Figure 2.1 Industry metrics

UK television industry 2007 2008 2009 2010 2011 2012

Total TV industry revenue (£bn) 11.0 11.1 11.0 11.7 12.2 12.3

Proportion of revenue generated by public funds 24% 23% 23% 22% 22% 22%

Proportion of revenue generated by advertising 33% 31% 28% 30% 30% 29%

Proportion of revenue generated by subscriptions 37% 38% 42% 41% 43% 43%

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

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

Digital TV take-up (% all households) 87% 89% 91% 93% 93% 98%

Proportion of DTV homes paying for TV (Q1) 55% 53% 54% 52% 51% 51%

Viewing per head, per day (hours) in all homes 3.63 3.74 3.75 4.04 4.03 4.01

Share of the five main channels in all homes 64% 61% 58% 56% 54% 52%

Number of channels broadcasting in the UK 470 495 490 510 515 529 Source: Ofcom/broadcasters/Advertising Association/Warc/BARB/GfK. Note: Expressed in nominal terms. 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 (http://expenditurereport.warc.com/); spend on originations includes spend on nations and regions programming (not Welsh and Gaelic language programmes but some Irish language).

1 Figure 2.2 Total TV industry revenue, by source: 2012

Revenue (£m) 12,500 +4.3% - 4.9% 12,400 +5.0% +3.5% £24m +1.0% £35m - £105m +0.8% 12,300 +0.9% £91m £9m 12,200 £49m 12,100 12,000 11,900 £12,288m £12,185m 11,800 11,700 11,600 11,500 2011 Subscriber BBC TV Other PSB portfolio PSB NAR Other NAR 2012 revenue revenue spending NAR revenue Source: Ofcom/broadcasters. Note: Figures expressed in nominal terms. PSB NAR comprises Channel 3 licensees (including ITV Breakfast, ITV Plc, Channel Television, STV and UTV), Channel 4, Channel 5 and S4C. PSB portfolio NAR includes commercial channels owned by the PSBs (ITV2, ITV3, ITV4, E4, More 4, Film 4, 5* and 5USA. ‘Other NAR’ comprises the rest of the multichannel market. Platform operator revenues do not include installation costs, equipment sales or subsidies. BBC TV spending represents the amount of BBC revenue that is allocated to TV, which is estimated by Ofcom based on Note 2c in the BBC’s annual report and accounts 2011/12.

2 Figure 2.3 Advertising revenue, by share: 2011 - 2012 £m £3,619m £ 3,547m 1-year change (%) 4,000 -2.0% £52m £49m -5.7% ITV Breakfast £563m £588m 3,000 4.3% PSB portfolio channels £896m £905m 1.0% Other multichannels 2,000 £281m £260m -7.3% Channel 5 £587m £533m -9.2% Channel 4/S4C 1,000 £1,239m £1,211m -2.2% ITV1/STV/UTV

0 2011 2012

Source: Ofcom/broadcasters. Note: TV advertising includes revenues that broadcasters receive from the sale of advertisements on screen (net of agency fees)and excludes video on demand. Totals may not equal the sum of the components due to rounding. ITV1/Channel 3 includes ITV Plc, STV, UTV and Channel Television.

3 Figure 2.4

Use of different devices to connect TV to the internet Percent 30

20 15 13

10

4 4 3 3

0 Games Console Desktop/laptop Smartphone Other Tablet BluRay Source: Ofcom Consumer Segmentation Survey, February 2013. Q.OCD27 Do you or anyone in your household use any of the following devices to connect your main TV to the internet? Base: All who have a television and can connect to the internet 4 Figure 2.5

Smart TV sales and market share Sales units (000s) Percent 700 28 30

600 23 25 21 22 500 20 20 17 17 18 400 15 15 300 10 200

100 5

0 0 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Market Share (%) Sales Units (000s) Source: GfK

5 Figure 2.6 Ownership, by smart TV brand

Samsung 4% 2%1 4% Sony

LG 14% 41% Panasonic

Philips

Sharp 16% Technika

18% Other

Source: Ofcom online survey, 2013 QB4.What brand of smart TV is it? Unweighted base: All respondents who own a smart TV (670) ) 6 Figure 2.7 Reasons people buy a smart TV

% who own a smart TV +/- at top of bar represents percentage point change since 2012 100 % -9 -7 -3 +7 +14 -2 +3 -10 80 %

60 % 51

40 % 33 29 25 25 18 18 20 % 17

0 % I needed a new TV I liked the look and I wanted the best I like to keep up It was the best TV I I like the range of I wanted to stream It was nothing to do and decided to buy design of the TV screen with the latest could get for my internet connected TV programmes/ with the internet one with the latest technology budget services available films/ video clips functionality of the technology straight to my TV TV

Source: Ofcom online survey, 2013 QB2. Why did you decide to buy your smart TV? Base: All respondents who own a smart TV (670)

7 Figure 2.8 Consumers’ use of internet connection on smart TVs

16%

Connected and used internet 7% connection on Smart TV

Connected but never used internet connection on Smart TV

Not connected or used internet 77% connection on Smart TV

Source: Ofcom online survey 2013 (1) Q.S6. And is your smart TV connected to the internet allowing you to use the internet functionality? (2) Q.A5. Have you ever used the internet connection on your smart TV set? Base: All respondents who own a smart TV (670); (2) All respondents who have used the internet functionality of their smart TV (541).

8 Figure 2.9 Activities undertaken on smart TVs among adults and children

60 % 57

42 39 40 % 36 38 36 36 35 33 32 30 23 23 21 21 19 19 20 % 16 17 13

0 % Watching Watching Streaming Listening to Streaming Social Playing Skype Accessing Shopping catch-up TV short clips films music TV networking games news using an programmes app Adults Children (under 18s) Source: Ofcom online survey 2013 (1) Q.B8. Which of the following, if any, do you use the internet functionality of your Smart TV for? (2) Q.B15. What types of activity are they doing? Base: (1) All respondents who have used the internet functionality of their Smart TV (541) (2) Smart TV owners with children under the age of 18 years who use the internet functionality on the Smart TV set at least sometimes (253).

9 Figure 2.10 Attitudes towards smart TVs Percentage point change since 2012 I am reconsidering my pay TV subscription now that I have a smart TV 35 29 32

I prefer to watch TV and films streamed from the internet on my smart TV than 54 28 13 on a PC or laptop/ tablet I just wanted to buy a new TV, I wasn't concerned if it was internet connected or 38 22 38 +8pp agree not *

I couldn't live without my smart TV 38 35 26 +11 pp agree

0% 20% 40% 60% 80% 100% Agree Neither agree nor disagree Disagree

Source: Ofcom online survey 2013 Q.B16. To what extent do you agree or disagree with the following statements? Base: (1) All respondents who have used the internet functionality on their smart TV (541) (2) Those with a smart TV who subscribe to pay TV (536) Note:*Among all respondents who own a smart TV (670), 42% agreed, 23% neither agreed nor disagreed and 34% disagreed.

10 Figure 2.11 Frequency of viewing live TV, by device

Type of device viewing live TV on

Main TV set at home 88 6 2 4 Daily

Smart TV set at Weekly home 88 7 2 2

Tablet computer 28 29 15 28 Monthly

Less often/Never Smartphone 21 20 15 43

0% 20% 40% 60% 80% 100% Source: Ofcom online survey 2013 QA1. How often, if at all do you watch TV on your main TV/smart TV/tablet/smartphone? Unweighted base: All respondents own at least one device (main TV non-smart (972), smart TV (670), tablet computer (869), smartphone(772). 11 Figure 2.12 Percentage of TV sets sold, by screen size: 2004 to Q1 2013

100% 3.1 5.4 4.6 4.5 6.4 8.8 11.0 11.5 15.8 18.2 23.0 20.2 24.1 80% 35.6 22.9 35.3 23.9 24.5 35.0

60% 34.1 30.9 32.5 30.7 30.5 20.1 19.6 28.5 17.1 29.1 40% 10.3 10.0 14.9 19.2 20.8 22.7 20% 40.3 20.3 38.4 34.7 34.5 31.5 27.9 19.7 17.0 13.4 10.3 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* up to 19" 20" to 25" 26" to 32" 33" to 42" 43+"

Source: GfK sales data estimates. *2013 data represents Q1 only.

