2. and audio visual

0 Figure 2.1 Industry metrics

UK television industry 2004 2005 2006 2007 2008 2009

Total TV industry revenue (£bn) 10.0 10.5 10.6 11.1 11.2 11.1

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

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

Proportion of revenue generated by subscriptions 34% 35% 36% 37% 39% 41%

TV as a proportion of total advertising spend 29.6% 29.6% 27.9% 26.9% 26.5% 27.5%

Spend on originated output by 5 main networks (£bn) 3.1 3.0 2.8 2.7 2.6 2.4

Digital TV take- 53.0% 61.9% 69.7% 86.3% 87.1% 91.4%

Proportion of DTV homes paying for TV (Q1) 71.7% 64.3% 60.0% 55.0% 53.1% 54.6%

Viewing per head, per day (hours) in all homes 3.70 3.65 3.60 3.63 3.74 3.75

Share of the five main networks in all homes 73.8% 70.4% 66.7% 63.5% 60.8% 57.8%

Number of channels broadcasting in the UK 379 416 433 470 495 490 Source: /broadcasters/Advertising Association/Warc/BARB/GfK. Note: Public funds include the DCMS grant to 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 take-up in Q1 2010 had reached 92%. 1 Figure 2.2 Changes in TV industry revenue, 2008 - 2009

Revenue (£m) 11,600

-9.4% 11,500 +7.5% +1.5% -14.0% £74m £41m 11,400

£319m 11,300 £308m

11,200 -1.3% -8% -2.7% -0.4% 11,100 £6m £11,157m £22m £11,109m 11,000 2008 Subscriber Other BBC TV PSB NAR PSB portfolio Other NAR 2009 revenue revenue spending NAR revenue

Source: Ofcom/broadcasters Note: Figures expressed in nominal terms. PSB NAR comprises Channel 3 licensees (including GMTV1), , Five and S4C. PSB portfolio NAR includes the commercial channels owned by the PSBs. ’Other NAR’ comprises the rest of the multichannel market. Platform operator revenues do not include any installation costs, equipment sales or subsidies. BBC TV spending represents the amount of BBC revenue that is allocated to TV. 2 Figure 2.3 TV net advertising revenues

1-year change (%) £m £ 3,470m £3,136m -9.6% 4,000 -7.6% GMTV1 £55m £459m 3,000 £51m £453m -1.3% PSB portfolio £808m channels £786m -2.7% Other 2,000 £272m multichannels £207m £623m -23.8% Five £538m 1,000 -13.7% Channel 4/S4C £1,253m £1,100m -12.2% ITV1/Channel 3 0 2008 2009

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

3 Figure 2.4

Live versus time-shifted TV viewing, all individuals, all homes

Proportion of viewing (%)

100% 1.0% 1.5% 2.2% 3.1% 0.7% 1.2% 1.9% 2.8% 90% Viewed 1-6 days 80% after broadcast 70% 60% Viewed on same 50% 98.3% 97.3% 96.0% 94.1% day 40% 30% 20% Live 10% 0% 2006 2007 2008 2009

Source: BARB

4 Figure 2.5 Proportion of viewing that is time-shifted, by platform

Proportion of viewing (%) 10% 9.3%

8% Digital satellite 6.8%

Digital cable 6% 5.4%

4.0% Digital terrestrial 4% 3.6% 2.7% 2.7% 2.4% 2.5% 2.6% Analogue 2% terrestrial 2.0% 1.2% 2.2% 0.4% 1.0% 0% 0.4% 2006 2007 2008 2009

Source: BARB

5 Figure 2.6 Proportion of viewing that is time-shifted, by age

Proportion of viewing (%)

10% Children 8.7%

Adults 16-24 8% 7.9% 7.1% Adults 25-34

6.1% 6% Adults 35-44 5.7% Adults 45-54 5.1% 4% Adults 55-64

2.2% Adults 65+ 2.9% 2%

0.9% 0% 2006 2007 2008 2009

Source: BARB

6 Figure 2.7

Channels with highest and lowest proportion of recorded viewing, 2009

30 Channels experiencing the highest Channels experiencing the highest proportion of time shifted viewing proportion of time shifted viewing 25

20

15 27% 23% 10 20% 15% 15% 14% 14% 12% 5 11% 11% 3% 3% 3% 2% 2% 2% 2% 1% 1% 1%

Proportion of viewing that is recorded (%) that is recorded of viewing Proportion 0 Fx Syfy VIVA Dave Sky 1 Sky 3 Sky News BBCHD Disney Disney Tiny Comedy Sky Premiere Cinemagic Sports Sky BBC News BBC Showcase BBC Three BBC Sky Movies Movies Sky Movies Sky Movies Sky Sky Sports 1 Sports Sky Challenge TV Challenge

Source: BARB. Includes +1 channels, viewing in multichannel homes, excluding channels with <0.1% share

7 Figure 2.8

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

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

0% Total 15-24 25-34 35-54 55-64 65+ Male Female

Source: Ofcom research Q1 2010 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=6163 UK, 1048 15-24, 1100 25-34, 2464 35-54, 860 55-64, 691 65+, 3015 Male, 3148 Female)

8 Figure 2.9

BBC iPlayer share of programme requests, by device type

Share of programme requests (%) 100% 6% 6% 5% 3% 4% 4% 5% 4% 4% 4% 5% 5% 3% 4% 4% 5% 19% 19% 19% 18% 17% 18% 16% 15% 15% 80% 16% Wii

60% PS3 Mobile devices 40% 74% 75% 71% 73% 75% 75% 76% 73% 75% 72%

20% Computers

0% Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- 09 09 09 09 09 09 10 10 10 10 Source: BBC iStats. Note: Includes requests for radio programmes. Data from iPhones not available from 10 November to 2 February and data from Wii not available from 22 to 31 March, due to technical problems. 9 Figure 2.10

Active reach of major online catch-up TV services

Active reach (%)

25 Total catch-up TV reach 20 BBC iPlayer

15 ITV Player

Channel 4oD 10 Channel 5 - Demand 5 Five Sky Player 0 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Source: UKOM/Nielsen, home and work panel. Note: ‘Active reach’ is the percentage of all active unique persons aged 2+ who visited the site or used the application. ‘Active is defined as anyone who used an internet-enabled computer within the time period. ‘Demand Five trend data not available prior to March 2010 due to change in UKOM definitions. Total catch-up TV reach is the unduplicated reach of all five services.

10 Figure 2.11

Total monthly iPlayer TV requests across all platforms

TV requests (m) Growth Apr 09 – Apr 10 100 93 88 86 87 84 77% Total TV 78 80 20 requests 71 21 20 18 17 62 59 61 19 55 18 60 50 52 53 51 28% Virgin 46 17 16 16 16 Media TV 14 15 15 15 requests 40 15 73 65 68 69 67 53 60 97% Online TV 20 39 45 43 45 31 36 37 37 37 requests 0 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- 09 09 09 09 09 09 09 09 09 09 09 09 10 10 10 10

Source: BBC iStats. Note: Does not include radio. Includes both and on-demand.

