3. Radio and audio
0 Figure 3.1 UK radio industry key metrics UK radio industry 2007 2008 2009 2010 2011 2012
Weekly reach of radio (% of population) 89.8% 89.5% 89.8% 90.6% 90.8% 89.6%
Average weekly hours per head 20.6 20.1 19.8 20.1 20.4 19.9
BBC share of listening 55.0% 55.7% 55.3% 55.2% 54.7% 54.8%
Total industry revenue £1,175m £1,147m £1,098m £1,135m £1,161m £1,193m
Commercial revenue £523m £498m £438m £450m £455m £472m
BBC expenditure £652m £649m £660m £685m £706m £721m
Community radio revenue - £7.5m £9.0m £10.0m £10.5m £10.8m
Radio share of advertising spend 2.9% 2.8% 2.8% 2.7% 2.7% 2.6%
DAB digital radio take-up (households) 27.3% 32.1% 34.5% 38.2% 42.6% 44.0%
Source: RAJAR (all adults age 15+), Ofcom calculations based on figures in BBC Annual Report and Accounts 2012-13 note 2c (www.bbc.co.uk/annualreport), AA/Warc, broadcasters. Revenue figures are nominal. Figure 3.2
Radio industry revenue and spending 2006-2012 £ million 1200 1,175 1,147 1,135 1,161 1,193 1,098
1000 472 523 455 Total commercial 498 438 450 800
600
400 BBC expenditure 685 706 721 652 649 660 (estimated) 200
0 2007 2008 2009 2010 2011 2012 Source: Broadcasters Note: BBC expenditure figures are estimated by Ofcom based on figures in Note 2c of the BBC Annual Report (www.bbc.co.uk/annualreport); figures in the chart are rounded and are nominal. Does not include community radio revenue. Figure 3.3
Commercial revenue percentage change 2011-2012
Percentage change in revenue 10%
7.2%
5.3% 5% 3.9%
1.0%
0% All commercial radio National advertising Local advertising Sponsorship
Source: Ofcom / operator data 2011-2012 Figure 3.4 BBC station expenditure percentage change 2011-12 to 2012-13 Annual % change of BBC radio station expenditure
- 15% 0% 10% BBC Radio 4 Extra -12.0% BBC 6Music -1.0% BBC Asian Network 0.0% BBC Radio 2 2.6% BBC Radio 3 3.4% BBC Local/National 4.0% BBC Radio 4 5.3% BBC Radio 5 Live Sports Extra 5.7% 1Xtra from the BBC 6.0% BBC Radio 1 7.1% BBC Radio 5 Live 9.7%
Source: BBC Annual Report 2012-13. Note that these are financial year figures, excluding BBC-wide overheads, and are therefore not directly comparable to those set out in Section 3.2.2. Figures are nominal. It should be noted that the percentage changes are based on operating expenditure for individual stations based on financial years and they do not include BBC-wide overheads; as such they are not comparable with the calendar year figures that are set out in Section 3.2.2. Figure 3.5 National commercial Local commercial radio reach radio reach
UK reach = 31.0% UK reach = 50.9%
Colours indicate reach within BBC TSA indexed by UK reach: >110 100 +/-10 Source: RAJAR, year ending Q1 2013 <90 (N.B. Figures within the BBC Solent TSA are for year ending Q3 2012 5 Figure 3.6
BBC network BBC local radio radio reach reach
UK reach = 60.5% UK reach = 17.6%
Colours indicate reach within BBC TSA indexed by UK reach: >110 100 +/-10 Source: RAJAR, year ending Q1 2013 <90 (N.B. Figures within the BBC Solent TSA are for year ending Q3 2012 UK reach = 31.0% 6 Figure 3.7
Cardiff Pop. 1,002,300 Birmingham Pop. 2,134,800
Share Rank Station Operator Share Rank Station Operator (last year) (last year)
18.9 1 (1) Radio 2 BBC 13.4 1 (1) Radio 2 BBC
11.3 2 (3) Real R & S Ltd 10.0 2 (2) Heart Global Radio
10.4 3 (5) Radio 1 BBC 9.8 3 (4) Radio 4 BBC
10.1 4 (4) Radio Wales BBC 8.4 4 (6) Smooth R&S Ltd
9.7 5 (2) Radio 4 BBC 6.7 5 (5) Radio 1 BBC
5.9 6 (6) Capital Global Radio 7.3 6 (3) Capital Global Radio
4.4 7 (9) Radio 5 Live BBC 6.0 7 (10) Free Radio FM Orion
4.2 8 (10) Gold Global Radio 5.4 8 (7) BBC WM BBC
