CMR 2015: Full chart pack

6th August 2015 CMR 2015: Market in context Key Market Trends Figure 1.2

Communications industry revenue – telecoms, TV, radio, post

£billion Annual 5 year 80 change CAGR

Total -0.5% -0.5% 60 57.6 57.4 57.5 57.3 56.4 56.1 4.1 4.1 4.1 4.2 1.1 1.1 1.2 1.2 4.21.2 4.31.2 Post 0.4% 0.7% 11.1 11.8 12.4 12.5 12.8 13.2 40 Radio 3.6% 2.1%

TV 3.1% 3.6% 20 41.3 40.4 39.9 39.4 38.1 37.4 Telecoms -2.0% -2.0% 0 2009 2010 2011 2012 2013 2014

Source: Ofcom/ operators Note: Includes licence fee allocation for radio and TV, figures are in nominal terms. Post is addressed letter mail. 3 Figure 1.3 Average household spend on communications services

£ per month (2014 prices) 6% Post 5.3% 5.1% 5.2% 5.1% 4.8% 150 4.7% 5% Radio

122.07 121.68 120.80 119.68 117.52 117.71 4% Television

100 29.58 30.41 31.02 30.60 30.77 31.10 3% Fixed internet 10.84 11.18 11.63 12.26 12.90 14.74 2% Mobile voice & 50 50.71 50.01 data 49.29 48.77 45.98 44.37 Fixed voice 1%

25.65 25.31 23.71 22.98 22.52 22.18 % of total spend 0 0% 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators/ ONS Notes: Adjusted for CPI; historic telecoms figures have been re-stated, so are not comparable to those published in previous reports. Television excludes spend on subscriptions, download-to-own and pay-per-view online TV services.

4 Figure 1.4 Digital communications service availability

UK UK UK Platform England Scotland Wales N Ireland 2014 2013 change Fixed line 100% 100% 0pp 100% 100% 100% 100% 2G mobile1 99.7% 99.7% 0pp 99.8% 99.5% 98.9% 98.9% 3G mobile2 99.3% 99.2% 0.1pp 99.6% 97.1% 97.9% 98.6% 4G mobile3 89.5% 71.8% 17.7pp 92.1% 79.7% 62.8% 91.1% LLU ADSL broadband4 95% 95% 0pp 96% 89% 93% 89% Virgin Media cable broadband5 44% 44% 0pp 47% 36% 21% 27% BT Openreach/Kcom fibre broadband6 82% 69% 13pp 82% 75% 83% 92% NGA broadband7 90% 78% 12pp 90% 85% 87% 95% Superfast broadband8 83% - n/a 84% 73% 79% 77% Digital satellite TV9 98% 98% 0pp No data No data No data No data Digital terrestrial TV10 99% 99% 0pp 99% 99% 98% 97% DAB BBC Network11 95.4% 94.0% 1.4pp 96.5% 92.3% 89.2% 85.4% DAB commercial network (Digital 89.8% 89.5% 0.3pp 91.3% 76.4% 64.1% 76.1% One)12 Sources: Ofcom and operators: 1. Proportion of premises that have outdoor 2G mobile coverage from at least one operator, May 2015; 2. Proportion of premises that have outdoor 3G mobile coverage from at least one operator, May 2015; 3. Proportion of premises that have outdoor 4G mobile coverage from at least one operator, May 2015; 4. Proportion of premises connected to an LLU-enabled BT local exchange area, December 2014; 5. Proportion of premises able to receive Virgin Media cable broadband services, May 2015; 6. Proportion of premises able to receive Openreach/Kcom fibre broadband services, May 2015; 7. Proportion of premises able to receive NGA broadband services, May 2015; 8. Proportion of premises able to receive superfast broadband services, May 2015; 9. Relates only to the ability to achieve a necessary line of sight path to the satellite and does not include other factors that can affect coverage including: access in multi-dwelling units where is not feasible to install a dedicated household satellite dish and there is no internal wired distribution system for satellite, and the need for planning permission in some locations.10. Estimated proportion of homes that can receive the PSB channels via DTT (3PSB Mux coverage). DTT Frequency Planning Group (Arqiva, BBC, Ofcom); Relates to an assumption that consumers will install, if needed, a good quality terrestrial TV aerial at a height of 10m to achieve reception. 11. BBC National DAB network coverage as of end of 2014 12. Digital One coverage Note: Cable, fibre and NGA broadband availability figures have been calculated using a different methodology than in previous years 5 Figure 1.5 Household take-up of digital communications/ AV devices: 2003-2015 Proportion of individuals (%) 100% 97% Digital television DVD player 80% Games console 70% MP3 player 66% DAB digital radio 60% 62% 54% DVR 49% Smartphone E-reader 40% 36% 35% Smart TV 28% 3D ready TV 20% 20% Tablet 12% Smart Watch 3% 0% 2% USB TV device 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: Ofcom Technology Tracker. Data from Q1 Base: All adults aged 16+ (2015 n=3756) Note: The question wording for DVD player and DVR was changed in Q1 2009 so data are not directly comparable with previous years

