Figure 3.1 UK radio industry key metrics

UK radio industry 2010 2011 2012 2013 2014 2015 Weekly reach of radio (% of population) 90.6% 90.8% 89.5% 90.4% 89.5% 89.6% Average weekly hours per listener 20.1 20.5 22.2 21.5 21.4 21.4 BBC share of listening 55.2% 54.7% 54.7% 54.6% 53.8% 53.6% Total industry revenue* £1,137m £1,164m £1,203m £1,177m £1,248m £1,248m Commercial revenue* £452m £457m £475m £461m £512m £519m BBC expenditure £675m £697m £717m £705m £725m £717m Community radio revenue £10.0m £10.5m £10.8m £10.9m £11.5m £11.6m Radio share of advertising spend 3.3% 3.3% 3.3% 3.1% 3.2% 3.0% DAB digital radio take-up (households) 38.2% 42.6% 44.3% 47.9% 49.0% 55.7% Digital radio listening share 24.6% 27.8% 31.2% 35.6% 37.3% 40.7%

Source: RAJAR (all adults age 15+), Ofcom calculations based on figures in BBC Annual Report and Accounts 2015-16 (www.bbc.co.uk/annualreport), AA/Warc, broadcasters. Revenue figures are nominal. DAB take up - Q1 of the following year. *Commercial and total revenue figures for 2010-2013 are not wholly comparable to 2014 and 2015 due to an amendment to the data collection methodology. Digital listening share 12 months to December.

Figure 3.2

1 Figure 3.3

Proportion of time spent listening, by age group Proportion of listening time (%) 100% 3 4 35 4 8 6 6 12 8 6 3 7 5 8 8 3 3 80% 10 11 3 25 16 2 Music videos 60% 5 CD/vinyl 26 85 84 88 Streamed music 40% 71 71 2 59 Personal digital 20% 29 On-demand radio 0% Live radio Adults 16-24 25-34 35-44 45-54 55-65 65+ Average 16+ weekly minutes listening: 945 883 817 931 1062 1116 879

Source: Ofcom Digital Day 2016, Data book 1: C2. Adult diary: Chart shows the proportion of all listening time (B2) attributed to each activity (D) by age group. The average weekly minutes figure is among those who did any listening activity across their diary week and also includes simultaneous activity. Base: Adults aged 16+ (1512) 16-24s (129) 25-34s (189) 34-44s (282) 45-54s (299) 55-64s (259) 65+s (354). 2 Figure 3.4

Source: RAJAR

3 Figure 3.5 Radio - average listening audience – 2016 BBC vs. Commercial

20 Breakfast Morning Afternoon Evening Night

15

BBC 10 Commercial

5 Average listening audience (%) audience listening Average 0 • 0600-0630 0630-0700 0700-0730 0730-0800 0800-0840 0840-0900 0900-0930 0930-1000 1000-1030 1030-1100 1100-1130 1130-1200 1200-1230 1230-1300 1300-1330 1330-1400 1400-1430 1430-1500 1500-1530 1530-1600 1600-1630 1630-1700 1700-1730 1730-1800 1800-1830 1830-1900 1900-1930 1930-2000 2000-2030 2030-2100 2100-2130 2130-2200 2200-2230 2230-2300 2300-2330 2330-0000

Source: RAJAR, all adults (15+), 12 months to Q1 2016, Monday-Sunday, average audience. Base: National Total Survey Area.

