3. Radio and audio

0 Figure 3.1 UK radio industry key metrics

UK radio industry 2005 2006 2007 2008 2009 2010

Weekly reach of radio (% of population) 90.0% 89.8% 89.8% 89.5% 89.8% 90.6%

Average weekly hours per head 21.6 21.2 20.6 20.1 19.8 20.1

BBC share of listening 54.5% 54.7% 55.0% 55.7% 55.3% 55.2%

Total industry revenue £1,118m £1,126m £1,174m £1,137m £1,092m £1,123m

Commercial revenue £530m £512m £522m £488m £432m £438m

BBC expenditure £588m £614m £652m £649m £660m £685m

Radio share of advertising spend 3.3% 3.0% 2.9% 2.8% 2.8% 2.7%

DAB take-up (households) 11.1% 16.0% 22.3% 29.7% 33.4% 35.8%

Source: RAJAR (all adults age 15+), calculations based on figures in BBC Annual Report and Accounts 2010/11 note 2c (www..co.uk/annualreport), AA/Warc, broadcasters. Revenue figures are nominal. Figure 3.2

Radio industry revenue and spending 2005-2010

£ million 1174 1200 1118 1126 1137 1092 1123 1000 522 438 Total commercial 530 512 488 432 800

600

400 652 649 660 685 BBC expenditure 588 614 (estimated) 200

0 2005 2006 2007 2008 2009 2010

Source: Ofcom / operator data / BBC Annual Report 2005-2010 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. Figure 3.3

Commercial revenue percentage change 2009-2010

All Radio National advertising Local advertising Sponsorship 6% 4.5% 4% revenue 2% 1.4%

0% -0.4% -2%

-4%

Percentage change in in change Percentage -6% -5.4%

Source: Ofcom / operator data 2009-2010 Figure 3.4 BBC station expenditure percentage change 2009/10 – 2010/11 Annual % change of BBC radio-10% station expenditure0% 10% 20% 30%

BBC Radio 3 -6.1% BBC Radio 5 Live 1.3% BBC Asian Network 4.1% BBC Local/Regional 5.8% BBC Network average 5.8% BBC Radio 4 7.0% BBC Radio 1 9.8% BBC Radio 2 12.8% BBC Radio 4 Extra 15.5% BBC 6 Music 16.1% 1Xtra from the BBC 17.0% BBC Radio 5 Live Sports Extra 19.5% Source: BBC Annual Report 2010/11 note 2c (www.bbc.co.uk/annualreport). 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

Digital radio’s share of radio listening, Q1 2011

30% 26.5% 24.6% 24.8% 25.0% 25% 24.0% 2.0% 1.8% 2.2% 1.8% Digital 21.1% 21.1% 20.9% 1.9% 3.6% unspecified 2.9% 2.8% 3.1% 20% 2.1% 2.0% 1.7% 2.9% 4.1% 2.2% 2.1% 4.1% 4.3% 2.2% 4.0% 4.4% 15% 3.6% 3.6% 3.4%

DTV 10% 16.7% 15.1% 15.8% 15.3% 15.8% 13.1% 13.3% 13.7% 5% DAB

Digital radio platforms share of all radio hours hours radio all of share platforms radio Digital 0% Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Source: RAJAR / Ipsos MORI / RSMB Note: ‘Digital unspecified’ relates to listening to digital-only stations where the survey respondent has not 5 specified the listening platform used. Figure 3.6

Ownership of DAB set, Q1 2011

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

40%

30%

20% 38.2% 32.1% 34.5% 27.3% 10% 19.5% 13.6% 8.1% 0% Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011

Source: RAJAR / Ipsos MORI / RSMB Q1 2005-2011.

