2. Television and audio visual

0 Figure 2.1 Industry metrics

UK television industry 2005 2006 2007 2008 2009 2010

Total TV industry revenue (£bn) 10.5 10.6 11.1 11.2 11.1 11.7

Proportion of revenue generated by public funds 25% 25% 25% 24% 25% 23%

Proportion of revenue generated by advertising 35% 33% 32% 31% 28% 30%

Proportion of revenue generated by subscriptions 35% 36% 37% 39% 41% 41%

TV as a proportion of total advertising spend 30% 28% 27% 27% 28% 29%

Spend on originated output by 5 main networks (£bn) 3.0 2.8 2.7 2.6 2.4 2.5

Digital TV take-up 61.9% 69.7% 86.3% 87.1% 91.4% 92.5%

Proportion of DTV homes paying for TV (Q1) 64% 60% 55% 53% 55% 55%

Viewing per head, per day (hours) in all homes 3.65 3.60 3.63 3.74 3.75 4.04

Share of the five main channels in all homes 70% 67% 64% 61% 58% 56%

Number of channels broadcasting in the UK 416 433 470 495 490 510 Source: Ofcom/broadcasters/Advertising Association/Warc/BARB/GfK. Note: Public funds include the DCMS grant to S4C and BBC funding that is allocated to TV; TV as a proportion of total advertising spend excludes direct mail and is based on Advertising Association/Warc Expenditure Report (www.warc.com/expenditurereport); spend on originations includes spend on nations and regions programming (not Welsh and Gaelic language programmes but some Irish language). Note that digital television take-up in Q1 2011 had reached 93%. 1 Figure 2.2 Total TV industry revenue, by source

Revenue (£m) 11,800 +1% +3% +5.7% +6% 11,700 £27m £19m +12% £49m +6% £54m 11,600

11,500 £243m 11,400 +13% £11,747m 11,300 £248m 11,200

11,100 £11,109m 11,000 2009 PSB NAR Subscriber PSB portfolio Other NAR BBC TV Other 2010 revenue revenue NAR spending revenue

Source: Ofcom/broadcasters

2 Figure 2.3 Advertising revenue, by share

1-year change (%) £m £ 3,136m £3,486m 11.2% 4,000 7.8% GMTV1 £55m £507m 3,000 £51m £453m 11.9% PSB portfolio £835m channels £786m 6.2% Other 2,000 £216m multichannels £207m £600m 4.3% Five £538m 1,000 11.5% Channel 4/S4C £1,100m £1,273m 15.7% ITV1/Channel 3 0 2009 2010

Source: Ofcom/broadcasters. Note: Totals may not equal the sum of the components due to rounding. ITV1/Channel 3 includes ITV Plc, STV, UTV and Channel Television. GMTV1 includes ITV Breakfast.

3 Figure 2.4 Multichannel take-up in UK households

% of homes 41.7% 44.7% 48.0% 56.7% 64.9% 71.8% 80.3% 87.2% 89.6% 92.1% 93.1% TV Households (m) 26 24 Analogue 22 terrestrial only 20 Digital terrestrial only 18 Analogue cable 16 14 Digital cable 12 10 Free-to-view 8 digital satellite 6 Analogue satellite 4 Pay digital 2 satellite 0 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: Ofcom, GfK NOP research from Q1 2007, previous quarters include subscriber data and Ofcom market estimates for DTT and free satellite Note: Digital terrestrial relates to DTT- only homes. Figure 2.5 Number of broadcast HD homes: BSkyB, Virgin Media, Freesat and Freeview

9,000 8,000 Freeview 7,000 HD 6,000 Freesat 5,000 HD 4,000 Virgin Media 3,000 Homes ( 000s ) Homes Sky+ HD 2,000 1,000 0 Q1 2007 Q3 2007 Q1 2008 Q3 2008 Q1 2009 Q3 2009 Q1 2010 Q3 2010 Q1 2011

Source:BSkyB/Virgin Media/GfK Note: Figures represent latest available data. Freesat HD and Freeview HD figures based on HD device sales, therefore the cumulative number of HD homes is indicative only and 5 should be regarded as an upper boundary figure. Figure 2.6 Usage and access to Freeview DTT services: 2005-2011

Total Freeview enabled TVs (000) 6700 11264 16665 23383 26108 28777 30699 Homes (000’s) 20000

Total homes 15000 using Freeview

10000

Freeview- 5000 only homes

0 Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Source: Ofcom estimates based on GfK research and sales data. Note: Q1 2009 total Freeview-enabled TVs figure has been adjusted by Ofcom. 6 Figure 2.7 Live vs. time-shifted TV viewing, DVR homes

Proportion of viewing (%)

100% 8% 8% 8% 7% 90% 7% 7% 7% 7% 80% Viewed 1-7 days after broadcast 70% 60% Viewed on same 50% day 86% 40% 85% 85% 85%

30% Live 20% 10% 0% 2007 2008 2009 2010

Source: BARB. All individuals with DVRs. Note: New BARB panel introduced 1 Jan 2010. As a result pre- and post-panel change data must be treated with caution

7 Figure 2.8 2010 top ten programmes – all channels, DVR homes

Recorded viewing Live viewing Programme Channel Date (m) (m)

1 Doctor Who BBC1 25/12/2010 3.2 4.5

2 Come Fly With Me BBC1 25/12/2010 2.9 4.8

3 The X Factor ITV1 03/10/2010 2.4 5.4

4 The Royle Family BBC1 25/12/2010 2.4 4.4

5 Sherlock BBC1 25/07/2010 2.0 2.5

6 EastEnders BBC1 19/02/2010 2.0 5.4

7 Gavin & Stacey BBC1 01/01/2010 1.9 2.8

8 Strictly Come Dancing BBC1 18/12/2010 1.9 5.8

9 Britain’s Got Talent ITV1 05/06/2010 1.7 4.5

10 Upstairs Downstairs BBC1 26/12/2010 1.7 3.2

Source: BARB. All individuals with DVRs. Includes viewing on respective +1 channels. Only highest incidence of programmes reported. 8

Figure 2.11 2010 average, all time-shifted content

48% Proportion of total recorded content 52%

Distribution of DVR viewing within 24 Distribution of DVR viewing within hours of broadcast one-seven days of broadcast

80 70 59% 60 50 40 35% 30 25% 20 14% 14% 8% 9% 9% 7% 10 5% 6% 6% 3% Proportion of of viewers % Proportion 0 0-1 1-2 2-3 3-4 4-8 8-24 1 day 2 days 3 days 4 days 5 days 6 days 7 days hours hours hours hours hours hours after after after after after after after

Source: BARB. All individuals with DVRs. Includes viewing on respective +1 channels.

