The year in numbers Insight Views from the top Facts, figures and charts telling Award-winning research, new tools ISBA’s Bobi Carley interviews TV’s story in 2019 and case studies TV’s commercial chiefs p.10 p.30 p.54 A year in TV Thinkbox Annual Review 2019–20 THINKBOX TV in the media world How did your media usage change last year – mobile upgrade, bigger TV set, more podcasts or boxset bingeing? Before we dive into the details of the evolving audio-visual landscape, first let’s review the overall media context in which TV and video sit. Here’s the full picture for 2019.

Media minutes have grown TV is the most watched video Fig. 1 Fig. 2

Daily minutes Daily minutes video with media, adults watching, adults 800 300 759 mins

5% — Gaming 700 248 mins 250 mins Cinema — Reading 250 13% — DVD 8% 6% — Online video 600 557 mins 5% 13% — SVOD

200 500 18% 6% — BVOD 33% — Communication

14% 400 150 Minutes Minutes

300 21% 17% — Listening 84%

100 73% — TV

200

45% 32% — Watching 100 50

0 0 2012 2019 2012 2019

Source: IPA Touchpoints 2012 & 2019

A YEAR IN TV THE YEAR IN NUMBERS

M ore media hours in the day M ore TV in more forms More commercial time in TV The 2010s were the decade when TV viewing has risen slightly in recent If we focus on commercial media (losing smartphones became ubiquitous, allowing years, as its constituent elements (linear BBC, SVOD, WhatsApp, etc.), we can consumers to spend an extra 3 hours a live, linear ‘as-live’, playback, catch-up, see size as measured by consumer time day on media time, often concurrent with , rental, PPV, buy and own, spent. Jumping out in red is TV, with the other activities. This growth was mostly etc.) have multiplied. The monoculture greatest share by some margin. This driven by social media communication, of linear TV has been supplanted by provides an interesting behavioural from Snap to WhatsApp. Gaming also tele-diversity, with BVOD/SVOD viewpoint, although only raw material grew substantially, from 11 to 38 minutes accounting for nearly 20% of all video in a planning sense, as the quality and a day per adult on average. Fig. 1. time according to IPA Touchpoints. Fig. 2. effectiveness of each ad environment is not yet factored in. Fig. 3.

Commercial media day – adults Fig. 3 2% 38% 12% Magazines 16% Commercial TV Commercial General online browsing radio Cinema 1%

News brands 23%

5% Social media Other online video inc. YouTube and Facebook and YouTube inc. video online Other 4%

Source: Touchpoints 2019, IPA. Base: adults 15+. Includes only media which carries advertising and people choose to consume. TV, radio, newspaper & magazine figures include online/app consumption.

TV IN THE MEDIA WORLD THINKBOX The changing viewing landscape As our TV viewing redistributes across linear and on-demand services, the world of TV – and TV advertising – is being remade. Here we take a look at some of the major themes.

There has been more change in TV Broadcaster TV accounts during the last 10 years than in the previous 50 for 68% of our video day The sheer quantity of quality TV to watch is one thing, but the way we watch it is Average video time per day another. TV has been transformed, All individuals: 4hrs, 42 mins whether that’s TV the industry, TV 16–34s: 4hrs, 13 mins the nation’s favourite entertainment All individuals experience, or TV the advertising medium.

Viewing behaviours are evolving 12.4% as viewers embrace the variety, flexibility and control now available 16–34s Although linear TV remains the main way 1.2% we watch programmes, SVOD services 3.6% like and the broadcasters’ own VOD services are the chief beneficiaries 23.5% 27.3% 2.9% of viewer migration. 0.4% Subscription VOD now accounts for 1.9% just under 10% of all video viewing SVOD went from zero take-up in 2010 to 60% of people having access in 2019. 49.5% 1.2% 11.8% 9.6% Connected TVs have had a similar 3.8% trajectory, from fewer than 20% of 0.5% households in 2010 to 80% in 2019. 3.0% 2.0% Broadcaster VOD services 9.5% too have soared 17.4% 5.5% The ITV Hub now has over 30 million registered users, for example. has 22 million registered users whilst has 9.5 million households connected 13.0% to their VOD services. Meanwhile, YouTube – not TV as such, but relevant to TV’s story – has also created a unique role for itself, being used for an average YouTube Facebook Other online video Online ‘adult’ XXX video of 5 minutes a day in 2010 but rising Cinema DVD Subscription VOD Broadcaster VOD to over 30 minutes a day in 2019. Playback TV Live TV