12 Figure 2.13

Claimed consumption of audio-visual content online Type of content regularly viewed online (%)

Video clips either streamed or downloaded 53%

Catch up TV services either streamed or 40% downloaded

TV and Film services e.g. Netflix/Lovefilm 16%

0% 10% 20% 30% 40% 50% 60%

Source: Ofcom Segmentation Survey, February 2013 QT1: Which, if any, of these activities do you do regularly, at least once a month, and on which of your devices (pc/laptop, tablet, smartphone, games console, smart TV or other connected device)? Base: All Adults aged 15+

13 Figure 2.14 Estimated share of the UK long-form ‘pull’ VOD market, by device (programmes/films, not short clips or videos) % Share

H2 2012 42 38 12 9

TV total PC/Laptop Tablet Smartphone H2 2011 35 58 3 4

0% 20% 40% 60% 80% 100% Source: 3 Reasons LLP. Estimates are based on the number of initiated long-form content streams delivered lawfully, from a range of sources including press disclosures and published company results. Note: Pull VOD is a form of video on-demand distribution where content is delivered online at a user’s request. 14 Figure 2.15

Reason for video-on-demand use: TV vs. online Claimed reason %

Missed the programme/ film when 62% on TV and use/d to catch up 76% Use it when there is nothing on 32% 'normal' TV to watch 54% Want to watch programme/ film 43% at time that suits me 46% Programme/ film was recommended 18% Online VOD by someone I know 20% Someone watching something else 12% TV VOD at the time it was on so used to catch up 18% 27% Just to pass some time/ relax 13% 7% Good choice of films/ programmes 10% 0% 10% 20% 30% 40% 50% 60% 70% 80%

Source: Ofcom Media tracker 2012. Base: TV VOD: All who use TV ‘video on demand’ (541), Online VOD: All who use online ‘video on demand’ (725),

15 Figure 2.16

Claimed weekly use of TV catch-up services via set-top boxes Weekly usage of Services (%) 40% 36% 35% 30% 25% 25% Demand Five 20% 17% 4oD 15% ITV Player 15% 14% BBC iPlayer 10% 9% 5% 6% 5% 0% Any Set-top box Internet enabled Set-top box

Source: Mediabug Tracker, Decipher, February 2013: All Set-top-box owners (2805) All Internet enabled Set-top box owners (920)

16 Figure 2.17

Type of audio-visual content consumed, by device users Regularly (monthly) access type of audio visual content (%) 60% 54% 49% 50% 39% 40% 36% TV & Film services (e.g. 33% Netflix/Love Film) 30% Catch Up TV streamed or downloaded 20% Short clips streamed or 13% 12% 10% downloaded 10% 4% 0% Desktop/laptop Tablet Smartphone

Source: Ofcom Consumer Segmentation Survey Feb 2013. Base: All who use the specific device

17 Figure 2.18

Location of viewing on tablets and smartphones Viewing by location %

45% In home only 24%

92% In home Tablet 77% Smartphone

54% Out of home 74%

0% 20% 40% 60% 80% 100%

Source: Ofcom Online Survey 2013, Q: Where do you watch these types of content on your smartphone or tablet computer? (tablet=873, smartphone=779)

18 Figure 2.19 TV and and online VOD, and videos purchased online (EST*): claimed usage, by genre Ever accessed % 70 59 54 60 53 5053 50 50 44 47 39 38 40 3434 3235 29 27 30 23 2426 26 22 19 21 1921 1919 18 15 20 11 13 12 14 10 0

TV VOD Online VOD EST Content Source: Mediabug Tracker, Decipher, February 2013. *EST (Electronic Sell Through) is content that is purchased and a copy permanently kept not rented. TV VOD Base: Ever used TV VOD (891), Online VOD Base: Ever used Online VOD (2052) EST BASE: Ever Used EST services (854)

19 Figure 2.20 Time-shifted viewing in all homes: 2007 to 2012 Percentage take up and time-shifted viewing 80% 67% 63% 60% 55% DVR take-up 42% 40% Time-shifted 29% viewing

18% 20% 9% 10% 6% 7% 2% 4% 0% 2007 2008 2009 2010 2011 2012 Source: BARB. All individuals, Network. New BARB panel introduced 1 Jan 2010. As a result pre- and post-panel change data must be treated with caution. See definition of time-shifted viewing in section 2.1.5

20 Figure 2.21 Time-shifted viewing in DVR homes: 2007-2012 100% 3% 3% 3% 3% 3% 3% 5% 5% 5% 4% 5% 5% Timeshifted: 2-7 days after 3% 2% 2% 2% 2% 2% broadcast 3% 4% 4% 4% 4% 4% 80% Timeshifted: 0- 2days after broadcast

Timeshifted: same day, 8-24 60% hours

Timeshifted: same day, 4-8 hours 86% 40% 85% 85% 85% 85% 84% Timeshifted: same day, 1-4 hours

Timeshifted: same day, 0-1 20% hours

Viewed initial broadcast (Live) 0% 2007 2008 2009 2010 2011 2012

Source: BARB. Individuals in DVR homes, Network.

21 Figure 2.22 Time-shifted viewing, all channels, by programme genre: 2012 100% 1% 2% 3% 3% 4% 4% 7% 6% 5% 6% 6% 6% 9% 11% 11% 13% 12% 5% 7% 10% 23% 8% 8% 8% 80% 18% Time-shifted: viewed 2 to 7 11% days after broadcast 60% Time-shifted: same day as 97% 92% 92% broadcast 91% 90% 88% 86% 40% 81% 80% 80% 80% 70% 66% Viewed initial broadcast (Live) 20%

0%

Source: BARB, All DVR owners, Network. Genre classifications based on BARB genre definitions. Figures may not sum to 100% due to rounding differences. 22 Figure 2.23 Time-shifted and live viewing of the top and bottom five of the 100 most-watched programmes in 2012 Time-shifted: Average Time-shifted: viewed 2 to 7 Programme Channel Date Audience, 000s Live same day as days after (DVR owners) broadcast broadcast Top 5 programmes: EURO 2012: POST MATCH BBC1 24/06/2012 8,634 96.4% 3.4% 0.2% OLYMPICS 2012 BBC1 05/08/2012 9,306 96.3% 3.6% 0.1% EURO 2012: ENG V ITA BBC1 24/06/2012 13,873 96.1% 3.7% 0.2% WIMBLEDON 2012 BBC1 08/07/2012 7,502 95.9% 3.9% 0.2% EURO 2012: POR V SPN BBC1 27/06/2012 6,934 95.3% 4.5% 0.2% Bottom 5 programmes: BRITAIN'S GOT TALENT ITV 07/04/2012 7,579 56.5% 26.6% 17.0% CALL THE MIDWIFE BBC1 25/12/2012 7,566 52.5% 10.7% 36.8% SHERLOCK BBC1 01/01/2012 7,412 52.2% 25.3% 22.5% SHERLOCK BBC1 08/01/2012 6,983 51.8% 22.7% 25.5% DOCTOR WHO BBC1 25/12/2012 7,554 48.4% 23.3% 28.2% Source: BARB, All DVR owners, Network.Top 100 programmes based on average audience to programmes amongst All DVR owners. Top 100 programmes ranked by proportion of ‘live’ viewing. 23 Figure 2.24 Viewing share of main channels and their +1 variants, all individuals: +1 proportion of 2012 Main channel +1 channel total share