11 Figure 2.12

Linear/non-linear split of weekly time spent consuming audio-visual content on TV and computers Proportion of time (% / minutes) 100% 173 252 197 315 331 80% Non-linear TV (TV and PC) 60%

1522 1209 1172 40% 880 1053 Scheduled TV (TV 20% set)

0% ALL 16 + 16-24s 25-44s 45-54s 55+ Source: Ofcom research Base: All respondent days - 16+ = 7966; 16-24s = 1106; 25-44s = 3003; 45-54s = 1484; 55+ = 2373 Note: Scheduled TV does not include live online TV streaming; content consumed via mobile devices is also not included. Non-linear TV includes content consumed on DVRs, rented/purchased DVDs/VHS, recorded TV on DVDs/VHS/games consoles/ TV through a TV set or PC, and content downloaded from the internet. 12 Figure 2.13

Weekly time spent consuming selected non-linear video content

Weekly time spent consuming media (minutes) 350 331 315 Downloaded TV/films/video 22 clips/DVDs (PCs) 300 14 40 21 252 17 TV/films on demand (PC) 250 15 52 15 54 18 23 197 200 On demand TV (TV set) 17 12 12 173 42 10 73 13 17 150 33 20 22 Recorded TV on 100 203 DVD/VHS/console (TV set) 145 50 115 123 110 Rented/purchased DVDs/videos (TV set) 0 Recorded TV on a DVR (TV ALL 16 + 16-24s 25-44s 45-54s 55+ set)

Source: Ofcom research Base: All respondent days - 16+ = 7966; 16-24s = 1106; 25-44s = 3003; 45-54s = 1484; 55+ = 2373

13 Figure 2.14

HD-ready sets: sales

HD-ready sets as a percentage of all sets sold 4,000 100% Thousands of sets sold 3,500 90% % of all sets sold 80% 3,000 70% 2,500 60% 2,000 50%

1,500 40%

Set sales (000s) sales Set 30% 1,000 20% 500 10% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 200620062006200620072007200720072008200820082008200920092009200920102010

Source:14 GfK sales data Figure 2.15 Number of broadcast HD homes: BSkyB, Virgin Media, and Freeview

5,500 5,000 4,500 Freeview 4,000 HD* 3,500 Freesat 3,000 HD* 2,500 Virgin 2,000 Media Homes ( 000s ) Homes 1,500 Sky+ HD 1,000 500 0 Q2 2006 Q4 2006 Q2 2007 Q4 2007 Q2 2008 Q4 2008 Q2 2009 Q4 2009 Q2 2010

Source: Operators/GfK Note: Figures represent latest available data. Freesat HD and Freeview HD figures based on HD device 15 sales, therefore the cumulative number of HD homes is indicative only. Figure 2.16

HD channel line-up by platform and genre, 2010

50 43 40 News 7 Documentary 30 9 Sports 20 18 14 Film 4 Entertainment Number of channels of Number 10 4 9 4 5 2 PSB 0 3 3 Freeview Freesat Virgin Media Sky

Source: Ofcom/Operators Notes: Sky includes two PPV HD channels. Does not include HD VoD available from Virgin Media, BT Vision,16 Talk Talk TV, Fetch TV and iPlayer on Freesat. Data correct as of August 2010. Figure 2.17

Top 10 most-viewed programmes on BBC HD in 2009

TOP GEAR 550

DOCTOR WHO 470

LIFE 288

THE GRUFFALO 279

WIMBLEDON 2009 270

STRICTLY COME DANCING 263

THE DAY OF THE TRIFFIDS 231

CHILDREN IN NEED 230

GAVIN AND STACEY 228

CHILDREN IN NEED 203

0 100 200 300 400 500 600 Audience (000s)

Source: BARB, all individuals 4+, highest occurrence per title Figure 2.18 Selected international 3DTV services

Launch Operator Platform Product Content Business model date BSkyB Satellite April 2010 Launched with Premier Residential: Free with a (UK) channel (commercial) League football; intends to premium subscription to Sky + Autumn 2010 add movies, documentaries HD (residential) and programmes by late Commercial: appointment to 2010 view sports events Canal + Satellite 3D events By end of Sports events, including the Linear programmes and VoD (France) channel 2010 World Cup and French Open DirecTV Satellite 3 DirecTV June 2010 Movies, sports, special Channels 1 & 3 based on (US) 3D channels events, arts, music and PPV model, Channel 2 and ESPN documentaries showing linear broadcasts 3D channel available to all subscribers Numericable Cable 3D VoD Autumn 2010 Mixed content Available to subscribers, (France) channel pricing and packaging to be confirmed in 2010

J:Com Cable 3D linear and April 2010 Content provided by existing Linear programmes and VoD, (Japan) VoD channel providers, as well as via existing set-top boxes. channels outside production Source: , Operators companies,

18

Figure 2.19

Comparison of 3DTV television sets

Launch Manufacturer Price Panel type 3D viewing technology date

Sony June 2010 £1,799 LCD Active shutter glasses

LG May 2010 £2,799 LCD Polarised glasses

Toshiba Q4 2010 TBC LCD Active shutter glasses

Panasonic May 2010 £2,295 Plasma Active shutter glasses

Samsung April 2010 £2,300 Plasma, LCD Active shutter glasses

Source: Manufacturers, prices at launch

19 Figure 2.20

Additional use of games consoles

% of households with games consoles that use the device for additional services 30

22% 20% 20

12% 10 9% 5%

0 Watching DVDs / Online gaming Web browsing BBC iPlayer Watching live AV Blu-ray content

Source: Ofcom research, Q1 2010 Base: UK adults 15+ who have access to a games console at home (n=4374) QB4 Which, if any, of these do you use your games console for?

20 Figure 2.21 PSB portfolios’ share in multichannel homes Audience share (%) 100%

80% 71.8% 71.6% 68.8% 70.5% 64.3% 66.7% 63.5% PSB portfolio 9.0% 11.3% 13.8% 15.8% 16.8% 60% 6.4% 6.8% channels

40% PSB 57.2% 57.5% 57.7% 57.5% 56.7% 56.0% 54.8% channels 20%

0% 2003 2004 2005 2006 2007 2008 2009

Source: BARB

21 Figure 2.22 PSB portfolios’ combined share

Audience share (%) 100% 93.7% 89.9% 92.2% 91.2% 91.5% 91.3% 91.4% 91.1% 90% Digital Terrestrial 80% 70.4% 71.8% 71.6% 66.7% 68.8% only homes 70% 63.8% 63.5% 64.3% 58.7% 59.7% 60.1% 59.9% 60% 58.0% 58.4% 61.8% 59.8% Multichannel 50% homes 40% 30% 20% Satellite and Cable homes 10% 0% 2002 2003 2004 2005 2006 2007 2008 2009

Source: BARB

22 Figure 2.23 Annual growth in share of the main PSBs and their channels

Annual change in share points 5% 4%

2.5% 3% 2.3% 2.2% 2.0% 2% 1.0% 1.1% PSB Portfolio 1% 0.5% 0.3% 0.2% Channels 0% -0.1% -1% -0.6% -0.9% Main PSBs -2% -1.3% -1.3% -3% -4% -5% 2003 2004 2005 2006 2007 2008 2009

Source: BARB

23 Figure 2.24 Digital switchover programme status to end of June 2010

End 2008: End 2009: 4.8 End 2010: 7.1 End 2011: End 2012: 74k homes m homes m homes 17.6 m homes 26.7 m homes switched switched switched switched switched

4.8m homes switching in 2.3 m homes switching in 10.5 m homes switching in 2011 9.1 m homes switching in 2012 2009 2010 25

20

Homes switched in 12 15 months time: Homes switched to 11m (41%) date (1 July 2010): 6.5 m (24%)

Millionsof homes 10

5

-

Homes switched to date Homes to switch in the next 12 Cumulative Total of homes to months Switch Source: Digital UK 24 Figure 2.25 Average main TV set take-up across regions switched (Border, , West Country, Granada and West) 97% 97% 100% 100% 92% 93% 93% 90% * 80% Main set 70% converted 60% 50% 40% Homes ready (includes 30% unused 20% equipment) 10% 0%

Source: 2008 to 2010 Digital UK Switchover Tracker Survey, pre- and post-switchover dipstick surveys in Border, Wales, West Country Granada and West. Sample sizes n>150 respondents for all data points. *Owning equipment in preparation for switchover was only tracked from 6 months out point. Q Which, if any, of these types of television does your household receive at the moment? 25 Figure 2.26 Digital TV growth on secondary sets, before and after switchover Conversion (%) 100% 92% 94% 88% 90% 84% 77% 80% 74% 70% 60% 50% 40% 30% 20% 10% 0% Full household conversion Secondary TV set All TV set conversion conversion