6 Figure 3.7 Take-up of equipment capable of receiving digital radio, Q1 2011

Year-on-year increase (pp) +2 +1 +4 Share of households 75% 93% 38%

90% Cable 11% 80% Dial-up 1% 70% 60% Terrestrial 38% 50% 40% Broadband 74% 30% 20% 43% DAB radio 38% 10% 0% Internet Digital TV DAB radio

Source: Research from: Ofcom, GfK and RAJAR Q1 2010

7 Figure 3.8 BBC iPlayer quarterly radio requests

Radio requests (millions) 120 105 100 96 94 95 84 84 28 On-demand 78 80 27 28 26 Simulcast 24 26 26 60

40 77 69 66 69 52 59 58 20

0 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

Source: Ofcom calculates based on BBC iStats http://www.bbc.co.uk/blogs/bbcinternet/bbc_iplayer_press_pack/

8 Figure 3.9

Change in listening hours between 2009 and 2010

All Radio All BBC All Commercial BBC network BBC local Nat commercial Local commercial 2010 weekly 1036m 571m 442m 480m 92m 115m 327m hours:

Share of all 100% 55.2% 42.6% 46.3% 8.9% 11.1% 31.5% radio hours:

10%

7.0%

5% 3.7% 2.8% 2.1% 1.9% Percentage change Percentage in hours listening 1.6% 1.4%

0%

Source: RAJAR, all adults (15+). Data based on calendar year 2009 - 2010 Figure 3.10

Changes in listening hours, 2010 vs. 2009, by age group

Share of all 100.0% 11.6% 13.9% 17.6% 18.1% 16.7% 13.9% 8.4% radio hours:

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

8% 6.29% 6% 3.86% 4.15% 4% 2.40% 2.14% 1.67% 2% 1.51% 0%

Percentage change Percentage in hours listening -2% -4% -4.31% -6%

Source: RAJAR, all adults (15+), data based on calendar years 2009 – 2010 Figure 3.11

UK commercial radio revenue and BBC radio spending

£ million 1118 1174 1137 1,200 1126 1092 1123 Total

1,000 BBC expenditure (estimated) 800 660 685 Total commercial 588 614 652 649 600 National commercial 530 522 400 512 488 438 274 268 271 432 Local commercial 246 201 210 169 153 156 200 142 136 136 Commercial 91 96 100 89 0 87 94 sponsorship 2005 2006 2007 2008 2009 2010

Source: Ofcom / operator data / BBC Annual Report 2005-2010 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 3.12

UK radio advertising spend and share of display advertising, 2008 – 2010

Revenue £m Share of all advertising

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

£800m 2.7% 2.8% 2.7% 3%

£600m 454 404 420 2% £400m

1% £200m

£0m 0% 2008 2009 2010

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

12 Figure 3.13

Commercial radio revenue per listener

£ per listener 20 £17.13 £16.59 £16.69 £15.70 15 £13.71 £13.33

10

5

0 2005 2006 2007 2008 2009 2010

Source: Broadcaster returns and RAJAR, 2005-2010. Figures are nominal. Figure 3.14

Number of commercial analogue licences owned, by group

Lincs FM Guardian Media 3.7% 4.7% 6-10 stations in group UTV 18.9% 5.1%

UKRD 6.7% 2-5 stations in group 9.1% 13.8%

Independent 15.8% Global Radio 22.2%

Source: Ofcom, June 2011 Figure 3.15 Share of all radio listening hours, Q1 2011

Percentage share of listening hours Orion, 1.0% Other, 8.9% Absolute, 1.5% UTV, 3.2% BBC network, 46.1% GMG, 4.4%

Bauer, 10.9%

Global, 16.3%

BBC local/regional, 8.7% Source: RAJAR, all adults (15+), year ending Q1 2011, does not include listening Figure 3.16 Commercial radio by weekly audience reach: Q1 2011

Weekly UK audience reach 38.2% 25.9% 10.2% 8.0% 4.3% 2.6% 1.2%

Annual change + 2.2pp + 1.7pp +0.7pp +0.9pp +0.9pp +0.2pp -0.1pp in reach

20,000 45% 40% 15,000 35% 30%

thousands) 25% ( 10,000 19,727 20% 13,349 15% 5,000 10% 5,274 4,133 5% 2,224 1,297 639 Weekly reach Weekly 0 0% Global Bauer GMG UTV Absolute Orion Lincs FM

Source: RAJAR, all adults (15+), Q1 2011. Note: pp = percentage points increase Figure 3.17 Weekly reach of BBC stations: Q1 2011

