3. Radio and audio

1 Figure 3.1 UK radio industry key metrics 2004-2009

UK radio industry 2004 2005 2006 2007 2008 2009

Weekly reach of radio (% of population) 90.3% 90.0% 89.8% 89.8% 89.5% 89.8%

Average weekly hours per head 21.9 21.6 21.2 20.6 20.1 19.8

BBC share of listening 55.5% 54.5% 54.7% 55.0% 55.7% 55.3%

Total industry revenue (£m) 1,158 1,156 1,126 1,175 1,131 1,092

Commercial revenue (£m) 551 530 512 522 488 432

BBC expenditure (£m) 607 626 614 653 643 660

Radio share of advertising spend 3.5% 3.3% 3.0% 2.9% 2.7% 2.8%

DAB digital radio take-up (households) 5% 10% 16% 22% 30% 33%

Source: Ofcom, RAJAR 2008 (adults aged 15+), BBC, WARC, radio operators 2008 Figure 3.2

Digital radio’s share of radio listening, Q2 2010

Year-on-year increase (percentage points)

+ 3.5 + 2.7 + 0.5 + 0.7 + 0.3 25

20

15 24.6 10 15.8 5 4.1 2.9 1.8 0

Digital radio platforms share of all radio hours hours radio all platformsofshare radio Digital All digital DAB DTV Internet Digital unspecified

Source: RAJAR (adult listeners 15+), Q2 2010 Note: ‘Digital unspecified’ relates to listening to digital-only stations where the survey respondent has not specified the listening platform used. 3 Figure 3.3

Ownership of DAB set, Q2 2010

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

40%

30%

20% 33.0% 35.3% 27.3% 10% 20.3% 15.3% 9.1% 4.4% 0% Q2 2004 Q2 2005 Q2 2006 Q2 2007 Q2 2008 Q2 2009 Q2 2010

Source: RAJAR / Ipsos MORI / RSMB Q1 2004-2010.

4 Figure 3.4

Listening to podcasts

Weekly podcasting (percentage adults) 8.1% 8.2% 8.6% 7.3% 7.1% 3.8%

0 Oct 2007 May 2008 Oct 2008 May 2009 Nov 2009 June 2010

Source: RAJAR / Ipsos MORI, ‘Measurement of Internet Delivered Audio Services (MIDAS 6)’, conducted during June 2010, and previously Nov 2009, May 2009, October 2008, May 2008, and October 2007. Figure 3.5

Proportion of listening time, by age and activity

Live radio on a TV set 55+ Radio on a radio set

Radio on a computer 45-54s Streamed music on a computer

25-44s Downloaded audio on a computer

Downloaded audio on a mobile phone 16-24s Radio on a mobile phone

ALL 16+ Streamed music on a mobile phone Audio on a music centre

0% 20% 40% 60% 80% 100% Radio on a handheld device

Other audio on a handheld device

Source: Ofcom research June 2010 Base = All respondent days: 16+ = 7966; 16-24s = 1106; 25-44s = 3003; 45-54s = 1484; 55+ = 2373

6 Figure 3.6

BBC and commercial listening / income, indexed against 2004 figures Listening hours and radio income / funding (as an index from 2004)

140 124.2 123.6 125.6 117.0 BBC radio expenditure 120 111.9 101.3 100.8 99.5 98.6 97.8 BBC radio listening hours 100 Commercial listening hours 97.2 94.7 80 96.2 95.4 89.6 89.9 92.9 92.9 Commercial radio revenues 60 88.6 40 78.4

20

0 2004 2005 2006 2007 2008 2009

Source: Listening data based on RAJAR (Adults 15+). Funding share data based on commercial radio revenues and estimated BBC expenditure on radio for 2009. Figure 3.7

Change in listening hours 2008-2009

All Radio All BBC All Commercial BBC network BBC local Nat commercial Local commerc

Share of all 100% 55.3% 42.3% 46.6% 8.7% 10.6% 31.8% radio hours:

