3. Radio and audio

0 Figure 3.1 UK radio industry key metrics

UK radio industry 2006 2007 2008 2009 2010 2011

Weekly reach of radio (% of population) 89.8% 89.8% 89.5% 89.8% 90.6% 90.8%

Average weekly hours per head 21.2 20.6 20.1 19.8 20.1 20.4

BBC share of listening 54.7% 55.0% 55.7% 55.3% 55.2% 54.7%

Total industry revenue £1,126m £1,174m £1,137m £1,092m £1,123m £1,162m

Commercial revenue £512m £522m £488m £432m £438m £456m

BBC expenditure £614m £652m £649m £660m £685m £706m

Community radio revenue - - £7.5m £9m £10m £10.5m

Radio share of advertising spend 3.0% 2.9% 2.8% 2.8% 2.7% 2.7%

DAB digital radio take-up (households) 19.5% 27.3%% 32.1% 34.5% 38.2% 42.6%

Source: RAJAR (all adults age 15+), Ofcom calculations based on figures in BBC Annual Report and Accounts 2011-12 note 2c (www.bbc.co.uk/annualreport), AA/Warc, broadcasters. Revenue figures are nominal. Figure 3.2

Radio industry revenue and spending 2006-2011

£ million 1174 1162 1200 1126 1137 1092 1123 1000 456 Total commercial 512 522 488 432 438 800

600

400 652 649 660 685 706 BBC expenditure 614 (estimated) 200

0 2006 2007 2008 2009 2010 2011

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 2010-2011

All commercial radio National advertising Local advertising Sponsorship 5% 4.1% 4.0% 4% 2.8% 3% revenue 2% 1% 0% -1% -2% -3% -4%

Percentage change in -5% -4.3%

Source: Ofcom / operator data 2010-2011 Figure 3.4 BBC station expenditure percentage change 2010-11 to 2011-12 Annual % change of BBC radio-10% station expenditure 0% 10%

BBC Radio 5 Live -4.9% BBC Radio 4 -3.3% BBC Local/National 0.5% 1Xtra from the BBC 0.9% BBC Radio 2 2.2% BBC Asian Network 3.2% BBC Radio 3 3.6% BBC Radio 1 5.2% BBC Radio 5 Live Sports Extra 8.2% BBC 6 Music 8.3% BBC Radio 4 Extra 0.0% BBC network average 0.0% Source: BBC Annual Report 2011-12. 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

Listening hours by age group, 2001-2011

Average hours listened per week 30 65+ 26.9 26.7 26.8 27.3 26.7 26.4 25.7 25.2 25.8 26.6 26.5 26.2 25.1 25.6 55-64 26.6 26.6 26.1 25.4 25.2 25.7 25.4 25.3 25.5 25.8 25 25.5 25.3 25 25 24.4 24.2 24.3 24.4 24 24.2 24.2 45-54 23.6 24 23.8 23.6 22.9 23.7 23.6 23.7 23.7 23.4 22.4 22 22.1 22.5 22.7 21.7 23.3 All Adults 21.9 22.2 22.7 21.9 22.1 22 22.2 21.8 21.4 21.5 20 20.9 20.9 21 20.4 35-44 20.1 19.7 19.9 19.2 19.3 18.7 19.1 17.8 25-34 17.2 17 15 16.3 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 15-24

Source: RAJAR, average weekly listening per listener, 2001-2011

5 Figure: 3.6

Radio’s ‘share of ear’ 2009-2010, by all adults and 15-18s

Share of audio listening 100 17% 18% 80 38% 44% Other audio 60 listening

40 83% 82% Radio 62% 56% 20

0 2009 2010 2009 2010

All adults 15-18s

Source: BBC (A&M Audiences)/Brand Driver, Share of Ear research 2009, 2010

6 Figure 3.7

Digital radio’s share of radio listening, Q1 2012

35%

29.2% 30% 28.2% 29.1% 26.9% 26.5% 3.4% 24.8% 25.0% 3.9% 24.6% 3.2% 3.7% Internet 25% 3.6% 1.8% 1.8% 2.9% 2.8% 3.1% 1.7% 1.8% 1.8% 2.0% 4.5% 20% 1.8% 2.2% 4.4% 4.8% 4.7% 4.1% 4.3% 4.1% Digital 4.4% unspecified 15%