Average weekly listening (% UK adults), and year on year change

BBC Radio 2 28.2% (- 0.2%) BBC Radio 1 22.9% ( 0.0%) BBC Radio 4 21.0% (+ 1.4%) BBC Local/Regional 19.8% (+ 0.3%) BBC Radio FIVE LIVE 13.1% (+ 0.3%) BBC Radio 3 4.4% (+0.5%) BBC World Service 3.5% (+1.0%) BBC 6 Music 2.5% (+ 0.5%) BBC 7 2.2% (+ 0.2%) 1Xtra from the BBC 1.7% (+ 0.4%) BBC Asian Network UK 1.0% (+0.3%)

0% 10% 20% 30%

Source: RAJAR, all adults (15+), Q1 2011 Figure 3.18

BBC radio stations: spend on radio content, 2010/11

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

BBC English Local Radio 114.8 (+4.2%) BBC Radio 4 92.8 (+7.0%) BBC Radio 5 Live 55.4 (+0.7%) BBC Radio 2 46.7 (+15.6%) BBC Radio 3 37.3 (-8.6%) BBC Radio 1 36.7 (+14.0%) BBC Radio 23.8 (-4.4%) BBC Radio Ulster / Foyle 16.2 (+12.5%) BBC Radio 13.0 (-0.8%) BBC Radio Cymru 11.8 (-4.1%) BBC Asian Network 8.6 (-3.4%) BBC 1 Xtra 7.4 (+13.8%) BBC Radio 6 Music 7.3 (+12.3%) BBC Radio 4 Extra 5.3 (+6.0%) BBC Radio nan Gàidheal 3.8 (-9.5%) BBC Radio 5 Live Sports Extra 2.5 (no change) 0123456781091112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960616263646566676869707172737475767778798081828384858687888990919293949596979810099101102103104105106107108109110111112113114115116117118119120121122123124125126127128129130131132133134135136137138139140141142143144145146147148149150

Source: BBC Annual Report 2010/11 Part 2 (www.bbc.co.uk/annualreport). Figure 3.19

BBC radio stations: cost per listener hour of programmes, 2010/11

Cost (pence) per listener hour, (and change year on year)

BBC Radio nan Gàidheal 13.7 (-3.0p) BBC Radio Cymru 12.9 (-0.8p) BBC Radio Scotland 6.8 (-1.0p) BBC Asian Network 6.7 (-1.8p) BBC Radio 3 5.9 (-0.4p) BBC Radio Wales 5.7 (-0.2p) BBC Radio Ulster / Foyle 4.8 (+0.5p) BBC 1 Xtra 3.9 (+0.3p) BBC English Local Radio 3.2 (no change) BBC Radio 5 Live Sports Extra 2.6 (+0.4p) BBC Radio 5 Live 2.1 (-0.2p) BBC Radio 4 Extra 1.7 (-no change) BBC Radio 4 1.4 (+0.1p) BBC Radio 6 Music 1.4 (-1.3p) BBC Radio 1 0.7 (+0.1p) BBC Radio 2 0.5 (no change) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Source: BBC Annual Report 2010/11 Part 2 (www.bbc.co.uk/annualreport). Figure 3.20 UK radio stations broadcasting on analogue, DAB digital radio, and community radio, July 2010

Type of station AM FM AM/FM total

Local commercial 53 245 298

UK-wide commercial 2 1 3

BBC UK-wide networks 1 4 5

BBC local and nations 36 46 46

Community radio 4 188 193

TOTAL 96 484 545

Source: Ofcom, July 2011 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 3.21 Community radio income, by source Community radio stations’ income 2009/10

Income by type The average community radio station income was around £74,500 Other 20% (£14,500) On-air advertising and sponsorship 22% (£16,500)

Donations 14% (£10,500)

Grants 35% (£26,000) SLAs 9% (£7,000)

Source: Ofcom, community station revenues 2009/10 Figure 3.22

Recorded music retail revenues: 2007-2010

Revenues (£bn)

1.75 CAGR(%) 1yr 3yr 1.5 1.38 1.32 1.31 0.06 1.25 0.08 0.05 0.06 1.20 -8.6 -4.5 Total 0.10 0.13 0.05 0.14 1 -10.7 -6.2 Music videos 0.75 9.4 18.6 Singles 1.23 1.17 1.13 0.5 1.01 -10.6 -6.5 Albums 0.25 0 2007 2008 2009 2010

Source: Entertainment Retailers’ Association yearbook, 2011. Figures are nominal.