4.1 9 (8) Kiss Bauer Radio 4.1 9 (8) Radio 5 Live BBC See also 2.9 10 (7) Classic FM Global Radio 3.3 10 (9) Classic FM Global Radio London Market Share: BBC 57.9% Commercial Radio 38.9% Market Share: BBC 42.5% Commercial Radio 49.7% overleaf
7 Figure 3.7
London Pop. 11,249,500
Share Rank Station Operator (last year)
16.3 1 (1) Radio 4 BBC
11.9 2 (2) Radio 2 BBC
5.8 3 (3) Magic 105.4 Bauer Radio
5.4 4 (5) Radio 1 BBC
4.8 5 (4) Capital Global Radio
4.7 6 (7) Kiss 100 FM Bauer Radio
4.4 7 (6) Heart Global Radio
4.3 8 (8) Radio 5 Live BBC
4.2 9 (9) LBC 97.3 Global Radio
4.0 10 (10) Classic FM Global Radio
Market Share: BBC 47.2% Commercial Radio 49.0%
8 Figure 3.8
Belfast Pop. 986,600 Edinburgh Pop. 1,119,200
Share Rank Station Operator Share Rank Station Operator (last year) (last year)
22.5 1 (1) Radio Ulster BBC 17.9 1 (1) ForthOne Bauer Radio
19.0 2 (2) Cool FM Bauer Radio 13.8 2 (2) Radio 2 BBC
11.1 3 (3) U105 UTV Radio 9.1 3 (3) Real R & S Ltd
6.1 4 (4) Radio 1 BBC 7.7 4 (4) Radio 4 BBC
5.3 5 (5) Radio 2 BBC 7.0 5 (5) R.Scotland BBC
5.3 6 (6) Downtown R. Bauer Radio 6.9 6 (6) Capital Global Radio
4.3 7 (9) Radio 5 Live BBC 5.1 7 (7) Radio 1 BBC
3.9 8 (7) Radio 4 BBC 4.0 8 (8) Classic FM Global Radio
3.7 9 (8) Citybeat CN Group 3.7 9 (9) Kingdom FM Kingdom FM See also 3.2 10 (10) Classic FM Global Radio 3.6 10 (10) Forth2 Bauer Radio Glasgow Market Share: BBC 44.3% Commercial Radio 49.0% Market Share: BBC 41.0% Commercial Radio 57.4% overleaf
9 Figure 3.8
Pop. 1,853200
Market Share: BBC 38.0% Commercial Radio 60.2%
10 Figure 3.9
Pop. 688,900 Manchester Pop. 2,446,600
Share Rank Station Operator (last year)
14.8 1 (1) Radio 2 BBC
9.5 2 (2) Radio 4 BBC
7.9 3 (3) Key 103 Bauer Radio
6.9 4 (4) Radio 1 BBC
6.4 6 (6) Capital Global Radio
6.4 5 (7) Radio 5 Live BBC
6.4 7 (5) Smooth R & Ltd
3.5 8 (8) Classic FM Global Radio
3.2 9 (9) R. Manchester BBC See also 2.9 10 (10) Real XS R & S Ltd Newcastle Market Share: BBC 54.1% Commercial Radio 43.2% overleaf Market Share: BBC 47.1% Commercial Radio 47.7%
11 Figure 3.9
Newcastle Pop: 1,508,300
Share Rank Station Operator (last year)
13.3 1 (1) Radio 2 BBC
10.8 2 (3) Metro Radio Bauer Radio
8.9 3 (5) R. Newcastle BBC
7.8 4 (4) Radio 4 BBC
7.2 5 (6) Smooth R&S Ltd
7.1 6 (2) Capital Global Radio
6.3 7 (7) Radio 1 BBC
5.8 8 (8) Magic 1152 Bauer Radio
4.8 9 (9) Real R&S Ltd
3.7 10 (10) Radio 5 Live BBC
Market Share: BBC 43.8% Commercial Radio 53.4%
12 Figure 3.10 Key factors in local radio listening Content valued by listeners to local radio Proportion of listeners (%) 83 Music 40 45 Local news 61 35 Weather 46 34 Local Traffic & travel 40 26 commercial Entertaining presenters 21 23 BBC local Local events information 32 22 Discussion of local issues 36 20 Local presenters 22 20 UK / international news 21 19 Sport 31 16 Opinions on local issues 25
Source: Ipsos-MORI Q9: Which, if any, of the following do you particularly value on
13
13 Figure 3.11 Devices used to listen to the radio Car radio 68%
Portable radio set 43%
Television 31%
Radio as part of hi-fi equipment 29%
Desktop or laptop computer 29%
Clock radio 24%
Smartphone 14%
MP3 player (e.g. iPod) 7%
WiFi/Internet radio 5%
Mobile phone (not smartphone) 4%
Games console 1%
Source: YouGov research, May 2013 Base: All adults aged 16+ who regularly listen to the radio (n = 866) Q15. Which of the following devices do you currently listen to the radio on? Please choose all that apply. 14 Figure 3.12 Reasons for listening to radio more now compared to five years ago
It fits in better with my routines now than in the 61% past There are so many new ways of listening (internet, 27% smartphones etc.)