-1 week pre DSO +2 weeks post DSO Source: Digital UK programme office, pre- and post-switchover dipstick surveys in Border, Wales, West Country Granada and West, sample size n>150 respondents on each survey. Q Which, if any, of these types of television does your household receive at the moment? 26 Figure 2.27

Sales of integrated digital TV sets as a proportion of all TV sets sold

100%

75%

50% 94.6% 99.4% 80.3%

Proportion of sets sold sets of Proportion 25%

0% Apr-08 Apr-09 Apr-10

Source: GfK Retail and Technology equipment sales data

27 Figure 2.28

Total TV industry revenue, by source Growth Revenue (£m) 1 year 5yr CAGR £10,030 £10,502 £10,619 £11,041 £11,157 £11,109 -0.4% 2.1% 5,000 4,596 4,277 4,064 7.5% 6.2% Subscription revenue 4,000 3,699 3,795 3,410

3,576 -9.6% -1.8% Net 3,431 3,462 3,470 3,615 advertising 3,000 3,136 revenue 2,622 2,623 2,663 2,443 2,464 2,525 1.5% 1.7% BBC income 2,000 allocated to TV

837 1,000 746 724 780 787 713 -9.4% -0.9% Other revenue

0 2004 2005 2006 2007 2008 2009 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 ( revenue is excluded). It also excludes revenue generated by broadband and telephony. ‘Other’ includes TV shopping, 28 Figure 2.29 TV industry revenues, by share TV industry revenue shares (%)

£10,030 £10,502 £10,619 £11,041 £11,157 £11,109 50% Subscription 41.4% revenue 36.8% 38.3% 40% 34.0% 35.2% 35.7% 28.2% Net 30% 34.4% 34.2% 32.6% 32.4% 31.1% advertising revenue 20% 24.4% 23.5% 23.8% 23.7% 23.5% 24.0% BBC income allocated to TV 10%

7.4% 6.9% 7.9% 7.1% 7.1% 6.4% Other revenue 0% 2004 2005 2006 2007 2008 2009 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. 29 Figure 2.30 Total TV industry revenue by sector Growth Revenue (£m) 1 year 5yr CAGR £10,030 £10,502 £10,619 £11,041 £11,157 £11,109 -0.4% 2.1% 12,000

7.5% 6.2% Platform 10,000 operators 3,699 3,795 4,064 4,277 4,596 8,000 3,410 -6.2% 5.5% Commercial multichannels 1,300 1,477 1,650 6,000 1,239 1,726 1,619 -12.3% -5.7% Main commercial 4,000 2,843 2,906 2,725 2,603 2,420 2,123 PSB channels

2,000 2,538 2,597 2,622 2,725 2,734 2,768 1.3% 1.7% Publicly-funded channels 0 2004 2005 2006 2007 2008 2009 Source: Ofcom/broadcasters Note: Figures expressed in nominal terms. Main commercial PSB channels comprise ITV1, STV, UTV, Channel Television, GMTV1, Channel 4, Five and S4C. Commercial multichannels comprise all multichannels other than those owned by ITV1, Channel 4 and Five. Publicly-funded channels comprise BBC , 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. 30 Figure 2.31 Net TV advertising revenue, by source Net advertising revenue (£m) Growth 4000 £3,239m £3,431m £3,615m £3,462m £3,576m £3,470m £3,136m 1 year 5yr CAGR 3500 -9.6% -1.8% £758m £803m £640m £759m £808m 3000 £676m -2.7% 4.2% Commercial £105m £173m £786m multichannels £276m £386m 2500 £459m £453m 2000 -1.3% 34.0% Commercial PSB portfolio 1500 channels £2,686m £2,684m £2,563m £2,427m £2,387m £2,204m 1000 £1,896m -14.0% -6.7% Main commercial 500 PSB channels

0 2003 2004 2005 2006 2007 2008 2009 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, GMTV1, Channel 4, Five and S4C; Commercial PSB portfolio channels include ITV2, 3, 4, Men & Motors, CiTV, E4, More 4, Film 4, 4Music, Five USA and Fiver (plus their ‘+1’ channels). For previous years closed channels have also been included. Sponsorship revenues are not included. Totals may not equal the sum of the components due to rounding. 31 Figure 2.32 TV net advertising revenue market shares, 2008 - 2009

Proportion of NAR by broadcaster (%) Total = £3,470m Total = £3,136m 100% Other 23.3% 25.1% multichannels 80% PSB portfolios 13.2% 14.4% 60% 1.6% 7.8% 6.6% 1.6% GMTV1 18.1% 40% 17.2% Five

Channel 4/S4C 20% 36.1% 35.1% ITV1/Channel 3 0% 2008 2009

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

32 Figure 2.33 Breakdown of other/non-broadcast revenue, 2009

Total non-broadcast revenue = £713m (-9%)

Other revenue, £117m TV shopping, (-15%) £163m (-23%) Programme sales, £26m (+6%)

Other public funding (S4C), Interactive, £67m £102m (-4%) (-4%)

Pay-per-view, Sponsorship, £49m £189m (-14%) (+5%)

Source: Ofcom/broadcasters. Note: Percentage figures in brackets represent year-on-year change. TV shopping represents aggregate operating margin of products sold via television. Totals may not equal the sum of the components due to rounding.

33 Figure 2.34 Revenue generated by multichannel broadcasters, by genre, 2009

Total revenue = £ 3,751m across the eight genres included (+7%)

Movies, £542m Leisure, £69m (+15%) (-3%) Entertainment, Music, £109m £1,060m (+10%) (+7%) Factual, £148m (+14%) Children's, £159m (+6%) News, £132m (+11%)

Sport, £1,533m (+5%)

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 2.28 plus wholesale subscriber payments from platform operators. 34 Figure 2.35 Spend on network TV programmes, 2007 - 2009 1 yr change

5,500 £4,972m £5,108m £5,091m -0.3% 5,000 £205m £149m -27% Five £191m £224m £210m £219m £206m 4,500 £224m £216m -6% Other PSB portfolio £361m £357m £378m channels 4,000 £507m £467m BBC digital channels £528m -5% 3,500 £672m £755m -1% BBC Two £m 3,000 £623m £810m -8% Channel 4 2,500 £840m £856m 2,000 13% Other digital channels £799m 1,500 £802m £868m -5% ITV1 + GMTV1 1,000 £1,338m -8% BBC One 500 £1,166m £1,199m 0 12% Film/Sport channels 2007 2008 2009 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 acquired programmes, spend on rights and repeats. 35 Figure 2.36 Spend on first-run originated output on the five main networks

Growth 1 year 5yr CAGR 3,500 £3,049m £2,934m £2,840m £2,688m £2,602m £2,413m -7.4% -4.6% 3,000 £409m £381m £350m -15.2% -8.7% Regional 2,500 £405m £339m £305m £373m £310m £256m £263m £246m 2,000 £230m -6.6% -10.7% Late night £728m £685m £667m £615m £m £635m £604m 1,500 -4.8% -3.7% Day time

1,000 Peak time £1,517m -6.8% -2.6% £1,512m £1,502m £1,476m £1,420m £1,323m 500

0 2004 2005 2006 2007 2008 2009

Source: Ofcom/broadcasters. Note: Figures are expressed in 2009 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.