6 Figure 1.6 Take-up of communications services Proportion of households / adults (%)

100 95 93 93 92 92 93 94 94 95 Mobile telephony 90 88 85 87 85 85 84 84 8482 84 80 79 80 80 Internet connection 76 76 77 73 74 75 73 78 70 71 72 72 67 68 67 64 65 65 Fixed telephony 60 61 58 57 52 49 Total broadband 40 39 Fixed broadband 32

20 20 21 Internet on mobile 15 17 (personal) 12 13 8 5 6 Mobile broadband 0 dongle or datacard 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: Ofcom Technology Tracker. Data from Q1 Base: All adults aged 16+ (2015 n=3756). QC1: Is there a landline phone in your home that can be used to make and receive calls? QE1: Does your household have a PC or laptop computer? / QE8(QE2): Do you or does anyone in your household have access to the internet/ World Wide Web at home (via any device, e.g. PC, laptop, mobile phone etc.)? / QE12(QE9): Which of these methods does your household use to connect to the internet at home? Use of internet on mobile is personal take-up measure, whereas the other data relate to household take-up. 7 Figure: 1.7 Take-up of superfast broadband services

Connections (millions) As a proportion of all connections (%)

30.0 10 30 23.2 8 Connections ≥30Mbit/s 20 6 14.3 As a proportion 4 of all 7.1 10 connections 5.0 5.3 2 3.1 0.9 0.2 1.0 0 0.2 0 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators Notes: Includes estimates where Ofcom does not receive data from operators; includes Ofcom adjustment to exclude FTTC connections delivering less than 30Mbit/s

8 Figure 1.8

Most important device for connecting to the internet

Device owners (%) Laptop Desktop Smartphone Tablet Other

Of those who personally use a tablet 19 9 32 38 Of those with a smartphone and who personally use a 18 8 37 35 tablet Of those with a desktop and laptop in the household, and 20 16 31 30 who personally use a smartphone and tablet Of those with a smartphone 26 9 42 20

Of those with a laptop 40 9 31 18

All internet users 30 14 33 19

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

Source: Ofcom Technology Tracker, Q1 2015 Base: Devices used by those who use the internet at home or elsewhere: Tablet (1528), smartphone & tablet (1276), desktop & laptop & smartphone & tablet (389), smartphone (2277), laptop (2214), all internet users (3095 UK). QE11(QE40): Which is the most important device you use to connect to the internet, at home or elsewhere? “Other” includes: “netbook”, “games console”, “other device”, “none” and “don’t know”. 9 Figure 1.9

Most important device for connecting to the internet: 2013-2015 Proportion of internet users (%)

100% 2013 2014 2015 80%

60% 46% 40% 40% 33% 30% 28% 23% 19% 20% 20% 15% 15% 14% 8% 3% 2% 3% 0% Smartphone Laptop Tablet Desktop Other

Source: Ofcom Technology Tracker, Data from Q1 Base: All adults aged 16+ who use the internet at home or elsewhere (n = 3095 UK). QE11(QE40): Which is the most important device you use to connect to the internet, at home or elsewhere? “Other” responses include: “netbook”, “games console”, “other device”, none” and “don’t know”. Ranked by 2015 10 Figure: 1.10 Most-missed media device, by age Proportion of each age group (%)