Source: 2019, BARB / comScore / Broadcaster stream data / IPA Touchpoints 2019 / Rentrak

A YEAR IN TV THE YEAR IN NUMBERS

We watch as much TV as ever, TV viewing is changing (all individuals) but the way we watch has changed fundamentally The pleasurable pastime of watching TV 04:00 is as popular today as it was five, 10 or 15 03:30 years ago. Live takes the lion’s share but viewing is being redistributed, as you can 03:00 see to the right. 02:30 Change has been more pronounced for younger audiences 02:00 The under 35s, and especially the under 01:30 25s, are most interested in and confident with new technology and devices. This 01:00 is partly why they have been quickest to add SVOD, BVOD, online and mobile 00:30 options to their TV repertoires alongside individuals) (all day per person per Hours 00:00 linear. They have also had greater 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 motivation to do so for many reasons, including a love of fresh content – much of which has been created for them Live TV TV Playback Broadcaster VOD Subscription VOD as a target audience – the social cachet of finding and sharing new TV shows, Source: 2010–2019, BARB / Broadcaster stream data / IPA Touchpoints 2019, Individuals and the desire for a more flexible, lower-cost TV. Young people love TV and watch Young people’s viewing is increasingly spread across platforms lots of it BARB figures show that 92.4% of 16–34s watch commercial linear TV each month, 03:00 97.2% do so over three months, and 98.6% over six months. They are watching 02:30 more selectively, but almost all are still watching plenty of it. Every brand can 02:00 still target a 16–34 audience and reach millions of them within days on TV, and it is made even easier if BVOD is used 01:30 on the campaign schedule. 01:00 Broadcasters driving change We shouldn’t forget that the broadcasters 00:30 themselves have actively driven these (16–34s) day per person per Hours viewing changes through the launch of apps, hubs, and improved on-demand 00:00 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 services and programmes. They have done so to meet the evolving needs of viewers and to secure a sustainable Live TV TV Playback Broadcaster VOD Subscription VOD future. But equally, there is no disputing that SVOD, mostly in the form of Netflix, Source: 2010–2019, BARB / Broadcaster stream data / IPA Touchpoints 2019, 16–34 has been one of the most powerful disruptors of the broadcast landscape for decades. In the next section we assess the SVOD scene.

THE CHANGING VIEWING LANDSCAPE THINKBOX SVOD goes mainstream The global SVOD players Netflix and are the biggest game-changers in UK broadcasting for a generation. There is a tendency to assume that any SVOD success comes at UK broadcasters’ expense, but the story is far more nuanced.

Whilst the SVODs have carved out a near Overview of SVOD players 10% chunk of total viewing for themselves, they have also brought multiple positives — Netflix is the leading SVOD by — BritBox is the biggest streaming to the UK TV market: a wide margin, with widespread collection of British TV ever. Created take-up and viewing. It has pumped by the BBC and ITV (and soon to be — Increased competition tends to raise billions of dollars into original joined by ), it launched in everyone’s game, inspiring content content, in addition to extensive the UK in November 2019. Currently innovation, the taking of more risks, archive programming sub-licensed it is a library of box sets, but there and better efforts to back formats from broadcasters or production are plans to move into original that look like winners. companies. programming this year. — The SVODs have kept younger viewers — Amazon Prime Video is also — A pple TV+ debuted globally in loyal to the TV viewing habit, rather widely distributed but has significantly November 2019. It offers a limited than losing them to gaming or other lower regular usage, due to many selection of big star-fronted original activities. consumers having signed up for programming, but does not have a — They offer exciting business Amazon Prime deliveries with library of licensed shows or movies. opportunities for UK broadcasters: no great compunction to watch the It also doesn’t release full seasons of global content distribution windows TV service. It offers volumes of TV its shows all at once. (e.g. Bodyguard) and co-production and film titles, but with less original — D isney+, a new SVOD service from opportunities (e.g. The End of content than Netflix. the world’s biggest entertainment the F***ing World). — N OW TV is a smaller player but company, launched in the UK in — They are also investing heavily in UK significant as the leading British March following its global roll out production in their own right, maintaining SVOD. Launched by Sky, it is at the end of last year. It is home to a buoyant indie sector and reinforcing designed to appeal to those Disney’s vast catalogue of film and the UK’s world-renowned strengths in who like variety but can’t, or TV content, including Pixar, Marvel writing, acting, TV production, post- don’t want to subscribe to a Universe and the Star Wars franchise. production and distribution. full pay-TV proposition.

