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CMR 2015 TV and AV Slides Figure 2.1 Industry metrics

UK industry 2009 2010 2011 2012 2013 2014

Total TV industry revenue (£bn) 11.1 11.8 12.4 12.5 12.8 13.2

Proportion of revenue generated by public funds 23% 22% 21% 21% 20% 21%

Proportion of revenue generated by advertising 28% 30% 29% 28% 29% 29%

Proportion of revenue generated by subscriptions 42% 43% 44% 44% 46% 45%

Broadcaster share of total display advertising spend 41% 42% 43% 43% 43% 44%

Spend on originated output by 5 main networks (£bn) 2.4 2.5 2.5 2.6 2.5 2.6

Digital TV take-up (% all households) 88% 92% 94% 96% 95% 93%

Proportion of DTV homes with pay satellite or cable 53% 56% 51% 51% 52% 51%

Minutes spent watching TV per day (per person aged 4+) 225 242 242 241 232 220

Share of the main five channels in all homes 58% 56% 54% 52% 51% 51%

Number of channels broadcasting in the UK 490 510 515 529 527 536

Source: /broadcasters/Advertising Association/Warc/BARB/GfK. Note: Expressed in nominal terms. Public funds include DCMS grant to , as well as BBC funding that is allocated to TV (including the proportion of licence fee revenue that goes to S4C). Broadcaster share as a proportion of total display advertising spend excludes direct mail and classified ads and is based on Advertising Association/Warc Expenditure Report. The AA/Warc data is net of discounts, and includes agency commission, but excludes production costs. Spend on originations includes spend on nations and regions programming (not Welsh or Gaelic language programmes but some Irish language).TV viewing based on BARB analysis of viewing to scheduled TV programmes such as those listed in TV listings magazines or on electronic programme guides (EPG) on TV sets. 1 Figure 2.2 Total TV industry revenue, by source: 2014

Revenue (£m) 13,500 13,400 13,300 +2.7% +2.2% +0.9% +3.1% 13,200 +7.7% £57m £14m 13,100 +1.9% £74m £6m 13,000 +5.1% £110m 12,900 £131m 12,800 12,700 12,600 £13,227m 12,500 12,400 £12,834m 12,300 12,200 12,100 12,000 2013 BBC TV Subscriber Other NAR PSB NAR PSB portfolio Other 2014 revenue spending revenue NAR revenue Source: Ofcom/broadcasters. Note: Figures expressed in nominal terms. PSB NAR comprises Channel 3 licensees (including ITV Breakfast, ITV plc, Channel Television, STV and UTV), , Channel 5 and S4C. PSB portfolio NAR includes commercial channels owned by the PSBs (ITV2, ITV3, ITV4, E4, More 4, Film 4, 5* and 5USA. ‘Other NAR’ comprises the rest of the multichannel market. Platform operator revenues do not include installation costs, equipment sales or subsidies. BBC TV spending represents the amount of BBC revenue that is allocated to TV, which is estimated by Ofcom based on the BBC’s Annual Report and Accounts 2014/15. Excludes revenue generated via online TV, as outlined in Figure 2.4 2 Figure 2.3 Advertising revenue, by share: 2013 - 2014 £m £3,693m £ 3,838m 3.9% 1-year change (%) 4,000 £51m £50m £653m £639m 1.4% ITV Breakfast 3,000 2.2% PSB portfolio £968m £1,043m channels 7.7% Other multichannels 2,000 £303m £285m -5.7% Channel 5 £485m £483m -0.6% Channel 4/S4C 1,000

£1,247m £1,323m 6.1% ITV1/STV/UTV

0 2013 2014

Source: Ofcom/broadcasters. Note: TV advertising includes revenues that broadcasters receive from the sale of advertisements on screen (net of agency fees) and excludes video . Totals may not equal the sum of the components due to rounding. ITV1/Channel 3 includes ITV Plc, STV, UTV and Channel Television.

3 Figure 2.4 Online TV revenues

£m Annual 900 Growth £793m 800 38% 700 £240m £574m 600 26% FTV Ad Revenues 500 £190m £379m 400 £317m 53% Subscriptions

£145m 300 £238m £207m £180m 42% PPV transactions 200 £113m £104m £81m £95m £74m £57m £25m £38m 100 £32m £23m £25m £121m £155m £66m £75m £92m DTO transactions 0 £33m 28% 2009 2010 2011 2012 2013 2014 Source: IHS Screen Digest. FTV (free to view) revenues include advertising revenues only and include all services delivering online video free to consumer. Subscription includes digital-only subscribers and users of bundled services. PPV (pay-per-view) refers to a method of renting digital content and pay to watch it for a limited period including all content consumed on an on-demand basis. DTO (download-to-own) gives the customer ownership over the files they have downloaded. All figures are nominal. Includes only revenue from long form video content and excludes revenues generated from online usergenerated content.

4 Figure 2.5 Total cross-platform advertising and sponsorship revenue

£m 5,000 Annual Growth £4,285m £4,075m £3,919m £240m 5.2% 4,000 £3,876m £190m £3,745m £113m £208m £74m £176m £145m £192m £3,364m £179m £184m

£189m FTV Online Ad 3,000 26.2% Revenues

2,000 8.2% All Broadcaster £3,693m £3,838m £3,491m £3,630m £3,547m Sponsorship £3,143m

1,000 3.9% All Broadcaster NAR

0 2009 2010 2011 2012 2013 2014

Source: Ofcom/broadcasters/IHS. All figures are nominal.

5 Figure 2.6 Broadcaster percentage share of all display advertising expenditure

£bn 12 £10.6bn £9.8bn £9.8bn £10.0bn 10 £9.6bn £8.5bn 8 56.5% 56.9% 58.4% 57.4% 56.8% All other display 6 59.0% advertising

4 Broadcaster 42.6% 43.2% 43.1% 43.5% 2 41.0% 41.6% display ad spend

0 2009 2010 2011 2012 2013 2014

Source: AA/WARC Expenditure Report. Note: Total display advertising expenditure includes television ads, TV sponsorship, TV VoD, radio, out of home, cinema, national and regional press display, internet and consumer magazines but does not include response advertising such as direct mail or classified ads. Broadcaster display ads include advertising, sponsorship and online VoD ad revenue. Figures are nominal.

6 Figure 2.7 Take-up of smart TVs among UK TV households

% of UK TV homes 25

20

15

Smart TV 10 21 ownership

12 5 7

0 2013 2014 2015

Source: Ofcom Technology Tracker, W1 2015. Base: All adults aged 16+ with a TV in the household (n = 3616). QH15(QH62): Are any of your TV sets ‘smart TVs'?

7 Figure 2.8 Smart TV sales and market share

Sales units (000s) % 1,400 60 54.2 51.3 1,200 48.4 50 45 44.2 1,000 38 40 800 29 31 28 30 600 20 400

200 10

0 0 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Market Share (%) Sales Units (000s)

Source: GfK

8 Figure 2.9 Activities undertaken on connected TV, by age

44% 54% 51% 56% 60% 36% 17% Any of These

Online PPV or download to own 12 (e.g. iTunes) 11 12 17 11 Paid VOD content through TV 13 service 18 23 18 9 22 21 17 Online subscription services (e.g. 12 26 ) 24 23 28 15 Browse online 30 20 24 25 7 25 7 20 7 Free VOD content through TV 29 28 12 26 27 service 21 11 11 Clips through websites (e.g. 42 42 45 5 YouTube) 34 37 30 5 13 Broadcaster catch-up services All 16-24 25-34 35-44 45-54 55-64 65+

Source: Ofcom Media Tracker 2014. Base: All respondents (2074); 16-24 (297); 25-34 (331); 35-44 (333); 45-54 (333) 55-64 (318); 65+ (462). Only responses >3% labelled. Prompted, multicode. Significance testing shows any difference at ‘Any of these’ level between any age group and all adults. Q7/ Q9C/ Q10C/ Q11C/ Q13 - And which, if any of these devices have been connected to your home broadband service as well as a TV set in the home in the last 12 months to view something on the TV screen? Q14A-H/ Q15 – Which, if any, of these activities have you used your device for in the last 12 months when connected to a TV? 9