10%

5%

0.4% 1.1% 0% -0.4% 0.0% -1.2%

Percentage change Percentage in hours listening -5% -3.2%

-10% -9.0%

Source: RAJAR, (all listeners aged 15+). Data based on calendar year 2008 - 2009 Figure 3.8

Changes in listening hours, 2009 vs. 2008, by age group

radio hours: 93.0% 7.0% 11.4% 12.7% 16.5% 16.9% 35.5%

All adults 15+ Children 4-14 15-24 25-34 35-44 45-54 55+ 5.8% 6%

4% 2.1% 2% 1.2% 0% -0.4% -0.4% -2%

-4% -3.1% -4.2% -6%

Percentage change in in change Percentage listening hours Source: RAJAR , data based on calendar years 2008 – 2009 Figure 3.9

UK commercial radio revenue and BBC radio spending

£ million 1174 1,200 1076 1118 1126 1137 1092 Total

1,000 BBC expenditure (estimated) 800 652 649 660 Total commercial 588 614 600 525 National commercial 551 530 512 522 400 488 432 286 274 268 271 Local commercial 246 201 177 169 153 156 200 142 136 Commercial 100 94 0 88 87 91 96 sponsorship 2004 2005 2006 2007 2008 2009

Source: Ofcom / operator data / BBC, 2004-2009 Notes: BBC expenditure figures are estimated by Ofcom based on figures supplied by the BBC; figures in the chart are rounded. Revenue £m Share of all advertising

Figure 3.10

UK radio advertising spend and share of display advertising, 2007 – 2009, (based on 2005 prices)

Revenue £m Share of all advertising

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

£800m 2.9% 2.8% 2.8% 3%

£600m 474 420 2% £400m 365

1% £200m

£0m 0% 2007 2008 2009

Source: WARC (World Advertising Research Council), data based on constant 2005 prices

11 Figure 3.11

Commercial radio revenue per listener

£ per listener 20 £17.60 £17.13 £16.59 £16.69 £15.70 15 £13.71

10

5

0 2004 2005 2006 2007 2008 2009

Source: Licensee revenue data and RAJAR listening data, 2004-2009 Figure 3.12

Recorded music retail revenues, 2006-2009

Revenues (£bn)

1.75 1.63 CAGR(%) 0.09 1yr 3yr 1.5 0.08 1.38 1.32 1.31 0.06 0.08 0.05 0.06 -0.8 -6.9 Total 1.25 0.10 0.13 1 12.7 -15.8 Music videos 0.75 1.45 27.4 15.6 Singles 1.23 1.17 0.5 1.13 -3.8 -8.0 Albums 0.25 0 2006 2007 2008 2009

Source: Entertainment Retailers’ Association yearbook, 2010.

13 Figure 3.13

Distribution of recorded music retail revenues, 2006-2009

Total recorded music revenues £1.54bn £1.32bn £1.27bn £1.26bn 100% 4% 8% 13% 19% Albums 80% Albums 50% 60% Singles 96% 92% 87% 81% Digital share 40% Singles 50% 20% Phsyical share Revenue share (%) Revenue 0% 2006 2007 2008 2009 Single/album split in 2009

Source: Entertainment Retailers’ Association yearbook 2010 Note: This chart does not include revenues from music videos.

14 Figure 3.14

Recorded music sales by volume, 2006-2009

Sales volumes (million units)

175 162.3 2.8 152.8 150 144.7 139.8 6.2 134.6 10.3 125 16.1 115.2

100 86.6 Digital 75 159.5 66.9 149.7 138.5 Physical 129.5 118.5 110.3 50 78.0 53.1 25 13.8 0 8.6 4.9 3.1 2006 2007 2008 2009 2006 2007 2008 2009 Albums Singles