A YEAR IN TV THE YEAR IN NUMBERS

Netflix talks a good deal about Netflix accounts for the lion’s share subscriber numbers, but much less about volume of viewing of SVOD viewing It is reluctant to release viewing information, although it does occasionally release a selective nugget or two. However, the TV viewing company Digital-i 6% (www.digital-i.com) has developed a technique for estimating Netflix viewership through collecting passive viewing data from a sample of 1,000 18% households, representative of the UK. This has rapidly gained currency amongst TV production companies, broadcasters and others who really need to understand Netflix viewing patterns and trends. Using this data, here’s some top-line insight into the world of Netflix viewing in the UK: — Catalogue programming generates most of Netflix’s viewing; 59% of 76% Netflix streams are to licensed programmes and films vs. 41% of streams to Netflix original or exclusive programmes. — Viewing is heavily skewed to US series and films, with 84% of streams to non-British programmes and films. NOW TV Amazon Prime Video Netflix — Of the British programming viewed, 77% is licensed programming from the Source: Touchpoints 2019, adults 15+ British broadcasters. The remaining 23% are Netflix originals. — Three programmes account for over SVOD subscription by TV platform 10% of all Netflix streams: Friends, The Big Bang Theory & Brooklyn % of all % with % with % with % with Nine-Nine. homes any SVOD Netflix Amazon NOW TV service 37% 44% 37% 22% 6%

Increased Freesat 4% 50% 40% 29% 4% competition tends to raise everyone’s YouView 9% 64% 51% 32% 16% game, inspiring content innovation, Virgin 11% 61% 54% 31% 8% the taking of Sky 37% 59% 51% 30% 4% more risks. NOW TV 2% 100% 81% 58% 100%

Total 100% 51% 44% 25% 6%

Source: BARB Establishment Survey Q4 2019, all respondents (adults 15+)

SVOD GOES MAINSTREAM THINKBOX

The table to the right uses the data from Top 20 most-viewed TV programmes in the UK 2019 Digital-i for Netflix and data from BARB to make the best possible like-for-like Rank Viewing Source Programme HH Views (m) comparison of the top programmes in terms of volume of viewing per household 1 ITV Emmerdale 1,795 across 2019. The Netflix data is based on 2 ITV Coronation Street 1,754 ‘streams’ which are defined by Digital-i as BBC EastEnders 1,046 a start, whilst the BARB data is based on 3 transmission ‘views’ which we’ve defined 4 ITV The Chase 910 using BARB data as 1+ mins of continuous 5 ITV Tipping Point 874 viewing. As device data from BARB 6 BBC Pointless 841 wasn’t available for the whole of 2019, this Channel 4 The Big Bang Theory 737 is TV set viewing within 28 days of original 7 broadcast only. 8 BBC Bargain Hunt 700 This type of analysis tends to favour 9 BBC Homes Under the Hammer 622 programmes with high volumes of new 10 Channel 4 / Sky The Simpsons 542 content, hence soaps, daytime shows, BBC Escape to the Country 538 and long-running US sitcoms dominate 11 the top 20. Friends is the only Netflix 12 Netflix Friends 457 series to make the top 20 and the highest 13 Channel 4 Hollyoaks 448 performing ‘Netflix original’ series is 14 BBC Flog It! 441 Stranger Things, which achieved just BBC Antiques Road Trip 424 over 100 million streams, making it the 15 105th most viewed TV programme in the 16 Channel 5 Neighbours 413 UK across 2019. This puts it in line with 17 ITV Lorraine 355 hits such as The Voice or First Dates. 18 BBC Countryfile 355 19 Channel 4 Four in a Bed 355 20 ITV Family Guy 346 29 Netflix The Big Bang Theory 290 40 Netflix Brooklyn Nine-Nine 242 92 Netflix The Good Place 112 105 Netflix Stranger Things 103 126 Netflix Orange Is the New Black 88 SVOD acts as an 127 Netflix Glee 87 accompaniment 142 Netflix Riverdale 80 148 Netflix Suits 77 to broadcaster 149 Netflix It’s Always Sunny in Philadelphia 77 TV rather than a replacement for it. Source for TV: BARB, one minute household reach. Source for Netflix: Digital-i, total stream 'starts'