Figure 2.10 Reason for using catch up TV via a connected TV, by age

% of catch-up TV users

100% 80 78 76 80% All Adults (16+) 60% 16-34 34 40% 32 31 31 30 32 35+ 20% 13 13 12 11 12 10 10 10 10 10 7 6 0% missed the I use it when I want to watch Somebody was Just to pass The programme/ There is a good programme/ film there is nothing the programme/ watching some time/ relax film was choice when it was on on 'normal' TV film at a time that something else recommended to of programmes/ TV and I use it to that I want to suits me on the TV at the me by someone I films catch up watch time it was on so know I used it to catch up

Source: Ofcom Media Tracker. Base: Those using broadcaster catch-up services through connected TV (659); 16-34 (252); 35+ (407). Unprompted, multicode. Showing responses of 5% or more among all adults. Significance testing shows any difference between age groups. Q16 - You said that you use broadcaster catch-up services. What would you say are the reasons that you use the broadcaster? catch-up TV services? 10

Figure 2.11 Take-up of DVRs, by platform

% of UK homes with a TV 100%

80%

64% 62% 2013 60% 54%

2014

40% 34% 33% 31% 2015

20% 13% 13%

12% 12%

11%

9% 7% 7% 6% 5% 4% 2% 0% Total DVR take- Sky+ Virgin TiVo or V+ Freeview DVR YouView Broadband TV up (BT Vision or TalkTalk TV)

Source: Ofcom Technology Tracker, Q1 2013-2015 Base: All adults aged 16+ with a TV in the household: 2013 (3661), 2014 (3635), 2015 (3616) Q: Does your household have Sky+? Q: Does your (Sky+,Virgin TiVo,YouView etc.) set-top box allow you to record and store TV programmes, and also pause and rewind live TV programmes?

11 Figure 2.12 Take-up of HD-ready TVs and HDTV services

% of UK homes with a TV

76% 2015 57%

Have HD ready TV 75% 2014 53% Have HDTV service

75% 2013 50%

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

Source: Ofcom Technology Tracker, Q1 2013-2015 Base: All adults aged 16+ with a TV in the household: 2013 (3661), 2014 (3635), 2015 (3616) QH3(QH53): Is the MAIN TV in your household an HDTV set or HD ready? QH4 (QH54) Although you have an HDTV ready set, to actually watch TV channels and programmes that are broadcast in high definition, you need an HD set top box or a TV with built-in HDTV receiver. For the main TV set, does your household have an HDTV service - from either Sky, , or Freeview?

12 Figure 2.13 Take-up and use of 3D-ready TVs

% of UK homes with a TV

13% 2015 7%

Have 3D ready TV 10% 2014 5% Watch 3D content

8% 2013 4%

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

Source: Ofcom Technology Tracker, Q1 2013-2015 Base: All adults aged 16+ with a TV in the household: 2013 (3661), 2014 (3635), 2015 (3616) QH4 (QH57). Is the MAIN TV in your household 3D ready? IF NECESSARY - By this I mean that the TV can display pictures in 3D from specific channels (such as ) or when watching 3D DVDs or Blu-ray discs or when playing 3D video games. / QH5 (QH58). Do you or anyone in your household watch 3D content on your TV - whether from 3D TV channels, 3D DVDs or Blu-ray discs or 3D video games? 13 Figure 2.14 Traditional TV viewing vs. time-shifted minutes: all individuals

Average minutes of viewing/day by type of activity: Total TV, individuals 4+, 2007-2014

218 224 225 242 241 240 232 220 Minutes per person/per day 250 17.2 22.2 24.2 5.8 9.1 13.2 26.2 200 27.2

Time-shift

/day 150 Traditional/live

mins 224.9 211.9 215.4 211.7 219.2 216.4 100 205.6 193.3

Average Average 50

0 2007 2008 2009 2010 2011 2012 2013 2014

Source: BARB, Network, Some variation in figures due to rounding New BARB panel introduced 1 Jan 2010. As a result pre- and post-panel change data must be treated with caution (see dotted line).

14 Figure 2.15 DVR take-up and time-shifted viewing: all individuals and individuals in DVR homes 100%

DVR owners as % of population 80% 73% 69% 65% 61% 60% 48% Time-shifted viewing among DVR 37% individuals 40% 24% 20% Time-shifted viewing 11% 16% 17% among all individuals 15% 15% 15% 14% 15% 16% 10% 11% 12% 7% 9% 4% 6% 0% 3% 2007 2008 2009 2010 2011 2012 2013 2014

Source: BARB, Network. New BARB panel introduced 1 Jan 2010. As a result pre and post panel change data must be treated with caution (see dotted line).

15 Figure 2.16 Proportion of time-shifted viewing, by age: DVR individuals

Proportion of viewing (%) 25% 24% 23% 22% 20% 25-34 21% 20% 20% 19% 20% 19% 19% 19% 19% 19% 17% 16-24 18% 18% 18% 17% 17% 17% 17% 16% 17% 16% 16% 17% 16% 16% 15% 16% 16% 35-44 15% 15% 15% 15% 15% 15% 15% 15% 15% 14% 14% 14% 14% 14% 14% 13% 13% 13% 13% 13% Individuals 13% 13% 12%13% 12% 12% 12% 11% 11% 12% 11% 10% 45-54 10% 10% Children

5% 55-64

65+ 0% 2007 2008 2009 2010 2011 2012 2013 2014

Source: BARB, Network, DVR owners, all homes. Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution.

16 Figure 2.17 Proportion of time-shifted viewing, by genre: all individuals

Time-shifted viewing as % of total viewing to genre, 2008 vs 2014

35% 32% 23% 22% 17% 16% 15% 15% 14% 14% 12% 11% 11% 11% 11% 10% 9% 8% 8% 7% 5% 4% 2% 2% 2% 0% 0%

30% Total time-shifted 2008 Pp increase in time-shift 2008-2014 25%

20%

15%

10%

5%

0%

Source: BARB, individuals 4+, Network Plus 2008, Network 2014. Network programming based on 4+ area filter. Ranked on proportion of programme genre watched time-shifted, descending. Genre groupings are based on BARB genre codings, categorised by Ofcom.

17 FigureFigure 2.18 2.18 Top five programmes in 2014, live vs. time-shifted: all individuals and DVR individuals

All individuals Total % of live % watched on % watched up Average % viewing Rank Programme Channel Date Day Start time the same day to 7 days after audience Live watched with as live broadcast 000s other people

1 WORLD CUP 2014: GER V ARG BBC One 13/07/2014 Sunday 20:00:09 14,965 96% 4% 0% 68%

FIFA WORLD CUP 2014: 2 ITV 19/06/2014 Thursday 18:59:00 13,875 95% 4% 0% 64% URUGUAY V THE GREAT BRITISH BAKE 3 BBC One 08/10/2014 Wednesday 20:00:14 13,510 68% 23% 9% 64% OFF 4 WORLD CUP 2014: BRA V GER BBC One 08/07/2014 Tuesday 21:00:08 13,486 96% 3% 0% 61%

5 WORLD CUP 2014: ENG V ITA BBC One 14/06/2014 Saturday 23:13:28 13,343 96% 2% 2% 67%

DVR individuals

Total % of live % watched on % watched up Average % viewing Rank Programme Channel Date Day Start time the same day to 7 days after audience Live watched with as live broadcast 000s other people

1 WORLD CUP 2014: GER V ARG BBC One 13/07/2014 Sunday 20:00:09 11,252 95% 5% 0% 72% THE GREAT BRITISH BAKE 2 BBC One 08/10/2014 Wednesday 20:00:14 10,383 60% 30% 10% 64% OFF 3 WORLD CUP 2014: ENG V ITA BBC One 14/06/2014 Saturday 23:13:28 10,318 95% 3% 2% 70%

4 WORLD CUP 2014: BRA V GER BBC One 08/07/2014 Tuesday 21:00:08 10,049 95% 5% 0% 64% FIFA WORLD CUP 2014: 5 ITV 19/06/2014 Thursday 18:59:00 9,993 94% 6% 0% 66% URUGUAY V ENGLAND Source: BARB. All individuals. Network programming based on 4+ area filter. Data are based on the top five most-watched programmes overall (live/traditional + time-shifted) based on the best single performing episode 000s, with proportion of live vs time-shifted and co-viewing % added for detail. 18 Figure 2.19 The top 20 most-watched programmes live (excl. sport): 2014 Total live % watched % watched up to Start average % # Programme Channel Date Day on the same 7 days after time audience Live day as live broadcast 000s