100% 2% 2% 2% 1% 7% 2% 6% 4% Games console 4% 2% 9% 10% 5% 4% 2% 2% 8% 12% 1% 2% 6% 5% 1% 13% 3% 9% Tablet 80% 11% 8% 14% 13% 18% 14% 9% 3% 17% 2% Books/magazines/ 3% newspapers 60% 32% 50% 30% 11% Radio 59% 40% 40% PC/laptop 63% 68% computer 48% Mobile phone 20% 37% 38% 28% 25% 17% TV set 0% Adults 16+ 16-24 25-34 35-44 45-54 55-64 65-74 75+

Source: Ofcom research, fieldwork carried out by Saville Rossiter-Base Base: All adults aged 16+ (1890 in 2014, 254 aged 16-24, 288 aged 25-34, 327 aged 35-44, 284 aged 45-54, 276 aged 55-64, 221 aged 65-74, 240 aged 75+). A2 – Which one of these things you use almost every day would you miss the most if it got taken away?

11 Figure 1.11

Most-missed media device: 2013-2015 Proportion of UK adults (%)

100% 2013 2014 2015 80%

60% 43% 42% 37% 40% 32% 20% 22% 20% 16% 15% 13% 8% 7% 5% 0% TV Mobile phone PC/laptop Radio

A2 – Which one of these things you use almost every day would you miss the most if it got taken away? (Prompted responses, single coded) NB Showing responses by >1% of all adults Base: All adults aged 16+ (1890 in 2014, 254 aged 16-24, 288 aged 25-34, 327 aged 35-44, 284 aged 45-54, 276 aged 55-64, 221 aged 65-74, 240 aged 75+).

12 Figure 1.12 Approximate number of items sent and received by post Claimed volume of items sent in the Claimed volume of items received in the past month past week Estimated Estimated 21+ 5% average no. 21+ 6% average no. items sent per items received month: 6.0 per week: 8.5 11 to 20 items 8% 11 to 20 items 18%

5 to 10 items 23% 5 to 10 items 39%

3 or 4 items 19% 3 or 4 items 17%

1 or 2 items 21% 1 or 2 items 14%

None 23% None 6%

0% 10% 20% 30% 0% 10% 20% 30% 40% % of consumers % of consumers Source: Ofcom Residential Postal Tracker, Q2 2014-Q1 2015 Base: All respondents (n = 3557 adults 16+) QC1. Approximately how many items of post – including letters, cards and parcels – have you personally sent in the last month?/ QD1. Approximately how many items of post – including letters, cards and parcels – have you personally received in the last week? 13 Figure 1.13 Average time per day spent using communications services: 2014

Average minutes per day 250 239

200 183

150

100 87 65 50 19 0 TV Radio Mobile phone Internet on Fixed phone PC/laptop

Source: BARB 2014 / RAJAR 2014 / comScore MMX, Home & work panel 2014 / Digital Day 2014 Base: TV: Average minutes per individual aged 16+ in TV households; Radio: All radio listeners aged 15+; comscore: Total audience, Individuals online in month on desktop/laptop age 15+; Digital Day: mobile phone / fixed phone: Total summed relevant activity minutes (weighted) / weighted base / 7, 15+ Note: TV data throughout the rest of the CMR refers to individuals aged 4+ Note: comScore data throughout the rest of the CMR refers to individuals 6+

14 Figure 1.14 Reported take-up of bundled services Proportion of households 70% 63% 63% 60% Other 60% 57% 8% 6% 53% 7% Mobile and broadband 6% 2% 50% 2% 2% 50% 8% 3% 46% 2% Fixed voice, broadband, 9% 40% mobile and TV 39% 6% 2% 40% 2% 23% 25% Fixed voice, dial-up and 5% 5% 2% 19% 21% TV 29% 3% 3% 16% Fixed voice and TV 30% 29% 17% 5% 16% 4% 3% 4% 7% 12% Fixed voice and dial-up 4% 20% 5% 7% Fixed voice, broadband 5% 27% 27% 28% 27% 22% 24% and TV 10% 3% 19% 20% 17% Fixed voice and 12% 9% broadband 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: Ofcom Technology Tracker. Data from Q1 Base: All adults aged 16+ (2015 n=3756) QG1. Do you receive more than one of these services as part of an overall deal or package from the same supplier? 15 Figure 1.15 Overall satisfaction with communication services

