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IWA Cardiff Media Summit 2017 the Future of Media in Wales

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IWA Cardiff Media Summit 2017 the Future of Media in Wales IWA Cardiff Media Summit 2017 The Future of Media in Wales #IWAMedia Wales – Media • Availability of communications better, but range of content much narrower • BBC & ITV output & spend on English language TV down, programme range narrower • S4C - first ever funding cut • Ownership of commercial radio consolidating - severe drop in locally originated output • Print circulations of Welsh newspapers falling; monetising online usage a challenge • Digital platforms increased access to news, but forensic capacity of journalism down #IWAMedia Wales – Media Challenges • Delivering portrayal • Extending presence of Welsh issues in radio • Implications if indie production moves to 2 main owners– a broadcaster & private capital • Consultation process on Ofcom’s proposal for BBC Operating Licence • Effective NEDs for BBC Wales • Sustaining plurality of professional journalism at local & Wales level • Wales in network news • Coherent, holistic Welsh-language service #IWAMedia www.doo.vote/iwamedia doopoll .co The Future of Media in Wales IWA Media Summit 2017 Claire Enders [email protected] 29 March 2017 Some of our subscribers Film/Television Publishing Music/Radio Funds 21st Century Fox, Arqiva, Archant, Cedar, Centaur, D C Bauer Radio, BMG Rights Aberdeen Asset BBC, BBC Trust, BBC Thomson, DMGT, Dorling Management, Communicorp, Management, Baillie Worldwide, Bein Sports, Kindersley, Dow Jones, ESI EMI Music Publishing, Gifford, Cedar Rock Bertelsmann, Box Plus, Media, Financial Times, Pandora, PRS for Music, Sony Capital, Cenkos Channel 4, Digital UK, Future, Guardian Media Music Entertainment, Spotify, Securities, Highfields Discovery Communications, Group, Haymarket, Hearst Universal Music, Wireless Capital Management, Endemol Shine, Fox Magazines, Magnetic Media, Group LionTree, Morgan Stanley Networks, Foxtel, Freeview, Holtzbrinck, Immediate Investment Management, IMG Media, ITV, Ludorum, Media, Johnston Press, Professional Services Veritas Investment Miramax, NBCUniversal, News UK, Newsworks, NLA Accenture, Afiniti, Allen & Management, CapeView ProSiebenSat.1, Scripps, Media Access, Penguin Overy, Atos, Baringa Partners, Capital LLP SevenOne Media, Sky, Sony Random House, Telegraph Bain & Co, Deloitte Pictures, STV, Turner Media Group, Time Inc, Consulting, Edelman, Ernst & Investment Banks Broadcasting, UKTV, Viacom, Trinity Mirror, Which? Young, KPMG, Linklaters, Allen & Co, Barclays Virgin Media, Vivendi, Walt McKinsey, Miles 33, OC&C Capital, BNP Paribas, Disney, Warner Bros, YouView Telecoms Strategy, Oliver & Ohlbaum, Citigroup, Lepe Partners, BT, EE, H3G, Liberty Global, PwC, Russell Reynolds, Tata Moelis & Co, NM Agencies Openreach, Post Office, Consultancy Services, Venture Samsung, TalkTalk Group, Consulting, XIX Entertainment Rothschild, The Raine Dentsu Aegis, Engine, Grey, Group GroupM, GTB, Hogarth & Telefónica, Tesco Telecoms, Utility Warehouse, Ogilvy & Mather, J. Walter Tech Vodafone, Vonage UK AutoTrader, DAZN, Facebook, Private Equity/VC Thompson, Kantar, Google, Jobsite, Microsoft, Apax, Cinven, Gloo Karmarama, Kinetic, MEC, M/ Public Sector NTT Data, RadiumOne, Networks, Permira Six, Maxus, Mediacom, DCMS, EBU, European Yahoo! Advisors, Providence Mindshare, Publicis, WPP, Commission, Ofcom, Equity, Usaha Tegas Wunderman, Xaxis, Young & National Audit Office Rubicam The Future of Media in Wales, March 2017 6 The UK is connecting across multiple devices UK connectivity: take up 100% 90% 85% 80% 73% 70% 64% 60% 58% 50% 40% 30% 20% 10% 0% 2011 2012 2013 2014 2015 2016 Home Internet use Smartphone Tablet Laptop 16-34s Home Internet use 16-34s Smartphone [Source: Ofcom Tech Trackers H2 or Wave 3] The Future of Media in Wales, March 2017 7 17 billion extra hours online by 2020, 75% on mobile Total internet consumption (hours, bn) 90 80 70 60 50 40 30 20 10 0 2012 2013 2014 2015 2016 2017f 2018f 2019f 2020f Excludes offline app and TV-based usage; PC 6+, smartphone/tablet 8+ PC Tablet Smartphone [Source: Enders Analysis based on comScore] The Future of Media in Wales, March 2017 8 Smartphones have created new consumption habits In the last week used a mobile phone to… 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Jul-Sep 2016 Base: 2,893 adults 16+ 16-34 Adults [Source: Ofcom ‘Tech Tracker H2 2016’] The Future of Media in Wales, March 2017 9 Under 45s spend more time online than watching TV Average time online by device and age, per capita, 2016 (mins/day) 350 300 263 250 29 237 212 32 200 23 190 34 142 324 150 122 123 118 235 83 100 32 183 157 119 47 50 92 83 66 73 39 0 18-24 25-34 35-44 45-54 55+ Television PC Smartphone Tablet [Source: Enders Analysis, comScore, BARB/Infosys+] The Future of Media in Wales, March 