1 NEW YEAR'S EVE FIREWORKS BBC One 31/12/2014 Wednesday 23:59:01 11,426 91% 2% 6%

2 THE GREAT BRITISH BAKE OFF BBC One 08/10/2014 Wednesday 20:00:14 9,176 68% 23% 9% 3 BRITAIN'S GOT TALENT (SERIES 8) ITV 12/04/2014 Saturday 19:59:12 8,936 75% 14% 7% 4 STRICTLY COME DANCING BBC One 20/12/2014 Saturday 18:29:55 8,831 76% 16% 8% 5 QUEEN AND ADAM LAMBERT ROCK BIG BEN LIVE BBC One 31/12/2014 Wednesday 00:10:01 8,792 93% 4% 4%

6 STRICTLY COME DANCING: THE RESULTS BBC One 20/12/2014 Saturday 20:50:10 8,784 76% 12% 12%

7 I'M A CELEBRITY GET ME OUT OF HERE! (SER ITV 16/11/2014 Sunday 21:02:05 8,636 74% 14% 8%

8 ITV 20/01/2014 Monday 20:29:00 8,477 80% 12% 6%

9 CALL THE MIDWIFE BBC One 19/01/2014 Sunday 20:00:29 8,250 73% 12% 15%

10 THE SONG CONTEST BBC One 10/05/2014 Saturday 20:00:02 8,034 90% 8% 2%

11 THE X FACTOR RESULTS (SERIES 11) ITV 14/12/2014 Sunday 20:02:35 7,969 81% 13% 3%

12 CHILDREN IN NEED BBC One 14/11/2014 Friday 19:30:03 7,567 89% 9% 3%

13 THE X FACTOR (SERIES 11) ITV 30/08/2014 Saturday 20:04:55 7,277 72% 18% 6%

14 SPORT RELIEF BBC One 21/03/2014 Friday 18:59:00 7,236 90% 7% 3%

15 DOWNTON ABBEY ITV 02/11/2014 Sunday 21:02:42 7,176 70% 10% 16%

16 BRITAIN'S GOT TALENT RESULT (SERIES 8) ITV 26/05/2014 Monday 21:34:10 6,991 82% 11% 6%

17 THE VOICE UK BBC One 08/02/2014 Saturday 19:12:17 6,940 74% 16% 10%

18 EASTENDERS BBC One 21/04/2014 Monday 19:59:23 6,869 76% 16% 9%

19 SIX O'CLOCK NEWS BBC One 14/02/2014 Friday 18:00:06 6,856 97% 3% 0%

20 SHERLOCK BBC One 01/01/2014 Wednesday 20:59:48 6,843 54% 18% 28% Source: BARB. All individuals. Network programming based on 4+ area filter. Programmes with a minimum duration of 10 minutes. Excludes sports programming. Data are based on the top 20 most-watched programmes (best episode) based on live audience in 000s with proportions of time-shifted viewing added for detail. 19 Figure 2.20 Proportion of traditional TV viewing that is co-viewed, by day part: 2007 and 2014

Proportion of co-viewed live viewing across the day by half-hour – individuals in 2+ households, Total TV, 2007 and 2014 100% Peak time 90%

80%

70%

60%

50%

40% 2007 2014 30%

20%

10%

0%

Source: BARB. Individuals in 2+ households, Network. Based on co-viewing during live/traditional broadcast split by half-hour time bands.

20 Figure 2.21 Proportion of all AV viewing: traditional TV viewing vs. DVR and VoD

Live Recorded VOD H1 2010 92% 6% 2% 2010 91% 7% 2% H1 2011 90% 8% 2% H2 2011 89% 9% 2% H1 2012 88% 9% 3% H2 2012 88% 9% 3% H1 2013 87% 9% 4% H2 2013 86% 10% 4% H1 2014 85% 10% 6% 0% 50% 100% Proportion of viewing minutes across all devices

Source: 3 Reasons estimates (including BARB data). Base: All devices, long-form professional AV content, Live includes . Excludes physical consumption (e.g. DVDs), and short-form

21 Figure 2.22 Total broadcast TV industry revenue, by source Growth 1 year 5yr CAGR to 2014 £m £11,088 £11,794 £12,366 £12,486 £12,834 £13,227 3.1% 3.6% Total 7,000

5,879 5,989 6,000 5,428 5,518 1.9% 5.2% Subscription 5,027 revenue 5,000 4,655 3,838 3,630 3,693 Net 4,000 3,491 3,547 3.9% 4.1% 3,143 advertising 3,000 revenue 5.1% 1.3% BBC income 2,555 2,563 2,585 2,671 2,596 2,727 2,000 allocated to TV 1,000 0.9% -1.8% Other 736 712 723 749 667 672 0 revenue 2009 2010 2011 2012 2013 2014 Source: Ofcom/broadcasters. Note: Figures expressed in nominal terms and replace previous Ofcom revenue data for TV industry, owing to restatements and improvements in methodologies. ‘Subscription revenue’ includes Ofcom’s estimates of Sky UK, Virgin Media, BT TV, TalkTalkTV and Channel 4 subscriber revenue as well as, in previous years, that of Setanta Sports, ESPN and Top Up TV in the UK ( revenue is excluded). It also excludes revenue generated by broadband and telephony. ‘Other’ includes TV shopping, sponsorship, interactive (including premium-rate telephony services), programme sales and S4C’s grant from the DCMS. Totals may not equal the sum of the components due to rounding. 22 Figure 2.23 Total broadcast TV industry revenue, by share

TV industry revenue shares (%) £11,088m £11,794m £12,366m £12,486m £12,834m £13,227m

50% 45.8% 44.2% 45.3% 42.0% 42.6% 43.9% Subscription revenue 40%

29.6% 29.4% 28.4% 28.8% 29.0% Net advertising 30% 28.3% revenue

20% 23.0% 21.7% 20.9% 21.4% 20.2% 20.6% BBC income allocated to TV 10%

6.6% 6.0% 5.8% 6.0% 0% 5.2% 5.1% Other revenue 2009 2010 2011 2012 2013 2014

Source: Ofcom/broadcasters. Note: Figures expressed in nominal terms and replace previous Ofcom revenue data for TV industry, owing to restatements and improvements in methodologies. ‘Subscription revenue’ includes Ofcom’s estimates of Sky UK, Virgin Media, BT TV, TalkTalkTV and Channel 4 subscriber revenue as well as, in previous years, that of Setanta Sports, ESPN and Top Up TV in the UK (Republic of Ireland revenue is excluded). It also excludes revenue generated by broadband and telephony. ‘Other’ includes TV shopping, sponsorship, interactive (including premium-rate telephony services), programme sales and S4C’s grant from the DCMS. Totals may not equal the sum of the components due to rounding.

23 Figure 2.24 Total TV industry revenue, by sector Growth 5yr Revenue (£m) 1 year CAGR £11,088 £11,794 £12,366 £12,486 £12,834 £13,227 3.1% 3.6% Total 14,000

12,000 1.9% 5.2% Platform operators £5,989 10,000 £5,428 £5,518 £5,879 £5,027 £4,655 8,000 4.8% 4.8% Commercial multichannels 6,000 £1,855 £1,879 £2,089 £1,650 £1,747 £1,994 2.4% 2.6% Main 4,000 £2,126 £2,354 £2,407 £2,334 £2,359 £2,414 commercial PSB channels 2,000 £2,656 £2,665 £2,676 £2,755 £2,603 £2,734 5.0% 0.6% Publicly-funded channels 0 2009 2010 2011 2012 2013 2014 Source: Ofcom/broadcasters. Note: Figures expressed in nominal terms and replace previous Ofcom revenue data for TV industry, owing to restatements and improvements in methodologies. The platform operators are Sky UK, Virgin Media, BT TV and TalkTalkTV as well as, in previous years, Setanta Sports, ESPN and Top Up TV in the UK (Republic of Ireland revenue is excluded).The platform operators figures also contain subscription revenue for Channel 4. Main commercial PSB channels comprise ITV/ITV Breakfast, STV, UTV, Channel Television, Channel 4, Channel 5 and S4C. Commercial multichannels comprise all multichannels including the commercial PSB portfolio channels. Publicly-funded channels comprise BBC One, BBC Two, the BBC portfolio channels and S4C. The commercial revenues of S4C are included with the main commercial PSB channels while their licence fee revenue and DCMS grants come under publicly-funded channels. Totals may not equal the sum of the components due to rounding. 24 Figure 2.25 TV net advertising revenues, by source: 2009-2014

NAR(£m) Growth 4,000 £3,838m £3,630m £3,693m 1 year 5yr CAGR £3,491m £3,547m

£3,143m £1,043m £908m £968m 4% 4% Combined 3,000 £834m £910m £802m £518m £544m £639m £653m £561m 8% 5% Commercial £445m 2,000 multichannels

2% 8% Commercial PSB portfolio £2,140m £2,178m £2,077m £2,085m £2,141m 1,000 £1,896m channels

3% 2% Commercial PSB channels

0 2009 2010 2011 2012 2013 2014

Source: Ofcom/broadcasters. Note: Figures expressed are in nominal terms and replace previous data published by Ofcom. Commercial PSB channels comprise ITV, STV, UTV, Channel Television, ITV Breakfast, Channel 4, Channel 5 and S4C (and their ‘+1’ channels); Commercial PSB portfolio channels include, where relevant, ITV2, ITV3, ITV4, CITV, ITVBe, ITV Encore, ITV Breakfast 2, E4, More 4, Film 4, , Five USA and 5* (and their ‘+1’ channels). For previous years closed channels have also been included. Sponsorship revenue not included. Totals may not equal the sum of the components due to rounding.