36 Figure 2.37 Total and first-run originated hours of output, all day, 2009

Proportion of hours by broadcaster (%) YOY change (%) Total = 1,647,195 (+21.7%) Total = 181,694 (+38.5%) Total hours First run 100% +15.0% +63.9 Other digital channels 80% -11% -13.2% Programmes 60% 138,561 for Nations & 1,556,613 Regions 40% +2.5% -6.0% BBC digital channels 20% 10,439 12,648 -0.4% -5.1% 11,485 Main five 20,046 channels 42,618 36,479 0% (network) Total hours of output Total hours of first-run originations

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. GMTV1 is included within the figures for the five main channels. ‘Other digital channels’ includes Entertainment, Sports, Film, Factual, Children’s, News, Leisure and Music genres. Regional hours exclude Welsh and Gaelic-language programming but do include a small proportion of Irish-language programmes. 37 Figure 2.38 Hours of first-run originated output on the five main channels

Growth Transmitted hours 1 year 5yr CAGR -7.7% -2.3% 40,000 34,196 32,866 33,379 34,048 33,045 30,485

30,000 -12.4% -4.3% Regional 11,859 12,972 12,114 11,825 11,912 10,439

20,000 -5.8% -1.4% Non-peak network 16,646 15,733 15,142 16,021 15,536 14,632 10,000 -3.3% -0.3% Peak-time network 5,491 5,610 5,533 5,543 5,597 5,414 0 2004 2005 2006 2007 2008 2009

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. 38 Figure 2.39 Cost per hour for five main PSB networks and multichannel broadcasters

Cost per hour (£’000) 80.0 £70.3 70.0 £60.6 60.0 50.0 2005 40.0 2009 30.0 20.0 £7.9 10.0 £5.8 £2.2 £1.3 £0.9 £0.6 0.0 Five main PSBs BBC digital channels Multichannels Multichannels excluding Film and Sports

Source: Ofcom/broadcasters. Note: Figures are expressed in real terms. Data for five main PSBs include GMTV1 and are for network channels. BBC digital channels include BBC Three, BBC Four, BBC News 24, BBC Parliament, CBBC, CBeebies and BBC HD. Multichannels include commercial channels in the eight key genre categories of Entertainment, Children’s, Factual, Sports, News, Leisure, Music and Film.

39 Figure 2.40 Cost per hour for first-run originated content on the five main networks

Cost per hour (£’000) 300

£275 £268 £274 £266 Peak-time £254 £244 200 Day-time

Late night 100 £79 £73 £68 £62 £65 £65 £39 £42 £43 Regional £69 £68 £50 0 £31 £31 £29 £28 £25 £25 2004 2005 2006 2007 2008 2009

Source: Ofcom/broadcasters. Note: Figures are expressed in 2009 prices. They include GMTV1 but do not include the BBC’s digital channels.

40 Figure 2.41 First-run originated output by the PSBs, all day and peak time All-day cost/hour (£k, 2009 prices) Peak cost/hour (£k, 2009 prices)

81.6 77.1 73.4 72.3 71.7 173.4 185.7 178.0 163.2 162.6 800 200

600 150 72 70 BBC digital 247 BBC digital 62 64 269 261 257 63 channels 243 channels Five Five 400 100 14 13 12 14 74 71 11 Channel 4 65 69 54 Channel 4 63 21 22 22 21 21 66 65 61 56 ITV1+GMTV1 ITV1+GMTV1 Hours per week Hoursper week 25 25 95 105 119 103 100 25 26 26 200 BBC Two 50 BBC Two 68 70 68 70 70 21 21 21 20 20 BBC One BBC One 103 99 105 101 104 26 25 26 25 26 0 0 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009

Source: Ofcom/broadcasters. Note: Figures do not include spend on nations and regions output. 41 Figure 2.42 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 7,964 100% Sport 401 341 507 366 457 357 Light Entertainment & 1,268 1,277 1,144 1,395 1,362 1,282 Modern Music 80% Films 688 618 611 757 579 630 Drama 1,746 60% 1,935 1,952 1,833 Education 1,863 1,954 General Factual

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

20% Arts & Classical Music 296 318 318 303 312 308 Current Affairs 835 785 788 792 871 878 0% News 2004 2005 2006 2007 2008 2009 Source: Ofcom/Broadcasters. Note: Figures do not include spend on nations and regions output. 42 Figure 2.43 Genre mix on five main PSB channels in daytime Proportions of total hours 21,668 21,553 21,313 21,703 21,612 21,597 100% Sport 1,958 1,837 1,753 1,687 1,796 1,505 Light Entertainment & 2,491 2,370 2,435 2,814 2,810 2,713 Modern Music 80% Films 1,811 1,716 1,593 1,645 2,080 2,464 2,759 2,817 2,590 Drama 2,056 1,797 2,654 60% 738 821 816 810 733 659 Education 3,150 General Factual 3,512 3,744 4,368 4,637 4,775 40% Religious

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

43 Figure 2.44 The BBC’s digital channels genre mix by hours (all day) Output (hrs) 32,792 32,838 33,005 33,148 35,583 36,479 Investment (£m) £263m £292m £243m £232m £220m £213m 100% 1,738 1,690 1,993 2,374 2,841 2,822 Other 1,143 1,260 1,386 1,743 1,478 1,360 1,077 1,048 2,082 2,263 1,282 1,227 2,297 2,482 2,503 2,335 80% 2,919 3,396 Light Entertainment & Modern Music

8,021 8,033 7,957 8,326 Arts & Classical Music 60% 8,530 8,873 340 225 1,211 1,168 General Factual 1,336 1,346 40% Children's

17,890 17,674 16,661 16,740 16,593 16,552 20% Current Affairs

News 0% 2004 2005 2006 2007 2008 2009 Source: Ofcom/broadcasters. Note: BBC digital channels include BBC Three, BBC Four, BBC News 24, BBC Parliament, CBBC, CBeebies and BBC HD. 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. 44 Figure 2.45 Total multichannel hours and first-run originations/acquisitions, 2009

Proportion of hours by channel genre (%) Total = 1,562,660 Total = 256,866 (acquisitions = 112,258 ) (2008 = 1,353,195) (Total 2008 = 181,971) 100% 5,747 Films 164,702 39,928 Music 80% 266,608 3,786 90,313 Leisure 119,997 89,617 60% News 159,675 207,113 Sport 40% 40,516 123,445 14,038 Factual 6,161 20% Children's 430,807 57,073 0% Entertainment Total hours First-run hours

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

45 Figure 2.46 Content spend by commercial multichannels in key genres, 2008 - 2009

£m Total £1,955m Total £2,086m 2,250 £23m 2,100 £24m £32m 1,950 £34m £59m £56m 1,800 £47m £44m £100m Music £139m 1,650 £279m Leisure 1,500 £230m Children's 1,350 £479m 1,200 £468m Factual 1,050 News 900 Films 750 600 Entertainment £1,059m 450 £969m Sport 300 150 0 2008 2009

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

46 Figure 2.47

Online TV revenues

Revenues (£m) Annual Growth 100 94.0

Total 80 71% 54.3 123% FTV views 60 54.8 20% Subscriptions 40 24.3 32% PPV 22.2 17.9 14.9 transactions 20 11.3 6.2 4.6 43% DTO 6.7 3.5 2.9 11.7 17.2 8.4 12.0 transactions 0 6.4 2004 2005 2006 2007 2008 2009

Source: Screen Digest. Note: FTV = free to view; PPV = pay per view; DTO = download to own. 47 Figure 2.48

Value of UK home film market, and online revenue split Growth (%YOY) Total market value £2806m +1% £2843m -4% £2742m 100% £92m £120m £124m +30% +3% £16m Internet VoD 80% £994m +7% +4% £1,067m £1,108m TV VoD

60% nVoD and VoD

40% £108m TV £1,440m +1% -10% £1,454m £1,311m DVD/Video retail 20%

Share of Share home film market (%) -28% -1.5% £280m DVD/Video rental 0% £202m £199m 2007 2008 2009 TV/online split 2009 Source: UK Film Council/Ofcom based on Nielsen EDI, MRIB, BVA, Official Charts Company, Attentional, Screen Digest, RSU Analysis. Note: ‘TV’ is the market value of film content shown on pay-TV, terrestrial TV and free-multichannel TV. Pay-per-view is included in ‘nVoD’. 48 Figure 2.49 Total broadcast hours and first-run originated hours on all channels, 2005 – 2009 All hours of originated/acquired/repeated First-run originated output hours (‘000s) (‘000s) 782 1,351 88 171 Other digital 1,400 180 channels 160 1,200 Commercial PSB 140 porfolio channels 1,000 120 121 PSB programmes 800 1196 100 for Nations & Regions 600 80 25 BBC digital 670 60 400 14 channels 23 68 6 40 14 11 12 11 200 14 13 Main five 33 33 20 21 channels 43 43 20 0 0 (network) 2005 2009 2005 2009 Source: Ofcom/broadcasters. Note: The first-run figures include in-house productions and external commissions, not first-run acquisitions. ‘Other digital channels’ includes Entertainment, Factual, Children’s, News, Leisure and Music genres.