I’ve discovered a station/programme I really like 26%
Digital radio has improved the quality of radio 23% listening
I spend more time in the car than in the past 23%
Radio programmes have got better 23%
There are more available stations now than in the 17% past
I prefer radio to other media 8%
I’ve started listening to radio more because my 5% partner does Source: YouGov research, May 2013. Base: All adults aged 16+ who say they listen to the radio more compared to five years ago(n = 242). Q27. You have said you listen to the radio more now than in the past. Which, if any, of the following would you say are the reasons why your radio listening has gone up? Please choose all that apply. 15 Figure 3.13 Listening to radio via internet, digital television, DAB set and mobile phone
Proportion of respondents (%) who have listened to radio via digital television, internet, DAB set or mobile phone Digital TV Internet DAB Mobile Phone 50%
40%
27% 27% 27% 25% 25% 25% 30% 25%
23% 23%
22% 22%
20%
16% 16%
20% 15% 14% 13% 10% 10% 10% 10%
0% UK 2011 UK 2009 UK 2010 UK 2012 UK 2013 UK
Source: Ofcom research, Quarter 1 2013 Base: All adults aged 16+ (n = 6090 UK 2009, 9013 UK 2010, 3474 UK 2011, 3772 UK 2012, 3750 UK 2013) QP3. How often, if at all, do you access the radio via – Digital radio via: TV, Internet, DAB radio, mobile phone? *NB 2013 measures for internet combine responses across radio listeners and internet users, 2013 measures for mobile phone combine responses across radio listeners and mobile phone users
16 Figure 3.14 Ways used to listen to the radio through a mobile device
BBC iPlayer Radio app 28%
Tunein Radio app 23%
Via the radio tuner on my MP3 … 22%
BBC iPlayer Radio via internet browser 19%
Specific radio station via internet browser 14%
Radioplayer app 10%
Other 9%
Radioplayer via internet browser 7%
Tunein Radio via internet browser 6%
Podcast via internet browser 5%
WunderRadio app 1%
Source: YouGov research, May 2013 Base: All adults aged 16+ who regularly listen to the radio via Mobile phone, Smartphone, Tablet computer MP3 player (e.g. iPod) (n = 205) Q16. Which of the following do you use to listen to the radio on your mobile device? Please choose all that apply. . 17 Figure 3.15
Discovering new music or information about live events
Recommendations from friends/family 59%
Radio stations (e.g. BBC Radio 1, 2, Heart, … 45%
Artist/band websites 42%
Social networking sites (e.g. Facebook, Twitter) 36%
Online video (e.g. YouTube) 29%
Online shopping sites (e.g. Amazon) 28%
Reviews in newspapers 27%
Online reviews on music websites 26%
TV music channels/programmes (e.g. MTV) 15%
Reviews in music magazines 15%
Internet streaming services (e.g. Spotify, … 13%
Email/text alert system/newsfeed (e.g.… 13%
Source: YouGov research, May 2013 Base: All adults aged 16+ who say they buy new music or attend concerts on a regular basis(n= 178) Q38. In terms of how you find out about the new music you buy or concerts you attend, which of the following sources do you regularly use? Please choose all that apply. 18 Figure 3.16 Methods used to listen to music
78% 71% Radio stations (e.g. BBC Radio 1, 2, Heart, 64% 48% 52% Capital, Classic FM etc.) 65% 29% 49% Personal music installed on an MP3 player (e.g. 52% 56% 74% iPod) 49% 44% 44% Personal music via a Hi-Fi system (CDs, vinyl 40% 35% 27% etc.) 39% 15% 26% 34% Online video (e.g. YouTube) 33% 77% 34% 13% 23% Personal music installed on a mobile 35% 38% 45% phone/smartphone 29% 16% 26% 24% 55+ TV music channels/programmes (e.g. MTV) 30% 23% 23% 14% 8% 45- Internet streaming services (where you choose 19% 25% 33% 54 the music you listen to, e.g. Spotify, Last.fm) 19% 2% 35- 0% Online ‘personalised radio’ services (where the 2% 4% 44 3% music is chosen for you according to personal … 2% Source: YouGov research, May 2013 Base: All adults aged 16+ who say they listen music regularly (n= 640) Q36. Thinking about how you listen to music, which of the following do you use regularly? Please choose all that apply. 19 Figure 3.17 Music services accessed in the last three months
Adults Children aged 16+ aged 8-15 YouTube 40% 55% iTunes 29% 37% Spotify 11% 12% Amazon Cloud player 5% 3% LastFM 4% 1% Google Play 4% 6% SoundCloud 3% 2% MySpace 2% 2% Vevo 2% 3% Nokia Music 1% 1%
Source: YouGov research, March 2013 Base: All adults aged 16+ (n=2,069), children aged 8-15 years (542) Q7. Which of the following music services have you accessed in the last 3 months? Please tick all that apply.