25 Figure 2.26

TV net advertising revenue market shares: 2013 - 2014

Proportion of NAR £3,693m £3,838m 100% Commercial multichannels 26.2% 27.2% 80% Commercial PSB portfolio channels S4C 17.3% 17.0% 60% 8.2% 7.4% Channel 5

12.5% 40% 13.1% Channel 4 1.3% 1.3% ITV Breakfast 20% 33.8% 34.5% ITV/STV/UTV 0% 2013 2014

Source: Ofcom/broadcasters. Note: Totals are expressed in nominal terms. Revenues attributed to ‘+1’ channels are included with those from their main channels.

26 Figure 2.27 Breakdown of other commercial TV channel revenue: 2013-2014 Total ‘other’ revenue = £672m (+1%)

Other £189m (-1%) Sponsorship £208m (+8%)

S4C £8m (-59%)

PPV £34m Programme (+10%) Sales £48m (+8%) TV Shopping Interactive £146m (-6%) £40m (+19%)

Source: Ofcom/broadcasters. Note: Percentage figures in brackets represent year-on-year change for total non-broadcast revenue versus 2014. TV shopping represents aggregate operating margin of products sold via television. A funding agreement which was reached in April 2013 meant that the majority of S4C funding comes out of the BBC’s licence fee income. Totals may not equal the sum of the components due to rounding. Owing to the nature of these revenue components, annual changes may be a function of a higher number of broadcaster returns being made by the time of writing, rather than material changes in the contributions that these revenue components are making to total industry income. 27 Figure 2.28 Revenue generated by multichannel broadcasters, by genre: 2013-2014

Total revenue = £5,481m across the eight included genres (+2%) Music £117m (-6%) Movies £766m (-2%) Entertainment £1,690m (+11%)

Factual £264m (+13%) Sport £2,285m (-2%) Kids £190m (+1%) Leisure News £40m (-21%) £129m (+1%) Source: Ofcom/broadcasters. Note: Percentage figures in brackets represent year-on-year change for total revenue compared to 2013. The figures in this chart include all sources of revenue accruing to multichannels and are expressed in nominal terms. This includes those set out in Figure 2.22 plus wholesale subscriber payments from platform operators.

28 Figure 2.29 Spend on network TV programmes: 2013-2014

1 yr change £m £5,811m £6,355m +9.4% 7,000 +1% £181m Channel 5 6,000 £269m £179m £236m £260m £311m +3% Other PSB portfolio channels £246m 5,000 £298m £492m -4% BBC portfolio channels £486m £757m 4,000 £708m £818m +4% BBC Two £794m 3,000 £813m +1% Channel 4 £747m 2,000 +7% Other multichannels

£2,477m +3% ITV/ITV Breakfast 1,000 £2,093m +9% BBC One 0 2013 2014 +18% Film/Sport channels

Source: Ofcom/broadcasters. Note: Figures expressed in nominal prices. Figures do not include spend on nations’ and regions’ output. BBC portfolio channels includes BBC Three, BBC Four, BBC News, BBC Parliament, CBBC and CBeebies (but not BBC HD). ‘Other multichannels’ include all genres (excluding sports and films). Programme spend comprises in-house productions, commissions from independents, acquired programmes and repeats (originations and acquisitions).

29 Figure 2.30 Independent producer TV-related revenues Growth 5 year £m 1 year CAGR 3,000 £2,779m -2.5% 6.3% Total £2,588m £14m £2,708m £40m £25m £2m £39m 2,500 £2,227m £41m £2,145m £755m 84.0% 7.4% Other UK £18m £694m £1,999m £27m £25m £670m 2,000 £17m £26m £32m -2.0% 4.1% £495m £652m £156m £180m Pre-production £369m £152m £147m £185m £184m £70m £87m 1,500 £115m £154m £119m £165m -8.1% 13.5% Other international income 1,000 15.7% 20.7% International sales of UK £1,539m £1,668m £1,586m £1,395m finished programmes £1,356m £1,247m 500 24.8% 9.9% UK rights income

0 2009 2010 2011 2012 2013 2014 -4.9% 2.6% Primary UK commissions Source: PACT Independent Production Sector Financial Census and Survey 2015. Note: ‘Other international income’ refers to revenue from companies overseas operations and any primary commissions received from non-UK broadcasters; ‘International sales of UK finished programmes’: sales of first-run UK programming sold as finished product abroad ; ‘UK rights income’: UK secondary sales, publishing, formats, DVD sales etc. 30 £55

Fig 2.31 Relative share of spend on first-run UK-originated content, by genre, in-house vs. independent producers: 2009 and 2014

Total spend on first-run originations (£m) £41 £88 £304 £516 £7 £504 £482 £20 £13 £545 £2,521 £47 £91 £292 £569 £26 £420 £451 £17 £15 £414 £2,342 9% 7% 22% 24% 21% 23% 40% 44% 40% 45% 44% 47% 52% 48% 46% 64% 70% 66% 78% 72% 100% 100% 91% 93% 78% 76% 79% 77% 60% 56% 60% 55% 56% 53% 48% 52% 54% 36% 30% 34% 22% 28% 2009 2014 2009 2014 2009 2014 2009 2014 2009 2014 2009 2014 2009 2014 2009 2014 2009 2014 2009 2014 2009 2014 Arts & Childrens News & Drama & Education Entertainment Factual Feature Films Religion & Sports Grand Total Classical Current Affairs Soaps & Comedy Ethics Music Internal External Source: Ofcom/broadcasters. Note: Figures are expressed in nominal terms. Includes spend by the five main PSB channels and BBC portfolio channels on first-run originated content broadcast all day, and excludes nations’/regions’ output. 31 Figure 2.32 Spend on first-run UK originated output on the five main networks £m 3,000

£2,588m £2,585m Growth £2,516m £2,506m £2,413m £2,451m £266m 1 year 5yr CAGR £261m £277m £267m £263m £256m 5% 1% £212m £257m £244m £247m £229m 2,000 £189m £564m £549m 6% 2% Nations & £611m £624m £563m £484m Regions

6% 5% Late night

1,000 14% -2% Day time £1,502m £1,515m £1,357m £1,419m £1,429m £1,476m 3% 2% Peak time

0 2009 2010 2011 2012 2013 2014 Source: Ofcom/broadcasters. Note: Figures are expressed in nominal terms. They include ITV Breakfast, spending in the nations and regions on English-language programming (and a small amount of Irish- language programmes) but do not include the BBC’s portfolio channels, BBC Alba or S4C .

32 Figure 2.33 Total and first-run UK-originated hours of output on the PSB channels: 2014

Proportion of hours 87,087 43,690 100% 11,926 YOY change (%) 11,199 80% Total First-run UK hours originations 32,833 2.4% -0.3% Programmes for 60% 13,284 Nations & Regions

40% 0.4% -0.2% BBC Portfolio Channels 42,328 20% 19,207 0.1% 1.8% Five Main PSB Channels (network) 0% Total Hours Total First-run UK originated hours

Source: Ofcom/broadcasters. Note: The first-run figures include in-house productions and external commissions, but not first-run acquisitions. ITV Breakfast is included within the figures for the five main channels. Regional hours exclude Welsh and Gaelic-language programming but include a small proportion of Irish-language programmes.