Proportion of users of service (%) Very satisfied Satisfied

100% 94% 93% 95% 94% 93% 91% 89% 89% 90% 89% 89% 91% 90% 90% 86% 87% 88% 88% 86% 88% 88% 86% 83% 83% 80% 33% 32% 37% 35% 33% 34% 32% 34% 34% 30% 32% 33% 40% 40% 39% 41% 44% 41% 46% 46% 60% 44% 44% 57% 48%

40%

57%57% 56%56%59% 57% 61%61% 58%60% 60%58% 50% 46% 48% 49%45% 20% 43% 39% 42%40% 42% 33% 38%

0% 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 Fixed Mobile Fixed Mobile telephony telephony broadband Broadband

Source: Ofcom Technology Tracker. Data from Quarter 1 2010-2013, Wave 1 2014-2015 Base: All adults aged 16+ Note: Shows the proportion of users with each service, includes only those who expressed an opinion. Q: Thinking about your home phone/ mobile phone/ fixed broadband internet/ mobile broadband internet service only, please say how satisfied you are with the overall service provided by [main supplier] 16 Changes in TV viewing habits Figure 1.16 Average weekly reach of total TV

Total TV reach, Individuals 4+ (15 min+)

Total TV reach, millions Total TV reach, % 60 100% 53.2 54.0 53.9 53.9 54.1 51.5 52.1 52.3 52.8

94.1% 94.0% 95% 92.9% 93.1% 93.4% Total% reach, TV 40 92.2% 92.6% 92.4% 92.4%

90%

20 85% Total TV reach, millions Total

0 80% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: BARB, individuals 4+, network, total TV. Reach criterion= 15 consecutive minutes of viewing at least once in the average week. Full weeks used. Note: New BARB panel introduced 1 Jan 2010. As a result pre- and post-panel change data must be treated with caution (see dotted line).

18 Figure 1.17 Average minutes of broadcast TV viewing per person per day

Average minutes per day

300

242 242 241 250 225 232 216 218 225 220

200

150

100

50

0 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: BARB, individuals 4+, network, total TV. Average minutes of viewing/day. New BARB panel introduced 1 Jan 2010. As a result pre- and post-panel change data must be treated with caution (see dotted line).Average minutes of broadcast TV viewing per day declined by 11 minutes year on year, although values appear not to equate to 11 minutes in the chart due to rounding. 19 Figure 1.18 Change in average minutes per day of broadcast TV viewing by age group, total TV: 2013-2014 Audience Change in average minutes of % change in average minutes of viewing/day: viewing/day: 2013-2014 2013-2014 All individuals aged 4+ 11 minutes -4.9%

Children 4-15 17 minutes -12.4%

16-24 9 minutes -6.2%

25-34 16 minutes -8.8%

35-44 17 minutes -8.0%

45-54 11 minutes -4.4%

55-64 10 minutes -3.4%

65+ 1 minute -0.3%

Source: BARB, network, total TV. Average minutes of viewing/ day. Note: Bold text in table indicates an above average decline.

20 Figure 1.19 Average minutes per day of broadcast TV viewing by age group, total TV Average minutes per day Individuals 4+ Children 4-15 16-24 25-34 35-44 45-54 55-64 65+ 350 343 345 347 341 340 315 314 316 314 309 301 311 298 300 294 271 278 279 269 270 269 263 256 250 243 242 253 255 242 242 241 245 232 216 218 225 225 220 219 234 232 227 200 216 217 217 216 200 198 205 204 199 196 196 199 155 169 165 185 151 150 154 157 148 169 150 151 138 147 142 139 137 134 132 134 100 118

50

0 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: BARB, network, total TV. Average minutes of viewing/day. New BARB panel introduced 1 Jan 2010. As a result pre- and post-panel change data must be treated with caution (see dotted line).

21 Figure 1.20

Average minutes of viewing per day, total TV: by day part Average minutes per day

216 218 225 225 242 242 241 232 220 250 2230-0600 36.2 36.6 36.2 33.2 34.4 200 32.5 32.2 32.8 33.2 1800-2230 150 110.5 109.9 109.5 104.3 104.5 105.7 101.3 102.5 100.9 1200-1800 100 0930-1200 63.3 62.4 62.8 60.2 50 56.1 56.4 59.2 58.8 56.8 13.3 13.6 14.6 14.9 16.6 16.8 16.6 16.1 15.0 0600-0930 0 12.8 13.1 13.7 13.8 15.6 16.2 15.6 15.5 14.6 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: BARB, individuals 4+, network, total TV. Average minutes of viewing/day. Note: New BARB panel introduced 1 Jan 2010. As a result pre- and post-panel change data must be treated with caution (see dotted line).