20 Figure 3.18
Digital radio’s share of radio listening, Q1 2013
Digital radio platforms’ share of all radio hours 34.3% 35% 33.0% 31.5% 31.3% 29.1% 29.2% 5.0% 30% 28.2% 4.9% 26.9% 4.6% 4.2% 1.8% 26.5% 3.4% 1.9% 24.8% 25.0% 3.9% 24.6% 3.2% 3.7% 2.1% 1.9% Internet 25% 3.6% 1.8% 1.8% 5.0% 2.9% 2.8% 3.1% 1.7% 1.8% 5.1% 2.0% 4.7% 4.8% 1.8% 2.2% 1.8% 4.5% 4.4% 20% 4.7% 4.1% 4.8% Digital 4.1% 4.4% 4.3% 15% unspecified
21.1% 22.5% DTV 10% 19.4% 19.1% 20.1% 20.4% 17.2% 18.0% 15.8% 15.3% 15.8% 16.7% 5% DAB 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 Source: RAJAR Note: ‘Digital unspecified’ relates to listening to digital-only stations where the survey respondent has not specified the listening platform used. From Q1 2012 ‘Internet’ has been reclassified as ‘Online/Apps’
21 Figure 3.19
Ownership of DAB sets: Q1 2013
Percentage of adults who claim to own a DAB set / have a DAB set in the home 45%
30%
42.6% 44.3% 38.2% 32.1% 34.5% 15% 27.3% 19.5% 13.6% 8.1% 0% Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013
Source: RAJAR / Ipsos MORI / RSMB Q1 2005-2013.
22 Figure 3.20 Take-up of equipment capable of receiving digital radio: Q1 2013
Year-on-year increase (pp) +/-0 +/-0 +1 +12
Share of households 100%
80%
60% 98% 40% 80%
51% 20% 44%
0% Internet Digital TV DAB radio Smartphone
Source: Research from: Ofcom, RAJAR Q1 2013
23 Figure 3.21
UK commercial radio revenue and BBC radio spending: 2007-2012
Revenue (£m) 1176 1161 1193 1,200 1147 1097 1135 Total
1,000 BBC expenditure (estimated) 800 706 721 652 649 660 685 Total commercial 600 523 498 455 472 438 450 National 400 commercial 273 246 206 210 219 222 Local 200 154 142 132 135 129 139 commercial 100 96 0 95 90 92 91 Commercial 2007 2008 2009 2010 2011 2012 sponsorship Source: Ofcom / operator data / BBC Annual Report 2007-2012 Note: BBC expenditure figures are estimated by Ofcom based on figures in Note 2c of the BBC Annual Report (www.bbc.co.uk/annualreport); figures in the chart are rounded and are nominal. 24 Figure 3.22
UK radio ad-spend and share of total display advertising: 2007-2012
Revenue (£m) Share of total advertising revenue 800 4% 3.5% 3.5% 3.4% 3.3% 3.3% 3.3% 600 3%
400 2% 598.2 560.3 505.6 523.1 532.5 555.1 200 1%
0 0% 2007 2008 2009 2010 2011 2012 Radio advertising expenditure Share of total advertising expenditure
Source: AA/Warc Advertising Expenditure report. Figures are nominal.
25 Figure 3.23
Commercial radio revenue per listener
£ per listener 20 £16.68 £15.96 £14.21 15 £13.86 £13.68 £13.49
10
5
0 2007 2008 2009 2010 2011 2012
Source: Broadcaster returns and RAJAR, 2007-2012. Figures are nominal. Figure 3.24
Number of commercial analogue licences owned, by group
Celador Radio 6-10 stations in UTV 5.4% group 6.1% 17.3% UKRD 6.7% 2-5 stations in group 8.8% Bauer Radio 13.9%
Independent 14.2% Global Radio 27.5%
Source: Ofcom, May 2013 Global Radio includes licences held by Real & Smooth Ltd. Figure 3.25 Share of all radio listening hours, Q1 2013
Percentage share of listening hours Orion, 0.9% Absolute, 2.3% Other, 3.8% UTV, 3.1% Real & Smooth Ltd., 4.8% BBC network, 46.5%
Bauer, 11.5%
Global, 15.7%
BBC local/regional, 7.8%
Source: RAJAR, all adults (15+), year ending Q1 2013 Figure 3.26 Commercial radio by weekly audience reach: year ending Q1 2013
Weekly UK 36.8% 26.4% 10.9% 8.1% 6.0% 2.1% 1.2% audience reach
Annual change in reach -1.1pp +0.4pp 0 -0.5pp +0.7pp -0.4pp 0
20,000 40% 35% 15,000 30% 25% thousands) ( 10,000 19,280 20% 13,838 15% 5,000 10% 5,707 5% 4,232 3,156 632 0 1,119 0% Weekly reach Weekly Global Bauer Real & UTV Absolute Orion Lincs FM Smooth Ltd. Source: RAJAR, all adults (15+), year ending Q1 2013
