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OMC UK Content: Where Is the Real Growth Coming From.Pptx Ofcom research OMC Plenary Panel: UK content, where is real growth coming from? Key points 1. PSB first-run network originations spend, by channel • The following slides present background data on new UK programming £m taken from Ofcom’s PSB annual report and CMR 2013. £2,920m • Figure 1 shows that spending on first-run originated programmes across 3000 £2,834m £245m £2,660m £2,675m £221m the five main PSB channels and the BBC digital channels increased £103m £2,527m £2,536m 2500 £109m £210m £226m marginally in real terms by 0.3% year on year to £2.5bn. £213m £443m £79m £67m £216m £437m £98m £100m • Year-on-year real-term spending on originations varied by channel. The £387m £348m BBC Digital most pronounced increase in expenditure was for BBC One, up by £55m 2000 £384m £385m to £797m in 2012, while BBC Two saw an almost corresponding decline £872m Channel 5 £869m £791m £813m (in absolute terms) of £46m to £286m. ITV, Channel 4 and Channel 5 all 1500 £756m £756m maintained a similar level of spending in 2012 compared to 2011, at Channel 4 £756m, £385m and £100m respectively. 1000 £398m £348m £355m £334m £332m £286m ITV/ITV • 2012 was a big year for sport, with the London Olympics and Breakfast Paralympics, and first-run spend on sports was subsequently up 14% to 500 BBC Two £563m (see Figure 2). £859m £850m £839m £886m £742m £797m • In terms of the main five PSBs and BBC digital channels, the relative BBC One 0 share of spend on first-run originated content produced by independent 2007 2008 2009 2010 2011 2012 producers has changed only slightly in the past five years, from 47% in 2007 to 45% in 2012, although the story varies across different genres Source: Ofcom/broadcasters. Note: figures in 2012 prices. BBC digital includes BBC Three, BBC Four, CBBC, CBeebies, BBC News, and BBC Parliament. (see Figure 3, source: Ofcom broadcaster returns). 2. PSB first-run network originations spend, by genre 3. PSB first-run network originations spend, in-house vs. £m external £2,920m (£m) External Internal 3000 £2,834m £97m £55 £38 £82 £83 £303 £311 £630 £526 £27 £19 £462 £509 £498 £455 £8 £18 £17 £13 £402 £563 £2,485 £2,536 £99m £2,660m £2,675m £2,527m £2,536m 7% £472m £104m £94m 2500 £530m £91m £83m 21% 31% 27% £470m 33% 36% £647m Children's programmes 37% £495m £563m 48% 54% 49% 51% 51% 53% £543m Sports 55% 66% 2000 60% £511m 64% £477m Feature films 77% 79% £473m 81% £502m 91% £509m Entertainment and comedy 1500 100% £741m 93% £717m Drama and soaps £646m 79% 73% 69% £565m 67% £555m Factual 64% £526m 63% 1000 52% 51% 49% 49% 47% 46% Education 45% 40% 34% £585m 36% £530m £512m Religion and ethics 23% £454m £463m 21% £455m 19% 500 Arts and classical music 9% 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 News and current affairs 2007 £356m £338m £332m £333m £316m £311m Arts & Childrens News & Drama & Education Entertainment Factual Feature Films Religion & Sports Grand Total 0 Classical Current Affairs Soaps & Comedy Ethics 2007 2008 2009 2010 2011 2012 Music Source: Ofcom/broadcasters. Note: figures in 2012 prices. Figures include main five PSBs Source: Ofcom/broadcasters. Note: figures in nominal terms. Includes spend by the five plus BBC digital portfolio channels. main PSBs and BBC portfolio channels 0 Ofcom research OMC 2014 Plenary Panel: UK content, where is real growth coming from? Key points • Figure 4 shows that although not designated PSB channels, £91m was spent on first-run originated programmes broadcast by the commercial PSBs on their digital portfolio channels in 2012, down 4.2% (or £4m) over five years in real terms. • We do not collect comparable figures for the multichannels. According to COBA’s 2012 Economic Impact Report, its members spent £0.5bn on first-run originated commissions in 2011. This represents an increase of 27% on the previous year. According to COBA, spend by its members in 2012 on first-run originated commissions was an estimated £0.5bn. • Figure 5 shows that in line with the marginal increase in spend by the PSBs on first-run originated content year on year (see Figure 1), hours of first-run programming increased in 2012 by 187 hours; from 32,167 to 32,354 in 2012. All of this increase was driven by the BBC, which increased first-run hours by 320 hours, while the commercial PSBs combined (ITV/ITV Breakfast, Channel 4 and Channel 5) saw a decline of 133 hours. 