DTV 10% 19.4% 19.1% 17.2% 18.0% 15.8% 15.3% 15.8% 16.7% 5% DAB

Digital radio platforms share of all 0% radio hours Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012

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’ Figure 3.8

Ownership of DAB set, Q1 2012

Percentage of adults who claim to own a DAB set / have a DAB set in the home

45%

30%

42.6% 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

Source: RAJAR / Ipsos MORI / RSMB Q1 2005-2012.

8 Figure 3.9 Tak e-up of equipment capable of receiving digital radio, Q1 2012

Year-on-year increase (pp) +3 +2 +5 +12

Share of households 100%

80%

60% 98% 40% 80%

20% 43% 39%

0% Internet Digital TV DAB radio Smartphone

Source: Research from: Ofcom, RAJAR Q1 2012

9 Figure 3.10

UK commercial radio revenue and BBC radio spending

£ million 1126 1174 1137 1162 1,200 1092 1123 Total

1,000 BBC expenditure (estimated) 800 685 706 614 652 649 660 Total commercial 600 National commercial 512 522 488 400 438 456 268 271 246 432 Local commercial 201 210 220 153 156 142 200 136 136 130 Commercial 96 100 92 0 91 94 89 sponsorship 2006 2007 2008 2009 2010 2011

Source: Ofcom / operator data / BBC Annual Report 2006-2011 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. Revenue £m Share of all advertising Revenue £m Share of all advertising

Figure 3.11

UK radio advertising spend and share of display advertising, 2008 – 2011

Revenue £m Share of all advertising

£1000m 4% Radio advertising expenditure Radio share of all media advertising

£800m 2.7% 2.8% 2.7% 2.7% 3%

£600m 454 404 420 427 2% £400m

1% £200m

£0m 0% 2008 2009 2010 2011

Source: AA/Warc Expenditure Report. Figures are nominal. www.warc.com/expenditurereport

11 Figure 3.12

Commercial radio revenue per listener

£ per listener 20 £16.59 £16.69 £15.70 15 £13.71 £13.33 £13.55

10

5

0 2006 2007 2008 2009 2010 2011

Source: Broadcaster returns and RAJAR, 2006-2011. Figures are nominal. Figure 3.13

Number of commercial analogue licences owned, by group

Lincs FM Guardian Media 3.8% 6-10 stations in group 5.8% UTV 16.4% 3.8%

UKRD 2-5 stations in group 6.1% 5.8%

Bauer Radio 14.0% Independent 15.7%

Global Radio 24.2%

Source: Ofcom, April 2012 Figure 3.14 Share of all radio listening hours, Q1 2012

Percentage share of listening hours Orion, 0.9% Other, 7.9% Absolute, 2.0%

UTV, 3.2% BBC network, 45.9% GMG, 4.4%

Bauer, 10.9%

Global, 15.7%

BBC local/regional, 9.4% Source: RAJAR, all adults (15+), year ending Q1 2012, does not include community radio listening Figure 3.15 Commercial radio by weekly audience reach: Q1 2012

Weekly UK 37.1% 25.9% 11.0% 8.8% 5.7% 2.5% 1.3% audience reach Annual change in reach -1.7pp -0.8pp +0.2pp -0.3pp +1.1pp -0.4pp 0

20,000 40% 35% 15,000 30% 25% thousands) ( 10,000 19,279 20% 15% 13,473 5,000 10% 5,718 5% 4,585 2,978 1,312 680 Weekly reach reach Weekly 0 0% Global Bauer GMG UTV Absolute Orion Lincs FM

Source: RAJAR, all adults (15+), Q1 2012, does not include community radio listening Figure 3.16 Weekly reach of BBC stations: Q1 2012 Year on year Average weekly listening (% UK adults), and year on year change percentage point change BBC Radio 2 28.0% -0.2

