UK 2016 and UK 2017
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1 United Kingdom – The Communications Market Report 2017 Date: 3 August 2017 PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 2 RETURN TO CONTENTS United Kingdom’s communications market PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 3 RETURN TO CONTENTS 3 Figure 1.1 Communications industry revenue – telecoms, TV, radio and post (£bn) £ billion Annual 5 year change CAGR £58.7 £57.2 £55.1 £4.4 £53.9 £54.7 £54.9 Total 0.4% -1.3% £1.4 £4.4 £1.3 £4.3 £4.3 £4.3 £4.2 £1.2 £1.3 £1.3 £1.2 £13.3 £13.1 Post -2.2% -0.6% £13.1 £13.3 £13.7 £13.8 Radio -0.9% -0.2% £39.7 £38.4 TV -1.7% -1.7% £36.5 £35.1 £35.4 £35.6 Telecoms 0.4% -2.2% 2011 2012 2013 2014 2015 2016 Source: Ofcom/ operators Note: Includes licence fee allocation for radio and TV; figures are in nominal terms. Post is addressed letter mail. Changes in the way letters revenues are report mean that data prior to 2015 is not comparable to data for previous periods. Changes in the way that revenue data is collected for the commercial radio sector means that data prior to 2014 isPROMOTING not comparable CHOICE to data • for SECURING 2014 and STANDARDSafter. • PREVENTING HARM 4 RETURN TO CONTENTS 4 Figure 1.2 Average household spend on communications services 5.9% 5.7% 6.0% 5.4% 5.4% 5.3% 5.2% 150.00 5.0% £122.15 £122.54 £120.56 £118.39 £119.50 £121.91 £2.56 £2.47 £2.26 £2.17 Post £2.30 £2.30 4.0% 100.00 Radio £32.90 £32.82 £32.37 £32.53 £32.90 £32.95 3.0%Television £11.59 £11.93 £12.34 £13.53 £15.11 £16.90 Fixed internet 2.0% 50.00 £49.27 £48.71 £46.26 £46.21 £46.63 £45.60 Mobile voice & data 1.0%Fixed voice £23.86 £23.10 £22.65 £22.30 £22.72 £22.75 % of total spend 0.00 0.0% 2011 2012 2013 2014 2015 2016 Source: Ofcom / operators/ ONS Notes: Adjusted for CPI; historic telecoms figures have been re-stated, so are not comparable to those published in previous reports. Television excludes spend on subscriptions, download-to-own and pay-per-view online TV services. PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 5 RETURN TO CONTENTS 5 Figure 1.3 Household take-up of telecoms communications services Mobile telephony 93% 96% 90% 88% Fixed telephony 83% 82% Internet connection 82% 66% 64% 65% Total broadband 52% Fixed broadband Internet on mobile (personal) 20% Mobile 12% broadband dongle /datacard 2% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: Ofcom Technology Tracker. Data from Quarter 1 of each year 2007-2014, then Half 1 2015-2017. Base: All adults aged 16+ (2017 n=3743). Significance testing: Arrows indicate any significant differences at the 99% confidence level between UK 2016 and UK 2017. QC1: Is there a landline phone in your home that can be used to make and receive calls? QE1: Does your household have a PC or laptop computer? / QE2: Do you or does anyone in your household have access to the internet/ WorldPROMOTING Wide Web at CHOICE home (via any• device,SECURING e.g. PC, STANDARDS laptop, mobile phone • PREVENTING etc.)? / QE12 (QE9): HARM Which of these methods does your household use to connect to the internet at home? Note: Use of internet on mobile is personal take-up measure, whereas the other data relate to household take-up. 6 RETURN TO CONTENTS 6 Figure 1.4 Household take-up of AV devices TV 94% DVD player Games console 81% 76% MP3 player 67% DAB digital radio 63% 60% DVR 58% 47% Smartphone 44% 40% 38% E-reader 36% Smart TV 28% 26% 26% Tablet 20% 17% Smart Watch 10% 9% 5% 3% Internet- 2% 2% 1% connected dongle or set- 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 top box* Source: Ofcom Technology Tracker. Data from Quarter 1 of each year 2006-2014, then Half 1 2015-2017. Base: All adults aged 16+ (2017 n=3743). Significance testing: Arrows indicate any significant differences at the 99% confidence level between UK 2016 and UK 2017. Note: The Question wording for DVD Player and DVR was changed in Q1 2009 so data is not directly comparable with previous years. * Internet-connectedPROMOTING dongle CHOICEor set-top box • includes SECURING NOW TVSTANDARDS set-top box, Roku, • GooglePREVENTING Chrome, Amazon HARM Fire TV stick, Amazon Fire TV, Apple TV 7 RETURN TO CONTENTS 7 Figure 1.5 Trends in purchasing multiple communications services from a single supplier Consumer-stated bundling Bundles based on providers used 81% 79% 9% 8% 68% 2% Other 2% 3% 63% 63% 3% 1% 60% 7% 2% 57% 1% 7% 6% 2% Mobile and broadband 53% 7% 1% 1% 1% 2% 6% 1% 1% 2% 48% 1% 2% 33% 8% 1%2% 3% 2% 32% Landline, broadband, mobile 39% 9% 2% 28% 2%1% and Pay TV 1% 23% 25% 6% 2% 19% 21% 1% Landline and Pay TV 3% 16% 16% 12% Landline, broadband and Pay TV 32% 34% 28% 29% 24% 27% 27% 27% 17% 20% Landline and broadband 2009 2010 2011 2012 2013 2014 2015 2016 2016 2017 Source: Ofcom Technology Tracker, data as at Q1 2009-2014; H1 2015-2017 QG1. Do you receive more than one of these services as part of an overall deal or package from the same supplier?