ITV1 14.9 0.8 5% Channel 4 5.6 0.9 14% Five 4.2 0.3 7% ITV2 2.2 0.5 19% ITV3 2.3 0.2 8% E4 1.3 0.6 32% Film4 1.3 0.2 13% ITV4 1.1 0.1 8% More4 1.1 0.1 8% Dave 1.0 0.1 9% 5 USA 0.9 0.1 10% Pick TV 0.9 0% Yesterday 0.9 0% Comedy Central 0.5 0.2 29% Sky Living 0.5 0.2 29% Disney Channel 0.4 0.2 33% Disney Junior 0.4 0.2 33% Watch 0.5 0.1 17% 5* 0.5 0% GOLD 0.4 0.1 20% 0% 2% 4% 6% 8% 10% 12% 14% 16% Source: BARB, All Individuals, Network. Based on channels with a +1 variant with a combined share (main & +1) of 0.5% or more. 24 Figure 2.25 Media meshing while watching television, UK adults and 16-24s Texting or instant messaging with friends/family about the 17% programme 32% Talking on the phone or via the internet to friends and 16% family 20% UK adults Looked online for info about a programme or 12% 16-24s something/someone you saw 19% 11% Social networked about a programme 25% 9% Social networked about an advert 24% 7% Looked online for information about an advert 11% 6% Participated with a programme (e.g. voting) Any media-meshing = 37% UK adults, 5% 57% 16-24s 3% Participated using a programme specific apps 7% Any direct communication with family/friends = 23% 1% Any social networking = 15% Used a companion viewing app (e.g. Zeebox, GetGlue) Any looking on online for information = 15% 2% Any direct participation with programmes = 8% 1% Other 0% Source: Ofcom research, 2013, All with TV

25 Figure 2.26 Top 10 TV channels by average volume of tweets per programme

4500 3949 4000

3500

3000 2536 2500

2000 1326 1500 1173 970 929 1000 462 458 500 331 216 0 ITV BBC One BBC itv2 Channel E4 Channel MTV BBC Two Sky1 Three 4 5

Source: SecondSync, June 2012 to May 2013. Excludes tweets about news and sports events.

26 Figure 2.27 Total viewers of Olympic and Paralympic Games: 2004 - 2012

+20% Beijing +141% Beijing Total viewers (000s) +14% Athens +193% Athens 60,000 Olympic Games Paralympic Games 50,000 51.9 million 40,000 45.7million 41.2 million 30,000 31.6million 20,000 10,000 10.7million 13.1million 0 Athens Beijing London 13/Aug – 19/Aug 8/Aug – 24/Aug 25/Jul – 12/Aug 17/Sept – 28/Sept 6/Sept – 17/Sept 29/Aug – 9/Sept 2004 2008 2012 Source: BARB/InfoSys+. Note: 15 minutes+ consecutive reach. Individuals 4+. The London 2012 Paralympics was broadcast on C4/More4/4seven (C4 Paralympics channels did not report programme data and have therefore been excluded from the overall total reach), while 2008/2004 was broadcast on BBC One and BBC Two. According to Kantar Media, an estimated 3.53 million watched Paralympic footage on three additional Paralympics channels. 27 Figure 2.28 Top ten most watched programmes : 2012 Programme title Channel Genre Date Viewing audience (millions of individuals)

1 OLYMPICS 2012: CLOSING CEREMONY BBC1 Sport 12/08/2012 24.5 2 OLYMPICS 2012: OPENING CEREMONY BBC1 Sport 27/07/2012 24.2 3 EURO 2012: ENG V ITA BBC1 Sport 24/06/2012 20.3 4 OLYMPICS 2012: MEN'S 100M FINAL BBC1 Sport 05/08/2012 17.3 5 UEFA EURO 2012 MATCH ENG V UKR ITV Sport 19/06/2012 16.2 6 THE DIAMOND JUBILEE CONCERT BBC1 Music 04/06/2012 15.3 7 EURO 2012: SWE V ENG BBC1 Sport 15/06/2012 14.3 8 OLYMPICS 2012: ATHLETICS (incl. MEN’S 100M SEMI-FINALS) BBC1 Sport 05/08/2012 13.6 9 STRICTLY COME DANCING: FINAL BBC1 Entertainment 22/12/2012 13.4 10 STRICTLY COME DANCING: FINAL: THE RESULTS BBC1 Entertainment 22/12/2012 13.4 11 EURO 2012: POST MATCH BBC1 Sport 24/06/2012 12.7 12 BRITAIN'S GOT TALENT: FINAL ITV Entertainment 12/05/2012 12.6 13 UEFA EURO 2012 MATCH FRA V ENG ITV Sport 11/06/2012 12.6 14 OLYMPICS 2012: CLOSING CEREMONY COUNTDOWN BBC1 Sport 12/08/2012 12.5 15 EURO 2012: SPN V ITA BBC1 Sport 01/07/2012 12.4 Source: BARB/InfoSys+. Note: Individuals 4+. The top programmes are the best performing episodes of a programme during the year. 28 Figure 2.29

Proportion of time-shifted viewing, by programme genre: 2012 Percentage of viewing (%) Timeshifted viewing as % of each genre total viewing 40% 34.2 30.0 30% 29.3 20.8 20.1 20% 19.6 18.7 15.3 15.2 13.8 12.1 10% 9.4 8.4 7.6 2.6

0% Arts Sport Music Children's Other Films Other Films:Cinema Drama:Soaps Entertainment Current Affairs Current News: Generic Documentaries Hobbies/Leisure Films:Made for TV Drama:Single Plays Drama:Series/Serials Source: BARB/InfoSys+. Note: DVR Individuals 4+. Based on total minutes of viewing to genres. 29 Figure 2.30

The Top ten programmes watched live on BBC iPlayer: 2012

iPlayer live iPlayer catch up

1 Olympics London 2012 Olympics Ceremonies London 2012

2 Olympics Ceremonies London 2012 Top Gear

3 Wimbledon 2012 Sherlock

4 Match of the Day Euro 2012 Dr Who

5 Athletes Parade Live The Apprentice

6 BBC Sports Personality of the Year Citizen Khan

7 The Diamond Jubilee Concert The Voice UK

8 Eurovision Song Contest 2012 Bad Education

9 Breakfast BBC News Channel Waterloo Road

10 Formula1 2012 Eastenders

Source: TV Licensing TeleScope 2013 (http://www.tvlicensing.co.uk/about/media-centre/news/tv- licensing-reveals-tv-elation-across-the-nation-NEWS65/?WT.ac=home_pop_tele2013)

30 Figure 2.31

PSB and multichannel spend on sports programming: 2006 - 2012 Spend on sport programming (£ millions) £1,335 £1,309 £1,479 £1,477 £1, 885 £1, 967 £2,089 Growth 2000 1 year 6yr CAGR 1,487 1,526 6% 8% Total 1500 1,289 1,059 969 PSB 1000 896 17% 1% 799 spend 596 563 536 510 481 500 413 418

3% 11% Multichan 0 nel spend 2006 2007 2008 2009 2010 2011 2012

Source: Ofcom/broadcasters. Note: figures are expressed in nominal terms. BBC figures include BBC1, BBC2, BBC3, BBC4, CBBC, CBeebies, BBC News, BBC Parliament. The analysis does not include S4C, BBC Alba or BBC HD. Figures exclude nations/regions programming.

31 Figure 2.32

Multichannel spend on programmes by genre: 2012 Spend as a percentage of total (%)

1% 2% 0.8% 3% 3% Leisure

9% Music Kids News 56% 25% Factual Movies Entertainment Sport Total: £2,713m

Source: Ofcom/broadcasters

32 Figure 2.33

PSB and multichannel sports output: 2007 - 2012 Sports output (hours) Growth 130,898 144,253 157,165 227,827 143,128 246,793 1 year 5yr CAGR 243,437 250,000 224,550 72% 14% Total

200,000 153,628 140,025 140,285 74% 14% Multichannels 150,000 126,704

100,000

50,000 4,194 4,228 3,537 3,277 2,843 3,356 18% -4% PSBs - 2007 2008 2009 2010 2011 2012

Source: Ofcom/broadcasters

33 Figure 2.34

Total TV industry revenue, by source Growth 1 year 5yr CAGR Revenue (£m) £11,018 £11,112 £11,038 £11,664 £12,185 £12,288 0.8% 2.2% £6,000m 5,251 5,300 0.9% 5.5% Subscription 4,839 £5,000m 4,596 revenue 4,277 4,064 £4,000m -2.0% -0.2% Net advertising 3,619 3,547 3,576 3,470 3,486 £3,000m 3,136 revenue 2,719 3.5% 0.9% 2,598 2,577 2,586 2,607 2,628 BBC income £2,000m allocated to TV £1,000m 5.0% -1.5% Other 780 787 721 732 687 722 £0m revenue 2007 2008 2009 2010 2011 2012

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 re- stated licence fee revenue in 2008. Totals may not equal the sum of the components due to rounding. 34 Figure 2.35 TV industry revenues, by share

TV industry revenue shares (%) £11,018 £11,112 £11,038 £11,664 £12,185 £12,288 50% 43.1% Subscription 41.6% 41.5% 43.1% 38.5% revenue 40% 36.9%

28.9% Net advertising 30% 32.5% 31.2% 28.4% 29.9% 29.7% revenue 23.6% 23.2% 23.4% 20% 22.4% 21.6% 22.1% BBC income allocated to TV 10%

7.1% 7.1% 6.5% 6.3% 5.6% 5.9% 0% Other revenue 2007 2008 2009 2010 2011 2012

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 re-stated licence fee revenue in 2008. Totals may not equal the sum of the components due to rounding.