49 Figure 2.50 Total broadcast spend on all channels, 2005 – 2009

Spend on TV output £4.1bn £3.7bn £2.8bn £2.3bn 100% £678m Originations: £748m Other digital -£461m £149m channels £1,127m 80% £132m £1,088m (-16.4%)

60% Indie: Other PSB -£39m portfolio channels (-3%) 40% £3,252m £2,788m £1,677m £1,255m 20% PSB Channels (inc In-house: BBC Digital) -£422m (-25%) 0% 2005 2009 2005 2009 All spend PSB Originated spend In-house vs. indie Source: Ofcom/broadcasters. Note: Figures do not include nations & regions. BBC digital channels include BBC Three, BBC Four, BBC News, BBC Parliament, CBBC and CBeebies. GMTV included. ‘Digital-only commercial channels’ include all genres (excluding Sports and Film). Programme spend comprises in-house commissions, independent commissions, acquired programmes, rights and repeats. Figures expressed in 2009 prices. . 50 Figure 2.51 PSB Originations volume by hours - daytime and peak time 1999 – 2009 Total hours of originations (‘000s) 10 year CAGR 10.6 10.2 11.4 10.2 9.7 9.2 5.9 5.5 6.5 6.3 6.1 5.9 100% Day Peak

80% 40% 40% 39% 38% 41% 41% 43% 45% 46% 45% 50% 50% +0.2% +1.1%

60%

35% 33% 32% 40% 41% 40% 40% 42% 42% 48% Contested hours Contested 48% 42% 41% -2.4% -1.6% 20% 26% 27% 27% 19% 21% 21% 7% 12% 13% 9% 8% 9% 0% 1999 2001 2003 2005 2007 2009 1999 2001 2003 2005 2007 2009 Day Time Peak Time In House News In House Independent Source: Ofcom/broadcasters. Chart Includes five main networks, BBC Three, BBC Four, CBBC and Cbeebies only. News is shown separately as its hours are not included when calculating quota. 51 Figure 2.52 PSB originations volume, excluding News: daytime and peak time, 1999 – 2009 Total hours of originations 10 year CAGR 7,508 7,134 6,720 5,548 4,882 5,646 5,716 5,597 5,334 100% 8,549 8,070 9,053

90% Day Peak 80% 4,241 4,032 4,433 3,889 2,688 2,565 2,923 2,702 70% 3,954 3,782 3,025 2,942 60% -1.1% +0.9% 50% 40% 30% -3.8% -1.8% 4,308 4,038 4,620 3,619 2,860 2,317 2,723 3,014 20% 3,180 2,938 2,572 2,392 10% 0% 1999 2001 2003 2005 2007 2009 1999 2001 2003 2005 2007 2009 Day Time Peak Time In House Independent

Source: Ofcom/broadcasters. Chart Includes five main networks, BBC Three, BBC Four, CBBC and Cbeebies only. News is excluded in order to show contested hours only. 52 Figure 2.53 PSB originations – daytime and peak time, 1999 - 2009 Total spend on originated hours (£ millions) 10 year CAGR 100% Day Peak £205m £225m £199m £590m 80% £207m £235m £239m £648m £588m £678m £768m £729m -0.4% +2.2% 60%

£355m 40% £401m £403m £756m £348m £419m £313m £884m £809m £903m +0.1% -1.7% £734m £635m Contested spend Contested 20%

£80m £85m £66m £69m £72m £83m £24m £39m £45m £50m £51m 0% £38m 1999 2001 2003 2005 2007 2009 1999 2001 2003 2005 2007 2009 Day Time Peak Time In-House News In-house Independent Source: Ofcom/broadcasters. Note: Chart includes five main networks and BBC Three, BBC Four, CBBC and CBeebies only. News is shown separately as its hours are not included when calculating the independent quota. Figures expressed in 2009 prices. 53 Figure 2.54 PSB Originations spend and hours - daytime and peaktime 1999 - 2009 Spend & Hours (%) 100% 90% 37% 34% 36% 36% 36% 80% 43% 44% 42% 43% 42% Independent 49% 48% 47% 50% 50% 52% 53% 52% 51% 54% 53% Spend 70% 55% 56% 55%

60% Independent 50% Hours 40% 63% 66% 64% 64% 64% In-house 30% 57% 56% 58% 57% 58% 51% 52% 53% Spend 50% 50% 48% 47% 48% 49% 46% 47% 20% 45% 44% 45% 10% In House Hours 0% Hours Hours Hours Hours Hours Hours Hours Hours Hours Hours Hours Hours Spend Spend Spend Spend Spend Spend Spend Spend Spend Spend Spend Spend

1999 2001 2003 2005 2007 2009 1999 2001 2003 2005 2007 2009 Daytime Peak Time Source: Ofcom/broadcasters. Chart Includes five main networks and BBC Three, BBC Four, CBBC and Cbeebies only. News is excluded in order to show contested hours only. Figures expressed in 2009 prices. 54 Figure 2.55 PSB cost per hour for first run origination content – daytime and peak time, ten - year comparison

Cost per hour (£ ‘000) 10 year £349 Peak Time CAGR 350 £325 In-House £300 +0.1% 300 £264 £285 £266 Peak Origs Average 250 £254 £248 £240 Peak Time 200 £219 £230 £232 Independent +1.3% 150 £121 £111 Daytime In- +4.1% £99 House 100 £81 £91 £99 50 Daytime £60 £49 £51 £53 £58 £53 Origs Average 0 +0.7% 1999 2001 2003 2005 2007 2009 Daytime Independent Source: Ofcom/broadcasters. Note: Chart Includes five main networks and BBC Three, BBC Four, CBBC and CBeebies only. Figures exclude News. Figures expressed in 2009 prices. 55 Figure 2.56 PSB cost per hour for first-run origination content - daytime independent commissions by channel, ten-year comparison Cost per Hour (£ ’000s) 300

250 CBBC

200 CBeebies

ITV1 150 Channel 4

100 BBC 1 BBC 2

50 Channel 5

GMTV1 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: Ofcom/broadcasters. Chart Includes five main networks, GMTV, CBBC and CBeebies only. Figures exclude News. Figures expressed in 2009 price. 56 Figure 2.57 PSB originations spend by genre – peak time, 2009

Total Spend £542m £313m £281m £123m 100% 7% 90% 80% 44% 52% 47% 70% 63% 68% Independent 60% 50% 93% 93% In house 40%

30% 56% 48% 53% 20% 37% 32% 10% 0% Drama Factual Entertainment Sport

Source: Ofcom/broadcasters. Chart Includes five main networks and BBC Three, BBC Four, CBBC and Cbeebies only. Figure 2.58 2009 distribution of PSB peak time spend and change over 10 year period 1999 – 2009 by genre Growing in-house spend Growing in-house spend Contracting indie Growing indie 60% Other, £16m

40% – Current Affairs, £48m Arts & Classical Music, Sport, £123m £37m 20%

Change in Indie spend 99 – 09 0% -80% -60% -40% -20% 0% 20% 40% 60% 80% -20% Drama, £542m Key in in Change House spend 99 09 Indie In House share share -40% Entertainment, £281m

Area denotes size of 2009 peak commissioning spend Factual, £313m -60% Contracting in-house spend Contracting in-house Contracting indie Growing indie Source: Ofcom/Broadcasters. 58 Figure 2.59 2009 distribution of PSB all-day originations’ spend and change over 10-year period, by genre: 1999 – 2009 Growing in-house spend Growing in-house spend Contracting indie Growing indie