/ Q. Do you receive a discount or special deal for subscribing to this package of services? (latter question used for consumer-stated bundling figures) Significance testing: Arrows indicate any significant differences at the 99% confidence level between UK 2016 and UK 2017. Base: All adultsPROMOTING 16+ (Q1 2009, CHOICE 6090) (Q1 •2010, SECURING 9013) (Q1 2011, STANDARDS 3474) (Q1 2012, • 3772) PREVENTING (Q1 2013, 3750) HARM (Q1 2014, 3740) (H1 2015, 3756) (H1 2016, 3737) (H1 2017, 3743), base excludes those who do not know the provider for one or more services 8 RETURN TO CONTENTS 8 Figure 1.6 The proportion of adults who use different services for watching TV programmes/films (%) Source: Consumption of VoD Content CMR Research 2017 – Populus PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 9 RETURN TO CONTENTS 9 Figure 1.7 Non-broadcast services used by adults and teens for watching TV programmes and films 75% 76% 69% 69% 67% 63% 58% 59% 45% 41% 30% 27% 23% 19% 16% 10% Public Service Broadcaster on- Subscription on-demand and Pay TV services FaceBook/YouTube demand and streaming services streaming services Teens Adults All aged 16-24 All aged 65+ Source: Consumption of VoD Content CMR Research 2017 – Populus Q5. Thinking about when you watch TV programmes/films, do you use any of the following? Base: AdultsPROMOTING (2354) Teens CHOICE (505) 16• - 24SECURING (704) 25 -STANDARDS34 (308) 35-44 • (402) PREVENTING 45-54 (406) HARM 55-64 (338) 65+ (498) 10 RETURN TO CONTENTS 10 Figure 1.8 Services used by adults in the United Kingdom to ‘keep up with news/ keep up with what’s happening around me’ Source: Consumption of VoD Content CMR Research 2017 – Populus PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 11 RETURN TO CONTENTS 11 Figure 1.9 Services used by adults in the United Kingdom ‘for background noise’ Source: Consumption of VoD Content CMR Research 2017 – Populus PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 12 RETURN TO CONTENTS 12 Figure 1.10 Reasons for using services: adults 16+ Live Broadcasters' on- Subscription on- Facebook/ broadcast/ demand and demand and streaming Pay TV services YouTube recorded TV streaming services services Base 1233 1578 997 555 945 Family time 35% 24% 31% 27% 14% Alone time (I can watch anything I 55% 50% 55% 35% 49% want to watch) For background noise 20% 8% 9% 9% 9% To keep children entertained 9% 5% 9% 9% 7% For de-stressing/unwinding 44% 33% 42% 29% 33% To learn something new 34% 24% 14% 13% 23% To keep up with the news/to keep up 57% 19% 8% 15% 16% with what’s happening around me To keep up-to-date with the storyline/to keep up with a 51% 42% 29% 24% 13% programme To keep up-to-date with the latest 26% 9% 3% 18% 6% sport For company 13% 7% 5% 6% 6% Source: Consumption of VoD Content CMR Research 2017 – Populus Q12. You said you watch programmes/films for the reasons below, which services do you use for this? Base: shown in table PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 13 RETURN TO CONTENTS 13 Figure 1.11 Reasons for using services: teens 12-15 Broadcasters' on- Subscription on- Live broadcast/ demand and Facebook/ demand and Pay TV services recorded TV streaming YouTube streaming services Base 242 292 299 148 352 Family time 56% 35% 36% 32% 12% Alone time (I can watch anything I want to 41% 41% 50% 28% 53% watch) For background noise 12% 5% 8% 9% 9% For de-stressing/unwinding 25% 19% 23% 12% 27% To learn something new 17% 12% 8% 14% 18% To keep up with the news/to keep up 15% 10% 3% 5% 9% with what’s happening around me To keep up-to-date with the storyline/to 40% 37% 28% 15% 16% keep up with a programme To keep up-to-date with the latest sport 17% 11% 4% 14% 8% For company 4% 4% 3% - 4% Source: Consumption of VoD Content CMR Research 2017 – Populus Q12.