Source: Entertainment Retailers’ Association yearbook 2010

15 Figure 3.15

Digital music revenues by business model, 2006-2009

Revenues (£m) CAGR(%) 250 £236.8 1yr 5yr 14.3 22.9 200 37 78 Total £172.8 12.7 150 20.8 12 37 Mobile sub- scription £114.4 £92.5 12.1 10 48 Mobile DTO 100 189.6 15.7 22.0 £56.9 23.9 129.8 7 42 Online sub- 50 13.5 scription 13.2 72.1 £13.3 46.9 46 104 Online DTO 3.0 25.7 0 2004 2005 2006 2007 2008 2009

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

16 Figure 3.16

Number of commercial analogue stations owned, by group

Lincs FM Guardian Media 3.8% 6-10 stations in group 4.5% UTV 14.8% 5.2% UKRD 3.8% 2-5 stations in group 12.4% Bauer Radio 14.1%

Independent 18.6% Global Radio 23.0%

Source: Ofcom, July 2010 Note: The percentages are derived from a universe of analogue stations rather than licences Figure 3.17 Share of all radio listening hours, Q2 2010

Percentage share of listening hours

Orion, 1.0% Other, 8.9% Absolute, 1.1% UTV, 2.7% BBC network, 46.2% GMG, 4.3%

Bauer, 10.7%

Global, 16.6%

BBC local/negional, 8.3% Source: RAJAR Q1 2010 Figure 3.18 Commercial radio: weekly audience reach, Q2 2010

Weekly UK audience reach 37.7% 25.2% 9.6% 7.0% 3.9% 2.5% 1.2%

Annual change + 0.5pp + 0.5pp - 0.2pp - 0.1pp + 0.2pp n/a - 0.1pp in reach

20,000 40% 35% 15,000 30% (thousands) 25% 10,000 19,454 20% 15% Q2 2010 Q2 12,982 5,000 10% 4,952 3,608 5% 2,020 1,297 639 0 0% Global Bauer GMG UTV Absolute Orion Lincs FM Weekly reach Weekly

Source: RAJAR Q2 2010, adults Figure 3.19

Weekly reach of BBC stations, Q2 2010

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

BBC Radio 2 26.6% (+ 0.4%) BBC Radio 1 22.9% (+ 0.8%) BBC Radio 4 20.2% (+ 0.7%) BBC Local/Regional 17.7% (0.0%) BBC Radio FIVE LIVE 13.1% (+ 0.6%) BBC Radio 3 3.6% (- 0.3%) BBC World Service 2.5% (- 0.3%) BBC 6 Music 2.3% (+ 1.2%) BBC 7 1.8% (+ 0.2%) 1Xtra from the BBC 1.2% (- 0.1%) BBC Asian Network UK 0.8% (0.0%)

0% 10% 20% 30%

Source: RAJAR Q2 2010, adults 15+ Figure 3.20 BBC network radio broadcast hours, by genre: 2009/10

Share of output (%)

yr on yr -0.2% -0.6% -0.2% 0.4% 0.0% 0.1% 0.4% 0.3% -0.1% 0.1% 0.0%

60% 51.0%

40% 14.9% 20% 9.4% 6.0% 5.1% 2.7% 3.1% 1.5% 1.8% 1.5% 3.0% 0% Arts Sport Other Music Drama Factual Religion weather Children's News and News Entertainment Current affairs Current

Source: BBC annual report 2009/10 Figure 3.21

BBC radio stations: cost per listener hour of programmes, 2009/10

Cost (pence) per listener hour, (and change year on year) BBC Radio nan Gàidheal 16.7 (-1.5p) BBC Radio Cymru 13.7 (+ 2.2p) BBC Radio Asian Network 8.5 (+ 1.6p) BBC Radio Scotland 7.8 (+ 0.7p) BBC Radio 3 6.3 (no change) BBC Radio Wales 5.9 (+ 0.9p) BBC Radio Uslter / Foyle 4.3 (- 0.1p) BBC 1 Xtra 3.6 (- 0.9p) BBC English Local Radio 3.2 (+ 0.3p) BBC Radio 6 Music 2.7 (- 0.7p) BBC Radio 5 Live 2.3 (no change) BBC Radio 5 Live Sports Extra 2.2 (- 0.4p) BBC Radio 7 1.7 (- 0.3p) BBC Radio 4 1.3 (no change) BBC Radio 1 0.6 (no change) 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 2009/10 Figure 3.22 UK radio stations broadcasting on analogue, DAB digital radio, and community radio, July 2010