BBC Radio 1 21.4% -1.5

BBC Radio 4 19.8% -1.2

BBC Local/Regional 19.0% -0.8

BBC Radio FIVE LIVE 12.3% -0.6 BBC Radio 3 3.7% -0.7 BBC Radio 4 Extra 2.9% +0.7 BBC 6 Music 2.8% -1.0 BBC World Service 2.5% +0.3 1Xtra from the BBC 1.8% +0.1 BBC Asian Network UK 1.0% 0 0% 10% 20% 30%

Source: RAJAR, all adults (15+), Q1 2012 Figure 3.17

BBC radio stations: spend on radio content, 2011-12

Cost (£m), (and % change year on year)

BBC English Local Radio 112.7 (-1.8%) BBC Radio 4 88.1 (-5.1%) BBC Radio 5 Live 51.1 (-7.8%) BBC Radio 2 47.2 (+1.1%) BBC Radio 3 37.8 (+1.3%) BBC Radio 1 38.4(+4.6%) BBC Radio Scotland 23.2 (-2.5%) BBC Radio Ulster / Foyle 17.3 (+6.8%) BBC Radio Wales 13.0 (no change) BBC Radio Cymru 11.4 (-3.4%) BBC Asian Network 8.5 (-1.2%) BBC 1 Xtra 7.2 (+2.7%) BBC Radio 6 Music 7.8 (+6.8%) BBC Radio 4 Extra 5.0 (+5.7%) BBC Radio nan Gàidheal 3.6 (-5.3%) BBC Radio 5 Live Sports Extra 2.6 (+4%) 0123456781091112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960616263646566676869707172737475767778798081828384858687888990919293949596979899100101102103104105106107108109110111112113114115116117118119120121122123124125126127128129130131132133134135136137138139140141142143144145146147148149150

Source: BBC Annual Report 2011-12 Figure 3.18 UK radio stations broadcasting on analogue, DAB digital radio, and community radio, May 2012

Type of station AM FM AM/FM total

Local commercial 54 242 296

UK-wide commercial 2 1 3

BBC UK-wide networks 1 4 5

BBC local and nations 36 46 46

Community radio 6 192 198

TOTAL 99 446 548

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 3.19 Average income for community radio stations, 2008 to 2011

Income 2008 2009 2010 2011

Average (mean) income £84,000 £75,500 (-10.2%) £65,750 (-12.9%) £60,250 (-8.3%)

Median income £53,750 £46,750 (-15.0%) £42,500 (-7.14%) £40,500 (-4.8%)

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: 3.20

Distribution of total income levels across the community radio sector 30

25

20

15 27 22 10 20 19 18 12 5 10 9 7 6 6 5 4 4 1 1 0 2 0

Source: Ofcom analysis of community broadcasters’ returns

20 Figure 3.21 Community radio income, by source

Community radio stations’ income 2011

Income by type The average community radio station income was around £60,250 Other 18% On-air advertising and sponsorship 26% Donations 13%

SLAs Grants 10% 33%

Source: Ofcom analysis of community broadcasters’ returns Figure: 3.22

Average income by type of community served

£100,000

Other £80,000 £76,500 £77,000 £70,250 14% 12% Donations £60,250 5% 10% £60,000 24% 5% 18% 13% £51,000 SLAs £43,000 13% 29% £39,500 39% Grants £40,000 10% 16% 36% 8% 45% 15% 33% 23% On air advertising and 36% £20,000 37% 11% sponsorship 43% 38% 26% 36% 24% 15% 26% 18% £0 8% Sector average Geographic - Geographic - Minority ethnic Military (9) Religious (13) Youth (16) (176 stations) town/rural (72) urban (29) (25)

Source: Ofcom analysis of community broadcasters’ returns

22 Figure 3.23 Average expenditure for community radio stations, 2008 to 2011

Expenditure 2008 2009 2010 2011

Average (mean) expenditure £86,500 £76,500 (-11.4%) £67,000 (-12.3%) £64,250 (-4.1%)