11 Figure 2.12 Average online catch-up TV requests, 2010 Average monthly 5.2 3.4 3.2 2.5 sessions per person Universe Reach (%) 20

15 15

10

4 5 3 1 0 BBC iPlayer 4OD ITV Player Sky Player Source: UKOM/ Nielsen. Home and work panel. Applications included. Note: Universe reach is the percentage of all UK internet-accessible persons (aged 2+) who visited the site or used the application in the average month. ‘Internet-accessible’ is defined as anyone who has access to an internet-enabled computer within the time periods covered. These figures are based on averages across each calendar month of 2010.

12 Figure 2.13 2010 average monthly online catch-up TV requests, by age group

100% 2 65+ 6 5 3 11 90% 24 23 24 50 - 64 80% 24 70% 35 - 49 60% 29 33 36 50% 29 25 - 34

40% 18 - 24 30% 22 24 24 20% 27 12 - 17 13 10% 12 8 4 7 3 3 0% 2 - 11 BBC iPlayer Channel 4oD ITV Player Sky Player Source: UKOM/ Nielsen. Home and work panel. Applications included. These figures are based on averages across each calendar month of 2010

13 Figure 2.14 2010 average monthly online catch-up TV requests, by gender

100%

90% 30 80% 41

70% 55 70 60% Male

50% Female 40% 70 30% 59

20% 45 30 10%

0% BBC iPlayer Channel 4oD ITV Player Sky Player Source: UKOM/ Nielsen. Home and work panel. Applications included. These figures are based on averages across each calendar month of 2010

14 Figure 2.15 Age profile of those who have a games console at home

100

80 74 73 70 70 67 63 60 54 49 46 36 38 40 30 27 24 20 9 11 7 4 0 Any games console Fixed games console Handheld/ portable games player

Total 16-24 25-34 35-54 55-64 65+

Source: Ofcom residential tracker, w1 2011. Base: All adults 16+ (3,474). Which of the following do you, or does anyone in your household, have in your home at the moment?

15 Figure 2.16 Age profile of those who personally use a games console

100

80 70 72 66 65 60

34 34 40 31 30 28 29 15 15 20 9 8 3 2 4 1 0 Any games console Fixed games console Handheld/ portable games player

Total 16-24 25-34 35-54 55-64 65+

Source: Ofcom residential tracker, w1 2011. Base: all adults 16+ (3,474). And do you personally use….

16 Figure 2.17 What consumers use games consoles for

60

40

20 22 19 4 22 11 9 10 0 IPTV content web/internet Browsing the Iplayer online gaming Watching video Watching Ray DVDs Watching 'live' TV programmes/content Watching DVD/ Blue programmes on BBC

Source: Ofcom residential tracker, w1 2011. Base: all adults 16+ with access to a games console at home (1,793). QB4 (QB4) Which, if any, of these do you use your games console for?

17 Figure 2.18 Size of the children’s television audience by time of year

25 1200

20 1000 800 15 Average Audience 600 10 400 5 200 % iof Average Audience, Average 000s % % of viewing audience viewing 0 0 audience 11:00 06:30 08:00 09:30 12:30 14:00 15:30 17:00 18:30 20:00 21:30 23:00 ------10:30 06:00 07:30 09:00 12:00 13:30 15:00 16:30 18:00 19:30 21:00 22:30

Source: BARB Figure 2.19 Average hours of weekly TV viewing by children

Average weekly viewing (Hrs, Mins)

20

19 Children Children 4-9 Children 10-15 18.2 18 17.3 17 16.6 16.3 16.5 16.1 16.1 16.0 16 15.5 15.6 15.4 15.4 15.4 15.3 15.3 15.1 15.1 15.3 15

14

13

12

11 2005 2006 2007 2008 2009 2010

Source: BARB

19 Figure 2.20 Proportion of time-shifted viewing by children, by daypart

25

20 Children

15 Children 4-9 viewing

% of 10 Children 10-15

5

0 11:00 12:00 07:00 08:00 09:00 10:00 13:00 14:00 15:00 16:00 17:00 19:00 21:00 22:00 23:00 24:00 18:00 20:00 ------10:00 11:00 11:00 06:00 07:00 08:00 09:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

Source: BARB Figure 2.21 Proportion of total viewing in the child’s bedroom, by daypart

25

20

Children 15 viewing

Children 4-9

% of 10

5 Children 10-15

0 11:00 12:00 13:00 14:00 15:00 07:00 08:00 09:00 10:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 24:00 ------10:00 11:00 13:00 14:00 06:00 07:00 08:00 09:00 12:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 Source: BARB Figure 2.22 Total TV industry revenue, by source 5yr Growth: 1 year Revenue (£m) CAGR £10,030 £10,502 £10,619 £11,041 £11,157 £11,109 £11,747 5.7% 2% 5,000 4,596 4,839 4,277 5% 6% Subscription 4,064 revenue 4,000 3,699 3,795 3,410 11% -1% Net 3,576 3,431 3,615 3,462 3,470 3,486 advertising 3,000 3,136 revenue

2,690 2,622 2,623 2,663 1% 2% BBC 2,443 2,464 2,525 2,000 income allocated to TV 837 3% 0% Other 1,000 746 724 780 787 713 732 revenue

0 2004 2005 2006 2007 2008 2009 2010 Source: Ofcom/broadcasters Note: Figures expressed in nominal terms and replace previous Ofcom revenue data for TV industry, owing to restatements and improvements in methodologies. ‘Subscription revenue’ includes Ofcom’s estimates of BSkyB, Virgin Media, BT Vision, TalkTalkTV, Setanta Sports (until its closure), ESPN and Top Up TV television subscriber revenue in the UK (Republic of Ireland revenue is excluded). It also excludes revenue generated by broadband and telephony. ‘Other’ includes TV shopping, sponsorship, interactive (including premium-rate telephony services), programme sales and S4C’s grant from the DCMS. The BBC restated licence fee revenue in 2008. Totals may not equal the sum of the components due to rounding. 22 Figure 2.23 TV industry revenues, by share TV industry revenue shares (%) £10,030 £10,502 £10,619 £11,041 £11,157 £11,109 £11, 747 50% Subscription 41.4% 40.8% revenue 36.8% 38.3% 40% 34.0% 35.2% 35.7% 28.2% Net advertising 30% 34.4% 34.2% 32.6% 32.4% 31.1% 29.7% revenue

20% 24.4% 23.5% 23.8% 23.7% 23.5% 24.0% 22.7% BBC income 10% allocated to TV

7.4% 6.9% 7.9% 7.1% 7.1% 6.4% 6.2% 0% Other revenue 2004 2005 2006 2007 2008 2009 2010

Source: Ofcom/broadcasters Note: Figures expressed in nominal terms and replace previous Ofcom revenue data for TV industry, owing to restatements and improvements in methodologies. ‘Subscription revenue’ includes Ofcom’s estimates of BSkyB, Virgin Media, BT Vision, TalkTalkTV, Setanta Sports (until its closure), ESPN and Top Up TV television subscriber revenue in the UK (Republic of Ireland revenue is excluded). It also excludes revenue generated by broadband and telephony. ‘Other’ includes TV shopping, sponsorship, interactive (including premium-rate telephony services), programme sales and S4C’s grant from the DCMS. The BBC restated licence fee revenue in 2008. Totals may not equal the sum of the components due to rounding.