Type of station AM FM AM/FM DAB Total total

Local commercial 31 203 234 139 267

UK-wide commercial 2 1 3 10* 10

BBC UK-wide networks 1 4 5 11 11

BBC local and nations 36 46 46 32 46

Community radio 4 172 176 0 176 Source: Ofcom, July 2010

TOTAL 74 426 464 192 510

Note 1: In total there are 288 individual analogue services on AM/FM as 36 simulcast over both AM/FM wavebands. Of the 288 analogue stations and 191 DAB stations, there are 334 unique stations, as 46 stations are digital-only brands. *The existing Digital One national DAB radio multiplex does not offer coverage of Northern Ireland. Note 2: A single radio brand may broadcast to many different parts of the country, using different technologies. For each area/technology combination, Ofcom issues a distinct broadcast licence (where it is licensable). 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 3.23 Community radio income, by source Community radio stations’ income 2008/09

Other 16% Grants 41%

Service contracts / SLAs 12%

Donations 9%

Advertising and sponsorship 23%

Source: Ofcom, community station revenues 2008/09 Figure 3.24 Community radio licence awards in 2009/10 Community station Location Award date

Betar Bangla Stratford, east London June 2010

Generation Radio Clapham Park, south London June 2010

Greenwich Kasapah Greenwich, south east London June 2010

Reprezent FM South London June 2010

Rinse FM Inner London June 2010

Streetlife Radio Waltham Forest, north east London June 2010

Susy Radio Redhill and Reigate, Surrey June 2010 Source: Ofcom, June 2010 SAFE Radio Grays, Essex March 2010

SFM Sittingbourne, Kent February 2010

Gateway FM Basildon, Essex February 2010

Insanity Egham, Surrey February 2010

Kane FM Guildford, Surrey February 2010

The Vibe Watford February 2010

Ox FM Oxford December 2009

Ummah FM Reading October 2009 25 Figure 3.25

Availability of DAB stations, by area

BBC network / local & nations National commercial 60 12 Local commercial 50 12 10 12 13 12 40 10 12 10 10 13 12 10 12 30 12 12 10 10 12 20 10 41 10 10 10 34 13 29 27 10 31 10 19 3 17 18 14 13 16 6 9 0 Northern Scotland Wales Central East East London North North South West West Yorkshire Ireland Southern England Midlands East West West England Midlands England

Source: Ofcom, June 2010

26 Figure 3.26

Reach of radio, by sector

Percent of population

100% 90.4% 89.7% 90.0% 89.3% 89.7% 89.6% 90.6% All radio 66.5% 66.8% 65.9% 65.8% 66.1% 80% 64.9% 67.0% All BBC 63.8% 62.6% 62.9% 61.0% 61.5% 63.7% 61.2% All commercial 60% 58.2% 60.6% 58.3% 57.6% 58.1% 59.0% 58.5% BBC network 52.0% 50.8% 51.7% 49.5% 49.3% 51.7% 40% 48.9% 28.3% Local commercial 26.6% 26.0% 26.7% 27.1% 26.9% 25.4% 20% National commercial 21.0% 20.6% 19.5% 18.7% 21.1% 17.3% 17.7% BBC nations / local 0% 5.2% 5.7% 6.1% 6.0% 6.2% 5.9% 6.3% Other 2004 2005 2006 2007 2008 2009 Q2 2010