Median expenditure £55,000 £52,250 (-5.3%) £43,000 (-17.5%) £41,000 (-4.9%)

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 3.24 Community radio expenditure, by source

Community radio stations’ expenditure 2011

Expenditure by type The average community radio station income was around £64,250 Other 21%

Staff Technical 47% 9%

Admin and marketing 11% Premises 12%

Source: Ofcom analysis of community broadcasters’ returns Figure: 3.25

Average expenditure by type of community served

£100,000

£83,250 Other £80,000 18% £73,000 £67,000 £64,250 16% Technical costs 6% £60,000 £60,000 21% 7% 8% £54,500 23% £46,500 12% Admin and marketing 9% 13% 7% 39% 48% 11% 19% 9% £40,000 17% Premises 12% 12% 14% 15% 14% 9% 56% 10% Staff £20,000 12% 7% 47% 46% 47% 42% 33% 31% £0 Sector average Geographic - Geographic - Minority ethnic Military (9) Religious (13) Youth (16) (176 stations) town/rural (72) urban (29) (25)

Source: Ofcom analysis of community broadcasters’ returns

25 Figure 3.26 Community radio hours and volunteers

Sector average

Total live hours per week 84

Total original hours per week 91

Speech output as a percentage of total daytime output 31%

Number of volunteers 68

Source: Ofcom analysis of community broadcasters returns Figure 3.27

Recorded music retail revenues: 2008-2011

Revenues (£bn) 1.75 CAGR (%) 1.5 1.32 0.05 1.23 1 year 3 year 1.25 0.10 0.06 1.12 1.07 0.13 0.04 0.04 -4.4 -4.7 Total 1 0.14 0.16 0.75 1.4 -7.3 Music 1.17 videos 1.05 0.5 0.93 0.87 10.7 6.6 Singles 0.25 -6.9 -6.1 Albums 0 2008 2009 2010 2011

Source: Entertainment Retailers’ Association yearbook, 2012. Figures are nominal.

27 Figure 3.28

Distribution of recorded music retail revenues: 2008-2011 Total recorded music revenues £1.27bn £1.17bn £1.07bn £1.02bn 100% 13% 20% 26% Albums 80% 33% Albums 54% 60% Singles

87% 40% 80% Digital share 74% 67% Singles 46% 20% Physical share Revenue share (%) 0% 2008 2009 2010 2011 Single/album split in 2011

Source: Entertainment Retailers’ Association yearbook 2012 Note: This chart does not include revenues from music videos.

28 Figure 3.29

Recorded music sales by volume: 2008-2011

Sales volumes (million units) 177.9 180 161.8 160 152.8 139.8 134.6 140 10.3 124.8 16.1 117.5 115.2 120 21 100 26.6 176.6 Digital 80 149.7 159.7 Physical 60 129.5 118.5 110.3 103.8 40 90.9 20 2.1 0 4.9 3.1 1.3 2008 2009 2010 2011 2008 2009 2010 2011 Albums Singles

Source: Entertainment Retailers’ Association yearbook 2012

29 Figure 3.30

Consumer spending on digital music: 2006-2011 CAGR (%) Revenues (£m) 450 1 5 £406.5 year year 49.5 £318.3 28 27 Total 300 £256.5 24.9 14.4 99 48 Subscription £173.0 347.7 150 £120.8 283.7 230.3 -4 -4 Mobile £72.0 purchases 150.9 102.5 59.7 23 28 Online 0 purchases 2006 2007 2008 2009 2010 2011 Source: Screen Digest Note: Due to different data sources this chart is not directly comparable with previous charts. Figures are nominal.