35 Figure 2.36

Total TV industry revenue by sector: 2007 - 2012 Growth 5yr Revenue (£m) 1 year CAGR £11,018 £11,112 £11,038 £11,664 £12,185 £12,288 0.8% 2.2%

12,000 Platform 0.9% 5.5% operators 10,000 £5,300 £4,839 £5,251 £4,064 £4,277 £4,596 8,000 Commercial 2.5% 2.6% multichannels

6,000 £1,650 £1,726 £1,828 £1,873 £1,628 £1,755 Main -3.2% -2.4% commercial 4,000 £2,603 £2,420 £2,123 £2,359 £2,385 £2,309 PSB channels

2,000 Publicly-funded £2,701 £2,689 £2,691 £2,712 £2,722 £2,806 3.1% 0.8% channels 0 2007 2008 2009 2010 2011 2012

Source: Ofcom/broadcasters. Note: Figures are nominal. Main commercial PSB channels comprise ITV/ITV Breakfast, STV, UTV, Channel Television, Channel 4, Channel 5 and S4C. Commercial multichannels comprise all multichannels including those owned by ITV1, Channel 4 and Channel 5. 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 re-stated licence fee revenue in 2008. Totals may not equal the sum of the components due to rounding. 36 Figure 2.37 TV net advertising revenues, by source: 2007 - 2012

Net advertising revenue (£m) Growth 1 year 5yr CAGR £4,000m -2% -0.2% £3,576m £3,619m £3,471m £3,486m £3,547m £3,500m £3,136m £803m £896m 1% 2% Commercial £3,000m £808m £824m £905m multichannels £786m £2,500m £386m 4% 9% £459m £518m £563m Commercial PSB £588m portfolio £453m £2,000m channels -5% -3% Main commercial £1,500m PSB channels £2,387m £2,204m £2,144m £2,159m £1,000m £1,896m £2,054m

£500m

£0m 2007 2008 2009 2010 2011 2012 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, ITV Breakfast, Channel 4, Channel 5 and S4C; Commercial PSB portfolio channels include, where relevant, ITV2, 3, 4, CiTV, E4, More 4, Film 4, Five USA and 5* (and their ‘+1’ channels). For previous years closed channels have also been included. Sponsorship revenue not included. Totals may not equal the sum of the components due to rounding.

37 Figure 2.38

TV net advertising revenue market shares: 2011 - 2012

Proportion of NAR by broadcaster (%)

Total = £3,619m Total = £3,547m Other multichannels 100% PSB portfolios ITV Breakfast 24.8% 25.5% 80% Channel 5 Channel 4/S4C 15.6% 16.6% ITV1/Channel 3 60% 1.4% 1.4% 7.8% 7.3% 40% 16.2% 15.0%

20% 34.2% 34.1%

0% 2011 2012 Source: Ofcom/broadcasters. Note: Expressed in nominal terms. ITV1/Channel 3 includes ITV1, STV, UTV and Channel Television.

38 Figure 2.39 Breakdown of other / non-broadcast revenue: 2012 Total non-broadcast revenue = £722m (+5%) Other £194m TV Shopping (+20%) £128m (-8%)

Sponsorship £184m S4C £84m(-8%) (+9%)

PPV £46m (+2%)

Programme sales Interactive £48m £39m (+14%) (+1%)

Source: Ofcom/broadcasters. Note: Percentage figures in brackets represent year-on-year change for total non-broadcast revenue versus 2011. TV shopping represents aggregate operating margin of products sold via television. 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 39 Figure 2.40 Revenue generated by multichannel broadcasters, by genre: 2012 Total revenue = £5,053m across the eight included genres (+8%)

Music £118m (+6%) Movies £744m (+20%) Entertainment £1,485m (+6%)

Factual £226m (+15%)

Sport Kids £2,067m (+5%) £201m (+6%) News Leisure £148m (+2%)£64m (+11%)

Source: Ofcom/broadcasters. Note: Percentage figures in brackets represent year-on-year change for total revenue compared to 2011. 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 2.22 plus wholesale subscriber payments from platform operators.

40 Figure 2.41 Spend on network TV programmes: 2011 - 2012

1 yr change £m £5,494m £5,601m 2% 6,000

£178m £192m 7% Channel 5 £227m £250m 5,000 £230m £232m £358m £310m 10% Other PSB portfolio channels £496m £492m 4,000 1% BBC digital channels £684m £691m -13% BBC Two 3,000 £811m £814m -1% Channel 4 £848m 2,000 £777m 1% Other digital channels

0% ITV1/ITV Breakfast 1,000 £1,733m £1,772m 9% BBC One 0 2011 2012 2% Film/Sport channels

Source: Ofcom/broadcasters. Note: Figures expressed in nominal prices. 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). 41 Figure 2.42 Independent producer TV-related revenues Growth 3yr 1 year £m 2,589 CAGR 2 16.3% 6.5% Total 2,500 41 2,145 2,227 2,016 1,999 18 670 27 25 -88.9% -45.1% Other UK 22 26 2,000 38 1732 279 495 652 369 152 64% 1.9% Pre-production 63 185 107 70 87 1,500 115 154 119 165 2.8% 24.5% Other international income 1,000 1,508 1,539 27.7% 24.6% International sales of UK 1,395 1,356 1,247 finished programmes 500 12.1% 14.7% UK rights income

0 Primary UK commissions 2008 2009 2010 2011 2012 23.4% 0.5% Source: PACT Independent Production Sector Financial Census and Survey 2013. Note: ‘Other international income’ refers to revenue from companies overseas operations and any primary commissions received from non-UK broadcasters; ‘International sales of UK finished programmes’ – sales of first-run UK programming sold as finished product abroad ; ‘UK rights income’ – UK secondary sales, publishing, formats, DVD sales etc. 42 £55

Figure 2.43 Relative share of spend on first-run originated content by genre: in- house vs. independent producers: 2007 and 2012

Total spend on first-run originations (£m)

£55 £38 £82 £83 £303 £311 £630 £526 £27 £19 £462 £509 £498 £455 £8 £18 £17 £13 £402 £563 £2,485 £2,536

7%

21%

31%

27%

33% 36%

37% 54% 48%

49% 51%

51% 53%

55% 66% 60%

64%

77% 79%

81% 91%

100%

93%

79%

73%

69%

67% 64% 63%

52%

51% 49%

49% 47%

46% 45% 40% 34%

36% 23% 21% 19% 9%

2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 Arts & Childrens News & Drama & Education Entertainment Factual Feature Films Religion & Sports Grand Total Classical Current Affairs Soaps & Comedy Ethics Music

External Internal Source: Ofcom/broadcasters. Note: Includes spend by the five main PSBs and BBC portfolio channels on first-run originated content broadcast all day, and excludes regional output.

43 Figure 2.44 Spend on first-run originated output on the five main networks

Growth 1 year 5yr CAGR £m 3% 0% 3,000 £2,616m £2,599m £2,516m £2,588m £2,413m £2,506m £323m £303m £266m -1% -4% Regional £256m £261m £267m £254m £247m £212m £247m £257m 2,000 £189m 4% 0% Late night £564m £595m £638m £611m £624m £563m 0% -1% Day time 1,000 £1,427m £1,427m £1,357m £1,419m £1,429m £1,502m 5% 1% Peak time

0 2007 2008 2009 2010 2011 2012

Source: Ofcom/broadcasters. Note: Figures are expressed in nominal terms. They include ITV Breakfast, 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 .