22 Figure 1.21

Average minutes of viewing per day, total TV: by channel group Average minutes per day

216 218 225 225 242 242 241 232 220 250 All other channels Channel 5 portfolio channels 64.6 63.5 63.9 200 63.9 52.4 54.0 56.8 59.8 61.9 Channel 4 portfolio channels 3.3 3.6 4.3 2.4 2.9 12.5 13.8 14.3 4.5 ITV portfolio channels 5.50.3 7.51.8 9.8 10.7 14.1 4.3 150 7.5 8.6 10.7 14.3 17.2 17.9 13.4 6.3 7.6 8.9 11.9 13.3 17.9 12.4 11.2 9.7 14.3 14.9 16.0 BBC portfolio channels 11.2 10.9 11.0 10.7 13.0 21.1 18.7 16.8 10.1 12.0 15.3 15.0 14.3 13.4 9.4 8.8 Channel 5 100 11.5 10.5 42.4 41.9 41.4 41.1 38.7 Channel 4 40.1 35.9 35.6 32.5 19.0 16.7 14.7 ITV 50 18.6 17.6 16.8 16.0 13.4 13.4 BBC Two 49.1 48.0 48.9 47.1 50.3 50.0 51.3 48.7 47.7 BBC One 0 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: BARB, individuals 4+, network, total TV. Average minutes of viewing/day. Note: New BARB panel introduced 1 Jan 2010. As a result pre- and post-panel change data must be treated with caution (see dotted line).

23 Figure 1.22 Average minutes of viewing/day, total TV: by activity

Average minutes per day

216 218 225 225 242 242 241 232 220 250 17.2 22.2 24.2 3.7 5.8 9.1 13.2 26.2 200 27.2 Timeshifted

150

224.9 212.2 211.9 215.4 211.7 219.2 216.4 100 205.6 193.3 Traditional TV viewing (Live) 50

0 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: BARB, individuals 4+, network, total TV. Average minutes of viewing/day. Note: New BARB panel introduced 1 Jan 2010. As a result pre- and post-panel change data must be treated with caution (see dotted line).

24 Figure 1.23 Range of viewing by genre across all channels, all individuals: 2010-2014

Total hours/individual per year

1,203 1,216 1,219 1,177 1,128 Total hours/individual 1400 Education Party Political Broadcast 1200 Nations & Regions News 49 50 51 49 43 Weather 66 62 57 56 Religion 1000 72 65 68 65 51 Arts 73 72 57 718 21 33 67 59 Music 92 81 51 63 Comedy 800 90 84 99 103 92 77 Current Affairs 94 95 UK Soaps 106 107 102 600 102 96 Drama: Other 133 134 137 121 111 Children’s 400 Other 118 102 136 94 112 UK Drama 158 151 150 Leisure Interests 200 158 138 News Films 158 167 169 176 164 Sport 0 Documentaries 2010 2011 2012 2013 2014 Entertainment Source: BARB, individuals 4+, network programming based on 4+ area filter, total TV. Total hours of viewing/year. Note: There have been very large increases in total viewing hours to the ‘other: new programme’ genre over the last few years (from 33.1 hours of viewing per person in 2012 to 62.6 hours in 2014. Programmes that may fall in other genres may therefore be coded as other: new programme and this should be considered in any genre-based analyses.

25 Figure 1.24

Average minutes of viewing by day, total TV: 2011-2014 Average minutes per person 2011 2012 2013 2014 360 Royal Euro 2012 Olympics 340 Wedding Wimbledon 320 Jubilee W/end 300 Olympics -Closing 280 260 240 220 200 180 160 1 31 61 91 121 151 181 211 241 271 301 331 361 Day of year Source: BARB, individuals 4+, network, total TV. Average minutes of viewing/day.