30 Figure 3.31

Reach of radio, by sector

Percent of population 100% 90.0% 89.8% 89.9% 89.4% 89.8% 90.6% 90.8% 89.8% All radio

67.6% 66.6% All BBC 80% 66.7% 66.0% 66.2% 66.2% 66.0% 67.1% 62.7% 61.9% 62.3% 61.5% 61.5% 63.7% 64.9% 63.9% All commercial

60% BBC network 58.5% 57.9% 58.4% 58.9% 59.4% 60.6% 61.3% 60.0% Local commercial 51.0% 50.3% 50.1% 49.5% 49.7% 51.5% 52.0% 51.1% 40% 30.5% 30.6% National 27.8% 27.4% 28.5% 26.4% 26.8% 26.2% commercial 20.5% 20.2% 19.7% 19.0% 17.7% 18.4% 18.7% 19.0% BBC nations / 20% local 5.6% 6.4% 6.0% 6.1% 6.7% 6.3% 6.0% 6.0% Other

0% 2005 2006 2007 2008 2009 2010 2011 Q1 2012

Source: RAJAR, All adults (15+), calendar years 2005-2011, Q1 2012

31 Figure 3.32

Share of listening hours, by sector

Percent of listening hours 60% 54.8% 54.9% 55.1% 55.7% 55.3% 55.2% 54.7% 55.4% All BBC Radio 46.6% 46.3% 44.4% 45.2% 46.1% 46.0% 45.9% 43.9% BBC network

40% 43.2% 42.8% 42.7% 42.2% 42.3% 42.6% 43.0% 42.3% 33.0% 32.3% All commercial 31.6% 31.3% 31.7% 31.5% 31.2% 30.3% Local commercial

20% National 12.0% commercial 10.9% 10.4% 11.1% 10.9% 10.6% 11.1% 11.8% BBC nations/local 10.2% 10.5% 9.9% 9.5% 8.7% 8.9% 8.7% 9.4% 2.0% 2.3% 2.1% 2.1% 2.4% 2.2% 2.3% 2.4% Other 0% 2005 2006 2007 2008 2009 2010 2011 Q1 2012

Source: RAJAR, All adults (15+), calendar years 2005-2011, Q1 2012

32 Figure 3.33

Changes in listening hours by sector: 2007 - 2011

Percentage change in listening hours

All Radio All BBC All Commercial BBC network radio BBC local / national National commercial Local commercial

10% 7.7% 4.7% 2.5% 2.9% 1.9% 1.2% 0%

-10% -10.8%

-20%

Source: RAJAR, all adults (15+), data based on calendar years 2007 and 2011 Figure 3.34 Changes in listening hours by age: 2007-2011

Percentage change in listening hours

All 15+ 15-24 25-34 35-44 45-54 55-64 65-74 75+

15% 11.1% 10.5% 10.1% 10%

5% 2.5% 3.4% 1.4% 0%

-5% -6.5% -10% -8.8%

Source: RAJAR, all adults (15+), data based on calendar years 2007 and 2011 Figure 3.35 Average weekly listening by demographic, year ending Q1 2012

Weekly listening hours 30 Average listening per week 25 22.6 hours

20 25.7 25.9 26.6 15 24.5 23.7 24.2 22.1 21.5 21.3 10 19.2 16.9 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 2012, average weekly listening hours per listener Figure 3.36 Most popular radio stations, year ending Q1 2012

Average weekly reach (millions) 15 +2.2 Radio group % change year on year -0.8 BBC 12 +1.5 +0.8 Global 9 14.3 -5.3 UTV -5.3 6 11.6 10.6 9.7 -8.2 Bauer 3 6.3 -3.0 +2.0 +7.2 -2.8 +1.8 5.5 +1.0 +51.1 +11.9 +20.4 3.2 -0.1 Absolute 2.1 2.1 2.2 2.0 1.8 1.5 1.5 1.3 1.2 0 1.1 The HitsThe Classic FM Classic talkSPORT Magic 105.4 Kiss 100 FM BBC 6 Music BBC Radio 2 BBC Radio 1 BBC Radio 4 BBC Radio 3 Heart London Capital London Absolute Radio BBC Radio 4 Extra BBC World Service Sports Extra) AllLocal BBC Radio BBC Radio Five Live (inc Live Radio Five BBC