44 Figure 2.45 Total and first-run originated hours of output, all day: 2012

Proportion of hours by broadcaster (%)

Total = 87,919 Total = 43,356 YOY change (%) 100% 11,772 Total Hours First Run 11,002 80% -5.9% -5.5% Programmes for 33,362 Nations & Regions 60% 13,304 0.4% 1.3% BBC Digital Channels 40%

42,785 19,050 20% 0.7% 0.1% Main Five Channels (network) 0% Total Hours Total First-Run Hours

Source: Ofcom/broadcasters. Note: Percentage figures in brackets represent year-on-year change. The first-run figures include in-house productions and external commissions, not first-run acquisitions. ITV Breakfast is included within the figures for the five main channels. Regional hours exclude Welsh and Gaelic-language programming but include a small proportion of Irish-language programmes.

45 Figure 2.46 Hours of first-run originated output on the five main channels

Growth 1 Year 5 yr CAGR 34,048 35,000 33,110 -2.0% -2.5% 30,485 30,041 30,681 30,052 30,000 11,859 11,977

25,000 10,439 11,060 11,647 11,002 -5.5% -1.5% Regional

20,000

15,000 0.2% -4.3% 16,646 15,536 Non-peak 14,632 13,316 13,338 13,365 network 10,000

5,000 -0.2% 0.5% Peak-time 5,543 5,597 5,414 5,665 5,696 5,685 network 0 2007 2008 2009 2010 2011 2012

Source: Ofcom/broadcasters. Note: Figures include ITV Breakfast 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.

46 Figure 2.47 First-run originated output by the PSBs per week, all day and peak time

All Day Peak-Time

800 200 674 653 629 613 619 622 171 171 167 173 175 175

BBC digital 600 BBC digital 150 channels channels 247 65 63 64 65 65 247 63 Channel 5 243 Channel 5 248 253 256

Channel 4 12 14 12 Channel 4 400 71 100 12 14 11 69 54 27 35 31

Hours per week 22 23 64 Hoursper week 22 22 22 23 ITV1/ITV 61 57 58 59 64 ITV1/ITV Breakfast Breakfast 25 26 26 119 104 101 101 101 99 26 26 26 BBC Two 200 BBC Two 50 68 70 70 73 66 66 21 21 20 22 21 22 BBC One BBC One 105 101 104 106 105 107 27 25 26 26 26 27 0 0 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012

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

47 Figure 2.48 Genre mix on five main PSB channels in peak time, by hours Proportion of total hours 7,923 7,978 7,964 8,009 7,961 7,964 100% Sport 366 457 357 483 334 514 Light Entertainment & 1,277 1,144 1,282 1,225 1,520 1,469 Modern Music 80% Films 618 611 630 675 661 545 Drama 1,746 60% 1,952 1,833 1,648 1,559 1,543 Education General Factual

40% Religious/Ethics 2,656 2,512 2,501 2,446 2,370 2,371 Children's

20% Arts & Classical Music 51 54 50 56 50 50 303 312 308 328 298 324 Current Affairs 792 871 878 879 857 882 0% News 2007 2008 2009 2010 2011 2012 Source: Ofcom/broadcasters. Note: Includes five main channels including ITV Breakfast, figures do not include hours of nations and regions output. 48 Figure 2.49 Genre mix on five main PSB channels: daytime Proportions of total hours 21,703 21,612 21,597 21,654 21,610 21,665 100% Sport 1,687 1,796 1,505 1,650 1,488 1,624 Light Entertainment & 2,370 2,435 2,814 2,596 2,627 2,877 Modern Music 80% Films 1,716 1,593 1,645 1,557 1,721 1,753 2,759 2,817 2,590 2,719 2,375 1,862 Drama 16 18 60% 810 733 659 275 Education

5,777 6,045 General Factual 4,368 4,637 4,775 5,232 40% Religious

Children's 4,275 4,074 4,137 4,214 4,204 4,213 20% Arts & Classical Music 451 459 438 440 549 594 Current Affairs 3,068 2,901 2,881 2,793 2,679 2,536 0% News 2007 2008 2009 2010 2011 2012 Source: Ofcom/broadcasters. Note: Includes five main channels plus ITV Breakfast. Figures do not include hours of nations and regions output.

49 Figure 2.50 The BBC’s digital channels genre mix by hours: all day Output (hrs) 33148 33069 33151 33202 33230 33362 Investment (£) £263m £244m £233m £249m £237m £232m 100% £1.79m £1.57m £1.62m £1.59m £1.37m £1.56m Other £1.74m £1.57m £1.53m £1.77m £1.91m £1.99m £1.05m £1.18m £1.08m £1.30m £1.15m £0.89m £2.34m £2.48m £2.63m £2.41m £2.65m £2.70m 80% Light Entertainment & Modern Music

£8.33m £8.35m £8.41m £8.21m £8.18m £8.31m Arts & Classical Music 60% £1.17m £1.33m £1.34m £1.47m £1.42m £1.20m General Factual

40% Children's

£16.74m £16.59m £16.55m £16.46m £16.56m £16.71m 20% Current Affairs

News 0% 2007 2008 2009 2010 2011 2012

Source: Ofcom/broadcasters. Note: BBC digital channels include BBC Three, BBC Four, BBC News 24, BBC Parliament, CBBC, CBeebies. Investment figures are in 2012 prices. ‘Other’ includes: Education, Drama, Film, Religion and Sports

50

Figure 2.52 Content spend by commercial multichannels in key genres: 2011 - 2012 1 year change %

3% Leisure £3,000m -10% Music £85m £48m Kids £2,500m £89m £52m £90m £70m 10% News £247m £246m Factual £2,000m -7% Movies £649m £668m Entertainment -5% £1,500m Sport

£1,000m 28%

£1,487m £1,526m 0% £500m 3% £m 2011 2012 3%

Source: Ofcom/broadcasters. Note: Spend expressed in nominal terms. Excludes BBC digital channels.

52

Figure 2.54 Platform take-up survey results: Q4 2001 – Q4 2012

TV households (m) 28 Analogue 26 terrestrial only* 24 22 Digital 20 terrestrial only 18 Analogue 16 cable 14 12 Digital cable 10 8 Free-to-view 6 digital satellite 4 2 Pay digital 0 satellite Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Multichannel take-up (% all 44.3% 46.0% 54.2% 62.6% 71.8% 78.6% 86.5% 88.9% 91.4% 92.5% 93.4% 98.0% households) Source: Ofcom / GfK NOP consumer research from Q1 2007. Sample GB only. Note: (1) Previous quarters include subscriber data and Ofcom estimates for digital terrestrial and free-to-view satellite.*Some analogue terrestrial only households would have watched TV through a device connected to their set (e.g. a games console), through another connected device or misreported themselves as analogue terrestrial. From Q2 2012 GfK amended its questionnaire in regions where switchover was complete so that non-multichannel households were no longer recorded as TV households. 54 Figure 2.55 Platform demographics by age, socio-economic group and viewing hours

% platform profile Average Hours per day 16-24 25-44 45-64 65+ AB C1 C2 DE 100% 4.2 11% 3.9 3.9 19% 15% 4 29% 27% 22% 28% 3.6 80% 33% 30% 29% 31% 19% 3 18% 18% 60% 28% 18% 30% 2 40% 30% 45% 41% 28% 30% 39% 31% 20% 1 29% 25% 21% 23% 100% 13% 14% 14% 13% 0% 0

Source: Ofcom 2013 data and BARB 2012 data 55 Figure 2.56 Average hours of television viewing per day, by age, all homes: 2004 to 2012 Hours viewed 6 5.76 5.78 5.71 Adults 65+ 5.24 5.24 5.3 5.2 5.09 5.02 5.02 5.2 5 4.9 Adults 55-64 4.6 4.7 4.5 4.4 4.4 4.5 4.5 4.5 4.5 4.2 4.2 Adults 45-54 4 4.0 4.0 4.1 4.0 3.8 4.0 4.0 4.0 3.7 3.7 3.6 3.6 3.7 3.9 3.9 3.8 3.7 3.7 3.6 3.6 3.7 3.6 3.5 3.5 3.3 3.4 3.4 3.3 3.3 3.3 Individuals 3 3.3 2.8 2.8 2.6 2.6 2.6 2.6 2.6 Adults 35-44 2.5 2.5 2.5 2.5 2.4 2.4 2.3 2.2 2.2 2.3 2.3 2 Adults 25-34

1 Adults 16-24

Children 0 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: BARB. Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. 56 Figure 2.57 Average 2012 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, all Individuals 4+

57 Figure 2.58

Average 2012 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

58 Figure 2.59

Average 2012 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

59 Figure 2.60 Total TV viewing, main sets vs. other sets: 2002 - 2012 35% 37% 36% 37% 36% 37% 38% 39% 39% 40% 41% = single set HH

Average minutes per day per individual (4+) 250

31 33 32 27 27 25 25 200 27 28 26 25

150

Other sets

100 200 200 210 209 208 187 196 195 191 190 192 Main set

50

0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: BARB, all individuals (4+), all homes. BARB Establishment Surveys – Annual Network Q2 reports. Note: i) New BARB panel introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. ii) ‘Main set’ defined as set located in the living room. ‘Other sets’ defined as all other TV sets in the home.