23 Figure 2.24

Total TV industry revenue by sector Growth 5yr Revenue (£m) 1 year CAGR £10,030 £10,502 £10,619 £11,041 £11,157 £11,109 £11,747 5.7% 2% 12,000

5% 6% Platform 10,000 operators £4,064 £4,277 £4,839 £3,699 £3,795 £4,596 8,000 £3,410 8% 6% Commercial multichannels £1,300 £1,477 £1,650 6,000 £1,239 £1,726 £1,619 £1,755 11% -4% Main commercial 4,000 £2,843 £2,906 £2,725 £2,603 £2,420 £2,359 £2,123 PSB channels

2,000 £2,538 £2,597 £2,622 £2,725 £2,734 £2,768 £2,795 1% 1% Publicly-funded channels 0 2004 2005 2006 2007 2008 2009 2010 Source: Ofcom/broadcasters Note: Figures are nominal. Main commercial PSB channels comprise ITV1, STV, UTV, Channel Television, GMTV1, Channel 4, Five and S4C. Commercial multichannels comprise all multichannels including those owned by ITV1, Channel 4 and Five. Publicly-funded channels comprise BBC One, BBC Two, the BBC’s portfolio of digital-only television channels and S4C. S4C is listed under publicly-funded and commercial analogue channels because it has a mixed advertising and public funding model. The BBC restated licence fee revenue in 2008. Totals may not equal the sum of the components due to rounding.

24 Figure 2.25 TV net advertising revenues, by source Net advertising revenue (£m) Growth

4000 £3,239m £3,431m £3,615m £3,462m £3,576m £3,470m £3,136m £3,487m 1 year 5yr CAGR 3500 11% -1% £758m £803m £640m £759m £808m £835m 3000 £676m 6% 2% Commercial £105m £173m £786m multichannels £276m £386m 2500 £459m £507m £453m 2000 12% 24% Commercial PSB portfolio 1500 channels £2,686m £2,684m £2,563m £2,427m £2,387m £2,204m £2,144m 1000 £1,896m 13% -4% Main commercial 500 PSB channels

0 2003 2004 2005 2006 2007 2008 2009 2010

Source: Ofcom/broadcasters. Note: Figures expressed are in nominal terms and replace previous data published by Ofcom. Main commercial PSB channels comprise ITV1, STV, UTV, Channel Television, 1/DaybreakGMTV1/Daybreak, Channel 4, Five and S4C; Commercial PSB portfolio channels include, where relevant, ITV2, 3, 4, Men & Motors, CiTV, E4, More 4, Film 4, 4Music, Five USA and Fiver (and their ‘+1’ channels). For previous years closed channels have also been included. Sponsorship revenueis not included. Totals may not equal the sum of the components due to rounding.

25 Figure 2.26 TV net advertising revenue market shares: 2009 - 2010

Proportion of NAR by broadcaster (%)

Total = £3,470m Total = £3,136m Total = £3,486m 100% 23.3% 25.1% 24.0% Other multichannels 80% PSB portfolios 13.2% 14.4% 14.5% 60% 1.6% 1.6% 1.6% 7.8% 6.6% 6.2% GMTV1 18.1% 17.2% 40% 17.2% Five Channel 4/S4C 20% 36.1% 35.1% 36.5% ITV1/Channel 3 0% 2008 2009 2010

Source: Ofcom/broadcasters. Note: ITV1/Channel 3 includes ITV1, STV, UTV and Channel Television.

26 Figure 2.27 Breakdown of other / non-broadcast revenue: 2010 Total non-broadcast revenue = £732m (2.7%)

Other Revenue Sponsorship £125m (7%) £178m (-6%)

TV Shopping Programme Sales £190m (16%) £36m (39%)

Interactive £53m (-21%)

Pay-per view £48m (-17%) Other Public Funding (S4C) £102m (-1%)

Source: Ofcom/broadcasters. Note: Percentage figures in brackets represent year-on-year change. TV shopping represents aggregate operating margin of products sold via television. Percent figures represent year-on-year change. Totals may not equal the sum of the components due to rounding. Owing to the nature of these revenue components, annual changes may be a function of a higher number of broadcaster returns being made by the time of writing, rather than material changes in the contributions that these revenue components are making to total industry income. 27 Figure 2.28 Revenue generated by multichannel broadcasters, by genre: 2010

Total revenue = £4,100m across the eight genres included (10%)

Music Movies £104m (-4%) £561m (4%) News Entertainment £64m (-52%) £1,200m (11%) Leisure £54m (-22%)

Factual £201m (36%) Children's Sport £164m (3%) £1,800m (17%)

Source: Ofcom/broadcasters Note: Percentage figures in brackets represent year-on-year change. The figures in this chart include all sources of revenue accruing to multichannels and are expressed in nominal terms. This includes those set out in Figure 1.22 plus wholesale subscriber payments from platform operators.