Figure 3.27 Year on year Weekly reach of BBC stations: Q1 2013 percentage Average weekly listening (% UK adults), and year on year change point change BBC Radio 2 28.0% +0.6 BBC Radio 1 20.9% -1.4 BBC Radio 4 20.5% +0.1 BBC Local/Regional 17.6% -1.0 BBC Radio 5 live 11.8% -0.4 BBC Radio 3 4.0% 0 BBC 6 Music 3.2% +0.6 BBC Radio 4 Extra 3.2% +0.2 BBC World Service 2.6% -0.2 1Xtra from the BBC 2.0% +0.1 BBC 5 live Sports Extra 1.8% +0.1 BBC Asian Network UK 1.0% 0 0% 10% 20% 30% Source: RAJAR, all adults (15+), year ending Q1 2013 Figure 3.28
BBC radio stations: spend on radio content, 2012-13
Cost (£m) BBC English Local Radio 114.7 1.8% BBC Radio 4 91.1 3.4% BBC Radio 5 Live 55.0 7.6% BBC Radio 2 47.8 1.3% BBC Radio 1 40.7 6.0% BBC Radio 3 38.3 1.3% BBC Radio Scotland 23.2 0.0% BBC Radio Ulster / Foyle 17.0 -1.7% BBC Radio Wales 13.9 6.9% BBC Radio Cymru 12.5 9.6% BBC Asian Network 8.3 -2.4% BBC 1 Xtra 7.5 4.2% BBC Radio 6 Music 7.4 -5.1% BBC Radio 4 Extra 4.0 -20% BBC Radio nan Gàidheal 3.8 5.6% BBC Radio 5 Live Sports Extra 2.7 3.9% 012 3 4 5 6 7 8 109 11 12 1314 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 10099 101 102 103 104 105106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 Source: BBC Annual Report 2012-13 Figure 3.29 Analogue UK radio stations broadcasting May 2013
Type of station AM FM AM/FM total
Local commercial 54 238 292
UK-wide commercial 2 1 3
BBC UK-wide networks 1 4 5
BBC local and nations 36 46 46
Community radio 6 201 207
TOTAL 99 490 553
Source: Ofcom, May 2012 Note: the conditions of each licence will determine the amount of programming that may be shared between these licensed services. Here we have taken the view that a service providing at least four hours a day of separate programming (even if the same brand has other services) equals one service. Figure 3.30 Average income for community radio stations: 2008 to 2012
Income 2008 2009 2010 2011 2012 Average (mean) £84,000 £75,500 £65,750 £60,250 £57,000 income (-10.2%) (-12.9%) (-8.3%) (-5.4%)
Median income £53,750 £46,750 £42,500 £40,500 £35,250 (-15.0%) (-7.14%) (-4.8%) (-13.1%)
Source: Ofcom analysis of community broadcasters returns Note: The data collection period changed from the financial year to the calendar year as of 2011. Data from previous years has been adjusted to reflect this. Figure 3.31
Distribution of total income levels across the community radio sector Proportion of stations (%) 20.0 18 18 16 14 13 13 11 11 11 10.0 8 6 7 7 5 4 5 5 3 3 3 3 3 2 3 2 1 1 1 1 1 1 2 1 1 0.0
2011 2012
Source: Ofcom analysis of community broadcasters’ returns
34 Figure 3.32 Community radio income, by source
Community radio stations’ income 2012
Income by type The average community radio station income was around £57,000 Other 20% On-air advertising and sponsorship 29% Donations 14%
Grants SLAs 29% 7%
Source: Ofcom analysis of community broadcasters’ returns Figure: 3.33
Average income by type of community served
£100,000
Other £80,000 £73,250 £69,500 £66,250 16% Donations £57,000 17% £60,000 9% 21% 11% £51,500 20% 9% £46,000 SLAs £4,000 4% £40,000 14% 40% 36% 23% 25% 32% 7% 43% Grants 9% 6% 29% 8% £20,000 31% 38% 28% 43% On air advertising 31% and sponsorship 29% 32% 23% 14% 28% £0 7% Sector Geographic Geographic Minority Military Religious Youth average town/rural urban ethnic (9) (13) (20) (190 stations) (78) (29) (25)
Source: Ofcom analysis of community broadcaster’s returns
36 Figure 3.34 Average expenditure for community radio stations: 2008 to 2012
Expenditure 2008 2009 2010 2011 2012 Average (mean) £86,50 £76,500 £67,000 £64,250 £58,000 expenditure 0 (-11.4%) (-12.3%) (-4.1%) (-9.7%)
Median expenditure £55,00 £52,250 £43,000 £41,000 £35,750 0 (5.3%) (-17.5%) (-4.9%) (-15.4%)