60 Figure 2.61 Average weekly TV reach, all homes: 2004 to 2012 15 -minute consecutive weekly reach – full weeks

100%

87% 88% 82% 83% 78% Others 80% 80% 79% 78% 79% 77% 79% 79% 78% 77% 71% 70% 74% 74% BBC One 69% 69% 68% 68% 63% 60% 61% 67% 64% 60% 63% 64%57% 59% 58% 56% 55% 62% 57% 58% 55% BBC Two 50% 57% 54% 52% 54% 53% 51% ITV 40% 44% 39% 44% 42% 40% 41% 40% 40% 40% Channel 4 + S4C 20% Channel 5

0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: BARB Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. 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 in 2011 was 1% (all homes). HD and SD viewing included. 61 Figure 2.62 Channel shares in all homes: 1982 to 2012 Audience share 60%

50% 46.0% BBC One 44%44.8% 41% 40% 39% 39% 38% 37% 37% 38% 38% 37% BBC Two 36% 36% 36% 36.50% 34% 33% 32% 32% 33% 0.3331 31% 29% 30% 30% 28% ITV 27% 27% 26% 26% 26% 25% 24% 23% 0.227622.00% 22% 21% 21% 21% 20.7%21.0% Channel 4 20% 20% 17% + S4C 13%14% 12% Channel 5 10% 10% 9% 6% 7% 5% Others 2% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

Source: BARB, TAM JICTAR and Ofcom estimates. Note: A new BARB panel was introduced in 2010. As a result, pre- and post- panel change data must be compared with caution. 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 2012 channel share = 0.2%. HD and SD viewing included.

62 Figure 2.63 Five main PSB channels’ audience share, all homes Audience share 73.8% 70.3% 66.8% 63.6% 60.8% 57.8% 55.5% 53.7% 52% 80% 70% 6.6% 6.4% 5.7% 9.8% 5.2% 60% 9.7% 5.0% 9.8% Channel 5 8.6% 4.9% 7.8% 4.5% 50% 6.8% 4.4% 4.0% 22.8% 6.3% 6.0% 21.5% 6.0% Channel 4 + S4C 19.7% 19.2% 40% 18.4% 17.8% 17.0% 16.0% 15.0% ITV 30% 10.0% 9.4% 8.8% 8.6% 7.8% 7.5% 6.9% 6.6% 6.0% 20% BBC Two 24.7% 10% 23.3% 22.8% 22.0% 21.8% 20.9% 20.8% 20.7% 21.0% BBC One 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: BARB. Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. 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 2012 channel share = 0.1%. HD and SD viewing included

63 Figure 2.64 Five main PSB channels’ audience share, by platform Audience share 100% 100%

Analogue 80% terrestrial homes

65% 62% 60% 56% Digital terrestrial homes 60% 62% 60% 53% 51% 60% 56% 53% 51% 47% 48% All homes 50% 49% 49% 47% 45% 40%

Cable or satellite 20% homes

0% Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Source: BARB, all homes, all viewers, various platforms. Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. 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 2012 channel share (all homes)= 0.1%. HD and SD viewing included.

64 Figure 2.65

Channel share, by platform: 2012

Audience share Analogue terrestrial only Digital terrestrial Digital cable Digital satellite 60% 55% 51% 47%

40% 39%

26% 21% 20% 19% 20% 15% 15% 14% 14% 12%

6% 6% 5% 6% 5% 5% 4% 4% 5% 3% 3% 0% BBC One BBC Two ITV Channel 4 Channel 5 Others

Source: BARB. Individuals in platform homes, Share (%). HD and SD viewing 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 2012 channel share (all homes) = 0.1%.

65 Figure 2.66

Share of total TV viewing hours, by platform signal Share of hours 100% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.1% 11.9% 11.4% 11.1% 11.8% 12.6% 13.6% 13.7% 13.6% Other Platforms 80% 28.4% Digital cable 32.6% 35.3% 36.3% 38.7% 40.4% 40.3% 40.9% 60% Digital satellite 10.0% 2.2% 15.5% Digital terrestrial 20.9% 40% 1.2% 27.8% 0.5% 31.8% Analogue cable and 37.7% satellite 47.4% 0.3% 42.6% 44.8% 20% 39.3% 32.1% 0.2% Analogue terrestrial 23.7% 16.6% 0.1% 8.2% 0.0% 0% 3.3% 0.6%0.0% 2005 2006 2007 2008 2009 2010 2011 2012

Source: BARB, Individuals 4+, all homes, total hours. Note: New BARB panel introduced in 2010. As a result, pre- and post-panel change data must be compared with caution.

66 Figure 2.67

Five main PSB channels’ share of total hours by platform signal

Share of hours 100% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.1% 7.2% 7.3% 7.6% 8.5% 9.2% 11.8% 12.2% 12.6% Other Platforms 15.6% 80% 19.5% 22.6% 25.0% 28.3% Digital cable 8.6% 31.5% 32.4% 33.1% 1.4% 13.7% Digital satellite 60% 0.8% 19.3% 0.3% 27.4% 33.9% Digital terrestrial 40% 0.1% 42.0% 67.2% Analogue cable 58.6% 0.0% 49.4% 50.2% 53.1% and satellite 20% 38.9% 28.4% 0.1% Analogue terrestrial 14.6% 0.0% 0% 6.0% 1.1%0.0% 2005 2006 2007 2008 2009 2010 2011 2012 Source: BARB, all Individuals, total hours. Note: New BARB panel introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. 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. 67 Figure 2.68

Share of viewing hours for main PSB channels, by platform: 2012 Analogue terrestrial Digital terrestrial Digital cable Digital satellite Other Platforms

58% 60% 56% 53% 52% 50% 49%

40% 36%

36% 33% 33% 31% 29%

20% 13% 13% 15% 13% 11% 13% Share of of Share hours

1% 1% 1% 1% 1% 0% BBC One BBC Two ITV Channel 4 Channel 5 Others Source: BARB, all Individuals, total hours. HD and SD viewing 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.