4 Figure 3.6 The shift of audio consumption from albums and singles streaming

Streaming services unique audiences (millions) Music sales (million units) 12 279.4 300 245.5 9.9 10 250 217.1 8 200 5.7 6 5.4 150 4.6 4 2.9 3.1 100 2 50

0 0 2013 2014 2015 Spotify Soundcloud Music sales (digital & physical) Source: Entertainment Retailers’ Association / Official Charts 2016; comScore MMX Multiplatform UK, total digital population 15+, May 2016. Note: Spotify and Soundcloud only. The unique audiences from these two sites account for the largest take-up of the streamed music unique audience. 2013 data are based on May to December 2013, averaged. 5 Figure 3.7

Weekly reach of streamed music, by age group: 2016 vs. 2014

60 51 50

40 38

30 26 25 19 20 14 13 11 11 10 8 7 8 2 3 0 Adults 16+ 16-24 25-34 35-44 45-54 55-64 65+ 2014 2016 Source: Ofcom Digital Day 2016, Data book 1: A1. Adult diary: Chart shows the proportion of adults who recorded activity (D) at any point across their diary week. Base: 2016: Adults aged 16+ (1512), 16-24 (129), 25-34 (189), 35-44 (282), 45-54 (299), 55-64 (259), 65+ (354); 2014: Adults aged 16+ (1644), 16- 24 (101), 25-34 (225), 35-44 (348), 45-54 (400), 55-64 (311), 65+ (259) 6 Figure 3.8 Average time spent on grouped activities per day Among adults 16+ in the UK Change from 2014

TV Or Films On A TV Set 3h 47m - 9 mins

TV Or Films On Another + 5 mins Devi ce 0h 18m

Other Video 0h 7m + 2 mins

Radio On Radio Set 1h 14m + 7 mins

Radio On Another Device 0h 14m + 1 mins

Other Audio 0h 31m + 2 mins

Voice Comms 0h 25m - 7 mins

Text Comms 1h 30m - 9 mins

Games 0h 28m - 2 mins Source: Ofcom Digital Day 2016, Data book 1: B4(2) Adult diary: Data is taken from a combination of activities (D) and devices (E) recorded. The calculations are made by netting all grouped activities together and averaging the time spent. Zeros are included so as to reflect the whole UK population.. • Base: Adults aged 16+ in UK (1512) 7

Figure 3.9

Radio industry revenue 2010-2015 Revenue (£m) Total 1400 1,248 1,248 1,137 1,164 1,203 1,177 1200 BBC expenditure 1000 (estimated) Total commercial 800 675 697 717 705 725 717 600 512 519 452 457 475 461 National commercial 400 261 267 211 220 222 207 Local commercial 200 136 130 139 141 136 133 95 0 92 92 98 95 94 Commercial 2010 2011 2012 2013 2014 2015 sponsorship Source: Ofcom / operator data / BBC Annual Report 2009-2016 Note: BBC expenditure figures are estimated by Ofcom based on figures from the BBC Annual Report (www.bbc.co.uk/annualreport); figures in the chart are rounded and are nominal. Total includes community radio, but community radio is not shown on the chart. Total commercial includes all sources of revenue - national, local, sponsorship and ‘other’, but ‘other’ is not shown on the chart. Commercial and total revenue figures for 2010-2013 are not wholly comparable to 2014 and 2015 due to an amendment to the data collection methodology. 8 Figure 3.10 Radio expenditure and revenue percentage change, year on year

Source: Ofcom / operator data

9 Figure 3.11 Share of all radio listening hours: Q1 2016

Percentage share of listening hours

UTV, 2.8% Other, 7.0% Communicorp UK, 2.5% BBC network radio, Orion, 1.1% 46.6%

Bauer, 14.0%

Global, 18.5%

BBC local/regional, 7.5%

Source: RAJAR, all adults (15+), Q1 2016. Base: National Total Survey Area. Note: UTV Radio commenced trading as Wireless Group in March 2016 and Orion Media Group was acquired by Bauer in May 2016.