Source: Ofcom analysis of community broadcasters returns Note: The data collection period changed from the financial year to the calendar year as of 2011. Data from previous years has been adjusted to reflect this. Figure 3.35
Community radio station expenditure, by type
Community radio station expenditure 2012
Expenditure by type The average community radio station income was around £58,000 Other 17%
Technical 9% Staff 49% Admin and marketing 12%
Premises 13%
Source: Ofcom analysis of community broadcaster’s returns Figure: 3.36
Average expenditure by type of community served £100,000 £83,000 Other £80,000 15% £65,500 7% £58,000 £59,500 Technical costs £60,000 8% 16% £54,750 £51,000 17% 12% 9% 21% 14% 9% £39,750 18% 38% 6% Admin and £40,000 12% 11% 19% 11% marketing 13% 11% 18% 15% 16% 16% 12% 59% Premises £20,000 10% 11% 49% 38% 46% 53% 48% 33% Staff £0 Sector Geographic Geographic Minority Military Religious Youth average town/rural urban ethnic (9) (13) (20) (190 stations) (78) (29) (25)
Source: Ofcom analysis of community broadcaster’s returns
39 Figure 3.37 Community radio hours and volunteers
Sector average Total live hours per week 79
Total original hours per week 90
Speech output as a percentage of total daytime output 31%
Number of volunteers 85
Source: Ofcom analysis of community broadcasters returns Figure 3.38
Recorded music retail revenues: 2008-2012
Revenues (£bn) 1.5 1.32 0.05 1.23 Year on year 0.10 0.06 1.12 1.07 change (%) 0.13 0.04 1.01 1 0.14 0.04 -5.5 Total 0.16 0.03 0.17 -26.7 Music videos 1.17 0.5 1.05 0.93 9.2 Singles 0.87 0.80 -7.1 Albums
0 2008 2009 2010 2011 2012
Source: Entertainment Retailers’ Association / Official Charts. Figures are nominal.
41 Figure 3.39
Distribution of recorded music retail revenues: 2008-2012 Total recorded music revenues £1.27bn £1.17bn £1.07bn £1.02bn £0.97bn 100% 13% 20% Albums 26% 33% 80% 39% Albums 56% Singles 60% Digital share 40% 87% 80% 74% 67% 61% Singles Physical 20% 44% share 0% 2008 2009 2010 2011 2012 Single/album split in 2012
Source: Entertainment Retailers’ Association / Official Charts Note: This chart does not include revenues from music videos.
42 Figure 3.40
Recorded music sales, by volume: 2008-2012
Sales volumes (million units) 200 188.6 177.9 161.8 152.8 150 139.8 134.6 10.3 124.8 16.1 117.5 115.2 21 103.9 100 26.6 Digital 30.5 176.6 187.8 149.7 159.7 Physical 129.5 118.5 110.3 50 103.8 90.9 73.4
1.3 0 4.9 3.1 2.1 0.8 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012
Albums Singles
Source: Entertainment Retailers’ Association / Official Charts
43 Figure 3.41
Reach of radio, by sector
Percent of population 100% 89.9% 89.4% 89.8% 90.6% 90.8% 89.5% 90.3% All radio
67.6% All BBC 80% 66.2% 66.2% 66.0% 67.1% 66.4% 67.0% 64.9% 62.3% 61.5% 61.5% 63.7% 63.5% 64.0% All commercial 60% 58.4% 58.9% 59.4% 60.6% 61.3% 60.3% 60.9% BBC network 50.1% 49.5% 49.7% 51.5% 52.0% 50.5% 50.9% 40% Local commercial 30.5% 30.9% 31.3% 27.8% 27.4% 26.2% 28.5% National 19.7% 18.4% 18.7% 17.8% 18.2% 20% 19.0% 17.7% commercial BBC nations / 6.0% 6.1% 6.7% 6.3% 6.0% 6.2% 5.8% local 0% Other 2007 2008 2009 2010 2011 2012 Q1 2013
Source: RAJAR, All adults (15+), calendar years 2007-2012, Q1 2013
44 Figure 3.42
% change in total radio listening hours from 2010 - 2013
Percentage change in total hours 10% Total listening hours 2009 - 1,013,899 = 100%
4.6% 5% 3.2% 1.7%
0% -0.6%
-5% 2010 2011 2012 2013
Source: RAJAR, All adults (15+), calendar years to Q1, 2010 to 2013
45 Figure 3.43
Share of listening hours, by sector
Percent of listening hours 60% 55.1% 55.7% 55.3% 55.2% 54.7% 54.7% 55.7% All BBC Radio
45.2% 46.1% 46.6% 46.3% 46.0% 46.3% 46.7% BBC network
40% 42.7% 42.2% 42.3% 42.6% 43.0% 42.8% 41.9% All commercial 31.6% 31.3% 31.7% 31.5% 31.2% 30.2% 29.2% Local commercial