68 Figure 2.69 PSB and portfolio channel shares in multichannel homes

Audience share 100%

26.5% 27.0% 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% 20.3% 60% 7.4% 9.2% 17.4% 20.9% PSB portfolio channels 40%

57.5% 57.7% 57.6% PSB channels 56.7% 56.0% 54.8% 54.0% 53.2% 52.0% 20%

0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: BARB. Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. 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 2012 channel share = 0.1%. HD and SD viewing included. 69 Figure 2.70 Broadcaster portfolio shares in multichannel homes Audience share 100% Other 14.3% 14.0% 12.9% 12.8% 12.3% 11.8% 13.2% 11.4% 12.2% Virgin Media 2.6% 2.7% 2.6% 2.6% 1.9% 2.3% 2.4% 2.8% 2.8% 2.9% 2.7% 2.6% 2.7% 4.1% 4.0% 4.3% 80% 3.4% 3.1% 4.0% 3.9% 3.9% 4.0% Viacom 4.2% 4.0% 8.4% 8.8% 8.3% 8.7% 7.6% 6.8% 7.4% UKTV 10.4% 9.3% 5.9% 5.9% 5.6% 5.9% 6.0% 5.9% 5.3% 5.1% BSkyB* 5.1% 11.5% 11.8% 11.5% 60% 11.2% 11.2% 11.7% 11.5% 8.6% 9.6% Channel 5 Channel 4 22.6% 22.6% 22.7% 23.1% 22.3% 40% 21.7% 22.1% 22.0% 22.3% ITV BBC

20% 29.5% 29.8% 30.6% 31.2% 31.8% 31.4% 32.3% 32.7% 33.2%

0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: BARB. Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. The BBC portfolio in 2012 excludes the 24 dedicated Olympics channels which accounted for 0.21% share. 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 2012 channel share = 0.1%. HD and SD viewing included. 70 Figure 2.71 BBC portfolio shares in multichannel homes Audience share 29.5% 29.8% 30.6% 31.2% 31.8% 31.4% 32.2% 32.7% 33.2% 35% 1.3% 1.2% 1.3% 1.3% 1.3% 0.8% 0.7% 30% 1.2% 1.3% 0.6% 0.6% 0.6%0.7% 1.2% 1.0% 1.3% 0.5%0.8% 0.8% 0.8% 1.1% 0.9% 1.3% 0.5% 0.6%0.6% 0.5% 0.5%0.6% 0.7% Other 0.6% 0.6% 1.0% 0.4%1.1% 0.4%1.2% 1.3% 1.4% 1.5% 1.7% 0.7% 0.2%0.9% 0.3% CBeebies 25% 6.1% 6.9% 7.1% 7.0% 6.9% 6.6% 6.5% 6.7% 6.9% CBBC 20% BBC News 24

15% BBC Four BBC Three 21.3% 10% 19.5% 19.3% 20.0% 19.9% 20.4% 20.0% 20.2% 20.5% BBC Two 5% BBC One

0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: BARB Note: ‘Other’ includes BBC Parliament, BBC Choice, BBC HD and BBC Knowledge. A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. HD and SD viewing included 71 Figure 2.72 ITV portfolio shares in multichannel homes Audience share 21.7% 22.1% 22.0% 22.3% 22.6% 22.6% 22.7% 23.1% 22.3% 25% 0.4% 0.3% 0.3% 0.3% 0.0% 0.3% 0.9% 0.9% 1.0% 1.1% 0.3% Other 1.0% 1.2% 0.5%0.2% 0.7% 1.1% 0.0% 1.4% 1.4% 1.6% 1.8% 2.2% 2.4% 20% 1.7% 2.0% 2.5% 2.0% 2.2% 2.4% 2.6% 2.6% 2.7% CITV 2.7% 15% ITV4

10% ITV3 18.9% 18.4% 17.5% 17.6% 17.2% 16.9% 16.6% 16.5% 15.7% ITV2 5%

ITV 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 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 and HD services’ shares. Due to a

new BARB measurement panel from 2010 onwards, pre- and post-panel change data should be viewed72 with caution. Figure 2.73 Channel 4 portfolio shares in multichannel homes Audience share 8.6% 9.6% 11.2% 11.2% 11.7% 11.5% 11.5% 11.6% 11.5% 12% 0.3% 0.3% 0.1% 0.2% 0.3% 0.3% 0.3% 0.6% 0.8% 0.8% 0.8% 0.9% 0.5% 0.8% 0.9% 4Seven 10% 1.0% 1.4% 0.1% 0.9% 1.2% 1.2% 1.2% 1.9% 1.0% 4Music 1.6% 1.0% 1.2% 1.8% 1.4% 1.5% 8% 1.2% 1.8% 1.8% C4+1 1.9% 1.8% 1.9% 6% More4 Total

8.2% 4% 7.3% 7.9% 7.4% Film4 Total 6.8% 6.4% 6.1% 5.9% 5.6% 2% E4 Total Channel 4 + 0% S4C 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: BARB. Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. E4, More4 and Film 4 respective +1 channel shares are included. 4seven launched 4th July 2012. 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 2012 channel share = 0.1%. HD and SD viewing included. 73 Figure 2.74 Channel 5 portfolio shares in multichannel homes Audience share 5.1% 5.3% 5.1% 5.6% 5.9% 6.0% 5.9% 5.9% 6.0% 7%

6% 0.0% 0.0% 0.7% 0.8% 0.6% 0.9% 1.0% 1.0% 5% 0.0% 0.1% 0.6% 0.6% 5 USA 0.0% 0.4% 0.5% 0.5% 0.5%

4% 5*

3% 5.3% Channel 5 5.1% 4.9% 4.6% 4.7% 4.7% 4.5% 4.4% 4.5% 2%

1%

0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: BARB. Note: Channels include their +1 service. HD and SD viewing included. Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. 74 Figure 2.75 BSkyB portfolio shares in multichannel homes Audience share 10.4% 9.2% 8.7% 7.6% 6.8% 7.4% 8.4% 8.8% 8.3% Sky Atlantic 12%

0.3% Former Virgin TV 10% 0.6% portfolio* 0.3% 0.1% Sky Arts/Real Lives 0.6% 0.5% 0.3% 8% 2.9% 0.3% 1.5% 1.6% 2.4% 0.5% 1.3% Sky Travel 2.7% 0.5% 0.0% 0.0% 0.0% 0.5% 0.6% 0.7% 0.6% 6% 2.2% 2.4% Sky News 3.1% 2.1% 2.2% 2.3% 2.5% 2.2% 4% 2.2% 1.6% 1.5% Sky One/Two/Pick TV 1.5% 1.3% 1.2% 1.2% Sky Movie channels 2% 3.6% 3.4% 3.2% 3.2% 2.6% 2.9% 2.7% 2.7% 2.7% Sky Sports channels 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: BARB. Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. *BSkyB took ownership of VMTV in June 2010, Virgin Media TV portfolio shares are included in the BSkyB figure for the whole of 2010 onwards. HD and SD viewing included.

75 Figure 2.76 UKTV portfolio shares in multichannel homes Audience share 5% 4.2% 4.0% 4.0% 3.9% 3.9% 4.0% 4.1% 4.0% 4.3% Other 0.4% 4% 0.2% 0.1% 0.1% UKTV G2/Dave 0.2% 0.3% 0.3% 0.1% 0.2% 0.1% 0.2% 0.2% 0.4% 0.2% 1.3% UKTV Drama/Alibi 0.3% 0.2% 0.7% 1.3% 1.1% 0.2% 0.5% 1.2% 1.1% 3% 0.4% 0.3% 0.2% 0.6% UKTV 0.4% 0.5% 0.2% 0.4% 0.4% Documentary/Eden 0.1% 0.5% 0.4% 0.1% 0.1% 0.8% 0.6% 0.2% 0.1% 0.1% 0.1% 2% 0.1% 0.1% 0.1% UKTV Food/Good Food 0.7% 0.6% 0.3% 0.2% 0.6% 0.4% 0.4% 0.8% 1.0% 0.4% UKTV History/Yesterday 0.4% 0.2% 0.3% 0.3% 0.1% 0.1% 1% 1.9% UKTV Style/Home 1.6% 1.4% 1.2% 1.1% 1.2% 1.2% 1.1% 1.1% UKTV 0% Gold/G.O.L.D/Watch 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: BARB. Note: In 2008 figures, new channel names and shares have been matched to old channels. Dave went live in Oct 2007. Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. HD and SD viewing included.