22 Figure 3.23

Distribution of recorded music retail revenues: 2007-2010

Total recorded music revenues £1.32bn £1.27bn £1.26bn £1.15bn 100% 8% 13% 19% 24% Albums Albums 80% 47% 60% Singles 92% 87% 81% Digital share 40% 76% Singles 53% 20% Physical share Revenue share (%) Revenue 0% 2007 2008 2009 2010 Single/album split in 2010

Source: Entertainment Retailers’ Association yearbook 2011 Note: This chart does not include revenues from music videos.

23 Figure 3.24

Recorded music sales by volume: 2007-2010

Sales volumes (million units)

175 161.8 152.8 150 144.7 139.8 6.2 134.6 10.3 124.8 125 16.1 115.2 21.0 100 86.6 159.7 Digital 75 149.7 138.5 Physical 129.5 118.5 110.3 50 103.8 78.0 25 0 8.6 4.9 3.1 2.1 2007 2008 2009 2010 2007 2008 2009 2010 Albums Singles

Source: Entertainment Retailers’ Association yearbook 2011

24 Figure 3.25

Digital music revenues, by business model: 2005-2010

Revenues (£m) CAGR(%) 300 1yr 5yr £259.7 5.9 250 £225.9 18.5 15 35 Total 6.6 200 19.6 £169.8 -11 -15 Mobile sub- 10.9 scription 150 19.4 £112.4 -6 7 Mobile DTO £89.7 10.7 226.0 100 21.4 189.7 £56.9 14.1 -7 15 Online sub- 22.7 130.0 scription 50 13.5 72.1 46.9 19 54 Online DTO 0 2005 2006 2007 2008 2009 2010

Source: Screen Digest Note: excludes revenue from ad-supported services. Due to different data sources this chart is not directly comparable with previous charts. Figures are nominal.

25 Figure 3.26

Reach of radio, by sector

Percent of population

100% 91.6% 89.7% 90.0% 90.4% 89.3% 89.7% 89.6% 90.6% All radio 66.5% 66.8% 65.9% 67.9% 80% 65.8% 66.1% 64.9% 67.1% All BBC 63.8% 62.6% 62.9% 61.0% 61.5% 61.2% 63.7% 66.0% All commercial 60% 58.2% 60.6% 61.8% 58.3% 57.6% 58.1% 59.0% 58.5% BBC network 52.0% 50.8% 51.7% 48.9% 49.5% 49.3% 51.5% 52.9% 40% 28.5% 30.9% Local commercial 26.6% 26.0% 26.7% 27.1% 26.9% 25.4% 20% National commercial 21.0% 21.1% 20.6% 19.5% 18.7% 17.3% 18.4% 19.8% BBC nations / local 6.1% 0% 5.2% 5.7% 6.0% 6.2% 5.9% 6.3% 6.3% 2004 2005 2006 2007 2008 2009 2010 Q1 2011 Other

Source: RAJAR, all adults (15+), 2004-2010 calendar years and Q1 2011 Figure 3.27

Share of listening hours, by sector

Percent of listening hours

60% 55.1% 54.4% 55.4% 55.7% 55.2% 55.2% 55.0% 54.0% All BBC 43.0% 44.0% 43.2% 45.4% 46.4% 46.7% 46.3% 46.2% BBC Network 44.2% 40% 42.8% 43.2% 42.4% 42.2% 42.6% 43.4% 42.6% BBC local / nations 34.2% 32.7% 32.8% 31.1% 31.6% 32.2% 31.5% 31.0% All commercial 20% 11.0% 11.1% 10.4% 11.3% 10.6% 10.4% 11.1% 11.7% National commercial