4. Commercial PSB portfolio channels, first-run 5. PSB first-run originated network hours, by channel originated programme spend £m 40000 100 35,045 33,981 32,691 31,875 32,167 32,354 80 30000 ITV/ITV 13,194 12,207 9,673 10,032 10,963 10,165 Breakfast, 60 C4, C5 20000 £95m £96m £89m £91m £83m 40 £77m 10000 BBC 22,322 22,202 22,002 21,851 21,774 20 21,728 0 0 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 Source: Ofcom/broadcasters. Note: figures in 2012 prices. Commercial portfolio channels Source: Ofcom/broadcasters. BBC figures include BBC One, BBC Two, BBC Three, BBC include; ITV2, ITV3, ITV4, E4, More4, Film4, 5*, 5USA Four, CBBC, CBeebies, BBC News, BBC Parliament. 1 1 Ofcom research OMC 2014 Plenary Panel: UK content, where is real growth coming from? Key points 6. Importance of PSB purposes and characteristics • Figure 6 shows that audiences continue to value PSB programming. Purposes Importance Ofcom’s PSB Tracker shows that audience ratings of the importance of Its news programmes are trustworthy 85% the PSB purposes and characteristics remained high in 2012. Its programmes help me understand what’s going on in the world today 80% • Trustworthy news programmes ranked highest on importance among the Its regional news programmes provide a wide range of good quality news about my area 78% different PSB purposes, whereas ‘well-made, high quality programmes’ It shows interesting programmes about history, sciences or the arts 68% ranked the highest characteristic, with 82% of UK adults saying it was important. It portrays my region/Scotland/Northern Ireland/Wales fairly to the rest of the UK 66% • According to PACT, in 2012 total revenue for international sales of UK Its programmes show different kinds of cultures within the UK 65% television programmes and associated activities was £1.22bn - a 4% It shows high quality soaps or dramas made in the UK 57% increase on 2011 and a compound annual growth rate of 14% since 2005. Characteristics • The largest source of TV revenue comes in the form of finished television content, generating £612m in 2012. Although co-productions had the It shows well-made, high quality programmes 82% largest growth, with a 60% increase on 2011, rising to £33m in 2012. It shows programmes I want to watch 78% • Figure 8 shows that the USA is by far the UK’s largest export market. In it shows programmes that make me stop and think 70% 2012 total sales stood at £475m, an 11% increase on 2011. It shows new programmes, made in the UK 68% • The BRIC countries saw the largest year on year increases. Exports to It shows programmes with new ideas and different approaches 70% Brazil increased 21% since 2011, and to India, 42%, whilst China saw the Source: Ofcom PSB Tracker, % of respondents rating importance as 7,8,9 or 10 out of 10. largest year-on-year growth of TV exports with a 90% increase. 7. UK TV sales, by type 8. UK TV sales by country YOY YOY £m -1 -1 51 60 -5 4 20 £m -8 14 4 11 -3 10 -1 -14 -29 4 21 5 42 90 change % change 700 (%) 617 612 500 475 600 427 400 500 400 300 2011 300 2012 200 191 198 200 160 155 153 134 104103 100 82 79 100 27 33 44 41 32 30 24 28 30 32 22 19 18 21 10 11 1813 9 9 2 3 1011 4 6 7 12 0 0 Television DVD Digital Rights Co-production Format Licensing/Misc. Productions FRA GER ITA US CAN JPN AUS ESP NED POL BRA RUS IND CHI (New Comissions) 2011 2012 Source: PACT. UK Television Exports Survey 2012 Source: PACT. UK Television Exports Survey 2012 2 2 .
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