76 Figure 2.77 The top channels by share in multichannel homes: 2011 to 2012

Share Rank Share Rank Channel 2012 2012 2011 Channel 2012 2012 2011 BBC One 21.3% 1 1 CBeebies 1.2% 11 11 ITV 15.7% 2 2 More4 1.2% 12 12 Channel 4 6.5% 3 3 Sky Sports 1 1.2% 13 13 BBC Two 6.1% 4 4 ITV4 1.2% 14 15 Channel 5 4.5% 5 5 Dave 1.1% 15 16 ITV2 2.8% 6 6 BBC News 1.0% 16 14 ITV3 2.5% 7 7 5 USA 1.0% 17 19 E4 1.9% 8 8 Pick TV 1.0% 18 18 BBC Three 1.7% 9 9 Yesterday 1.0% 19 20 Film4 1.5% 10 10 Sky 1 1.0% 20 17

Source: BARB. Note: Includes channels’ +1 services. HD and SD viewing included

77 Figure 2.78

Age and gender profile of the 30 most viewed channels in multichannel homes, 2012

Older (% over 35 years old)

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

Younger (% under 35 years old)

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

78 Figure 2.79 Live versus time-shifted viewing, all homes

2% 4% 6% 7% 9% 10% % time -shifted Average daily minutes viewed per individual 250 242 241 240 9 224 225 8 12 13 218 5 7 10 11 3 4 6 200 Viewed 2-7 days after broadcast 150 Viewed on same day 215 225 219 216 as live 100 212 212 Live

50

0 2007 2008 2009 2010 2011 2012 Source: BARB, all individuals. Note: New BARB panel introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. Time-shifted viewing defined as total minutes of viewing on same day as live (VOSDAL) + Viewing 2-7 days after broadcast (Coded Playback). All viewing (via a TV set) of broadcast content viewed within 7 days after broadcast is reported by BARB. This will include viewing to catch-up TV services and content viewed via player services such as BBC iPlayer, ITV Player, 4OD etc 79 Figure 2.80 Live versus time-shifted viewing: DVR homes

15% 15% 15% 14% 15% 16% % time-shifted Average minutes viewed per day 250 232 230 229 208 16 18 19 200 203 15 200 16 16 17 15 16 15 Viewed 2-7 days after 15 15 broadcast 150 Viewed on same day as live 100 200 195 194 170 173 177 Live

50

0 2007 2008 2009 2010 2011 2012 Source: BARB, DVR owners (individuals), all homes. Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. Time-shifted viewing is defined as total minutes of viewing on same day as live (VOSDAL) + Viewing 2-7 days after broadcast (Coded Playback). All viewing (via a TV set) of broadcast content viewed within 7 days after broadcast is reported by BARB. This will include viewing to catch-up TV services and content viewed via player services such as BBC iPlayer, ITV Player, 4OD etc. 80 Figure 2.81 Proportion of time shifted viewing, by age: all Adults Share of viewing 16% 15%

14% 14% 16-24 13% 25-34 12% 12% 35-44 10% 11% 11% 45-54 10% 10% 55-65 9% 9% 9% 8% 65+ 8% 9% 8% 8%7% 7% 6% 6% 6% 6% 6% 5% 5% 4% 4% 3% 4% 2%3%3% 3% 3% 2% 2% 2%

0% 2007 2008 2009 2010 2011 2012

Source: BARB, all Individuals, based on total minutes. Note: New BARB panel introduced in 2010. As a result, pre- and post-panel change data must be compared with caution.

81 Figure 2.82 Proportion of time shifted viewing, by age: DVR Adults Share of viewing 25%

21% 22% 20% 20% 16-24 20% 20% 19% 20% 18% 19% 19% 18% 17% 18% 25-34 16% 17% 17% 15% 14% 15% 14% 15% 15% 14% 14% 14% 35-44 14% 13% 13% 13% 12% 12% 12% 11% 11% 10% 11% 10% 10% 45-54

55-65 5% 65+

0% 2007 2008 2009 2010 2011 2012

Source: BARB, DVR owners, all homes, Based on total minutes. Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution.

82 Figure 2.83 Unique audience of online catch-up services on PC/laptop Unique audience (000)

12,000 BBC iPlayer [M] Channel4 4oD [C] Channel 5 - Demand 5 [C]* 10,000

8,000

6,000

4,000

2,000

0 11 11 11 11 11 11 10 12 12 13 10 12 10 12 10 12 12 13 ------Jul Jul Jul Jan Jan Jan Mar Nov Sep Mar Mar Nov Nov Sep Sep May May May Source: comScore MMX, home and work panel, May 2010 to April 2013 Notes: * Between May-10 and Oct-10 data is reported as Five – Demand Five [C], a subsidiary of the RTL Group; data between Nov-10 and Nov-12 is unavailable; from Dec-12 onwards data is reported as Channel 5 – Demand 5 [C], a subsidiary of the Northern & Shell Network.

83 Figure 2.84 Requests for programmes across BBC iPlayer by device type – TV only Number of requests (millions) 212 Total 200 200 194 38 183181 174 Mobile devices 165167 33 33 151 30 31 145146 150 24 28 37 150 139143 142140 138 23 38 Tablets 9 15 130 19 21 35 9 10 11 13 13 13 125 19 20 26 35 35 6 9 11 11 12 14 15 12 13 17 Computers 12 13 100 87 85 79 76 79 86 84 80 78 74 74 81 70 80 77 71 70 Games consoles 67 71 50 8 11 13 11 7 8 TV platform operators 8 9 9 9 10 11 10 10 11 10 11 9 9 31 31 28 28 28 29 28 27 28 26 27 28 29 26 30 28 21 21 22 5 6 0 2 2 3 2 2 3 3 2 3 3 3 4 4 4 5 5 6 Internet TV/ connected devices Unknown Source: BBC. Note: Internet TV / connected devices include Freeview and Freesat smart TVs, set-top-boxes and devices like Roku and blu-ray DVD players. TV platform operators include Virgin Media and BT Vision. Games consoles comprise Sony PS3, Nintendo Wii and Microsoft XBox 360. An update in iStats AV means that PS3 devices were incorrectly classified as unknown devices from week commencing 18th February 2013. 84 Figure 2.85 Total unique visitors to selected online film and TV streaming sites Total Unique Visitors (000) 3,000 2,467 2,500 2,326 Apr-12 2,000 1,807 1,636 1,594 1,500 1,205 Sep-12

1,000 776 705 614 616 Apr-13 500 370

0

Source: comScore MMX, UK, work and home panel, April 2012 to April 2013. Note: This is the unique audience for laptop and desktop computers only. MMX Legend: [P] Property, [M] Media Title, [C] Channel.

85 Figure 2.86 Total unique visitors to selected video sharing sites Total Unique Visitors (000) 30,000 27,949 27,120 25,612 25,000

20,000 Apr-12

15,000 Sep-12 10,000 Apr-13 4,046 3,543 2,646 5,000 3,483 2,435 2,090 1,531 1,150 1,130 37 141 749 0

Source: comScore MMX, UK, work and home panel, April 2012 to April 2013. Note: This is the unique audience for laptop and desktop computers only. MMX Legend: [P] Property, [M] Media Title, [C] Channel.

86 Figure 2.87 Opinion on programme standards over the last 12 months

Q - Do you feel that over the past year television programmes have improved, got worse or stayed about the same?

70%

60% 54% 55% 55% 58% 49% 50% 47% 46% 55% 55% 44% 53% 40% 41% 40% 40% 35% 33% 31% 30% 34% 32% 31% 31% 28% 20% 13% 9% 12% 15% 13% 13% 12% 10% 10% 10% 11% 12% 0%

Got worse Improved Stayed the same

Source: Ofcom Media tracker 2012. Base: All with TV, but excluding those never watching (1,830).

87 Figure 2.88 Opinion on programme standards over the last 12 months, by age Q - Do you feel that over the past year television programmes have improved, got worse or stayed about the same?

48% 50% 55% 58% 56%

11% 8% 13% 15% 15%

41% 41% 31% 25% 28%

All Adults 16-34 35-54 55-64 65+

Got worse Improved Stayed the same

Source: Ofcom Media tracker 2012. ‘Don’t know’ responses not charted. Base: All with TV, but excluding those never watching (1,830); 16-34 (609); 35-54 (640); 55-64 (247); 65+ (334).

88 Figure 2.89 Reasons for online on demand use: 2012

Q - What would you say are the reasons you use/ used your on demand service, whether you were catching up or accessing other content? 2011 59% 34% 25% 25% 17% 15% 60%

40% 62%

20% 43% 32% 27% 18% 12% 0% Missed the Want to watch Use it when Just to pass Programme/film Someone programme/film programme/film there is nothing some time/relax was watching when on TV and at time that suits on 'normal' TV to recommended something else use/d to catch me watch by someone I at the time it up know was on so used to catch up Source: Ofcom Media tracker 2012. Base: All who use online ‘video on demand’ 2012 (725), 2011 (658). Note: Only responses ≥ 10% charted. All responses unprompted.

89