Source: RAJAR (adult 15+), 2004-2010 Figure 3.27

Share of listening hours, by sector

Percent of listening hours

60% 55.1% 54.4% 55.4% 55.7% 55.2% 54.6% 54.0% All BBC 43.0% 44.0% 43.2% 45.4% 46.4% 46.7% 46.2% BBC Network 44.2% 40% 42.8% 43.2% 42.4% 42.2% 42.6% 43.2% BBC local / nations 34.2% 32.7% 32.8% 31.1% 31.6% 32.2% 32.2% All commercial 20% 11.0% National commercial 11.1% 10.4% 10.0% 10.6% 10.4% 11.0% 11.3% 10.0% 10.1% 10.5% 9.3% 8.5% 8.3% Local commercial 0% 2.2% 1.8% 2.1% 2.3% 2.2% 2.1% 2.2% Other 2004 2005 2006 2007 2008 2009 Q2 2010

Source: RAJAR (adult listeners15+), 2004-2010 Figure 3.28 Demographic profile of overall listening

Weekly listening hours 30

Average listening per week (all aged 15+) 20.1 hours 20

22.2 23.2 22.3

10 20.4 20.1 21.1 21.0 17.7 19.1 19.3 15.5 10.0

0 4-14 15-24 25-34 35-44 45-54 55-64 65-74 75+ Adult Adult ABC1 C2DE Men Women Adults Adults Source: RAJAR Q2 2010, (average weekly listening hours per head) Figure 3.29 Changes in listening hours by age, 2004 - 2009

Percentage change in listening hours

All 15+ 4-15 15-24 25-34 35-44 45-54 55+

5% 1.4% 0% -1.7% -5% -5.3% -10% -8.8% -10.6% -15% -13.4%

-20% -18.3% -25%

Source: RAJAR (Individuals 4+): data based on calendar years 2004 and 2009 Figure 3.30

Changes in listening hours by sector, 2004 - 2009

Percentage change in listening hours

All Radio All BBC All Commercial BBC network radio BBC local / national National commercial Local commercial 20% 10% 3.7% 1.3% 0% -10% -5.3% - 2.2% -10.1% -20% -13.4% -30% -25.1%

Source: RAJAR, (all listeners aged 15+). Data based on calendar year 2004 versus 2009 Figure 3.31

Most listened-to radio stations, Q2 2010

Average weekly reach (millions) % change year on year + 2.6% 15 + 3.7% Radio group 12 + 2.8% BBC 9 Global 14.8 + 4.7% 6 13.7 - 2.1% 10.9 - 0.7% - 10.4% + 87.1% UTV + 8.1%+ 15.7% - 13.6% + 5.6% 3 7.2 5.7 - 5.1% -3.2% - 9.0% - 25.0% - 24.9% 1.1 1.1 Bauer 2.6 2.5 2.4 2.2 2.2 1.9 1.6 1.5 1.3 1.2 0 Absolute The Hits The Classic FM Classic talkSPORT Magic 105.4 Magic Kiss 100 Kiss FM BBC6 Music BBC Radio2 BBC Radio1 BBC Radio4 BBC Radio3 BBC Radio7 BBC Absolute Radio Absolute Heart 106.2 106.2 FM Heart 95.8 Capital FM Capital 95.8 Smash Hits Hits Radio Smash BBC World Service World BBC BBCRadio FIVE LIVE

Source: RAJAR, (Q2 2010), (all listeners 4+), figures are rounded.

32 Figure 3.32

Share of listening hours across analogue and digital platforms

Radio listening share by digital and analogue listening

100% 12.8% 17.9% 21.1% 24.6% Digital 80% 21.1% 12.6% 12.7% 8.5% Unspecified 60% Analogue

40% 66.1% 69.5% 66.2% 67.0% 20%

0% Q2 2007 Q2 2008 Q2 2009 Q2 2010

Source: RAJAR Ipsos MORI/ RSMB Note: Unspecified relates to listening where the radio platform was not confirmed by the listener Figure 3.33

Digital radio listening by age group, (monthly)

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

40%

52% 48% 49% 50% 51% 20% 42% 26%

0% All 15+ 15-24 25-34 35-54 55-64 65-74 75+

Source: Ofcom research, Q1 2010 Base: All who listen to the radio (n=2483) Q: Use digital radio at least monthly Figure 3.34

