ICT usage in Households and by Individuals Scope: Individuals that used the internet in the last 12 months, aged 16-74, carrying out this activity over the internet in the last year, for private use

38 Figure 5.38 Internet users ordering digital goods online

Internet users (%) 30 27 25 23 20 20 20 16 15 14 2009 12 11 11 12 2010 10 8 9 7 6 6

0 UK FRA GER* ITA ESP NED SWE POL IRE

Source: Eurostat - Community survey on ICT usage in Households and by Individuals Scope: Individuals that used the internet in the last 12 months, aged 16-74, carrying out this activity over the internet in the last year, for private use. *2009 data for Germany unavailable.

39 Figure 5.39 Mobile retail activity among total mobile subscribers May 2011 Mobile subscribers (%) 12% 11% 10% 9%

8% 7% 7% 6% 6% 6% 6% 6% 4% 4% 4% 3% 3%

2%

0% UK FRA GER ITA ESP EU5 Accessed Auction Sites Accessed Online Retail Sites

Source: comScore MobiLens , 3 month average ending May 2011, mobile subscribers ages 13+, EU5 is UK, FRA, GER, ITA and ESP Note: MobiLens data is derived from an intelligent online survey of a nationally representative sample of mobile subscribers age 13 and above. Data on mobile phone usage refers to a respondent’s primary mobile phone and does not include data related to a respondent’s secondary device.

40 Figure 5.40 Peer recommendation of online purchases

Social networkers (%) 30 24 20 19 20 17 18 14

10

0 UK FRA GER ITA USA AUS

Source: Ofcom consumer research October 2011. Base: All who have a social networking site profile, UK=715, France=717, Germany=658, Italy=841, US=778, Australia=755. Q23. Have you ever made a purchase following a recommendation from a ‘friend / connection’ on a social networking site?

41 Figure 5.41 Frequency of purchasing online content Internet users (%) UK FRA GER ITA USA AUS 80 61 60 54 57 49 52 51

40 20 21 22 21 23 17 16 20 14 14 12 12 11 13 12 8 7 7 4 5 3 2 4 2 4 0 I regularly pay for I sometimes pay for I rarely pay for I never pay for any Don’t know content online content online content online content online

Source: Ofcom consumer research October 2011. Base: All respondents, UK=1015, France=1014, Germany=1014, Italy=1045, US=1002, Australia=1012. Q14. Which of the following best describes your behaviour with regards to paying for digital content online? Examples of digital content would be newspapers, TV programmes, films, e-books, music tracks, smartphone apps.

42 Figure 5.42 Internet users using online banking

Internet users (%) 100 86 83 79 80 73 73 67 66 59 60 55 53 49 51 50 2006 46 42 42 43 45 2008 39 40 35 35 40 3234 32 2010 25 23 20

0 UK FRA GER ITA ESP NED SWE POL IRE

Source: Eurostat - Community survey on ICT usage in Households and by Individuals Scope: Individuals using internet in the last 3 months, aged 16-74, carrying out this activity over the internet in the last year, for private use

43 Figure 5.43 Use of online financial services on mobile phones Mobile subscribers (%) 12 10 10 10 9 9 8 8 8 7 7 7 6 6 5 5 5 5 5 4 4 4 3

2

0 UK FRA GER ITA ESP EU5

Accessed Bank Accounts Accessed Credit Cards Accessed Electronic Payments Source: comScore MobiLens, ages 13+, 3-month average ending March 2011. Note: MobiLens data is derived from an intelligent online survey of a nationally representative sample of mobile subscribers age 13 and above. Data on mobile phone usage refers to a respondent’s primary mobile phone and does not include data related to a respondent’s secondary device. EU5 is UK, France, Germany, Italy, and Spain

44 Figure 5.44 Top newspaper websites, by total unique European visitors: June 2011

Proportion of total newspaper site unique visitors Mail Online 17.2 10% Guardian.co.uk 13.5 8% Bild.de 9.9 6% Hurriyet.com.tr 9.5 6% Milliyet.com.tr 8.8 5% Le Monde Sites 6.7 4% KP.ru (Komsomolskaya Pravda) 6.4 4% The New York Times Brand 5.7 3% Le Figaro 5.5 3% RIAN.ru (RIA Novosti) 5.4 3%

0 5 10 15 20 Unique visitors (millions) Source: comScore Media Metrix, June 2011, Total Europe, Age 15+, Home and Work Locations

45 Figure 5.45 Newspaper site traffic by non-computer devices

Newspaper site traffic (%) 8 7.4 Mobile Tablet Other

6 5.2 4.6 4 3.4 2.9 2.2 2.4 1.9 1.8 1.9 1.9 2 1.4 1.2 1.11.1 1.1 1.00.8 0.5 0.7 0.4 0.1 0.1 0.3 0.3 0.2 0.1 0.1 0.20.0 0 UK FRA GER USA CAN JPN AUS ESP BRA IND

Source: comScore Device Essentials, May 2011

46 Figure 5.46 Proportion of mobile subscribers that have accessed news on their mobile Mobile subscribers (%) 30 25

20 18 17 16 15 15 15 11 11 10 9 10 7

0 UK FRA GER ITA ESP EU5 Feb-10 Aug-11

Source: comScore MobiLens , 3 month averages ending February 2010 and August 2011, mobile subscribers ages 13+, EU5 is UK, FRA, GER, ITA and ESP Note: MobiLens data is derived from an intelligent online survey of a nationally representative sample of mobile subscribers age 13 and above. Data on mobile phone usage refers to a respondent’s primary mobile phone and does not include data related to a respondent’s secondary device.

47 Figure 5.47 Internet as a primary source of news

Proportion of respondents claiming internet was their primary source of world/national/local news (%) World National Local 60 56 49 48 50 46 39 40 40 40 33 35 30 32 31 30 27 29 28 30 24 20 20 10 0 UK FRA GER ITA USA AUS Source: Ofcom consumer research October 2011. Base: UK=1015, France=1014, Germany=1014, Italy=1045, US=1002, Australia=1012. Responses are cumulative figures for internet on computer/mobile phone/tablet Q11. Which, if any, is your main source for the following information? News about the world; News about your country; news about your region/locality.

48 Figure 5.48 Social media as a source of breaking news

Respondents agreeing with “I often find out about new breaking stories first via social networking sites” 100% 24 28 25 28 Don’t Know 80% 30 27

60% Neither agree 29 25 37 34 39 nor disagree 47 40% Disagree 20% 45 47 35 38 33 22 Agree 0% UK FRA GER ITA USA AUS Source: Ofcom consumer research October 2011. Base: (All Adults who have a social networking profile) UK=715, France=717, Germany=658, Italy=841, US=778, Australia=755 Q25. From the statements below can you please confirm how much you agree or disagree with them: “I often find out about new breaking stories first via social networking sites”.

49