26 Figure 1.25

Average minutes of viewing by month: 2010-2014 % change: Average minutes per day 2013-2014 300 2010 2011 2012 2013 2014 Jan-Dec -4.9 (-11min) 280 Jan -7.1% (-18min) Feb -4.0% (-10min) 260 Mar -10.3% (-25min) 240 April -7.0% (-16min) May -5.3% (-12min) 220 Jun -3.5% (-7min) 200 Jul -2.0% (-4min) 180 Aug -1.2% (-3min) Sep -6.7% (-15min) 160 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Oct -4.4% (-10min) Nov -3.4% (-8min) Dec -3.0% (-7min) Source: BARB, individuals 4+, network, total TV. Average minutes of viewing/month. Note: i) Bold text in table indicates an above average decline. ii) New BARB panel introduced 1 Jan 2010. As a result pre- and post-panel change data must be treated with caution.

27 Figure 1.26

Average daily minutes of TV screen time, total TV: by activity type

Average minutes per day

300 270 265 Total screen time

250 26 29 Unmatched (TV in use but 4 content cannot be audio- 29 5 31 matched)* 200 Time-shifted: viewed 8-28 days after initial broadcast 150 Time-shifted: viewed up to 7 100 211 201 days after initial broadcast Traditional TV Viewing (Live) 50 BARB Gold Standard 0 Q4 2013 Q4 2014

Source: BARB, individuals 4+, network, total TV. Average minutes of viewing/day. *Note: Unmatched = TV in use but content cannot be audio-matched or otherwise identified. Includes gaming, viewing to DVDs/Box sets/archives, SVOD, time-shifted viewing beyond 28 days, apps on smart TVs and navigation around EPG guides where there is no in- picture linear content. Digital radio stations are excluded (reported by RAJAR). Unmatched viewing has been reported by BARB since July 2013. At the time of writing, it is not possible to analyse unmatched content further by the type of device used. Dotted line marks difference between BARB gold standard industry data and the 8-28 day time-shifted and unmatched viewing. 28 Developments in viewing beyond traditional television Figure 1.27 Proportion of watching activities, % of total viewing time, by age TV (live – at the time it is broadcast, including red button) Recorded TV (programmes / films stored on PVR) On-demand / catch-up TV or films (free) e.g. BBC iPlayer, 4oD, Sky on demand Download or stream TV or films (paid-for) e.g. Netflix, iTunes, Blinkbox Average TV or films on DVD, Blu-ray, VHS video time spent* Short video clips on e.g. YouTube, News sites hours:mins

65+ 82% 12% 3%2% 4:37

55-64 80% 13% 3%2%2% 4:39

45-54 69% 20% 4%2%4%1% 4:32

35-44 67% 17% 7% 3% 5%1% 3:52

25-34 61% 18% 6% 6% 7% 2% 3:53

16-24 50% 16% 7% 6% 13% 8% 4:14

Adults 69% 16% 5% 3% 5% 2% 4:18 aged 16+ Source: Ofcom Digital Day 7-day diary 2014 Base: All aged 6-11 (186), 11-15 (173), 16-24 (101), 25-34 (225), 35-44 (348), 45-54 (400), 55-64 (311), 65+ (259). *Average time spent is the total average daily time spent watching media, including simultaneous activity 30 Figure 1.28 Selected on-demand and short-form service developments

11/13: Netflix 02/14: Amazon 11/14: EE TV 01/15: Netflix 02/15: 03/15: All 4 05/15: Spotify to available on rebrands LoveFilm launches launches on Freeview Play launches. Offer include short- Virgin Media video-on-demand TalkTalk TV announced – includes form video from TiVo STBs service to Amazon PSB backed livestream and on partners Instant Video TV VoD demand, trailers standard and dedicated short-form content.