Source: RAJAR, all adults (15+), year ending Q1 2012

36 Figure 3.37

Share of listening hours across analogue and digital platforms

Radio listening share by digital and analogue listening 100% 17.8% 20.1% 24.0% 26.5% 29.2% 80% 9.5% Digital 12.5% 9.3% 8.1% 7.7% 60% Unspecified 40% 72.7% 67.5% 66.7% 65.4% 63.1% Analogue 20%

0% Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012

Source: RAJAR Ipsos MORI/ RSMB. All adults (15+), data relates to corresponding year ending each date shown Note: Unspecified relates to listening where the radio platform was not confirmed by the listener. Figure 3.38

Digital radio listening by age group, (monthly)

Digital radio listening by age group (at least monthly) 60%

40%

58% 59% 56% Q1 2011 50%53% 52% 53% 53% 50%53% 20% 42%44% 36% 25% Q1 2012

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 2012 (n=2963), Q1 2011 (n=2811) Q:Use digital radio at least monthly (includes digital listening via DTV, DAB set and online)

38 Figure 3.39 Audience profiles and platform split, by sector and station, year ending Q1 2012

Share All Radio / BBC / commercial National commercial BBC stations of radio listening 100% 46% 9% 12% 30% 4% 2% 1% 8% 17% 1% 12% 4% 100% 8 6 9 7 9 8 10 4 8 6 7 6 7 14 18 22 80% 29 33 29 27 31 Not Stated 31 34 39 54 60% 70 Digital 40% 77 72 70 63 62 67 63 61 60 59 54 20% 39 26 Analogue 0%

Source: RAJAR, year ending Q1 2012, adults 15+ Figure 3.40 Most popular digital-only stations, Q1 2012

Average weekly reach Q1 2012 (millions) % change year on year

2.0

+29.6% Radio group 1.5 +12.1% Bauer -5.3% -9.5% BBC 1.0 +19.1%+2.7% +8.1%+14.4% Independent / other 1.5 +37.4% 1.5 Absolute +14.0% 1.1 0.5 1.0 +15.9%+20.0% Global 1.0 0.9 0.9 0.9 0.7 0.6 +61.9% -26.2% 0.3 0.3 -50.6% 0.3 0.2 0.0 0.2 Q Chill Heat The HitsThe Jazz FM Jazz Planet Rock BBC 6 Music Classic Rock Classic Absolute Radio Smash Hits Radio BBC Radio 4 Extra 1Xtra 1Xtra from the BBC Absolute Radio 80s Absolute Radio 90s Absolute Radio 00s Five Five Live Sports Extra Source: RAJAR, Q1 2012, adults 15+ Figure 3.41 Average weekly reach and share of listening hours by nation: 2011 Listening hours share 100% 2% 2% 1% 2% 8% Other 25% 31% 31% 80% 40% 38% Local/Nations 13% Commercial 60% 12% 12% 12% UK 9% 13% 9% 9% Commercial 40% 8% 22% BBC Local/Nations 47% 49% 46% 20% 37% BBC Network 24% 0% England Scotland Wales Northern UK TOTAL Ireland

Average weekly 22.5 hours 21.4 hours 23.2 hours 22.0 hours 22.5 hours listening Reach 91.1% 87.3% 93.2% 90.1% 91.0% Source: RAJAR, All adults (15+), calendar year 2011

41 Figure 3.42

Location of listening – year to Q1 2012

Work/Elsewhere 15% In-vehicle 20%

Home 65%

Source: RAJAR, year ending Q1 2012, all adults 15+ Figure 3.43

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% 28% 28% 27% 27% 27% 27% 26% 25% 25% 25% 25% 30% 25% 25% 24% 24% 24% 23% 23% 22% 21% 21% 18% 17% 17% 16% 16% 16% 16%

20% 15% 14% 14% 14% 14% 13% 13% 12% 12% 11% 11% 11% 10% 10% 10% 10% 10% 7% 7% 10% 6% 0% UK 2011 UK UK 2012 UK 2008 UK 2009 UK 2010 UK 2012 UK Wales 2012 Wales UK rural 2012 rural UK England 2012 England Scotland 2012 Scotland N Ireland 2012 Ireland N UK urban 2012 urban UK

Source: Ofcom research, Quarter 1 2012 Base: All adults aged 16+ (n = 3772 UK, 2251 England, 500 Scotland, 513 Wales, 508 Northern Ireland, 2731 UK urban, 1041 UK rural, 5812 UK 2008, 6090 UK 2009, 9013 UK 2010, 3474 UK 2011, 3772 UK 2012) QP3. How often, if at all, do you access the radio via – Digital radio via: TV, Internet, DAB radio, mobile phone?