28 Figure 2.29 Spend on network TV programmes: 2007 - 2010 1 yr change £m £4,972m £5,108m £5,107m £5,369m 5% 5,500 £162m 9% Five £204m 5,000 £205m £149m £191m £224m £210m £230m £219m £206m £348m -3% Other PSB portfolio channels 4,500 £224m £216m £361m £357m £378m £475m 4,000 £507m £467m 12% BBC digital channels £528m 3,500 £716m £672m £755m -3% BBC Two 3,000 £623m £847m £810m 2% Channel 4 2,500 £840m £856m 2,000 £869m Other digital channels £799m -5% 1,500 £802m £868m 5% ITV1 + GMTV1 1,000 £1,338m £1,546m 500 £1,166m £1,199m 9% BBC One 0 16% Film/Sport channels 2007 2008 2009 2010 Source: Ofcom/broadcasters. Note: Figures expressed in nominal terms. Figures do not include spend on nations and regions output. BBC digital channels includes BBC Three, BBC Four, BBC News Channel, BBC Parliament, CBBC and CBeebies (but not BBC HD). ‘Other digital channels’ include all genres (excluding Sports and Films). Programme spend comprises in-house commissions, productions, commissions from independents, spend on first-run acquired programmes, spend on rights and on repeats (originations or acquisitions). 29 Figure 2.30 Spend on first-run originated output on the five main networks

Growth 1 year 5yr CAGR £m £2,636m £2,633m £2,598m £2,616m £2,413m £2,522m 5% -1% 3,000

2,500 £337m £321m £323m £303m £266m 4% -5% Regional £256m £285m £246m £239m £335m £185m £208m 2,000 13% -9% Late night £646m £615m £620m £603m £614m £628m 1,500 2% 0% Day time

1,000 5% 1% Peak time £1,349m £1,407m £1,427m £1,427m £1,358m £1,420m 500

0 2005 2006 2007 2008 2009 2010

Source: Ofcom/broadcasters. Note: Figures are expressed in 2010 prices. They include GMTV1, spending in the nations and regions on English- language programming (and a small amount of Irish-language programmes) but do not include the BBC’s digital channels.

30

Figure 2.32 Hours of first-run originated output on the five main channels

Growth 1 Year 5 yr CAGR

32,866 33,379 34,048 33,045 30,485 30,027 -1.5% -1.8% 35,000

5.8% 30,000 -1.8% Regional 11,859 12,114 11,825 11,912 25,000 10,439 11,046

20,000 -9.0% -2.5% Non-peak network 15,000 16,021 16,646 15,536 15,142 14,632 13,316 10,000 4.6% 0.2% Peak-time 5,000 network 5,610 5,533 5,543 5,597 5,414 5,665 0 2005 2006 2007 2008 2009 2010

Source: Ofcom/broadcasters. Note: Figures include GMTV1 but do not include the BBC’s digital channels. Regional hours exclude Welsh and Gaelic-language programming but do include a small proportion of Irish-language programmes.

32 Figure 2.33 First-run originated output by the PSBs per week, all day and peak time

All Day Peak-Time

800 200 179 168 171 177 167 172 667 675 672 661 627 613

BBC digital BBC digital 600 150 channels channels 72 64 70 64 269 261 247 257 62 63 Five Five 243 248

Channel 4 Channel 4 400 71 100 14 13 12 14 11 12 74 69 65 54 27 Hours per week 63 Hoursper week 21 22 22 21 21 22 ITV1+GMTV1 66 65 61 56 53 ITV1+GMTV1 25 25 26 95 105 119 103 100 106 25 26 26 BBC Two 200 BBC Two 50 68 70 68 70 70 73 21 21 21 20 20 22 BBC One BBC One 103 99 105 101 104 106 26 25 26 25 26 26 0 0 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010

Source: Ofcom/broadcasters. Note: Figures do not include spend on nations and regions output.

33 Figure 2.34 Genre mix on five main PSB channels in peak time, by hours Proportion of total hours 7,933 7,936 7,929 7,923 7,978 7,964 8,009 100% Sport 401 341 507 366 457 357 483 Light Entertainment & 1,268 1,277 1,144 1,395 1,362 1,282 1,225 Modern Music 80% Films 688 618 611 757 579 630 675 Drama 1,746 60% 1,935 1,952 1,833 1,648 Education 1,863 1,954 General Factual

40% Religious/Ethics 2,656 2,512 2,105 2,253 2,149 2,370 2,365 Children's

20% Arts & Classical Music 52 73 64 51 54 50 56 296 318 318 303 312 308 328 Current Affairs 835 785 788 792 871 878 879 0% News 2004 2005 2006 2007 2008 2009 2010 Source: Ofcom/broadcasters. Note: Includes five main channels including GMTV1, figures do not include hours of nations and regions output. 34 Figure 2.35 Genre mix on five main PSB channels in daytime Proportions of total hours 21,668 21,553 21,313 21,703 21,612 21,597 21,654 100% Sport 1,958 1,837 1,753 1,687 1,796 1,505 1,650 Light Entertainment & 2,491 2,370 2,435 2,814 2,596 2,810 2,713 Modern Music 80% Films 1,811 1,716 1,593 1,645 1,557 2,080 2,464 2,759 2,817 2,590 2,719 Drama 2,056 1,797 2,654 60% 275 738 821 816 810 733 659 Education 3,150 General Factual 3,512 3,744 4,368 4,637 4,775 5,232 40% Religious

4,906 4,575 Children's 4,333 4,275 4,074 4,137 4,214 20% Arts & Classical Music 379 384 460 451 459 438 440 Current Affairs 3,299 3,191 3,041 3,068 2,901 2,881 2,793 0% News 2004 2005 2006 2007 2008 2009 2010 Source: Ofcom/broadcasters. Note: Includes five main channels plus GMTV1. Figures do not include hours of nations and regions output.

35 Figure 2.36 The BBC’s digital channels genre mix by hours: all day Output (hrs) 32,792 32,838 32,506 33,148 33069 33151 33202 Investment (£m) £231m £233m £223m £224m £216m £206m £230m 100% 1,738 1,690 1,788 1,576 1,622 1,588 2,210 Other 1,143 1,452 1,386 1,743 1,569 1,532 1,768 1,478 1,167 1,077 1,048 1,182 1,077 1,296 2,297 2,482 2,335 2,471 2,629 2,405 80% 2,503 Light Entertainment & Modern Music

8,021 8,033 7,957 8,326 8,347 8,406 8,213 Arts & Classical Music 60% 340 225 611 1,168 1,331 1,339 1,472 General Factual

40% Children's 17,890 17,674 16,762 16,740 16,593 16,546 16,460 20% Current Affairs

News 0% 2004 2005 2006 2007 2008 2009 2010 Source: Ofcom/broadcasters. Note: BBC digital channels include BBC Three, BBC Four, BBC News 24, BBC Parliament, CBBC, CBeebies. Investment figures are in 2009 prices. ‘Other’ includes: Education, Drama, Film, Religion and Sports. The BBC allocated Parliamentary coverage to the Current Affairs genre in the data for 1998 to 2003. From 2004, it has been allocated to either News or Current Affairs.