40% 09 Indie Key In House share share 20% Area denotes size of 2009 Sport, £414m commissioning spend Drama, £569m Change in Indie spend 99 – 09 0% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50%

-20% in 99 – In House spend Change Entertainment, £420m Arts & Classical Music, Children £91m £47m -40% Current Affairs, £78m

Factual, £451m Religion, £15m -60% Contracting in-house spend Contracting in-house Contracting indie Growing indie Source: Ofcom/broadcasters. 59 Figure 2.60 BBC One and Two and ITV1 new, one-off and returning series, peak time: 2009 Number of first-run programme titles 100%

80% 237 86 65 86 Independent 60%

40%

235 77 94 64 In-house 20%

0% All New One-off Returning Source: Broadcasters ‘New series’ includes brand-new series and mini-series. ‘One-off’ includes one-off programmes and one-offs within series such as Panorama and Dispatches programmes. Programmes which form part of the core schedule, such as Eastenders, , News have been excluded. Sports programmes and feature films have also been excluded. 60 Figure 2.61 In-house and independent PSB production spend outside by genre, 2009 Total Value (%) £310m £140m £83m £87m £32m £51m 100 3.91130717 3.613114559 6.3089636 6.466629549 1.444364539 5.84859302 13.30345993 90 6.593997428 15.62895572 80 27.21581181 5.120504038 2.217980917 70 45.62711401 54.46996578 41.13085009 Wales

60 17.06448995 South 50 4.778538529 88.01312647 N.Ireland 40 11.42767241 64.4684024 7.184686947 North 30 16.52984955 38.5724763137.38697041 Midlands 20 34.34179685 10 19.46040354 6.255193323 5.2113940517.705596287 0 1.781819615 Drama Factual Entertainment Sport (inc. Soaps) Source: Ofcom/broadcasters ‘Other’ includes Arts, Current Affairs, Education and Religion 61 Figure 2.62 2009 distribution of PSB production spend, by region, and change in spend: 2006 - 2009 Growing in-house spend Growing in-house spend Contracting indie Figures in £‘000’s Growing indie 20%

Midlands & East, 10% N. Ireland, £10,073 £129,872 Southern , 274% Ind growth £184,001 Change in indie spend 06 – 09 0% -50% -25% 0% 25% 50% 75% 100% 125% 150% 175% 09

– -10%

06 Scotland, £63,118 Wales, £39,190

spend -20% London, £1,088,714 Key

house Indie share In-house share -30% Northern England, Circle area denotes size of £275,964 2009 commissioning pot

Change in in - in Change -40% Contracting in-house spend Contracting in-house Contracting indie Growing indie Source: Ofcom/broadcasters.

62 Figure 2.63 Availability of digital television platforms

Proportion of population covered (%) 100% 80% 60% 98% 40% 81% 20% 48% 39% 0% Digital satellite Digital terrestrial Digital IPTV television 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 of June 2010.

63 Figure 2.64 Take-up of multichannel TV on main sets Penetration of homes (%) 34.0% 41.7% 44.7% 48.0% 56.7% 64.9% 71.8% 80.3% 87.2% 89.6% 92.1% 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 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: Ofcom, GfK, Sky, Virgin Media. Data from Q1 2007 is based on consumer research, previous quarters use platform operator data, research and Ofcom estimates. Note: Digital terrestrial relates to DTT-only homes. Figure 2.65 Platform share, by TV set

Penetration (%) Main TV set TV Set 2 TV Set 3 TV Set 4 100% 13 12 8 19 26 25 33 Analogue 80% 36 40 40 terrestrial 45 49 46 40 51 38 38 60 63 33 70 67 60% 27 76 77 DTT

11 56 11 11 40% 12 12 48 53 40 48 50 Cable 39 43 25 39 13 25 41 22 20% 35 36 37 38 12 12 3 3 3 3 4 2 2 3 3 3 1 2 Satellite 14 14 1 2 2 13 12 13 10 10 9 9 11 10 9 9 8 8

0% 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1

Source: GfK consumer research Figure 2.66 DTT, satellite and cable net additions, year to Q1 2010

Homes added (000’s) 700 600 500 400 300 658 200 338 380 100 127 0 DTT-only additions Pay-satellite additions Free-to-air satellite Cable additions additions

Source: Pay platform additions based on Virgin Media reported results and Ofcom estimates based on *BSkyB results. Free satellite additions based on BBC/ITV Freesat sales figures. DTT additions based on Q1 2010 and Q4 2009 consumer survey results. Note: Chart uses multiple sources and is therefore intended to be considered only as a general indication of performance. Figure 2.67

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

Hours viewed

6 All Individuals 5 Children 4-15 Adults 16-24 4 Adults 25-34 Adults 35-44 3 Adults 45-54 Adults 55-64 2 Adults 65+

1

0 2004 2005 2006 2007 2008 2009

Source: BARB

67 Figure 2.68

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

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

0% 2004 2005 2006 2007 2008 2009

Source: BARB. Full weeks used. 68 Figure 2.69

Average 2009 audiences, weekdays/weekends: by day part, all homes

Average audience (millions) 28

24

20

16 Weekend 12 Weekday

8

4

0 6am 9am 12pm 3pm 6pm 9pm 12am 3am 6am Source: BARB

69 Figure 2.70

Average 2009 weekday audiences, by day part and age, all homes Average audience (millions) 6

5 Children 16-24 4 25-34

3 35-44 45-54 2 55-64

1 65+

0 6am 9am 12pm 3pm 6pm 9pm 12pm 3am 6am Source: BARB

70 Figure 2.71

Average 2009 weekend audiences, by day part and age, all homes Average audience (millions) 6

5 Children 16-24 4 25-34

3 35-44 45-54 2 55-64

1 65+

0 6am 9am 12pm 3pm 6pm 9pm 12pm 3am 6am Source: BARB

71 Figure 2.72

Channel shares in all homes, 1982 to 2009 Audience share, all homes (%) 60%

50% Others

40% BBC One

30% ITV 1

BBC Two 20% Channel 10% 4 + S4C Five 0% 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009

Source: BARB, TAM JICTAR and Ofcom estimates

72 Figure 2.73

Five main PSB channels’ audience share, all homes Audience share (%) 73.8% 70.3% 66.8% 63.6% 60.8% 57.8% 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% 50% 6.8% 22.8% Channel 4 + 21.5% 19.7% 19.2% S4C 40% 18.4% 17.8% ITV1 30% 10.0% 9.4% 8.8% 8.6% 7.8% 7.5% 20% BBC Two

24.7% 23.3% 22.8% 22.0% 21.8% 20.9% 10% BBC One 0% 2004 2005 2006 2007 2008 2009

Source: BARB 73 Figure 2.74

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

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

Cable and 20% satellite homes

0% Dec-05 Dec-06 Dec-07 Dec-08 Dec-09

Source: BARB, all day, all viewers, various platforms

74 Figure 2.75

Channel share, by platform, 2009

Audience share (%) 60% 53%54% Analogue 40% terrestrial 40% 34% Digital terrestrial 29%

22% 18% 17% Digital cable 20% 17% 16% 16% 15% 13% 8% 7% 5% 6% 5% 7% 5% Digital satellite 5% 4% 4% 0% BBC One BBC Two ITV1 C4 + S4C Five Other

Source: BARB

75 Figure 2.76

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

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

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

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

0% 2004 2005 2006 2007 2008 2009

Source: BARB

76 Figure 2.77

Broadcaster portfolio shares in multichannel homes Audience share (%) CAGR (%)