33 Figure 2.34 Hours of first-run UK originated output on the five main PSB channels hours

35,000 Growth 30,485 30,681 30,041 30,052 30,092 30,406 1 Year 5 yr CAGR 30,000

+1.0% -0.1%

25,000 10,439 11,060 11,647 11,002 11,232 11,199

20,000 -0.3% +1.4% Nations & Regions

15,000

14,632 13,316 13,338 13,365 13,180 13,463 2.1% -1.7% Non-peak 10,000 network

5,000 1.0% -0.1% Peak-time 5,414 5,665 5,696 5,685 5,680 5,744 network 0 2009 2010 2011 2012 2013 2014

Source: Ofcom/broadcasters. Note: Figures include ITV Breakfast but do not include the BBC’s portfolio channels. Regional hours exclude Welsh and Gaelic-language programming but do include a small proportion of Irish-language programmes.

34 Figure 2.35 Proportion of spend on new commissions vs. returning series: PSB groups

Estimated primary rights spend (£m)

% of spend 498 498 437 508 476 474 374 398 313 388 367 486 298 303 287 346 402 380 63 27 47 57 41 52 100%

80%

54%

57%

59%

62%

65% 65%

66% 66% 66% 67%

71%

73% 73%

60% 76% 78% 79% 79% 81% 81% 82% 85% 85% 90% 92%

40%

46%

20% 43%

41%

38%

35% 35% 34% 34% 34%

33% 29%

27% 27% 24%

22% 21% 21% 19% 19% 18% 15% 15% 8% 0% 10% 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 BBC ITV/STV/UTV Channel 4/S4C Channel 5 New Commission Returning Series

Source: PACT Independent Production Sector Financial Census and Survey 2015. Note: Figures include commissions by the PSB portfolio channels. 35 Figure 2.36 First-run UK-originated output by the PSB channels per week: all day and peak time All Day Peak-Time 800 200 629 613 619 622 619 624 167 173 175 175 173 170

BBC portfolio BBC portfolio 600 150 channels channels 64 65 65 63 60 63 Channel 5 243 Channel 5 248 253 256 256 255

Channel 4 12 14 12 12 14 Channel 4 400 100 11 54 27 35 31 30 33 Hours per week per Hours 22 23 22 21 Hours Hours week per 22 23 ITV/ITV 57 58 59 64 57 57 ITV/ITV Breakfast Breakfast 26 26 26 26 25 101 101 101 99 98 94 26 BBC Two 200 BBC Two 50 57 23 70 73 66 66 54 20 22 21 22 22 BBC One BBC One 104 106 105 107 124 128 26 26 26 27 26 27 0 0 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 Source: Ofcom/broadcasters. Note: Figures do not include nations’ and regions’ output. BBC portfolio channels include BBC Three, BBC Four, BBC News, BBC Parliament, CBBC and CBeebies 36 Figure 2.37 Genre mix on the five main PSB channels: peak time Proportion of total hours 7,964 8,009 7,961 7,964 7,954 7,930 100% Children's 357 483 334 514 359 493 533 611 675 661 545 515 Sport

80% 1,144 1,491 Films 1,225 1,520 1,469 1,579 Entertainment & Comedy

1,746 1,486 60% 1,648 1,559 1,543 1,346 Drama & Soaps

Factual

40% Education 2,656 2,512 2,501 2,446 2,629 2,559 Religious

20% Arts & Classical Music 197 190 163 168 142 166 308 328 298 324 333 308 Current Affairs 878 879 857 882 923 927 0% News 2009 2010 2011 2012 2013 2014 Source: Ofcom/broadcasters. Note: Includes five main channels including ITV Breakfast, figures do not include hours of nations’ and regions’ output. 37 Figure 2.38 Genre mix on five main PSB channels: daytime Proportion of total hours 21,597 21,654 21,610 21,665 21,680 21,748 100% 1,946 1,668 Children's 4,137 4,214 4,204 4,213 1,608 2,029 Sport 80% 1,645 1,415 1,505 1,650 1,488 1,624 Films 1,645 1,721 1,557 1,753 3,716 3,962 Entertainment & Comedy

60% 2,814 2,596 2,627 2,877 Drama & Soaps 1,734 1,367 Factual 2,590 2,719 2,375 1,862 40% Education 7,400 7,758 Religious 4,775 5,232 5,777 6,045 20% Arts & Classical Music 438 440 549 594 661 695 Current Affairs 2,881 2,793 2,679 2,750 2,632 2,536 News 0% 2009 2010 2011 2012 2013 2014 Source: Ofcom/broadcasters. Note: Includes five main channels plus ITV Breakfast. Figures do not include hours of nations’ and regions’ output.

38 Figure 2.39 Genre mix on the BBC portfolio channels: all day

Proportion of total hours 33,151 33,202 33,230 33,362 32,705 32,833 100% 1,622 1,588 1,369 1,561 1,243 1,249 1,532 1,768 1,908 1,988 2,002 1,970 Other 1,077 1,296 1,151 890 1,277 1,136 2,629 2,405 2,648 2,703 1,999 2,229 80% Entertainment & Comedy 8,406 8,213 8,178 8,306 8,362 8,409 Arts & Classical Music 60% 1,339 1,472 1,421 1,204 1,256 1,323 Factual 40% Children's

16,546 16,460 16,555 16,710 16,566 16,517 20% Current Affairs

News 0% 2009 2010 2011 2012 2013 2014

Source: Ofcom/broadcasters. All figures are nominal. Note: BBC portfolio channels include BBC Three, BBC Four, BBC News, BBC Parliament, CBBC and CBeebies. Investment figures are nominal. ‘Other’ includes: education, drama, film, religion and sports

39 Figure 2.40 Total multichannel hours and first-run originations/acquisitions: 2014 Proportion of hours by channel genre (%)

Total = 1,726,157 Total = 254,520 1 year change % Total (2013 = 1,457,138) (Total 2013 = 199,880) Total First Run 100% -8% 52% Music 298,332 34,075 7,930 80% 17% 1% Movies 229,738 180,386 85,236 5% 5% Sport 60% 127,112 58,139 20% 7% News 138,761 40% 59,020 16% -4% Leisure 208,050 1,589 6,453 1,633 20% 2% -41% Children's

485,639 58,584 6% 17% Factual 0% 77% 153% All Hours1 First-Run2 Hours Entertainment

Source: Ofcom/broadcasters. Note: Broadcast hours exclude and ‘barker’ channels, which promote TV content, and replace previous data published by Ofcom. First-run hours include first-run in-house, commissioned and acquired content.

40 Figure 2.41 Multichannel content spend in key genres: 2013-2014 £m 1 year 4,000 change %

£3,062m £3,503m 14% 3,500 £89m £38m £81m -9% Leisure £292m 3,000 £80m £43m £77m Music £285m -5% 2,500 £772m -11% Children's £721m 2,000 12% News 1,500 5% Factual £2,186m 1,000 £1,808m 2% Movies

500 7% Entertainment

0 21% Sport 2013 2014

Source: Ofcom/broadcasters. Note: Spend expressed in nominal terms. Excludes BBC portfolio channels.

41 Figure 2.42 Platform take-up: 2001-2014 TV households (m) 28 Analogue Terrestrial 26 Only 24 Digital Terrestrial only 22 20 18 Analogue cable 16 14 Digital cable 12 10 Free to view digital 8 satellite 6 4 Pay digital satellite 2 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Multichannel take-up 38.5% 39.4% 45.3% 52.9% 61.8% 69.4% 77.3% 84.3% 88.2% 91.5% 94.4% 95.5% 94.7% 92.9% (% all households)

Source: BARB Establishment Survey. Note: Data points are based on household level data for Q4 of each year.

42 Figure 2.43

Platform demographics by age, socio-economic group and viewing minutes

% platform profile Average minutes per day 16-24 25-44 45-64 65+ AB C1 C2 DE 100% 231 250 11% 14% 220 219 18% 207 27% 27% 23% 23% 80% 33% 200 31% 31% 32% 18% 19% 19% 60% 29% 17% 150

31% 40% 41% 30% 32% 100 37% 39% 28% 31% 20% 50 25% 22% 27% 26% 15% 12% 17% 15% 0% 0

Source: Platform profile – Ofcom Technology Tracker 2014. Average minutes - BARB 2014 data

43 Figure 2.44 Average minutes of broadcast television viewing per day, by age: all homes Average minutes per day

350 343 345 347 341 340 315 316 314 Adults 65+ 306 314 311 309 300 301 294 301 298 271 278 279 Adults 55-64 268 264 263 269 270 269 253 255 256 250 243 245 241 242 242 234242 242 241 225 225 232 227 232 Adults 45-54 222 220219 216 217218 219 217 216 220 211 208 205 200 200 198 204 199 196 196 199 185 Individuals 169 165 169 156 157 155 154 157 150 144 151 150 151 147 142 148 Adults 35-44 135 132 134 139 137 134 138 118 100 Adults 25-34

50 Adults 16-24 Children 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: BARB, Network, Individuals 4+. Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution.