Figure 3.12 Commercial radio by weekly audience reach: Q1 2016

Weekly UK 41.0% 31.1% 7.8% 6.3% 2.4% 1.7% 1.1% audience reach Annual change in reach* +1.9pp +1.0pp -0.6pp +0.3pp +0.2pp +0.1 -0.2pp

45%

20,000 40% 35% 15,000 30% 25% 21,989 10,000 20% 16,675 15% 5,000 10% 1,294 930 5% 4,172 3,394 603 0 0% Weekly reach ( thousands) Global Bauer UTV Communicorp Orion UKRD Celador

Source: RAJAR, all adults (15+), Q1 2016. Base: National Total Survey Area * Q1 ‘15 and Q1 ’16 Note: UTV Radio commenced trading as Wireless Group in March 2016 and Orion Media Group was acquired by Bauer in May 2016. Figure 3.13

Digital Audio Broadcasting UK radio services broadcasting May 2016

UK UK BBC Local Total Commercial Commercial UK-wide Commercial 90% coverage 75% coverage Multiplexes 1 1 1 54 57

Services 12 18 11 396* 437*

* Includes simulcast services (205 unique services). Excludes BBC local radio services

Source: Ofcom, May 2016

12 Figure 3.14 Analogue UK radio stations broadcasting May 2016

Type of station AM FM AM/FM total

Local commercial 51 235 286

UK-wide commercial 2 1 3

BBC UK-wide networks 1 4 5

BBC local and nations* 35 43 43

Community radio 6 233 239

TOTAL 95 516 576

Source: Ofcom, May 2016 Note: 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. * Includes simulcasts. Figure 3.15 Average income for community radio stations: 2010 to 2015

Income 2010 2011 2012 2013 2014 2015 Average (mean) £65,750 £60,250 £57,000 £55,500 £55,750 £53,500 income (-12.9%) (-8.3%) (-5.4%) (-2.7%) +0.8% (-4.2%) Median income £42,500 £40,500 £35,250 £33,250 £35,750 £32,500 (-7.14%) (-4.8%) (-13.1%) (-5.6%) +6.9% (-8.5%)

Source: Ofcom analysis of community broadcasters’ returns Note: The data collection period changed from the financial year to the calendar year as of 2011. Data from previous years has been adjusted to reflect this. Figure 3.16

Distribution of total income levels across the community radio sector Proportion of stations (%) 30 23 21 17 20 1818 1516 13 12 13 13 11 11 12 9 9 10 9 8 8 8 9 8 6 6 7 7 7 6 7 6 4 5 4 5 5 4 4 2 3 2 2 3 3 2 3 2 2 3 2 2 2 2 1 1 1 1 0

2012 2013 2014 2015

Source: Ofcom analysis of community broadcasters’ returns. Figures rounded.

15 Figure 3.17 Community radio income, by source

Income by source (%) 100% Other income 18 20 26 28 25 80% 13 14 Donations 13 14 10 7 15 60% 6 5 4 SLAs 33 29 25 25 40% 26 Grants 20% 26 29 30 26 30 On air 0% advertising and 2011 2012 2013 2014 2015 sponsorship

Source: Ofcom analysis of community broadcasters’ returns Figure: 3.18

Average income by type of community served

£100,000

Other £80,000 £73,035 £69,860

15% £57,796 £59,638 23% Donations £60,000 £53,558 11% £50,579 24% 25% 22% SLAs £40,000 24% £37,057 8% 37% 14% 12% 22% Grants 8% 100% 25% 35% 33% £20,000 27% 45% On-air ads 30% 30% 37% 24% 29% £0 Sector Minority GeographicGeographic Military (9) Religious Youth (22) average ethnic (28) - town/rural- urban (28) (12) (216 (102) 0 stations) Source: Ofcom analysis of community broadcasters’ returns

17 Figure 3.19 Average expenditure for community radio stations: 2010 to 2015

Expenditure 2010 2011 2012 2013 2014 2015 Average (mean) £67,000 £64,250 £58,000 £55,000 £53,500 £54,800 expenditure (-12.3%) (-4.1%) (-9.7%) (-5.0%) (-2.7%) 2.3% Median £43,000 £41,000 £35,500 £35,750 £33,250 £33,250 expenditure (-17.5%) (-4.9%) (-15.4%) 2.7% (-6.8%) 0%