100% 1 year 5 year 14.3% 14.0% 12.9% 12.8% 12.3% 11.8% -5.3% -3.8% Other 2.6% 2.8% 2.8% 2.6% 2.7% 2.6% 2.7% 3.1% 2.9% 2.7% 2.6% 80% 3.4% 3.9% 3.9% 4.0% 4.2% 4.0% 4.0% 2.7% -1.3% Virgin 7.6% 6.8% 7.4% 9.3% 8.7% Media 10.4% 5.6% 5.9% 6.0% 5.1% 0.8% -4.6% Viacom 5.1% 5.3% 60% 11.2% 11.2% 11.7% 11.5% 8.6% 9.6% 8.1% -0.7% UKTV

22.6% 22.6% BSkyB 40% 21.7% 22.1% 22.0% 22.3% 9.2% -6.7% Five 2.4% 3.6% 20% Channel 4 29.5% 29.8% 30.6% 31.2% 31.8% 31.4% -1.6% 6.0% ITV -0.1% 0.7% 0% BBC 2004 2005 2006 2007 2008 2009 -0.9% 1.3%

Source: BARB 77 Figure 2.78

BBC portfolio share in multichannel homes Audience share (%) 29.5% 29.8% 30.6% 31.2% 31.8% 31.4% 1.3% 1.3% 30% 1.2% 1.3% 0.6% 0.6% 1.3% 0.5% 0.6% 0.8% 0.8% 1.3% 0.6% 0.8% 0.5% 0.5% 0.6% 0.5% 0.6% 0.6% 1.0% 0.4% 1.1% 0.4% 1.2% 1.3% 0.7% 0.2% 0.9% 0.3% Other 25% 6.9% 7.1% 7.0% 6.9% 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% BBC Two 5% BBC One

0% 2004 2005 2006 2007 2008 2009

Source: BARB Note: ‘Other’ includes BBC Parliament, BBC Choice, BBC HD and BBC Knowledge

78 Figure 2.79

ITV portfolio shares in multichannel homes

Audience share (%) 21.7% 22.1% 22.0% 22.3% 22.6% 22.6% 25% 0.3% 0.3% 0.5% 0.3% 1.0% 1.2% 0.1% 0.5% 0.7% 0.9% 0.9% Other 0.2% 1.4% 1.4% 1.6% 1.8% 20% 1.7% 2.0% 2.0% 2.2% 2.4% 2.6% CITV 15% ITV4

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

5% ITV2

ITV1 0% 2004 2005 2006 2007 2008 2009 Source: BARB Note: Other includes ITV Play, Men & Motors, GMTV2, Granada Breeze, Plus, ITV News ITV2, ITV3 and ITV4 include their +1 service share 79 Figure 2.80

Channel 4 portfolio shares in multichannel homes

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

0% 2004 2005 2006 2007 2008 2009

Source: BARB 80 Figure 2.81

Five portfolio shares in multichannel homes

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

6% 0.7% 0.8% 0.1% 0.6% 0.6% 5% 0.1% 0.4% 0.6% Five US/ Five USA 4% Five Life/ 3% Fiver 5.1% 5.3% 4.9% 4.6% 4.7% 4.7% 2% Five 1%

0% 2004 2005 2006 2007 2008 2009 Source: BARB Note: Five Life and Five US include their +1 service share 81 Figure 2.82

BSkyB portfolio shares in multichannel homes

Audience share (%) 10.4% 9.2% 8.7% 7.6% 6.8% 7.4% 12% 0.3% 10% /Real Lives 0.6% 0.3% 0.1% 0.6% 0.5% 8% 2.9% 2.4% 2.7% 0.5% 0.5% 0.5% Sky News 6% 2.2% 2.4% 3.1% 2.1% 2.5% /Two/Three 4% 2.2% 1.6% 1.5% 1.5% Sky movie channels

2% 3.6% 3.4% 3.2% 3.2% 2.6% 2.9% Sky sports channels 0% 2004 2005 2006 2007 2008 2009 Source: BARB 82 Figure 2.83

UKTV portfolio shares in multichannel homes

Audience share (%) 5% 4.2% 4.0% 4.0% 3.9% 3.9% 4.0% Other

4% 0.2% 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% 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% Documentary/Eden 0.5% 0.4% 0.8% 0.6% 0.2% 0.1% 0.1% UKTV Food/ 2% 0.7% 0.6% 0.3% 0.2% 0.4% 0.4% 0.4% UKTV 0.4% 0.2% 0.3% History/Yesterday 1% 1.9% UKTV Style/Home 1.6% 1.4% 1.2% 1.1% 1.2% UKTV 0% /G.O.L.D/Watch 2004 2005 2006 2007 2008 2009 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. Trends should be interpreted with caution. 83 Figure 2.84

Aggregate shares of channel genres in multichannel homes Audience share (%) No. of channels 24% 2004 2009 22% Entertainment 24 52 20% 18% Childrens 13 24

16% Sport 12 23 14% Movies 14 28 12% 10% Documentaries 10 20

8% Music 17 28 6% News 12 17 4% 2% Lifestyle and 10 25 Culture 0% 04 05 06 07 08 09 ------Dec Dec Dec Dec Dec Dec Source: BARB +1 services are not included in the number of channels. 84 Figure 2.85 Multichannel audience winners and losers, 2008 to 2009 Percentage point change in audience share (2009 average audience share %)

Watch, 0.41 (0.5%) ITV2, 0.23 (2.6%) Virgin1 , 0.18 (0.9%) More4 , 0.18 (1.2%) Sky 1, 0.17 (1.2%) ITV3, 0.16 (1.8%) BBC 3, 0.14 (1.3%) Dave, 0.11 (1.3%) Five USA, 0.11 (0.8%) Comedy Central , 0.10 Cartoon Network, -0.07 (0.1%) (0.5%) Nickelodeon , -0.07 (0.4%) Nick JR, -0.08 (0.3%) Setanta Sports 1, -0.08 (0.1%) Alibi, -0.08 (0.4%) BBC2, -0.10 (6.9%) G.O.L.D. , -0.21 (0.7%) CH4 , -0.38 (7.0%) BBC1, -0.38 (20.0%) ITV1, -0.39 (16.9%)

-0.6% -0.5% -0.4% -0.3% -0.2% -0.1% 0.0% 0.1% 0.2% 0.3% 0.4% 0.5% 0.6% Source: BARB Note: Includes channel’s +1 services

85 Figure 2.86

The top channels by share in multichannel homes, 2008 to 2009

Share Rank Share Rank Channel 2009 2009 2008 Channel 2009 2009 2008 BBC One 20.0% 1 1 Dave 1.3% 11 11 ITV1 16.9% 2 2 BBC Three 1.3% 12 12 Channel 4 7.0% 3 3 More 4 1.2% 13 13 BBC Two 6.9% 4 4 Sky One 1.2% 14 15 Five 4.7% 5 5 Film4 1.0% 15 14 ITV2 2.6% 6 6 ITV4 0.9% 16 17 E4 1.8% 7 7 Living 0.9% 17 18 ITV3 1.8% 8 8 Virgin1 0.9% 18 22 Sky Sports 1 1.4% 9 9 BBC News 0.8% 19 19 CBeebies 1.3% 10 10 Disney Channel 0.8% 20 20

Source: BARB Includes channel’s +1 services.