20% National 12.5% 13.0% commercial 10.6% 11.1% 11.8% 9.9% 9.5% BBC nations/local 11.1% 10.9% 8.7% 8.9% 8.7% 8.4% 9.0% 2.1% 2.1% 2.4% 2.2% 2.3% 2.5% 2.4% Other 0% 2007 2008 2009 2010 2011 2012 Q1 2013
Source: RAJAR, All adults (15+), calendar years 2007-2012, Q1 2013
46 Figure 3.44
Listening hours by age group, 2001-2012
Average hours listened per week 65+
27.3 26.9 26.7 26.8 26.7 26.4 55-64 25.7 25.8 26.6 26.6 26.6 26.5 25.2 25.1 25.6 25.9 25.4 26.2 26.1 25.3 25.5 25.8 25.5 25.7 25.2 45-54 24.4 25.3 25.0 25.4 25.2 25.0 24.2 24.3 24.4 24.2 24.4 23.7 24.0 23.6 24.0 23.8 24.2 23.6 23.7 22.9 23.6 22.5 22.7 23.7 23.4 23.3 22.4 22.0 22.1 22.2 21.7 22.7 15+ 21.8 21.9 22.2 21.9 22.1 22.0 22.2 21.6 21.4 21.5 20.9 20.9 21.0 20.4 35-44 20.1 19.7 19.9 19.2 19.3 18.7 18.7 19.1 17.8 25-34 17.2 17.0 16.3 16.3 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 15-24
Source: RAJAR, average weekly listening per listener, 2001-2012
47 Figure 3.45
Percentage change in time spent listening, by age group: 2007-2012
Percentage change in average listening hours
4.4% 5.0% 0.8% 0.4% 0.0%
-3.1% -1.9% -5.0% -4.8% -10.0% -8.3%
-12.8% -15.0% 15+ 15-24 25-34 35-44 45-54 55-64 65-74 75+
Source: RAJAR, all adults 15+. Calendar years 2007 and 2012 Figure 3.46
Percentage change in time spent listening, by sector: 2007-2012
Percentage change in average listening hours
5.0%
0.0%
-3.1% -2.4% -5.0% -4.7% -4.4% -5.0%
-10.0% -8.7% -8.5%
All radio All BBC BBC network BBC local/nations All commercial National commercial Local commercial
Source: RAJAR, all adults 15+. Calendar years 2007 and 2012 Figure 3.47 Average weekly listening by demographic, year ending Q1 2013
Weekly listening hours 30 Average listening per week 22.0 hours 25
20
25.1 25.7 25.7 15 24.0 23.1 23.6 21.1 20.9 20.8 10 18.4 16.2 5
0 15-24 25-34 35-44 45-54 55-64 65-74 75+ Adult Adult ABC1 C2DE Men Women Adults Adults
Source: RAJAR, all adults (15+), year ending Q1 2013, average weekly listening hours per listener Figure 3.48
Share of listening hours across analogue and digital platforms
100% 17.8% 20.1% 24.0% 26.5% 29.2% 32.5% 80% 9.5% Digital 12.5% 9.3% 8.1% 7.7% 6.9% 60% Unspecified 40% 72.7% 67.5% 66.7% 65.4% 63.1% 60.5% Analogue 20%
0% Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013
Source: RAJAR, all adults (15+), data relates to Q1 results as shown Note: ‘Unspecified‘ relates to listening where the radio platform was not confirmed by the listener Figure 3.49
Digital radio listening by age group, (at least monthly)
Digital radio listening by age group (at least monthly) 60%
40% Q1 2011
59% 59% Q1 2012 58% 58% 56% 57% 56% 53% 54% 53% 53% 53% 50% 52% 50% 46% Q1 2013 42% 44% 20% 36% 30% 25%
0% All 16+ 16-24 25-34 35-54 55-64 65-74 75+ Source: Ofcom research, Base: All who listen to the radio, Q1 2013 (n=2910), Q1 2012 (n=2963), Q1 2011 (n=2811) Q:Use digital radio at least monthly (includes digital listening via DTV, DAB set and online)
52 Figure 3.50 Platform split by sector and station: year ending Q1 2013
Share Overall radio sector National commercial BBC network of radio listening 100% 47% 8% 13% 30% 4% 2% 1% 8% 17% 1% 13% 4% 100% 6% 5% 7% 5% 7% 6% 6% 4% 6% 6% 6% 5% 5% 18% 21% 23% Not Stated 80% 31% 27% 35% 33% 35% 32% 36% 42% 57% 60% 71% Digital 40% 75% 72% 70% 62% 63% 62% 67% 59% 58% 60% 53% 20% 38% 25% Analogue 0%
Source: RAJAR, year ending Q1 2013, adults 15+ Figure 3.51 Most popular digital-only stations - UK, Q1 2013
Average weekly reach Q1 2013 (millions) % change year on year 2.5 Radio group Bauer 2.0 +22% +7% BBC 1.5 +6% Independent +9% Absolute -3% +1% +6% -15% 1.0 +7% R&SL 1.7 1.7 0% +3% 1.4 +8% 1.1 +24% +5% -2% 0.5 1.0 0.9 0.9 0.9 0.9 0.7 0.7 0.6 +15% 0.5 5.0 0.4 0.2 0.0