44 Figure 2.45

Average 2014 audiences, weekdays/weekends, by day part: all homes Average audience (millions) 28 24 20 16 Weekday 12 8 4 0 06:00 - 09:00 - 12:00 - 15:00 - 18:00 - 21:00 - 24:00 - 03:00 - 07:00 10:00 13:00 16:00 19:00 22:00 01:00 04:00

Source: BARB, all individuals 4+

45 Figure 2.46

Average 2014 weekday audiences, by day part and age: all homes Average audience (millions) 7 6 Children 5 Adults 16-24 4 Adults 25-34 3 Adults 35-44 2 Adults 45-54 Adults 55-64 1 Adults 65+ 0 06:00 - 09:00 - 12:00 - 15:00 - 18:00 - 21:00 - 00:00 - 03:00 - 07:00 10:00 13:00 16:00 19:00 22:00 01:00 04:00

Source: BARB, all individuals (4+).

46 Figure 2.47

Average 2014 weekend audiences, by day part and age: all homes Average audience (millions) 7 6 Children 5 Adults 16-24 4 Adults 25-34 3 Adults 35-44 2 Adults 45-54 Adults 55-64 1 Adults 65+ 0 06:00 - 09:00 - 12:00 - 15:00 - 18:00 - 21:00 - 00:00 - 03:00 - 07:00 10:00 13:00 16:00 19:00 22:00 01:00 04:00

Source: BARB, all individuals 4+

47 Figure 2.48 Average weekly TV reach in all homes, by channel 15 minute consecutive weekly reach - full weeks

100% BBC One 87.1% 88.7% 83.4% 88.2% 86.9% 82.3% 80.3% 78.6% 78.3% 78.8% BBC Two 80% 76.8% 78.6% 77.8% 73.7% 74.5% 77.8% 77.3% 79.0% 75.5% 73.6% 71.0% 70.0% 69.1% 62.5% 63.5% 68.0% 68.0% 66.7% 62.7% 68.8% 63.8% 62.7% 60.6% 58.8% 57.9% 60.2% 60% 62.4% 59.6% 55.9% 55.2% 54.6% ITV 51.8% 56.9% 57.0% 57.9% 56.7% 54.1% 49.9% 50.2% 53.3% 53.3% 48.1% 50.6% 48.0% 45.5% 40% Channel 4 (incl 43.6% 43.8% 41.8% 39.5% 41.1% 39.6% 40.3% 40.3% 39.0% 36.9% 35.9% S4C - 2009) 20% Channel 5

0% Others 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: BARB, all individuals (4+). Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. Note: Following digital switchover in in 2010 S4C ceased to carry Channel 4 content. S4C is therefore included in the Channel 4 figure in and prior to 2009 but not from 2010 onwards. S4C weekly reach in 2014 was 0.5% (all homes). The main five PSB channels include viewing to their HD channel variants but exclude viewing to their +1 channels. 48 Figure 2.49

Channel shares in all homes: 1988 to 2014 Audience share

100%

All other

5%

6%

7%

8%

9% 9% 9%

10% channels 12%

13% 10% 14%

17%

10% 20%

2% 22% 11% 24%

11%

4% 26%

11%

5% 30% 11%

33% Channel 5 80% 6% 36%

11% 40%

6% 42% 10% 45%

6% 46% 48% 10% 49% 49%

6%

7% 11%

42% 42% 10%

44% 6% 43% 10%

6%

10% 41% Channel 40% 5% 40% 10%

60% 35% 37%

5% 10% 33%

4(incl S4C 5% 32%

10% 9% 31% 5%

8% 4% - 2009)

29% 4%

7% 27% 4% 4%

24%

6%

24%

6%

6%

5% ITV 23% 5%

11%

11%

22%

40% 10% 20% 11% 19%

11% 18% 12% 10% 11% 18% 11%

12% 17%

16%

15% 15% 11%

15% 11%

11% 11% 11%

10% 9%

11.0%

9% BBC Two

9% 8%

6% 7%

6% 7%

7% 6%

20%

39% 38% 37% 36% 34% 33% 33% 32% 32% 31% 29% 28% 27% 27% 26% 26% 25% 23% 23% 22% 22% 22% 21% 21% 21% 21% 21% BBC One 0% 198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014

Source: BARB, TAM JICTAR and Ofcom estimates. All individuals (4+) Notes: a new BARB panel was introduced in 2010, as a result, pre- and post-panel change data must be compared with caution (see dotted line); following digital switchover in Wales in 2010 S4C ceased to carry Channel 4 content, S4C is therefore included in the Channel 4 figure in and prior to 2009 but not from 2010 onwards; S4C share in 2014 was 0.1% (all homes); the main five PSB channels include viewing to their HD channel variants but exclude viewing to their +1 channels.

49 Figure 2.50

Main five PSB channels’ audience share, all homes Audience share 73.8% 70.4% 66.7% 63.5% 60.5% 57.8% 55.4% 53.6% 52.1% 51.1% 51.2% 100% Channel 5

80% Channel 4 6.6% 6.4% (incl S4C - 5.7% 9.7% 5.1% 2009) 60% 9.7% 5.0% 9.8% 4.9% 8.6% 7.5% 4.5% ITV 6.8% 4.4% 4.2% 4.1% 4.0% 22.8% 6.2% 5.9% 21.5% 5.6% 4.9% 4.8% 19.6% 19.2% 40% 18.4% 17.8% 17.0% 16.0% 14.9% 15.3% 14.7% 10.0% BBC Two 9.4% 8.8% 8.5% 7.8% 7.5% 6.9% 6.6% 6.1% 5.8% 6.1% 20% 24.7% 23.3% 22.8% 22.0% 21.8% 20.9% 20.8% 20.7% 21.3% 21.0% 21.7% BBC One 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: BARB. Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. Note: Following digital switchover in Wales in 2010 S4C ceased to carry Channel 4 content. S4C is therefore included in the Channel 4 figure in and prior to 2009 but not from 2010 onwards. S4C 2014 channel share = 0.1%. The five main PSB channels include viewing to their HD channel variants but exclude viewing to their +1 channels. 50

Figure 2.51

Main five PSB channels’ audience share, by platform Audience share 100% Digital terrestrial 80% homes

60% All homes

40% Cable or 20% satellite homes 0%

Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec 04 05 06 07 08 09 10 11 12 13 14

Source: BARB, individuals (4+) in platform homes, based on share %. Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. Note: Following digital switchover in Wales in 2010 S4C ceased to carry Channel 4 content. S4C is therefore included in the Channel 4 figure in and prior to 2009 but not from 2010 onwards. S4C 2014 channel share = 0.1%. The five main PSB channels include viewing to their HD channel variants but exclude viewing to their +1 channels.

51 Figure 2.52

Channel share, by platform: 2014 Audience share 100% Other

80% 45.7% 48.8% 54.1% 48.9% Channel 5 60% Channel 4 4.2% 4.0% 4.9% 4.1% 4.8% 3.4% 5.2% 4.3% 40% 15.5% ITV 14.7% 15.2% 13.6% 6.1% 6.5% 5.5% 20% 5.2% BBC Two 21.7% 23.2% 19.3% 21.1% 0% BBC One All homes Digital terrestrial Digital satellite Digital cable individuals individuals individuals Source: BARB. Individuals (4+) in platform homes, based on share%. The five main PSB channels include viewing to their HD channel variants but exclude viewing to their +1 channels.

52 Figure 2.53

Proportion of total TV viewing hours, by platform signal Share of hours 100% Other 11.9% 11.4% 11.1% 11.8% 12.6% 13.6% 13.7% 13.6% 14.5% 14.6% Platforms

80% Digital cable 28.4% 32.6% 35.3% 36.3% 38.7% 40.4% 40.3% 40.9% 40.9% 40.5% 60% Digital satellite 10.0% 2.2% 15.5% 20.9% 40% 1.2% 27.8% Digital 0.5% 31.8% terrestrial 37.7% 47.4% 0.3% 42.6% 44.8% 20% 39.3% 44.3% 44.3% 32.1% 0.2% Analogue 23.7% 16.6% 0.1% satellite,Analog 8.2% 0.0% ue cable 0% 3.3% 0.6%0.0% 0.0% 0.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: BARB, individuals 4+, all homes, total hours. Based on viewing through the reception mode present in home as a proportion of all viewing through all platforms on all TV sets in home. Note: New BARB panel introduced in 2010. As a result, pre- and post- panel change data must be compared with caution.