36 Figure 2.37 Total multichannel hours and first-run originations/acquisitions, 2010

Proportion of hours by channel genre (%) Total = 1,544,668 Total = 250,253 1 year change % Total (2009 = 1,562,613) (Total 2009 = 250,819) Total First Run

100% 4% 206% 171,074 17,598 Movies 34,045 80% 281,280 1,496 6% -15% Music 32,009 126,884 -65% -60% Leisure 60% 81,042 224,550 6% -10% News 40% 175,947 50,271 46% 46% Sport 102,309 5,085 20% 6,729 -15% -64% Factual 430,615 53,987 -17% 9% Kids 0% All Hours First-Run Hours 0% -5% Entertainment

Source: Ofcom/broadcasters Note: Broadcast hours exclude Sky Box Office and ‘barker’ channels, which promote TV content. First-run hours include first-run in-house, commissioned and acquired content.

37 Figure 2.38 Content spend by commercial multichannels in key genres: 2009 - 2010

1 year £m Total £2,086m Total £2,322m change % 2,500 £23m £23m 2% Music £71m £42m £23m £32m £99m 2,000 £59m £56m £257m -29% Leisure £100m £279m -24% Children's 1,500 £518m £479m 19% Factual 1,000 -1% News £1,289m 500 £1059m -8% Films

8% Entertainment 0 2009 2010 22% Sport

Source: Ofcom/broadcasters. Note: Excludes BBC digital channels.

38 Figure 2.39 Online TV revenues

Revenues (£m) Annual Growth 160 151.7

140 95% Total 120 82.8 116% FTV views 100 78.0 80 14% Subscriptions

60 49.6 38.3 20.4 12% PPV 40 19.1 transactions 21.6 17.9 15.0 43.3 152% DTO 20 6.7 11.0 11.7 17.2 transactions 0 8.4 2005 2006 2007 2008 2009 2010

Source: Screen Digest. Note: FTV = free to view; PPV = pay per view; DTO = download to own. Due to different data sources this chart is not directly comparable with previous charts.

39 Figure 2.40 Availability of digital television platforms

Proportion of population covered (%) 100% 80% 60% 98% 40% 85% 20% 48% 0% Digital satellite television Digital terrestrial television Digital cable television

Source: Ofcom research/operators. Note that the DTT coverage figures represent the availability of a service of 17 television channels. DTT coverage levels represent Ofcom estimates. Data correct as at June 2011.

40 Figure 2.41 Take-up of multichannel TV on main sets Penetration of homes (%) 41.7% 44.7% 48.0% 56.7% 64.9% 71.8% 80.3% 87.2% 89.6% 92.1% 93.1% TV Households (m) 26 24 Digital terrestrial 22 only 20 Analogue cable 18 16 Digital cable 14 12 Free-to-view 10 digital satellite 8 Analogue 6 satellite 4 Pay digital 2 satellite 0 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Ofcom, GfK, Sky, Virgin Media. Data from Q1 2007 are based on consumer research, previous quarters use platform operator data, research and Ofcom estimates. Note: Digital terrestrial relates to DTT-only homes. Figure 2.42 Platform share, by TV set

Penetration (%) Main TV set TV Set 2 TV Set 3 TV Set 4 100% 6 13 12 8 19 21 25 27 33 33 Analogue 80% 36 40 40 terrestrial 45 49 46 40 38 51 38 38 60 63 33 67 60% DTT

11 11 56 61 12 11 11 40% 48 53 61 40 48 50 59 Cable 39 43 25 39 25 20% 38 41 42 22 36 37 4 4 3 3 3 3 2 3 3 3 2 1 2 2 Satellite 13 12 13 14 14 1 10 9 9 11 9 9 9 8 8 6

0% 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1

Source: GfK NOP consumer research. Note: columns do not always equal 100% due to the exclusion of some services from the chart, such as TV via broadband. Figure 2.43 DTT, satellite and cable net additions, year to Q1 2011

Homes added (000’s) DTT-only additions Pay-satellite additions Free-to-air satellite additions Cable additions

750 650 550 450 350 738 250 150 305

50 59 -40 -50

Source: Pay platform additions based on Virgin Media results and Ofcom- estimated UK

*figures based on BSkyB UK & Ireland results. DTT and free satellite additions based on Q1 2011 and Q1 2010 consumer survey results. Note: Chart uses multiple sources and is therefore intended to be considered only as a general indication of performance. Figure 2.44

Platform demographics by age, socio-economic group and viewing hours: 2010

% platform profile Average Hours per day

16-24 25-44 45-64 65+ AB C1 C2 DE 4.2 100% 4.0 4.0 4.5 13% 11% 3.9 18% 23% 23% 23% 4 27% 32% 80% 44% 39% 3.5 30% 31% 18% 30% 18% 21% 3 60% 31% 19% 16% 2.5 24% 31% 2 40% 30% 31% 40% 44% 28% 38% 32% 27% 1.5 20% 20% 1 28% 25% 19% 21% 26% 0.5 15% 13% 14% 13% 19% 0% 0

Source: Ofcom and BARB 44 Figure 2.45

Average hours of television viewing per day, by age, all homes

Hours viewed

6 Individuals 5 Children Adults 16-24 4.04 4 3.7 3.65 3.6 3.63 3.74 3.75 Adults 25-34 Adults 35-44 3 Adults 45-54 Adults 55-64 2 Adults 65+

1

0 2004 2005 2006 2007 2008 2009 2010 Source: BARB. Note: due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years.

45 Figure 2.46

Average weekly TV reach in all homes, by channel 15-minute consecutive weekly reach – full weeks (%) 100%

82% 83% 80% 78% 80% 79% 78% 79% Multichannels 77% 77% 71% 70% 69% 79% 74% 74% BBC One 68% 63% 69% 68% 60% 61% 58% 60% 57%63% 64%57% 59% BBC Two 62% 56% 50% 58% 55% 57% 54% 54% ITV1 41% 40% 44% 44% 40% 42% 40% 40% C4 + S4C Five 20%

0% 2004 2005 2006 2007 2008 2009 2010 Source: BARB Note: due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years. Note: In 2010 C4 and S4C became two separate channels following digital switchover in Wales. For the purposes of this report the two channels remain labelled together in relevant charts. S4C weekly reach’s in 2010 was 0.7%. 46 Figure 2.47

Average 2010 audiences, weekdays/weekends: by day part, all homes

Average audience (millions) 28

24

20

16 Weekend 12 Weekday 8

4

0 06:00 - 09:00 - 12:00 - 15:00 - 18:00 - 21:00 - 00:00 - 03:00 - 07:00 10:00 13:00 16:00 19:00 22:00 01:00 04:00 Source: BARB

47 Figure 2.48

Average 2010 weekday audiences, by day part and age, all homes Average audience (millions) 7