Source: RAJAR, year ending Q1 2013 adults 15+ Figure 3.52 Share of listening hours, by nation Listening hours share 100% 2% 2% 1% 3% 10% Other 25% 80% 30% 38% 30% 36% Local/Nations 12% Commercial 60% 13% 13% 10% 8% 15% 8% 8% UK Commercial 40% 9% 22% BBC 47% 51% 46% Local/Nations 20% 38% 24% BBC Network 0% England Scotland Wales Northern UK TOTAL Ireland
Average weekly 22.2 hours 21.6 hours 23.1 hours 21.4hours 22.2 hours listening Reach 89.6% 86.7% 93.1% 87.1% 89.5% Source: RAJAR, All adults (15+), calendar year 2012
55 Figure 3.53 Location of listening – year to Q1 2013
15%
Home 21% In-vehicle Work/elsewhere 64%
Source: RAJAR, year ending Q1 2013 all adults 15+ Figure 3.54
Number of analogue and digital radio sets sold Digital share of sales: 18.5% 20.1% 22.5% 20.9% 22.3% 27.4% 33.0%
Retail set sales (millions) 15
10.4 9.4 9.3 10 9.2 8.5 6.8 Analogue 5.8 sets 7.7 8.3 7.2 7.3 5 6.6 DAB sets 5.0 3.9
1.7 2.1 2.1 1.9 1.9 1.9 1.9 0 Year to Year to Year to Year to Year to Year to Year to Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Source: GfK sales data, 2006-2013. Note: Figures cover GB only, GfK Panelmarket data represent over 90% of the market. Categories of device included are; portable radios, personal media players, car audio systems, home audio systems, clock radios, radio recorders, headphone stereos, tuners and receivers. 57 Figure 3.55 Awareness of digital radio
Have you heard of the term ‘DAB’ digital radio?
Don't know 2% No 14%
Yes 84%
Source: Ofcom research 2013
58 Figure 3.56
Likelihood to buy a DAB radio within the next 12 months
Percentage of respondents who listen to the radio but have no DAB set in the home
70% 64% 60% 50% 40%
30% 17% 19% 20% 10% 0% Likely to buy Unlikely to buy Don't know
Source: Ofcom research, Q1 2013 Base: Those who listen to the radio but have no DAB sets in the home (n=1798) QP12: How likely is it that your household will get a DAB radio in the next 12 months?
59 Figure 3.57
Unique audiences of selected music streaming sites Unique audience (thousands)
5,000 Spotify [P] SOUNDCLOUD.COM [P] 4,000 Last.fm Ltd [C]
3,000 Myspace Music [M] Grooveshark [P] 2,000 MIXCLOUD.COM [M] TuneIn [P] 1,000 DATPIFF.COM [M]
0 JANGO.COM [C] Jun-2010 Dec-2010 Jun-2011 Dec-2011 Jun-2012 Dec-2012 Rhapsody [P]
Source: comScore MMX, UK, home and work panel, March 2013
60 Figure 3.58
Number of subscriptions to online music services: 2007-2012 Number of subscriptions (thousands) 2,000
1,529 1,500
1,000 713
500 409 205 50 17 9 49 55 13 56 15 58 18 51 20 29 22 0 2007 2008 2009 2010 2011 2012 On-demand music Book-club Online radio
Source: IHS Screen Digest
61 Figure 3.59 Audio internet use
% of respondents 20% 16% 16%
12% 8% 8%
4% 3%
0% Listening to radio Streamed audio services (free) Streamed audio services (subscription based)
Source: Ofcom research, Q1 2013 Base: Those with access to the internet at home (n= 2918) QE5A. Which, if any, of these do you use the internet for?
62 Figure 3.60 BBC iPlayer quarterly radio requests
Radio requests (millions) 250
201 200 36 On-demand 144 150 134 140 137 135 117 35 105 106 32 35 34 34 100 28 Simulcast 28 28 165 50 102 105 103 109 101 77 78 89
0 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
Source: Ofcom calculations based on BBC iStats Note: A change in methodology means that Q1 2013 is not comparable to previous data.
63 Figure 3.61 MP3 player/iPod ownership and personal use
% of respondents Personal use Ownership 50%
40% 38% 39% 40% 36% 33%
30% 26% 27% 26% 24% 22% 20%
10%
0% UK England Scotland Wales Northern Ireland
Source: Ofcom research, Quarter 1 2013 Base: All adults aged 16+ (n = 3750 UK, 2250 England, 501 Scotland, 492 Wales, 507 Northern Ireland) QB1: Which of the following do you, or does anyone in your household, have in your home at the moment? QB2. Do you personally use: MP3 player/ iPod?
64