Audience profiles and platform split, by sector and station, Q1 2010

Share All Radio / BBC / commercial National commerical BBC stations of radio listening 100% 47% 9% 10% 31% 4% 2% 1% 10% 17% 1% 12% 5% 0.8% 100% 9 9 10 8 10 9 3 9 10 7 8 9 13 Not Stated 15 15 26 18 80% 24 27 20 33 27 29 36 Digital 48 55 60% Analogue 100 40% 76 75 73 67 64 65 70 65 60 55 20% 44 42

0%

Source: RAJAR, Q1 2010, UK Adults aged 15+ Figure 3.35 Most listened-to digital-only stations Q2 2010

Average weekly reach Q2 2010 (millions) % change year on year

1.5 -25% -25% +87% +6% -10% +1% -2.5% -19% -5% new +55% +34% -13% +242% -27%

Radio group

1.0 Bauer BBC 1.4 1.3 1.3 Independent / other 1.0 0.5 Absolute 0.8 0.8 0.7 Global 0.5 0.5 0.3 0.3 0.3 0.3 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 Panjab Radio Panjab EXTRA Rock Smash Hits Hits Radio Smash 1Xtrafrom the BBC FIVELIVE SPORTS Absolute Radio ClassicAbsolute Source: RAJAR, Q2 2010, (all listeners 4+), figures are rounded. Figure 3.36 Share of listening hours, by nation England Scotland Wales N Ireland UK Listening hours share for BBC and commercial stations, local/national 100% 2% 3% 2% 8% 2% Other 25% 80% 31% 32% 41% Local 37% Commercial 11% 60% 11% 11% National 12% 9% 13% 7% 9% Commercial 40% 8% BBC 23% Local/National 47% 49% 46% BBC Network 20% 37% 25%

0% England Scotland Wales Northern UK TOTAL Ireland

Audience share by category (Year to Q1 Average weekly 2010) listening 21.9 hours 21.0 hours 22.7 hours 22 hours 21.9 hours % share BBC & Reach 90.1% 87.3% 90.5% 89.6% 89.9% commercial, local & national Source: RAJAR, All adults (15+), Apr ‘09-Mar ‘10 & Apr ’08-Mar ‘09

37 Figure 3.37

Location of listening – year to Q1 2010

Work/Elsewhere 14% Car 19%

Home 67%

Source: RAJAR / Octagon, All Adults (15+), Apr 2009 – Mar 2010 Figure 3.38

Number of analogue and digital radio sets sold

Total annual sales 11.6 million 9.7 million 10.4 million 9.4 million 9.0 million

Share of sales 87.1% 12.9% 81.4% 18.6% 79.8% 20.2% 77.9% 22.1% 78.9% 21.1% 10.1 10 8.3 7.9 7.3 8 7.1 Analogue sets 6 DAB sets 4 1.5 1.8 2.1 2.1 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 2006 2007 2008 2009 2010

Source: GfK sales data, 2006-2010 Figure 3.39

Average price paid for DAB digital radio receivers

£500 £412 £400

£300 £238 £210 £198 £196 £174 £150 £145 All £200 £161 £202 £107 £149 £155 In-home £134 £121 £99 £95 £85 £91 £99 £90 Car audio £100 £75 £80 £74 £115 £109 Portable £89 £78 £70 £53 £56 £61 £0 Q1 2003 Q1 2004 Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010

Source: GfK sales data 2003-2010 Figure 3.40

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

Don't know 1%

No 33% Yes 66%

Source: Ofcom research May 2010 Figure 3.41

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

60% 55% 50%

40%

30% 28%

20% 17%

10%

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

Source: Ofcom research, Q1 2010 Base: Those who listen to the radio but have no DAB sets in the home (n=) Q: How likely is it that your household will get a DAB radio in the next 12 months? Figure 3.42

Satisfaction with choice of radio stations in area

Percentage of respondents who listen to the radio 63% 60%

50%

40% 30% 30%

20%

10% 4% 2% 1% 0% Very satisfied Fairly satisfied Neither Fairly dissatisfied Very dissatisfied