6 Children Adults 16-24 5 Adults 25-34 Adults 35-44 4 Adults 45-54 3 Adults 55-64 Adults 65+ 2

1

0 06:00 - 09:00 - 12:00 - 15:00 - 18:00 - 21:00 - 00:00 - 03:00 - 07:00 10:00 13:00 16:00 19:00 22:00 01:00 04:00 Source: BARB

48 Figure 2.49

Average 2010 weekend audiences, by day part and age, all homes Average audience (millions) 7

6 Children Adults 16-24 5 Adults 25-34 Adults 35-44 4 Adults 45-54 3 Adults 55-64 Adults 65+ 2

1

0 06:00 - 09:00 - 12:00 - 15:00 - 18:00 - 21:00 - 00:00 - 03:00 - 07:00 10:00 13:00 16:00 19:00 22:00 01:00 04:00 Source: BARB

49 Figure 2.50

Channel shares in all homes: 1983 to 2010 Audience share, all homes (%) 60%

50% BBC One

40% BBC Two

30% ITV 1

Channel 20% 4 + S4C Five 10% Others 0% 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Source: BARB, TAM JICTAR and Ofcom estimates. Note: due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years. Note: In 2010 C4 and S4C became two separate channels following digital switchover in Wales. For the purposes of this report the two channels remain labelled together in relevant charts.S4C 2010 channel share = 0.1%.

50 Figure 2.51

Five main PSB channels’ audience share, all homes Audience share (%) 73.8% 70.3% 66.8% 63.6% 60.8% 57.8% 55.5% 80% 70% 6.6% 6.4% 5.7% 9.8% 5.2% 60% 9.7% 5.0% Five 9.8% 8.6% 4.9% 7.8% 4.5% 50% 6.8% 22.8% 6.3% Channel 4 + 21.5% 19.7% S4C 40% 19.2% 18.4% 17.8% 17.0% ITV1 30% 10.0% 9.4% 8.8% 8.6% 7.8% 7.5% 6.9% 20% BBC Two

24.7% 23.3% 22.8% 22.0% 21.8% 20.9% 20.8% 10% BBC One 0% 2004 2005 2006 2007 2008 2009 2010 Source: BARB. Note: due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years. Note: In 2010 C4 and S4C became two separate channels following digital switchover in Wales. For the purposes of this report the two channels remain labelled together in relevant charts.S4C 2010 channel share = 0.1%. 51 Figure 2.52

Five main PSB channels’ audience shares, by platform Audience share (%) 100% 100%

Terrestrial homes 80% 74% 69% 65% 62% Digital 69% 60% 56% terrestrial 60% 65% 62% 60% 58% 56% homes All homes 49% 48% 49% 48% 49% 40% 48%

Cable and 20% satellite homes

0% Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Source: BARB, all homes, all viewers, various platforms. Note: due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years. Note: In 2010 C4 and S4C became two separate channels following digital switchover in Wales. For the purposes of this report the two channels remain grouped together in relevant charts.S4C 2010 channel share (all homes)= 0.1%. 52 Figure 2.53

Channel share, by platform: 2010

Audience share (%) Analogue terrestrial Digital terrestrial Digital cable Digital satellite 60% 53% 50%

42% 40% 37%

28%

21% 18% 17% 20% 18% 16% 16% 15% 11% 7% 6% 6% 6% 6% 5% 4% 5% 3% 3% 0% BBC One BBC Two ITV1 C4 + S4C Five Other Source: BARB. Note: In 2010 C4 and S4C became two separate channels following digital switchover in Wales. For the purposes of this report the two channels remain labelled together in relevant charts.S4C 2010 channel share (all homes) = 0.1%.

53 Figure 2.54

PSB and portfolio channel shares in multichannel homes Audience share (%) 100%

33.1% 31.2% 29.7% 28.1% 28.4% 28.6% 80% 35.1% Other digital channels

11.3% 13.6% 15.9% 16.9% 60% 7.4% 9.2% 17.4% PSB portfolio channels 40%

57.5% 57.7% 57.6% 56.7% 56.0% 54.8% 54.0% PSB channels 20%

0% 2004 2005 2006 2007 2008 2009 2010 Source: BARB. Note: due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years. Note: In 2010 C4 and S4C became two separate channels following digital switchover in Wales. For the purposes of this report the two channels remain grouped together in relevant charts.S4C 2010 channel share = 0.1%.

54 Figure 2.55 Broadcaster portfolio shares in multichannel homes Audience share (%) 100% 14.3% 14.0% 12.9% 12.8% 12.3% 11.8% 12.8% Other 2.6% 2.6% 2.8% 2.8% 2.6% 2.7% 2.7% 1.9% 3.1% 2.9% 2.7% 2.6% 4.1% Virgin Media 80% 3.4% 3.9% 3.9% 4.0% 4.2% 4.0% 4.0% 8.4% 7.6% 6.8% 7.4% 9.3% 8.7% Viacom 10.4% 5.9% 6.0% 5.9% 5.1% 5.6% 5.1% 5.3% 11.5% UKTV 60% 11.2% 11.2% 11.7% 11.5% 8.6% 9.6% BSkyB* 22.0% 22.3% 22.6% 22.6% 22.7% 40% 21.7% 22.1% Five

Channel 4 20% 29.5% 29.8% 30.6% 31.2% 31.8% 31.4% 32.3% ITV BBC 0% 2004 2005 2006 2007 2008 2009 2010 Source: BARB. Note: due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years.*BSkyB took ownership of VMTV in June 2010, Virgin Media TV portfolio shares are included in the BSkyB figure for the whole of 2010. ITV includes all ITV network channels, not just those owned by ITV plc. Note: In 2010 C4 and S4C became two separate channels following digital switchover in Wales. For the purposes of this report the two channels remain grouped together in relevant charts.S4C 2010 channel share = 0.1%. 55 Figure 2.56

BBC portfolio share in multichannel homes Audience share (%) 29.5% 29.8% 30.6% 31.2% 31.8% 31.4% 32.2% 1.3% 1.3% 1.3% 1.3% 30% 1.2% 0.6% 0.6% 0.6%0.7% 1.3% 0.5%0.8% 0.8% 0.8% 1.1% 1.3% 0.6%0.6% 0.5% 0.5%0.6% 0.6% 0.5%0.6% 1.0% 0.4%1.1% 0.4%1.2% 1.3% 1.4% 0.7% 0.2%0.9% 0.3% Other 25% 6.9% 7.1% 7.0% 6.9% 6.6% 6.7% 6.9% CBeebies 20% CBBC BBC News 24 15% BBC Four BBC Three 10% 19.5% 19.3% 20.0% 19.9% 20.4% 20.0% 20.2% BBC Two 5% BBC One