86 Figure 2.87 Top 20 TV programmes in 2009, based on average audience No. Title Channel Date Day Start time End time Aud’ (m) 1 BRITAIN'S GOT TALENT FINAL RESULT ITV1 30/05/2009 Saturday 21:31 22:00 16.5 2 THE X FACTOR RESULTS ITV1 13/12/2009 19:29 21:26 15.6 3 BRITAIN'S GOT TALENT ITV1 30/05/2009 Saturday 18:45 20:23 14.8 4 THE X FACTOR ITV1 21/11/2009 Saturday 20:03 21:17 13.5 5 BBC1 25/12/2009 Friday 21:01 21:59 11.4 6 EASTENDERS BBC1 25/12/2009 Friday 20:00 20:59 11.3 7 BBC1 25/12/2009 Friday 17:59 18:58 11.1 8 BBC1 19/12/2009 Saturday 20:41 21:45 10.7 9 'M A CELEBRITY - GET ME OUT OF HERE! ITV1 21/11/2009 Saturday 21:21 22:21 10.4 10 CORONATION STREET ITV1 16/11/2009 Monday 20:29 20:55 10.3 11 DANCING ON ICE ITV1 22/03/2009 Sunday 18:55 20:58 10.2 12 I DREAMED A DREAM - THE STOR ITV1 13/12/2009 Sunday 21:34 22:33 10.0 13 BBC1 13/03/2009 Friday 19:00: 21:59 10.0 14 ITV1 08/11/2009 Sunday 21:02 22:00 9.7 15 GAVIN AND STACEY BBC1 25/12/2009 Friday 22:00 22:29 9.6 16 CHILDREN IN NEED BBC1 20/11/2009 Friday 19:00 21:59 9.5 17 THE GRUFFALO BBC1 25/12/2009 Friday 17:31 17:57 9.5 18 THE ROYAL VARIETY PERFORMANCE ITV1 16/12/2009 Wednesday 19:29 21:58 9.1 19 THE APPRENTICE BBC1 03/06/2009 Wednesday 21:00 21:59 9.1 20 BBC1 01/01/2009 Thursday 20:59 22:58 9.0

Source: BARB. All individuals (4+). Highest occurrence only. 87 Figure 2.88

Platform demographics by age, socio-economic group and viewing hours, 2009

% platform profile 15-24 25-44 45-64 65+ AB C1 C2 DE Average Hours per day 100% 5 10% 18% 14% 23% 27% 23% 26% 3.8 3.7 32% 3.7 80% 42% 42% 3.7 4 29% 30% 29% 17% 30% 18% 21% 60% 19% 3 17% 27% 32% 40% 45% 30% 30% 2 38% 30% 43% 27% 24% 20% 21% 1 25% 29% 17% 22% 24% 15% 10% 17% 16% 13% 0% 0

Source: Ofcom and BARB 88 Figure 2.89

Age and gender profile of the 30 most- viewed channels in multichannel homes Older ITV3

BBC4 BBC News BBC1 BBC2 ITV1 Five USA Sky News ITV4 Sky Sports 1 Five G.O.L.D. Sky3 More4 Film4 Female CH4 Virgin1 Male ITV2 Watch Living Sky Sports Fiver Dave News BBC3 Sky1 Comedy Central E4

CBeebies 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 89 Figure 2.90

Unique audiences to selected online film and TV sites

Unique audience (m) Growth (%) May 09 – May 10 2.5 48 LOVEFiLM. com 2 10 MSN Video 207 blinkBox 1.5 -13 Virgin Media 1 Movies n/a SeeSaw

0.5 -11

0 -38 FindAnyFilm .com May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- 09 09 09 09 09 09 09 09 10 10 10 10 10

Source: UKOM/Nielsen, home and work panel.

90 Figure 2.91

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

Time per person (h:mm:ss) 0:25:00 blinkBox LOVEFiLM.com 0:20:00 SeeSaw 0:15:00 Virgin Media Movies 0:10:00 iTunes

0:05:00 MSN Video

0:00:00 FindAnyFilm.com May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Hulu 09 09 09 09 09 09 09 09 10 10 10 10 10

Source: UKOM/Nielsen, home and work panel.

91 Figure 2.92 Video on-demand use in Virgin Media homes

VoD views per month/VoD reach 80 70 60 Q4 2007 50

40 74m Q4 2008 30 53m 58% 47% 52% 20 Q4 2009 33m 30 35 10 22 0 Average total VoD views Average VoD views per Average VoD reach per month month per user

Source: Virgin Media company results.

92 Figure 2.93

Unique audiences to selected video-sharing sites Growth (%) Unique audience (m) May 09 – May 10 25 Total Videos / 9 Movies YouTube 20 13 Google Video 17 15 10 MSN Video -15 Dailymotion 10 (-) Bing Videos -23 5 153 Metacafe 10 Vimeo 0 -35 Yahoo! Video Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10

Source: UKOM/Nielsen, home and work panel.

93 Figure 2.94

Monthly time spent per person on selected video-sharing sites

Time per person (h:mm:ss) 01:15:00 Ave. Videos / Movies YouTube 01:00:00

00:45:00 Dailymotion Bing Videos 00:30:00 Metacafe 00:15:00 MSN Video Yahoo! Video 00:00:00 Google Video Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10

Source: UKOM/Nielsen, home and work panel.

94 Figure 2.95a

Popularity of top 10 UK YouTube channels

Number of views (m) Subscribers to channel (000) 400 394 250 325 Number of views (m) Subscribers (000) 306 200 300 210 279 272 269 247 242 240 209 150 200 118 112 107 100 92 87 89 100 43 58 50 50

0 0 Parlophone BBC Britain's The X All Around ITN HDCYT BBC Britain's Silva- Worldwide So Factor the World Got Talent Gunner Talented UK Records 09

Source: YouTube statistics June 2010

95 Figure 2.95b

Take-up of e-reader devices

Take-up (%) 5

4 3 3 2 2 2 2 2 2 2 1 1 1 0 0 Total Male Female 15-24 25-34 35-54 55-64 65+ ABC1 C2DE

Source: Ofcom research Base: All adults (6682); males (3204); females (3478); 15-24 (996); 25-44 (2514); 45-64 (1971); 65+ (1200); ABC1 (3633); C2DE (3008). QB1: Which of the following do you, or does anyone in your household, have in your home at the moment?

96 Figure 2.95c

Anticipated interest in selected iPad activities (top five)

Interest in using an iPad for this activity 100 81 80 62 55 56 60 50

40

20

0 Viewing/sharing Social networking Accessing news Accessing email General internet photos browsing

Source: IPSOS MediaCT Base: all GB adults 15+ interested in owning an iPad (n=521)

97 Figure 2.96

Consumer attitudes towards television programme standards, by age, 2009 % of respondents

100% 2% 5% 3% 9% 5% 11% 13% 17% Don't know 80% 41% 51% 60% 54% Improved 59% 63% 40% Stayed the same 53% 20% 40% 33% 26% Got worse 16% 0% All Adults 15-24s 25-44s 45-64s 65+ (15+) T50 – Do you feel that over the past year, television programmes have improved, got worse or stayed about the same? Base: All adults aged 15+ (2044) (344 aged 15-24, 749 aged 25-44 ,626 aged 45-64, 325 aged 65+) Source: Ofcom 2009 Media Tracker survey . Fieldwork carried out by Continental Research, April and October 2009.

98 Figure 2.97 Reasons why viewers thought TV programme quality deteriorated, 2009

% of respondents All Adults (15+) 15-24s* 25-44s 45-64s 65+

67% 70% 65% 64%63% 61% 60%

50%

39% 40% 35% 33% 34% 28% 30% 25%

20% 15% 14% 13% 11% 11% 9% 9% 9% 9% 10% 8% 7% 10% 5% 1% 0% More repeats Lack of variety More bad language More Violence Too many reality programmes Source: Ofcom 2009 Media Tracker survey . Fieldwork carried out by Continental Research, April and October 2009. T52 – In what ways do you think the television programmes have got WORSE over the past year? Base: All adults 15+ saying programmes got worse over past year (676) (56 aged 15-24, 197 aged 25-44 , 249 aged 45-64, 174 aged 65+). *NOTE: Sample size for 15-24s extremely small – results only to be used for indicative purposes. 99 Figure 2.98 PIN/password-protected TV, 2009 % of respondents 100% Don't know

80% Never used it 54% 65% Have tried it 60% 80% before Once a month 40% 10% 6% 9% Once a week 7% 20% 4% 5% 9% 20% 2% Everyday 13% 3% 0% 4% Total Any Children in HH No children in HH

T71 – How often, if at all, do you use this system? Base: All adults 15+ with a feature which enables them to block access to certain channels (882 ) (507 Any children in Household, 375 No children in household) Source: Ofcom 2009 Media Tracker survey . Fieldwork carried out by Continental Research, April and October 2009. 100