53 Figure 2.54 Proportion of main five PSB channels’ viewing hours by platform signal Share of hours 100% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.1% 0.2% 0.3% 7.2% 7.3% 7.5% 8.5% 9.2% 11.8% 12.2% 12.6% 14.0% 14.6% Other Platforms 15.6% 80% 19.5% 22.6% 25.0% 28.3% Digital cable 8.6% 31.5% 32.4% 33.1% 1.4% 13.7% 33.7% 34.4% Digital satellite 60% 0.8% 19.3% 0.3% 27.4% 33.9% Digital terrestrial 40% 0.1% 42.0% 67.2% Analogue cable 58.6% 0.0% 49.4% 50.3% 53.1% 52.2% 50.7% and satellite 20% 39.0% 28.4% 0.1% Analogue terrestrial 14.6% 0.0% 6.0% 0% 1.1%0.0% 0.0% 0.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: BARB, all individuals, total hours. Based on viewing through the reception mode present in home as a proportion of all viewing through all platforms through all TV sets in home. Note: New BARB panel introduced in 2010. As a result, pre- and post-panel change data must be compared with caution.

54 Figure 2.55 Main five PSB, PSB portfolio, and other channels’ shares in multichannel homes

Audience share 100%

27.5% 26.5% 26.6% 27.6% 32.9% 30.9% 29.4% 28.3% 28.5% 28.1% 80% 34.9% Others

11.6% 13.9% 15.7% 18.6% 20.4% 60% 7.6% 9.4% 16.7% 21.3% 21.4% 20.7% PSB portfolio channels 40%

57.5% 57.7% 57.5% 56.7% Main five PSB 56.0% 54.8% 53.9% 53.1% 52.0% 51.1% 51.2% 20% channels

0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: BARB. 2004-2009: All individuals, multichannel network. 2010 - 2012: Individuals in multichannel homes, Network. 2013+: All individuals, Network. Following digital switchover in 2012, from 2013 onwards all homes are multichannel homes. Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. The main five PSB channels include viewing to their HD channel variants but exclude viewing to their +1 channels. 55 Figure xxxx Figure 2.56 Broadcaster family shares in multichannel homes Audience share 100% 14.0% 13.8% 12.9% 12.8% 12.2% 11.6% 13.1% 11.2% 11.7% 12.1% 12.6% Other 0.0% 0.0% 2.6% 2.7% 2.6% 2.6% 0.0%2.3% 2.4% 2.4% 0.0%2.5% 0.0%2.3% 2.8% 2.8% 3.0% 2.8% 2.7% 2.7% 4.0% 4.3% 4.5% Virgin Media 3.5% 3.2% 3.9% 4.0% 4.0% 4.9% 80% 4.0% 4.0% 3.9% 4.2% 8.1% 8.8% 8.3% 8.4% 8.2% 8.7% 7.6% 6.8% 7.4% Viacom 10.6% 9.4% 5.9% 6.0% 5.6% 5.9% 6.0% 5.9% 6.0% 5.9% 5.3% 5.1% 5.0% 11.5% 11.6% 11.6% 11.1% 10.9% UKTV 60% 11.2% 11.2% 11.7% 11.5% 8.6% 9.6% BSkyB* 22.7% 22.7% 22.7% 23.1% 22.3% 23.0% 22.0% 40% 22.0% 22.4% 22.2% 22.6% Channel 5 Channel 4

20% ITV 29.5% 29.8% 30.6% 31.2% 31.8% 31.5% 32.5% 33.0% 33.4% 32.4% 33.1% BBC 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: BARB. 2004-2009: All individuals, multichannel network. 2010 - 2012: Individuals in multichannel homes, network. 2013+: All individuals, network. Following digital switchover in 2012, from 2013 onwards all homes are multichannel homes. Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. BSkyB took ownership of VMTV in June 2010, Virgin Media TV portfolio shares are included in the BSkyB figure for the whole of 2010. ITV includes all ITV network channels, not just those owned by ITV plc. 56 Figure 2.57 BBC family shares in multichannel homes Audience share 29.5% 29.8% 30.6% 31.2% 31.8% 31.5% 32.5% 33.0% 33.4% 32.4% 33.1% 35% 1.2% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.0% 1.0% 30% 1.2% 0.8% 1.1% 1.2% 1.1% 1.3% 1.3% 0.6% 0.8% 0.8% 1.4% Other BBC 0.6% 0.6% 1.0% 1.1% 1.2% 1.3% 1.4% 1.5% 1.7% 1.5% 0.7% 0.9% CBeebies 25% 6.1% 6.1% 6.9% 7.1% 7.0% 6.9% 6.6% 6.5% 5.8% 6.7% 6.8% CBBC 20% BBC News 24

15% BBC Four BBC Three 21.3% 21.0% 21.7% 10% 19.5% 19.3% 20.0% 19.9% 20.4% 20.0% 20.2% 20.5% BBC Two 5% BBC One

0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: BARB. 2004-2009: All individuals, multichannel Network. 2010 - 2012: individuals in multichannel homes, network. 2013+: All Individuals, Network. Following digital switchover in 2012, from 2013 onwards all homes are multichannel homes. Source: BARB. Note: ‘Other’ includes BBC Parliament, BBC red button channels, BBC Olympics channels in 2012, BBC Choice, BBC HD and BBC Knowledge. The 24 BBC Olympics channels accounted for 0.21% share in 2012 . A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. HD and SD viewing included 57 Figure 2.58 ITV family shares in multichannel homes Audience share 22.0% 22.4% 22.2% 22.6% 22.7% 22.7% 22.7% 23.1% 22.3% 23.0% 22.0%

35% Other ITV

30% ITVBe

25% ITV Encore 0.5% 0.6% 1.0% 1.1% 1.0% 1.1% 1.1% 1.1% 1.2% 1.4% 1.4% 1.6% 1.2% 20% 2.0% 2.4% 1.8% 2.2% 2.4% 2.5% 2.6% CITV 2.3% 2.6% 2.4% 2.3% 2.6% 2.6% 2.7% 2.8% 2.7% 2.4% 15% ITV4

10% ITV3 18.8% 18.4% 17.5% 17.6% 17.2% 16.9% 16.6% 16.5% 15.7% 16.2% 15.6% 5% ITV2

0% ITV 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: BARB. 2004-2009: All individuals, multichannel network. 2010 - 2012: Individuals in multichannel homes, network. 2013+: All Individuals, network. Following digital switchover in 2012, from 2013 onwards all homes are multichannel homes. Note: ITV, ITV2, ITV3 and ITV4 include their +1 services. HD variants are included with all channels where applicable. ‘Other’ includes (when relevant) ITV Play, ITV News, Men & Motors and Plus. ITV Encore and +1 commenced reporting 09.06.14, ITVBe started reporting 08.10.14 and ITVBe+1 on 19.11.14. 14 Note: A new BARB panel58 was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. Figure 2.59 Channel 4 family shares in multichannel homes

Audience share 8.6% 9.6% 11.2% 11.2% 11.7% 11.5% 11.5% 11.6% 11.5% 11.1% 10.9% 14% 4seven

12% 0.6% 0.8% 1.0% 1.2% 0.5% 1.2% 1.1% 1.2% 10% 0.9% 1.0% 1.2% 1.2% 1.9% 1.0% 1.2% 1.4% 1.5% Total 1.6% 1.8% 1.8% 1.5% 1.5% 8% 1.2% 1.8% 1.9% 1.8% 0.8% 1.8% 0.8% 0.8% 1.9% 2.0% Total 6% 0.9% 0.9% 0.9% 0.8% E4 Total 8.2% 4% 7.3% 7.9% 7.4% 6.8% 6.4% 6.1% 5.9% 5.6% 5.0% 4.8% 2% Channel 4 +1