0% 2004 2005 2006 2007 2008 2009 2010 Source: BARB Note: ‘Other’ includes BBC Parliament, BBC Choice, BBC HD and BBC Knowledge. Due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years 56 Figure 2.57 ITV portfolio shares in multichannel homes

Audience share (%) 22.1% 22.0% 22.3% 22.6% 22.7% 25% 21.7% 22.6%

0.9% 0.9% 1.0% 1.0% 1.2% 0.5% 0.7% Other 1.4% 1.4% 1.6% 1.8% 2.2% 20% 1.7% 2.0% 2.0% 2.2% 2.4% 2.6% 2.6% CITV 15% ITV4

10% 18.9% 18.4% ITV3 17.5% 17.6% 17.2% 16.9% 16.6%

5% ITV2

ITV1 0% 2004 2005 2006 2007 2008 2009 2010 Source: BARB Note: ‘Other’ includes (when relevant) ITV Play, Men & Motors, GMTV2, Granada Breeze, Plus, ITV News. ITV1, ITV2, ITV3 and ITV4 and include +1 services’ share and HD services from 2010. Due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years. 57 Figure 2.58

Channel 4 portfolio shares in multichannel homes Audience share (%) 8.6% 9.6% 11.2% 11.2% 11.7% 11.5% 11.5% 12% 0.3% 0.2% 0.3% 0.3% 0.6% 0.8% 0.8% 0.8% 0.8% 10% 0.5% 1.0% 4Music 0.1% 0.9% 1.2% 1.2% 1.9% 1.0% 1.6% 1.0% 1.8% 1.2% C4+1 8% 1.2% 1.8% 1.8% 1.9% More4 Total 6% Film4 Total 8.2% 4% 7.9% 7.4% 7.3% 6.8% 6.4% 6.1% E4 Total 2% C4 + S4C

0% 2004 2005 2006 2007 2008 2009 2010 Source: BARB. Note: due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years.E4, More4 and Film 4 respective +1 channel shares are included. Note: In 2010 C4 and S4C became two separate channels following digital switchover in Wales. For the purposes of this report the two channels remain labelled together in relevant charts.S4C 2010 channel share = 0.1%. 58 Figure 2.59

Five portfolio shares in multichannel homes

Audience share (%) 7% 5.1% 5.3% 5.1% 5.6% 5.9% 6.0% 5.9%

6% 0.8% 0.7% 0.9% 0.1% 0.6% 5% 0.6% 0.6% 0.1%0.4% 0.5% Five USA/5 USA 4% Fiver/5* 3% 5.3% 5.1% 4.9% 4.6% 4.7% 4.7% 4.5% 2% Five 1%

0% 2004 2005 2006 2007 2008 2009 2010 Source: BARB Note: 5* and 5 US include their +1 service share. Due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years 59 Figure 2.60

BSkyB portfolio shares in multichannel homes Audience share (%)

10.4% 9.2% 8.7% 7.6% 6.8% 7.4% 8.4% Former Virgin TV 12% portfolio* 0.3% Sky Arts/Real Lives 10% 0.6% 0.3% 0.1% 0.6% 0.5% Sky Travel 8% 2.9% 1.5% 2.4% 0.5% 2.7% 0.5% 0.0% 0.5% 0.6% Sky News 6% 2.2% 2.4% 3.1% 2.1% 2.2% 2.5% 4% 2.2% 1.6% Sky One/Two/Three 1.5% 1.5% 1.3% Sky movie channels 2% 3.6% 3.4% 3.2% 3.2% 2.6% 2.9% 2.7% 0% Sky sports channels 2004 2005 2006 2007 2008 2009 2010 Source: BARB. Note: due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years. *BSkyB took ownership of VMTV in June 2010, Virgin Media TV portfolio shares are included in the BSkyB figure for the whole of 2010.

60 Figure 2.61

UKTV portfolio shares in multichannel homes Audience share (%) 5% 4.2% 4.0% 4.0% 3.9% 3.9% 4.0% 4.1% Other

4% 0.2% 0.1% 0.1% UKTV G2/Dave 0.2% 0.3% 0.3% 0.2% 0.1% 0.1% 0.2% 0.4% 0.2% 0.7% 1.3% UKTV Drama/Alibi 0.3% 0.2% 1.3% 0.2% 0.5% 1.2% 3% 0.3% 0.4% 0.2% 0.6% UKTV 0.5% 0.2% 0.1% 0.4% Documentary/Eden 0.5% 0.4% 0.1% 0.8% 0.6% 0.2% 0.1% 0.1% 2% 0.1% UKTV Food/Good Food 0.7% 0.6% 0.3% 0.2% 0.6% 0.4% 0.4% 0.4% UKTV 0.4% 0.2% 0.3% 0.3% History/Yesterday 1% 1.9% UKTV Style/Home 1.6% 1.4% 1.2% 1.1% 1.2% 1.2% UKTV 0% Gold/G.O.L.D/Watch 2004 2005 2006 2007 2008 2009 2010 Source: BARB Note: UKTV portfolio channels have evolved over the past twelve months. In the 2008 figures, new channel names and shares have been matched to old channels. Due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years.

61 Figure 2.62

Aggregate shares of channel genres in multichannel homes Audience share (%) No. of channels 24% 2004 2010 22% Entertainment 24 65 20% 18% Childrens 13 24

16% Sport 12 28 14% Movies 14 33 12% 10% Documentaries 10 21

8% Music 17 29 6% News 12 16 4% 2% Lifestyle and 10 24 Culture 0% 04 05 06 07 08 09 10 ------Dec Dec Dec Dec Dec Dec Dec Source: BARB. Note: Number of channels does not include ‘+1’ services. Due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years

62 Figure 2.63

The top channels by share in multichannel homes: 2009 to 2010

Share Rank Share Rank Channel 2010 2010 2009 Channel 2010 2010 2009 BBC One 20.2% 1 1 Film4 1.2% 11 15 ITV1 16.6% 2 2 Dave 1.2% 12 11 Channel 4 7.0% 3 3 Sky Sports 1 1.2% 13 9 BBC Two 6.6% 4 4 More 4 1.1% 14 13 Five 4.5% 5 5 BBC News 1.1% 15 19 ITV2 2.5% 6 6 ITV4 1.0% 16 16 ITV3 2.3% 7 8 Sky One 0.9% 17 14 E4 1.9% 8 7 Pick TV 0.9% 18 21 BBC Three 1.4% 9 12 Channel One 0.9% 19 18 CBeebies 1.3% 10 10 5 USA 0.9% 20 22

Source: BARB. Note: Includes channels’ +1 services. Due to a new BARB measurement panel from 2010 onwards, 2010 data are not directly comparable with previous years.