SVOD competes with broadcaster TV, but doesn’t replace it

4.0

3.5

3.0

2.5

2.0

1.5

1.0 Mean hours per day per hours Mean 0.5

0 Non Netflix Light Netflix Medium Netflix Heavy Netflix Viewers Viewers Viewers Viewers

Source: IPA Touchpoints 2019 BVOD TV on TV set Netflix

A YEAR IN TV THE YEAR IN NUMBERS

Average streams/viewers per episode Top 20 most-viewed TV programmes per episode in the UK 2019 is perhaps a fairer way of determining the most popular series on TV across Rank Viewing Source Programme HH Views (000s) 2019. Again, using the same like-for-like BBC Seven Worlds, One Planet 11,980 measurement, to the right is a table of 1 the top 20 series in the UK across 2019. 2 Channel 4 The Great British Bake Off 9,405 As you’d expect, the PSBs dominate a 3 BBC Strictly Come Dancing 9,330 list like this and Netflix doesn’t quite find a 4 BBC Line of Duty 8,903 way into the top 20. After Life (with Ricky ITV I’m A Celebrity… Get Me Out Of Here! 8,631 Gervais), which delivered an impressive 5 5.5m HH streams per episode, is their 6 ITV Britain’s Got Talent 8,619 top show and sits just outside the top 20. 7 ITV Dancing on Ice 8,141 What this data shows is that 8 BBC Michael McIntyre’s Big Show 8,015 SVOD isn’t that different from the UK ITV Cleaning Up 7,489 broadcasters. It offers another rich 9 source of viewing pleasure, acting as 10 ITV Manhunt 7,418 an accompaniment to broadcaster TV 11 BBC His Dark Materials 7,334 rather than a replacement for it. This 12 ITV The Bay 7,325 can be observed in pay TV homes for BBC Call the Midwife 7,248 instance, which already have the widest 13 selection of available TV content but in 14 ITV Vera 7,181 which SVOD take-up has always been 15 BBC Luther 7,163 rapid. There has never been a discernible 16 ITV The X Factor: Celebrity 7,148 replacement effect on a national scale BBC The Apprentice 7,117 either, (i.e. migration to SVOD at the 17 expense of pay TV), though this will 18 BBC Death in Paradise 6,902 have happened on a home-by-home 19 BBC Baptiste 6,875 basis occasionally. 20 BBC Doctor Who 6,849 The graph to the bottom left from IPA Touchpoints shows the viewing splits of the lightest, middling and heaviest Netflix Source: BARB, one minute household reach; includes viewing to repeats broadcast within 28 days of first transmission; excludes device viewing. NB: Excludes ‘one-off’ programming, e.g. Gavin & Stacey Christmas viewers. We all know people who claim Special, Eurovision, Comic Relief, etc. to ‘only’ watch Netflix, or ‘only’ watch recorded or on-demand programmes for that matter, but media consumption data and anecdotal evidence reveals that such Top 10 most-viewed Netflix TV programmes per episode in the UK 2019 rigidly constrained viewing is vanishingly rare. In this case, the graph shows that Rank Programme HH Views (000s) even the group that watches Netflix the 1 After Life 5,528 most also continues to enjoy many Stranger Things 5,263 hours of linear TV a week. 2 This isn’t unexpected: SVOD and 3 The Disappearance of Madeleine McCann 4,343 linear serve different roles and purposes, 4 Black Mirror 3,780 the obvious distinction being that SVOD’s 5 Conversations with a Killer: The Ted Bundy Tapes 3,447 forte is as an on-tap storage vault of Sex Education 3,428 drama, compared to linear TV’s ‘life 6 happening now’ narrative through news, 7 The Umbrella Academy 3,395 sport and varied entertainment. One 8 Unbelievable 3,371 way or another linear TV plays a key 9 Criminal: UK 3,311 role in our lives – even when we think The Crown 2,904 it doesn’t, or don’t actively notice it. 10 As 2020 unfolds this will be a fascinating space to watch. Following Source: Digital-i - total stream ‘starts’ within 28 days of release. BritBox’s launch late last year and with Disney+ launching in the UK in March, this year we’ll see the most valuable back catalogue content being taken back by the rights holders, and the streaming wars will have begun in earnest.