0% Channel4 (incl 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 S4C - 2009) Source: BARB. 2004-2009: All individuals, multichannel network. 2010 - 2012: individuals in multichannel homes, network. 2013+: All individuals, network. Following digital switchover in 2012, from 2013 onwards all homes are multichannel homes. Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. E4, More4 and Film 4 respective +1 channel shares are included. 4Seven launched 4tJuly 2012. Note: Following digital switchover in Wales in 2010 S4C ceased to carry Channel 4 content. S4C is therefore included in the Channel 4 figure in and prior to 2009 but not from 2010 onwards. S4C 2014 channel share = 0.1%. HD and SD viewing included. 59 Figure 2.60

Channel 5 family shares in multichannel homes Audience share 5.0% 5.3% 5.1% 5.6% 5.9% 6.0% 5.9% 5.9% 6.0% 6.0% 5.9% 14%

12% Channel 5+24 10% 5 USA 8%

6% 5* 0.6% 0.7% 0.8% 0.9% 1.0% 1.0% 1.0% 1.0% 4% Channel 5 5.3% 2% 5.0% 4.9% 4.6% 4.7% 4.7% 4.5% 4.4% 4.5% 4.4% 4.4%

0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: BARB. 2004-2009: All individuals, multichannel network. 2010-2012: individuals in multichannel homes, network. 2013+: All individuals, network. Following digital switchover in 2012, from 2013 onwards all homes are multichannel homes. Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. Channel 5+24 launched 4 February 2014. Channels include their +1 service and HD viewing shares.

60 Figure 2.61

Sky family shares in multichannel homes Audience share 10.6% 9.4% 8.7% 7.6% 6.8% 7.4% 8.1% 8.8% 8.3% 8.4% 8.2% 14%

12% Former Virgin TV channels* 10% 0.6% /Real Lives 2.9% 0.6% 8% 0.5% 1.2% 1.6% 1.3% 1.3% 2.4% 0.5% 0.6% 1.2% 2.7% 0.5% 0.7% 6% 2.2% 0.6% 0.6% 0.7% 0.7% 3.2% 2.4% 2.5% 2.1% 2.2% 2.3% 2.2% 2.2% 2.1% 4% 2.2% 1.6% /Two/Three 1.4% 1.4% 1.2% 1.2% 1.2% 1.2% 1.3% (Pick TV) Sky Movies channels 2% 3.7% 3.5% 3.2% 3.2% 2.7% 2.9% 2.7% 2.7% 2.7% 2.7% 2.6% 0% channels 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: BARB. 2004-2009: All individuals, multichannel network. 2010 - 2012: individuals in multichannel homes, network. 2013+: All individuals, network. Following digital switchover in 2012, from 2013 onwards all homes are multichannel homes. Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. *BSkyB took ownership of VMTV in June 2010, Virgin Media TV portfolio shares are included in the BSkyB figure for the whole of 2010 onwards. HD and SD viewing included.

61 Figure 2.62

UKTV family shares in multichannel homes Audience share 4.2% 4.0% 4.0% 3.9% 3.9% 4.0% 4.0% 4.0% 4.3% 4.5% 4.9% 14% Other UKTV 12% Really Drama 10% UKTV G2/Dave 8% Alibi 6% Eden 0.0% 0.0% 0.2% 0.0% 0.7% 4% 0.2% 0.4% 0.3% 0.2% 0.1% 0.0%0.1% 0.1%0.0% 0.0% 0.0% 0.3% 0.2%0.1% 0.2% 0.4% 0.3% 0.2% 0.7% 1.2% 1.3% 1.2% 1.1% 1.1% 1.3% 0.4% 0.3%0.2% 0.5% 1.3% Yesterday 0.4% 0.2%0.1% 0.6% 0.4% 0.4% 0.4% 0.8% 0.2%0.1% 0.5% 0.1%0.4% 0.1% 0.1% 0.1% 0.4% 0.4% 0.0% 0.6% 0.6% 0.6% 0.3%0.1% 0.2% 0.1% 0.1% 2% 0.0% 0.4% 0.4% 0.4% 0.6% 0.8% 1.0% 0.8% Home 0.0% 0.0%0.3% 0.2% 0.2% 0.1% 0.7% 1.9% 0.1%0.3% 0.5% 0.5% 0.5% 0.1% 0.1% 0.1% 1.6% 1.4% 1.2% 0.5% 0.5% 0.5% 0% 0.9% 0.7% 0.7% 0.6% 0.6% 0.5% 0.5% UKTV Watch 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 UKTV /G.O.L.D Source: BARB. 2004-2009: All individuals, multichannel network. 2010 - 2012: individuals in multichannel homes, network. 2013+: All individuals, Network. Following digital switchover in 2012, from 2013 onwards all homes are multichannel homes. Note: In 2008 figures, new channel names and shares have been matched to old channels. Dave went live in Oct 2007. Drama launched in July 2013 and is included in ‘Other’ Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. HD and SD viewing included. 62 Figure 2.63 Top channels by share, all homes: 2013-2014

Share Rank Share Rank Channel 2014 2014 2013 Channel 2014 2014 2013 BBC One 21.7% 1 1 Dave 1.2% 11 12 ITV 14.7% 2 2 Film4 1.2% 12 10 BBC Two 6.1% 3 3 ITV4 1.1% 13 16 Channel 4 4.8% 4 4 BBC News 1.0% 14 15 Channel 5 4.0% 5 5 More4 1.0% 15 14 ITV3 2.1% 6 6 Sky Sports 1 1.0% 16 13 ITV2 1.9% 7 7 Sky 1 1.0% 17 18 E4 1.4% 8 9 BBC4 0.9% 18 19 BBC Three 1.4% 9 8 5 USA 0.9% 19 20 CBeebies 1.3% 10 11 ITV +1 0.8% 20 21

Source: BARB. individuals 4+ Note: Includes viewing to HD variants but excludes viewing to channels’ +1 services

63 Figure 2.64 Age and gender profile of the 30 most-viewed channels, all homes: 2014

Older (% over 45 years old)

Drama BBC ITV3 Yesterday News 5 USA BBC1 BBC2 BBC ITV4 ITV More 4 Pick TV Four Sky News Quest Sky Sports 1 ITV+1 Channel 5 Film4 Channel 4 5* ITV2 Channel 4+1 Dave Sky Sports Sky 1 News E4 BBC Three E4+1

CBBC CBeebies % Female % Male

Younger (% under 45 years old)

Source: BARB Note: The profile of a channel is calculated relative to the television population in all homes. Includes viewing to HD variants but excludes viewing to channels’ +1 services

64 Figure 2.65 Opinion on the quality of programmes over the past 12 months (% of adults with a TV)

Stayed the 39 same 49 48 45 49 54 57 54 50 8 13 Improved 16 18 14 18 18 20 21 52 40 30 28 27 34 18 18 24 Got worse

All 16-24 25-34 35-44 45-65 55-64 65+ ABC1 C2DE Source: Ofcom Media Tracker 2014. ‘Don't know’ responses not charted. Q20 - Do you feel that over the past year television programmes have improved, got worse or stayed about the same? Base: All with any TV sets (2,016); 16-24 (285), 25-34 (316); 35- 44 (324) 45-54 (325); 55-64 (312); 65+ (454); ABC1 (1,045), C2DE (970). Prompted, single code. Significance testing shows any difference between any age group and all adults and any difference between socio-economic groups. 65 Figure 2.66 Top reasons given for programmes getting worse in past 12 months

Base: All those who said programmes had got worse (30% of adults with a TV) 80% Adults (16+) 16-34 35+ 70%

60%

50%

40%

30% 57 55 58 47 20% 43 42 32 34 32 26 30 10% 19 14 12 6 12 5 13 10 9 11 9 6 9 8 8 9 0% More repeats Lack of variety General lack Too many More bad More violence More sex More Other of quality reality shows language antisocial behaviour

Source: Ofcom Media Tracker 2014. Q22 - In what ways do you think that the television programmes have got worse over the past year? Base: All saying programmes ‘got worse’ over past year (639); 16-34 (114); 35+ (525). Unprompted, multimode. Only top individual responses are charted. Significance testing shows any difference between age groups.

66 Figure 2.67

Opinion on the amount of sex, violence and swearing on TV (% of adults with a TV)

7 6 13 1 3 Don't know 2

47 52 Too little 57

An acceptable amount

43 40 28 Too much

Sex Violence Swearing

Source: Ofcom Media Tracker 2014. Q46 - Do you think, in general, that there is too much, too little or an acceptable amount of each of the following on television: a) sex? b) violence? c) swearing? Base: All with any TV sets (2,016). Prompted, single code.

67