63 Figure 2.64

Age and gender profile of the 30 most-viewed channels in multichannel homes Older

Yesterday ITV3 BBC4 BBC News 5 USA BBC2 BBC1 GOLD ITV4 Sky Sports 1 ITV1 CH5 Sky News Pick TV Sky More4 Film4 Sky Living ITV2 CH4 Sports Channel One 5* News Female Dave Male BBC3 Sky 1 Comedy Cbeebies E4 Central CBBC Disney Channel

Younger

Source: BARB Note: The profile of a channel is calculated relative to the television population in multichannel homes. Includes channel’s +1 services.

64 Figure 2.65

Unique audiences to selected online film and TV sites

Unique audience (m) Growth (%) Apr10– Apr 11 2.5 -13 LOVEFiLM. com 2 -29 MSN Video 75 blinkBox 1.5 -9 Virgin Media 1 Movies n/a SeeSaw

0.5 -8 Hulu

0 -29 FindAnyFilm .com Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- 10 10 10 10 10 10 10 10 10 11 11 11 11

Source: UKOM/Nielsen, home and work panel.

65 Figure 2.66

Monthly time spent per person on selected online film and TV sites

Time per person (h:mm:ss) 0:25:00 blinkBox

0:20:00 LOVEFiLM.com

0:15:00 SeeSaw

Virgin Media 0:10:00 Movies MSN Video 0:05:00 FindAnyFilm.com 0:00:00 Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- Hulu 10 10 10 10 10 10 10 10 10 11 11 11 11

Source: UKOM/Nielsen, home and work panel.

66 Figure 2.67

Proportion of adults with home internet who watch online catch-up TV

Proportion of households (%) 50% Q1 2009 Q1 2010 Q1 2011 40%41% 40% 37%38% 38% 35% 35% 33% 34% 31% 31% 32% 29% 29% 30% 26% 23% 24% 24% 24% 24% 21% 20% 18% 14% 10% 10%

0% Total 16-24 25-34 35-54 55-64 65+ Male Female

Source: Ofcom research Q1 2011 QE12. Which, if any, of these do you or your household use the internet for whilst at home? Base: All adults who have the internet at home (n=2534 UK, 376 16-24, 462 25-34, 1039 35-54, 368 55-64, 289 65+, 1234 Male, 1300 Female)

67 Figure 2.68

Video on demand use in Virgin Media homes

VoD views per month/VoD reach

90 80 70 60 Q4 2008 50 87m Q4 2009 40 53m 30 52% 64% 33m 47% Q4 2010 20 30 35 36 10 0 Average total VoD views Average VoD views per Average VoD reach per month month per user

Source: Virgin Media company results 2008-2010.

68 Figure 2.69

Unique audiences to selected video-sharing sites Unique audience (m) Growth (%) Apr10 – Apr11 -1 30 Total Videos / Movies 12 YouTube 25 -40 Google Video 20 -26 MSN Video

15 53 Dailymotion

10 -50 Bing Videos 11 Metacafe 5 156 Vimeo 0 -53 Yahoo! Video Apr-10 Jul-10 Oct-10 Jan-11 Apr-11

Source: UKOM/Nielsen, home and work panel.

69 Figure 2.70

Monthly time spent per person on selected video-sharing sites

Time per person (h:mm:ss) Ave. Videos / Movies 1:15:00 YouTube Veoh 1:00:00 Dailymotion 0:45:00 Bing Videos

0:30:00 Metacafe

0:15:00 MSN Video Yahoo! Video 0:00:00 Google Video Apr-10 Jul-10 Oct-10 Jan-11 Apr-11

Source: UKOM/Nielsen, home and work panel.

70 Figure 2.71

Popularity of top ten most viewed UK YouTube channels Number of views (m) Subscribers to channel (000) 800 350 714 Number of views (m) Subscribers (000) 700 322 608 590 622 300 600 250 529 235 250 500 435 437 435 230 200 400 139 174 286 280 150 300 200 99 72 100 64 100 22 50 0 0 BBC UK The X The X AATW Factor HDCYT Eagle Rock Eagle Parlophone ITN Showbiz Massagevideo BBC Worldside Britain's Got Talent Source: YouTube statistics June 2011.

71 Figure 2.72

Consumer attitudes towards television programme standards, by age: 2010 % of respondents

100% 4% 8% 7% 12% 13% 17% Don't know 80% 44% 51% 60% Improved 55% 58% 59% 40% Stayed the same

48% 20% 41% 31% 28% 20% Got worse 0% All Adults 16-34 35-54 55-64 65+ (16+) Source: Ofcom 2010 Media Tracker survey. Fieldwork carried out by BDRC Continental Research. Q30 – Do you feel that over the past year, television programmes have improved, got worse or stayed about the same? Base: All adults aged 16+ (2104) (643 aged 16-34, 710 aged 35-54 ,328 aged 55-64, 423 aged 65+)

72 Figure 2.73 Reasons why viewers thought TV programme quality deteriorated, 2010 % of respondents. Base: All those who felt TV programme standards got worse over the past year All Adults (16+) 16-34 35-54 55-64 65+ 70% 67% 60% 61% 61% 60% 51% 50% 42% 42% 38% 38% 40% 37% 37% 35% 34% 31% 31% 31% 30% 27% 26% 26% 24% 20% 13% 12% 10% 8% 7% 8% 7% 8% 10% 6%6% 5% 6% 5% 5% 2% 0% More repeats Lack of variety General lack of More reality More bad More Violence More quality shows language sex/sexual content Source: Ofcom 2010 Media Tracker survey. Fieldwork carried out by BDRC Continental Research. Q32 – In what ways do you think the television programmes have got worse over the past year? Base: All adults 16+ saying programmes ‘got worse’ over past year (673) (130 aged 16-34, 204 aged 35-54 , 134 aged 55-64, 205 aged 65+).

73 Figure 2.74 PIN/password-protected TV, 2010 % of respondents. Base: All those aware of features their systems have to block certain programmes/channels 100%

Don't Know 80%

61% 60% 74% 86% No 40%

20% 37% Yes 24% 13% 0% Total Any Children in HH No children in HH

Source: Ofcom 2010 Media Tracker survey. Fieldwork carried out by BDRC Continental Research. Q52 – Have you ever used this blocking system? Base: All adults 16+ aware of a feature on their systems enabling them to block/hide access to certain programmes/channels (1,051) (479 - Any children in household, 572 No children in household)

74