Source: Ofcom research, Q1 2010 Base: All who listen to the radio (n=2483) Q: How satisfied are you with the choice of radio stations available in your area? Figure 3.43

Satisfaction with radio content

Percentage of respondents who listen to the radio

60% 53% 50% 41% 40%

30%

20%

10% 4% 1% 0% 0% Very satisfied Fairly satisfied Neither Fairly dissatisfied Very dissatisfied Source: Ofcom research, Q1 2010 Base: All who listen to the radio (n=2483) Q: How satisfied are you with the choice of radio stations available in your area? Figure 3.44 Importance of audio / radio activities to user

Importance of audio service (scale of 1-10, 10 being highest) 7 6 5 4 3 6.4 5.8 5.3 4.8 2 4.5 4.4 4.1 1 0 Radio on radio Audio on a Downloaded Streamed Streamed Live/on Radio on TV set music centre audio on music on a music on a demand radio set computer mobile phone computer on a computer

Source: Ofcom research June 2010 Additional questionnaire Q2f: “How important are each of these activities to you? Please use a scale from 1 to 10, where 1 means not at all important to you and 10 means very important to you.” Base: all who ever do each activity: Radio on TV (530); radio on radio set (1013); radio on computer (354); streamed music on a 45 computer (219); downloaded audio on computer (466); downloaded audio on mobile phone (206); audio on a music centre (907) Figure 3.45 Proportion of time spent listening to audio, solus vs. simultaneous

Proportion of all audio listening 100% 90% 19% 31% 80% 39% While using other media 70% 62%

60% 83% 50%

40% 81% On its own 69% 30% 61%

20% 38%

10% 17% 0% Radio on a Radio Live radio on a TV Music/audio on a Downloaded Radio live or on- Set Set Music Centre audio/CDs on a demand on a Computer Computer

Base = All respondent days: 7966

46 Figure 3.46

Unique audience to selected streaming sites

Unique audience (m) Growth (%) Apr 09 – Apr 10 1.25 74 Spotify 1 -19 Last.fm 0.75 98 We7.com

0.5 318 Grooveshark

-69 music.myspace. 0.25 com (-) songs.sky.com 0 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10

Source: UKOM/Nielsen. Month of April 2010, home and work panel. Applications included.

47 Figure 3.47

Selected online streaming services

Service Business Model Catalogue Launch date

Free ad-supported streaming application Spotify Premium monthly subscription for extra features, 8 million tracks February 2009 also available via mobile apps Free ad-supported ‘radio-based’ streaming Last.fm service 6.5 million tracks 2002 Premium monthly subscription for extra features Subscription based only, paid each month for 5 million tracks October 2009 Sky Songs access to unlimited streaming and 5 downloads Ad-funded music streaming and recommendation 7 million tracks 2007 Grooveshark service Ad-funded online streaming service, browser 4 million tracks October 2008 We7 based and available via iPhone app Free limited online streaming and pay per 2 million tracks April 2010 mflow download

Source: Operators, June 2010

48 Figure 3.48 Audio internet usage

% of respondents 20% 19%

16%

12% 8% 8%

4% 3%

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 2010 Base: Those with access to the internet at home (n= 6163)

49 Figure 3.49

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 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 om

Source: UKOM/Nielsen. Month of April 2010. Home and work panel. Applications included.

50 Figure 3.50 MP3 player/iPod ownership and personal use

% of respondents Personal use Ownership 50% 45% 40% 41% 40% 37% 37% 32% 33% 33% 30% 26% 27%

20%

10%

0% UK England Scotland Northern Ireland 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, Quarter 1 2010 Base: All adults aged 15+ (n = 9013 UK, 1075 Wales, 5709 England, 1468 Scotland, 761 Northern Ireland, 810 Wales urban, 265 Wales rural, 348 South East Wales, 360 South West Wales, 367 North/ Mid Wales)

51