43 Figure 3.44

Number of analogue and digital radio sets sold 2006 to 2011

Total annual 9.4 million 10.4 million 9.3 million 9.2 million 8.5 million 6.8 million sales

Digital share of 18.5% 20.1% 22.5% 20.9% 22.3% 27.4% sales 10 8.3 7.7 7.2 7.3 8 6.6 Analogue sets 6 5.0 DAB sets 4 1.7 2.1 2.1 1.9 1.9 1.9 2 Radio set sales (millions) sales set Radio 0 Year to Q1 2007 Year to Q1 2008 Year to Q1 2009 Year to Q1 2010 Year to Q1 2011 Year to Q1 2012

Source: GfK sales data, 2006-2012. 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. Figure 3.45

Have you heard of the term ‘DAB’ digital radio?

Don't know 2% No 16%

Yes 82%

Source: Ofcom research 2012

45 Figure 3.46

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% 65% 60% 50% 40%

30% 16% 19% 20% 10% 0% Likely to buy Unlikely to buy Don't know

Source: Ofcom research, Q1 2012 Base: Those who listen to the radio but have no DAB sets in the home (n=1855) QP12: How likely is it that your household will get a DAB radio in the next 12 months?

46 Figure 3.47

Unique audience of selected music streaming sites

Unique audience (m)

2 Spotify 1.75 Soundcloud 1.5 Last.fm 1.25 Radio Player Hypster.com 1 Grooveshark 0.75 We7.com 0.5 Yahoo! Music 0.25 Napster 0 Jango.com Mar-11 Jun-11 Sep-11 Dec-11 Mar-12

Source: UKOM / Nielsen. Month of April 2012, home and work panel. Applications included. Radio player data starts Apr 11

47 Figure 3.48 Audio internet usage

% of respondents 2010 2011 2012 19% 20% 18% 16% 16%

12% 8% 8% 7% 7% 3% 4% 2% 2% 0% Listening to radio Streamed audio services Streamed audio services (free) (subscription based)

Source: Ofcom research, Q1 2012 Base: Those with access to the internet at home (n= 2823) QE5A. Which, if any, of these do you or members of your household use the internet for whilst at home?

48 Figure 3.49 BBC iPlayer quarterly radio requests

Radio requests (millions) 150 134 140 117 120 35 105 106 32 On-demand 96 94 95 28 Simulcast 90 84 28 28 27 28 26 26 60 102 105 89 69 69 77 78 30 66 58

0 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012

Source: Ofcom calculations based on BBC iStats

49 Figure 3.50

Time spent using selected music services and media players

Time per person (hours) 2:00:00 Spotify (App)

1:45:00 iTunes (App) Windows Media 1:30:00 Player (App) Hypster 1:15:00 We7.com 1:00:00 Last.fm 0:45:00 Soundcloud 0:30:00 Grooveshark 0:15:00 Napster 0:00:00 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Radioplayer

Source: UKOM/Nielsen. Month of April 2012. Home and work panel. Applications included. No radio player data for March 2011

50 Figure 3.51 MP3 player/iPod ownership and personal use

% of respondents Personal use Ownership 50% 43% 44% 41% 40% 37% 35% 31% 31% 29% 30% 26% 27%

20%

10%

0% UK England Scotland Wales Northern Ireland

Source: Ofcom research, Quarter 1 2012 Base: All adults aged 16+ (n = 3772 UK, 2251 England, 500 Scotland, 513 Wales, 508 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? Please note data not comparable to 2010 figures

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