Source: Ofcom analysis of community broadcasters’ returns Note: The data collection period changed from the financial year to the calendar year as of 2011. Data from previous years has been adjusted to reflect this. Figure 3.20 Community radio expenditure, by type

Expenditure by source (%) 100% 15 15 15 Other 21 17 80% 9 9 11 10 9 12 11 12 11 Technical 11 60% 13 14 12 13 13 Admin and 40% marketing

Premises 47 49 51 49 50 20%

Staff 0% 2011 2012 2013 2014 2015

Source: Ofcom analysis of community broadcasters’ returns Figure: 3.21

Average expenditure by type of community served £100,000

Other £80,000 £71,061 £66,831 £66,180 £59,638 17% Technical costs £60,000 £54,817 20% 19% £53,731 10% 6% 15% 8% 9% 5%0 17% 16% 10% 14% 9% Admin and £40,000 £36,862 13% 11% 10% 15% 9% marketing 14% 19% 19% 10% 10% 13% 80% Premises £20,000 14% 53% 50% 40% 45% 52% 44% Staff £0 Sector Minority GeographicGeographic Military (9) Religious Youth (22) average ethnic (28) - town/rural - urban (28) (12) (216 (102) stations)

Source: Ofcom analysis of community broadcasters’ returns

20 Figure 3.22 Community radio hours and volunteers

Sector average Total original hours per week 90 Number of volunteers 79 Total volunteer hours per week 186 Number of volunteers trained 51

Source: Ofcom analysis of community broadcasters’ returns Figure 3.23

Reach of radio, by sector

Percent of population 100% 90.8% 89.5% 90.4% 89.5% 89.6% 89.3% All radio

67.6% All BBC 80% 66.4% 67.1% 65.6% 65.3% 65.1% 64.9% 63.5% 64.9% 63.9% 64.5% 64.0% All commercial 60% 61.3% 60.3% 61.1% 59.9% 59.8% 59.8% BBC network 52.0% 50.5% 51.4% 50.8% 49.7% 49.7% 40% 34.0% Local commercial 30.5% 30.9% 32.5% 31.6% 33.3% National 20% 18.7% 17.8% 17.8% 16.8% 15.1% 15.3% commercial BBC nations / 6.0% 6.2% 6.2% 7.6% 7.3% 7.1% local 0% Other 2011 2012 2013 2014 2015 Q1 2016

Source: RAJAR, All adults (15+), calendar years 2011-2015, Q1 2016

22 Figure 3.24

Share of listening hours, by sector

Percent of listening hours 60% 54.7% 54.7% 54.6% 53.8% 53.6% 54.1% All BBC Radio

46.0% 46.3% 46.2% 46.0% 46.1% 46.6% BBC network

40% 43.0% 42.8% 42.8% 43.1% 43.8% 43.2% All commercial 31.2% 30.2% 29.7% 30.1% 28.5% 27.7% Local commercial 20% National 14.4% 14.6% commercial 11.8% 12.5% 13.1% 13.0% BBC 8.7% 8.4% 8.4% 7.8% 7.0% 7.1% nations/local 2.3% 2.5% 2.6% 3.1% 2.7% 2.7% Other 0% 2011 2012 2013 2014 2015 Q1 2016

Source: RAJAR, All adults (15+), calendar years 2011-2015, Q1 2016

23 Figure 3.25 Average weekly listening by demographic, year ending Q1 2016

Weekly listening hours 30 Average listening per week 21.4 hours 25

20

24.5 25.4 15

23.4 22.5 22.8 10 20.2 20.3 20.2 17.9 14.5 5

0 15-24 25-34 35-44 45-54 55-64 65-74 Adult Adult ABC1 C2DE Men Women Adults Adults

Source: RAJAR, all adults (15+), year ending Q1 2016, average weekly listening hours per listener Figure 3.26