2017 10 Social media usage is becoming the norm Title Frequency of vising social media sites (%, 2015) 100% 90% 85% 78% 80% 9% 70% 14% 60% 60% 36% 11% 50% 50% 37% 14% 40% 30% 36% 22% 19% 20% 39% 27% 6% 10% 13% 15% 10% 0% 3% 16-24 25-34 35-44 45-54 55+ Base: All adults More than 10 times a day 2-10 times a day Once a day [Source: Ofcom Adults media use and attitudes 2016] The Future of Media in Wales, March 2017 11 Rise of global media players 2007 2017 The Future of Media in Wales, March 2017 12 Video viewing is moving slowly away from the TV set Reported daily average viewing time to the TV set (2010=100) 110 105 100 100 99 95 90 88 85 84 80 75 75 70 67 65 60 2010 2011 2012 2013 2014 2015 2016 Individuals Children Adults 16-34 Adults 35-54 Adults 55+ [Source: Enders Analysis, BARB/InfoSys+] The Future of Media in Wales, March 2017 13 Broadcasters will still have over 80% viewing share in 2026 Average video viewing across UK population, 2011-2026f (mins/day) 350 300 250 200 150 100 50 0 2016 2021f 2026f 2016 2021f 2026f 2016 2021f 2026f Individuals 4+ Adults 16-34 Adults 55+ Broadcaster SVOD Other online video [Source: Enders Analysis] The Future of Media in Wales, March 2017 14 Newspaper’s circulation continues to decline Newspaper circulation volumes per week (m) 120 111.0 104.9 97.9 100 89.5 43.4 82.2 41.2 80 76.8 37.4 71.3 32.9 30.1 13.3 28.5 60 11.7 26.6 12.0 11.3 10.9 10.4 40 9.9 35.3 33.9 30.9 28.8 25.8 23.5 21.2 20 19.0 18.1 17.6 16.5 15.4 14.4 13.6 0 2009 2010 2011 2012 2013 2014 2015 Mid-Market Popular Quality Regional [Source: Enders Analysis based on ABC] The Future of Media in Wales, March 2017 15 £31 in print revenue lost for every £1 gained in digital Digital gain versus print loss in national newspapers (£m) 40 34 30 30 20 5 3 0 -20 -40 -60 -80 -100 (97) (95) -120 -140 (130) (128) -160 (154) 2012 2013 2014 2015 2016 Q1-Q3 Print loss Digital gain [Source: Enders Analysis, AA/WARC] The Future of Media in Wales, March 2017 16 Access to News is changing fast Platforms used for news ‘nowadays’, 2013-2016 90% 80% 78% 69% 70% 60% 50% 48% 40% 40% 35% 33% 32% 29% 30% 20% 10% 0% TV Newspapers Radio Any internet or apps 2013 2016 [Source: Ofcom ‘News consumption in the UK’] The Future of Media in Wales, March 2017 17 Social media has increasingly important role in online news Online sources used for news, 2016 Online TV and radio companies 48% Social media sites 42% Search engines 36% Online newspapers 31% Online news aggregation sites 18% Online news organisations 16% Online news magazines 7% Blogs 4% Base: 1,393 adults who use the internet for news nowadays, Nov 2016 [Source: Ofcom ‘News Research 2016’] The Future of Media in Wales, March 2017 18 Press to online advertising substitution is clear Share of advertising by medium (%) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% National newspapers Other press Online TV Other media [Source: Enders Analysis, AA/WARC] The Future of Media in Wales, March 2017 19 The Future of Media in Wales?? The Future of Media in Wales, March 2017 20 Press in Wales is becoming less reliant on print Wales’ newspapers circulation per week (m) 14 12.9 0.3 11.7 12 2.3 0.3 11.0 0.3 2.1 10.1 10 1.9 0.3 9.0 1.7 0.3 1.5 7.7 8 0.2 7.0 1.2 0.2 1.1 6 10.6 9.7 9.1 8.4 4 7.6 6.5 5.8 2 0 2009 2010 2011 2012 2013 2014 2015 Paid daily titles Paid Sunday Free [Source: Enders Analysis] The Future of Media in Wales, March 2017 21 Impressive digital audiences, but less engagement Monthly audience of online sites, 000s (LHA) & time spent per user, mins (RHA), Feb 2017 The Future of Media in Wales, March 2017 22 Welsh voices are few and far between in radio Share of radio listening in Wales, Q4 2016, % 6.2 BBC Produced in Wales 2.3 Welsh language [VALUE].0 Other Welsh licences but part of networks BBC Radio Wales BBC Radio Cymru Nation Broadcasting N.B. Swansea Sound on AM has 12 hours of Welsh language programming a week [Source: RAJAR] The Future of Media in Wales, March 2017 23 The PSBs are highly viewed… “Regional news progs provide a wide range of good Early Evening News programme quality news about my area” (% rating for delivery) audience share (%) 76 35 75 29.9 29.9 75 30 75 74 25 74 21.9 74 20 18.8 73 73 15 73 72 72 10 72 5 71 71 0 BBC One ITV Wales BBC One ITV Wales 2014 2015 2015 2016 Note: Individuals 4+, Includes HD variants, excludes +1 variants [Source: Ofcom PSB Annual Report 2016] [Source: Ofcom] The Future of Media in Wales, March 2017 24 Contributing to plurality of voice and the creative sector External Commissions Internal Commissions Plurality of voice • Welsh indies T/O ~ £37m • BBC Studios • ITV Cymru nearly 300 • 18 indies produced • ITV Cymru hours network programming • Both also supply S4C • BBC TV nearly 500 hours for PSBs in 2015 • ITV Studios acquisition of • S4C programming from: • C4 investment £8m on TwoFour & Boom • Indies 65 hours • BBC Studios •
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