SVOD GOES MAINSTREAM THINKBOX BVOD: it’s in demand Broadcaster VOD continues to be one of the most dynamic areas of TV. ITV, Channel 4, Sky and UKTV have each invested heavily in their BVOD services in the last year or so and viewers are responding in their droves.

75% of BVOD viewing is on the TV set Broadcaster VOD viewed on The beauty of apps like , ITV Hub, Demand 5, UKTV Player and All 4 is that TV sets grew by 30% in 2019 you can watch on any screen device, personal or shared, anywhere. But when the TV set is the preferred BVOD screen 16 (TV set BVOD viewing grew by 30% last year), the elements which make linear TV 14 so successful apply equally to BVOD. 13 Aside from the technical superiority of so much TV equipment today, there 12 are also the multiple social aspects which 10 work their magic: home comforts and 10 the companionable nature of shared 8.5 viewing can truly enhance the viewing 8 7.5 experience, as any episode of Gogglebox will testify.

(all individuals) (all 6 5.0 5.0

Minutes per person per day per person per Minutes 4.0 4.0 4.0 4.0 4 3.5 3.5 3.5 When the TV set is the 3 preferred BVOD screen, 2 the elements which make linear TV so successful 0 apply equally to BVOD. 2013 2014 2015 2016 2017 2018 2019

Source: UK broadcaster data 2013–2019, Individuals TV set BVOD Device BVOD

A YEAR IN TV THE YEAR IN NUMBERS

BVOD’s high value ad environment Viewing proportions by device Broadcaster VOD as an advertising medium is at the designer label end % of all Live/ BVOD SVOD YouTube All other of the AV commercial spectrum. The video time streamed/ catch up online video editorial backdrop is picked by viewers recorded TV themselves, so it is almost unimprovable 62.5% 5.5% 9.6% 12.4% 7.7% in a sense, and when they have the choice they go up the rate-card: drama is clearly 99.1% 72% 74.2% 23.3% 15.4% a favourite on-demand genre, being as sought-after in BVOD as it is in SVOD. BARB data for Sky On Demand and 0.4% 12.3% 12.1% 29.7% 29.6% device VOD shows that drama is twice as popular on VOD compared to linear. Conventional TV advertising works 0.3% 10% 7.1% 11.5% 8.3% beautifully, so imagine then isolating only the most compelling must-watch 0.2% 5.7% 6.5% 35.5% 46.7% content, with a wraparound of the most brand-focused, stylish advertising. That is the BVOD commercial proposition in Source: Touchpoints 2019, IPA. All adults. ‘Other device’ not shown a nutshell: advertising around viewers’ custom programme choices. As a direct result, the average view-through rate (that is, ads running for their duration while people are watching) is very high (97%). TV advertising has worked on the basis of scale for decades. Now, an era of precision targeting and data-informed campaigns is upon us. Broadcasters now have a wealth of first-party data through user registrations and pay TV subscriptions, and have invested heavily to provide advertisers with a whole new range of planning opportunities. There’s more on BVOD on page 72.

The Great British Bake Off, Channel 4

BVOD: IT'S IN DEMAND Get in contact

Lindsey Clay Andrew MacGillivray Chief Executive Marketing Director [email protected] [email protected] Matt Hill Simon Tunstill Research & Planning Director Communications Director [email protected] [email protected] Jaine Tamplin General enquiries EA to the CEO & Company Secretary 020 7630 2320 [email protected] [email protected]