8.9% 10.0% 10.1% 10.5% 10.0% 9.3% 8.5% 8.8% Local commercial 0% 2.2% 2.2% 1.8% 2.1% 2.3% 2.1% 2.2% 2.4% Other 2004 2005 2006 2007 2008 2009 2010 Q1 2011

Source: RAJAR, all adults (15+), 2004-2010 calendar years and Q1 2011 Figure 3.28

Changes in listening hours by sector: 2005 - 2010

Percentage change in listening hours

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

20%

10% 5.2% 2.5% 0% - 2.2% -2.9% -4.3% -10% -7.3%

-20% -21.0% -30%

Source: RAJAR, all adults (15+), data based on calendar years 2005 and 2010 Figure 3.29 Average weekly listening by demographic, year ending Q1 2011

Weekly listening hours 25 Average listening per week 20.3 hours 20

15 23.9 23.3 21.4

22.2 21.4 21.0 10 20.7 19.2 19.7 17.5 14.6 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 2011, average weekly listening hours per head of population Figure 3.30 Changes in listening hours by age: 2005-2010

Percentage change in listening hours

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

10% 6.9%

5% 3.6% 2.6%

0% -0.6%

-5% -2.9% -5.8% -8.2% -10%

-15% -14.5%

Source: RAJAR, all adults (15+), data based on calendar years 2005 and 2010 Figure 3.31 Most listened-to radio stations, year ending Q1 2011

Average weekly reach (millions) % change year on year

15 +1.7% Radio group

+3.9% BBC 12 +4.7% +3.9% Global 9 +5.5% 14.0 +6.7% UTV 6 11.7 10.5 9.5 +7.2% Bauer +4.6% +6.5% 6.8 +4.6% +9.4% +11.2% + 66.3% +11.6% 3 5.8 +11.0% -3.4% +1.9% 2.9 Absolute 2.1 2.1 2.0 2.0 1.8 1.5 1.5 0 1.2 1.1 1.0 The Hits The Classic FM Classic Magic 105.4 Magic Kiss 100 Kiss FM BBC Radio2 BBC Radio1 BBC Radio4 BBC Radio3 BBC Radio7 BBC BBC6 Music Heart London Capital Absolute SportsExtra) BBC World Service World BBC All Local BBC Radio Radio BBC Local All BBC Radio Five Live (inc RadioFive BBC

Source: RAJAR, all adults (15+), year ending Q1 2011.

31 Figure 3.32

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% 80% 9.5% Digital 12.5% 9.3% 8.1% 60% Unspecified 40% 72.7% 67.5% 66.7% 65.4% Analogue 20%

0% Q1 2008 Q1 2009 Q1 2010 Q1 2011

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 3.33

Digital radio monthly listening by age group

Digital radio listening by age group (at least monthly)

60%

40%

58% 53% 50% 53% 50% 20% 42% 25%

0% All 16+ 16-24 25-34 35-54 55-64 65-74 75+

Source: Ofcom research, Q1 2011 Base: All who listen to the radio (n=2811) Q: Use digital radio at least monthly

33 Figure 3.34 Audience profiles and platform split, by sector and station, year ending Q1 2011

Share All Radio / BBC / commercial National commercial BBC stations of radio listening 100% 46% 9% 11% 32% 4% 2% 1% 9% 16% 1% 12% 5% 1% 100% 8 7 9 8 9 10 10 7 8 8 7 7 8 14 16 18 80% 25 28 26 21 29 28 Not Stated 26 38 48 55 60% 100 Digital 40% 78 75 73 67 65 64 63 70 64 66 54 20% 44 39 Analogue 0%

Source: RAJAR, Q1 2011, UK Adults aged 15+ Figure 3.35 Most listened-to digital-only stations, Q1 2011