Average weekly listening, by age: 2005-2015 Average listening hours per week 30

25 65+ 20 55-64 45-54 15 Adults 15+ 10 35-44 25-34 5 15-24

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: RAJAR, all adults (15+), Q4 of each year, 12 month weighted, all radio TSA

25 Figure 3.27 Digital radio’s share of radio listening, Q1 2016 Digital radio platforms’ share of all radio hours

50% 44.1 41.9 41.8 39.6 39.9 Internet 37.7 37.8 40% 36.7 35.6 36.1 36.7 36.8 7.8 6.4 6.9 6.8 6.4 6.1 6.8 2.3 2.4 6.0 5.7 5.8 6.4 6.2 2.1 2.1 5.4 1.5 1.7 1.7 1.8 1.8 5.0 4.9 Digital 30% 1.7 1.6 4.7 4.8 4.7 5.3 5.2 5.2 5.0 4.8 5.0 unspecified

20% TV 27.7 27.7 30.9 23.9 24.1 24.5 25.2 25.9 26.7 10% 23.0 23.4 23.7 DAB 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 Source: RAJAR Note: ‘Digital unspecified’ relates to listening to digital-only stations where the survey respondent has not specified the listening platform used. With effect from Q1 2016 this term has been eliminated. ‘Internet’ is classified as ‘Online/Apps’ 26 Figure 3.28

Listening to radio via TV, internet and mobile phone

Proportion of respondents (%) who have listened to radio via digital television, internet or mobile phone 40% TV Internet Mobile Phone

30% 27 27 27 25 25 24 24 25 22 23 22 22 23 20 21 21 20% 15 16 16 14 13 10 10 10 10%

0% 2009 2010 2011 2012 2013 2014 2015 2016

Source: Ofcom Technology Tracker. Data from Quarter 1 of each year 2012-2014, then Half 1 2015-2016 Base: All adults aged 16+ (n = 6090 UK 2009, 9013 UK 2010, 3474 UK 2011, 3772 UK 2012, 3750 UK 2013, 3740 UK 2014, 3756 UK 2015, 3737 UK 2016) QP11D/E/ C: How often, if at all, do you access the radio via – Digital radio via: TV, Internet, mobile phone? *NB 2013-16 measures for internet combine responses across radio listeners and internet users, 2013-16 measures for mobile phone combine responses across radio listeners and mobile phone users 27 Figure 3.29

Ownership of DAB sets: Q1 2016

Percentage of adults who claim to own a DAB set / have a DAB set in the home 60%

45%

30% 55.7% 49.0% 44.3% 47.9% 38.2% 42.6% 15% 32.1% 34.5%

0% Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016

Source: RAJAR / Ipsos MORI / RSMB Q1 2009-2016

28 Figure 3.30 Platform split by sector and station: year ending Q1 2016

Share Overall radio sector National commercial BBC network of radio listening 100% 46% 7% 15% 29% 3% 2% 2% 6% 18% 1% 12% 4% 100% 23% 29% 41% 31% 37% 80% 42% 45% 43% 43% 44% Digital 57% 50% 68% 60%

40% 77% 71% Analogue 69% 63% 58% 55% 59% 57% 57% 56% 43% 50% 20% 32% 0%

Source: RAJAR, year ending Q1 2016, adults 15+ Note: With effect from Q1 2016 the term ‘not stated/specified’ was been eliminated.

Figure 3.31 Most popular digital-only stations - UK, Q1 2016

Average weekly reach year ending Q1 2016 (millions) % change year on year

2.5 +6% Radio group +12% 2.0 Bauer +16% +10% BBC +42% +33% 1.5 Independent +2% 2.2 +1% -4% 1.0 2.0 -11% +2% 1.6 +6% 1.5 1.5 +13% +11% 1.4 -2% 0.5 1.1 1.0 0.9 0.8 0.8 0.7 0.6 0.5 0.5 +43% 0.3 0.0

Source: RAJAR, year ending Q1 2016 adults 15+