Average weekly reach Q1 2011 (millions) % change year on year

1.5 +27% +10% +8% +28% +35% +17% +15% +40% +136% +5% +12% new +26% -16% +14% new

Radio group

1.0 Bauer BBC 1.3 1.2 1.1 1.1 Independent / other 0.5 0.9 Absolute 0.8 0.8 0.6 0.6 Global 0.5 0.3 0.3 0.3 0.2 0.2 0.2 0.0 Q Chill Heat The Hits The Jazz FM Jazz NMERadio Planet Rock Planet BBC6 Music BBC Radio7 BBC Absolute 80s Absolute Classic Rock Classic Absolute Radio Absolute Smash Hits Smash 1Xtrafrom the BBC Absolute Absolute Five Live Extra Live Sports Five Source: RAJAR, Q1 2011, UK adults aged 15+ Figure 3.36 Share of listening hours, by nation Scotland Wales N Ireland UK Listening hours share for BBC and commercial stations, local/national 100% 2% 2% 1% 9% 2% Other 26% 31% 32% 80% 40% 34% Local 11% Commercial 60% 11% 11% 12% 8% National 8% 13% 9% Commercial 40% 8% 22% BBC Local/National 47% 50% 20% 46% 37% BBC Network 27%

0% England Scotland Wales Northern UK TOTAL Ireland

Audience share by Average weekly category listening 22.3 hours 21.8 hours 23.3 hours 22.2 hours 22.3 hours (Year to Q1 2011) % share BBC & Reach 90.9% 88.1% 92.9% 92% 90.8% commercial, local & Source: RAJAR, All adults (15+), year ending Q1 2011 Note: Audience share by category national (year to Q1 2011) % share BBC & commercial, local & national

36 Figure 3.37

Location of listening – year to Q1 2011

Work/Elsewhere 15% In-vehicle 20%

Home 65%

Source: RAJAR, year ending Q1 2011, UK adults 15+ Figure 3.38

Number of analogue and digital radio sets sold

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

Share of sales 81.5% 18.5% 79.9% 20.1% 77.5% 22.5% 79.1% 20.9% 77.7% 22.3%

10 8.3 7.7 7.2 7.3 8 6.6 Analogue sets 6 DAB sets 4 1.7 2.1 2.1 1.9 1.9 2 0 Year to Q1 Year to Q1 Year to Q1 Year to Q1 Year to Q1 Radio set sales (millions) set (millions) sales Radio 2007 2008 2009 2010 2011

Source: GfK sales data, 2006-2011. Note: Figures cover GB only, GfK Panelmarket data represents 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 3.39

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

Don't know 3% No 14%

Yes 83%

Source: Ofcom research 2011

39 Figure 3.40

Likelihood of buying a DAB radio within the next 12 months

Percentage of respondents who listen to the radio and have any active radio sets at home but have no DAB set in the home 60% 51% 50%

40%

30% 28% 21% 20%

10%

0% Likely to buy Unlikely to buy Don't know

Source: Ofcom research, Q1 2011 Base: Those who listen to the radio and have any active radio sets but have no DAB sets in the home (n=1304) QP12: How likely is it that your household will get a DAB radio in the next 12 months?

40 Figure 3.41

Unique audience of selected music streaming sites

Unique audience (m) Growth (%) Apr 10– Apr 11 1.75 7 Spotify 1.5 -27 Last.fm 1.25 1 -18 We7.com

0.75 49 Grooveshark 0.5 -100 music.myspace. 0.25 com -99 songs.sky.com 0 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11

Source: UKOM / Nielsen. Month of April 2011, home and work panel. Applications included.

41 Figure 3.42 Audio internet usage

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

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

QE10A. Which, if any, of these do you or members of your household use the internet for whilst at home? Source: Ofcom research, Q1 2011 Base: Those with access to the internet at home (n= 2534)

42 Figure 3.43

Time spent using selected music services and media players

Time per person (hours) 3:00:00 Spotify (App) iTunes (App)

Windows Media 2:00:00 Player (App) We7.com

Grooveshark 1:00:00 Napster

Last.fm

0:00:00 music.myspace.c Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 om

Source: UKOM/Nielsen. Month of April 2011. Home and work panel. Applications included.

43 Figure 3.44 MP3 player/iPod ownership and personal use

% of respondents Personal use Ownership 50% 45% 39% 40% 40% 33% 32% 30% 30% 26% 27% 20% 20% 18%

10%

0% UK England Scotland Wales 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? Source: Ofcom research, Q1 2011 Base: All adults aged 16+ (n = 3474 UK, 1983 England, 487 Scotland, 493 Wales, 511 Northern Ireland)

44