01/13: Sky 09/13: Sony 08/14: Amazon 10/14: BBC 01/15: 02/15:Vodafone 03/15: 06/15: BT Go Extra launches 4K ultra buys game video iPlayer Tesco sells announces plans Twitter announces launches HD video streaming service shows made blinkbox to launch cloud- launches launch of download service Twitch for $970m available for video to based TV service Periscope streamed 30 days as TalkTalk later in 2015 for short- Ultra High standard form live definition video sports channel in August 2015

31 Figure 1.29 Use of VoD services in the past 12 months

Use of VOD services in the past 12 months (%)

60% 56% 57% 51% 50% 45% 43% 41% 40% 38% 33%

30% 27% 27%

20%

10%

0% H1 2010 H2 2010 H1 2011 H2 2011 H1 2012 H2 2012 H1 2013 H2 2013 H1 2014 H2 2014 Source: Kantar Media - TGI. Base: GB adults aged 15+. H1 2010 n=12226, H2 2010 n=11794, H1 2011 n=12602, H2 2011 n=12915, H1 2012 n=11098, H2 2012 n=12495, H1 2013 n=11853, H2 2013 n=12570, H1 2014 n=11657, H2 2014 n=12849

32 Figure 1.30 Reach of VoD services, by age, gender and socio-economic group Proportion watching VoD services in past 12 months (%) 100% H1 2010 H1 2013 H1 2014 H2 2014

80% 74% 70% 71% 69% 68% 66% 61% 61%61% 57% 59% 58% 60% 53% 60% 56% 57% 53% 52% 52% 50% 48% 49%48% 44% 44% 41% 43% 38% 38% 40% 35% 35% 34% 32% 29% 29% 31% 31% 31% 27% 25% 22% 22% 19% 20% 9%

0% Adults 15+ Male Female 15-24 25-34 35-44 45-54 55-64 65+ ABC1 C2DE Source: Kantar Media - TGI. Base: GB adults aged 15+. H1 2010 n=12226, H1 2013 n=11853, H1 2014 n=11657, H2 2014 n= 12849.

33 Figure 1.31 Reach of selected VoD services over time

Proportion watching VoD services in past 12 months (%) 35 BBC iPlayer 31% 30 ITV Player

25 4oD

20 Demand 5

15 16% Sky (all)

10 10% Virgin (all) 7% 5 BT Vision 3% 2% 0 TalkTalk TV

Source: Kantar MediaH1 2010 - TGIH2 2010 H1 2011 H2 2011 H1 2012 H2 2012 H1 2013 H2 2013 H1 2014 H2 2014 Base: GB adults 15+, all devices. Reach refers to use in previous 12 months H1 refers to January – June, H2 refers July – December

34 Figure 1.32

Selected subscription-VOD service take-up, by household

Subscription-VoD service take-up (HH) Universe (000s) Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 5,000 4,500 4,372

4,000 3,702 3,831 3,500 3,174 3,000 2,791 2,500 2,000 1,500 1,217 1,1021,0721,0251,155 1,000 446 523 500 239 282 327 0 Netflix Amazon Prime /LoveFilm Now TV Proportion of all households 10% 12% 14% 14% 16% 4% 4% 4% 4% 4% 1% 1% 1% 1% 2% Source: BARB Establishment Survey Q1 2014 – Q1 2015 Q – Do you or anyone in your household, subscribe to any of the following…?

35 Figure 1.33 Reasons for using Amazon Prime Instant Video / Netflix 63% To access back-catalogue of films 60% 47% To access back-catalogue of TV programmes 42% 42% To access catalogue of new film releases 45% 37% To watch at a time that suits 35% 30% To watch multiple episodes in a row 25% 28% Cheaper than renting/buying DVDs/Blu-ray discs 27% To watch programmes missed when initially broadcast 28% 28% Netflix users 27% To watch programmes wanted to see again 23% 24% To watch something different to content on main TV 24% To watch original series made by provider 24% Amazon Prime 15% Instant Video 23% Cheaper than pay TV subscription 22% users 21% To watch a specific programme 20% 20% To watch exclusive content not available elsewhere 14% 18% To watch content suitable for children 14% 0% 10% 20% 30% 40% 50% 60% 70% Source: GfK SVoD Tracker. Base: All Amazon Prime Instant Video / Netflix subscribers

36 Figure 1.34 Programmes watched, among subscribers to on-demand services with a monthly subscription

Films 75%

US/American programmes/series 49%

UK/British programmes/series 37%

Original programming from the 31% subscription service e.g. 'House of Cards'

Children's programmes 23%

Other 6%

Don't know 4%

0% 20% 40% 60% 80% 100% Proportion of subscribers (%) Source: GfK NOP omnibus, April 2015 Base: All who have subscription to services (402) QH, Which of these types of programmes do you or your family watch through (name/s of on-demand subscription services). Use of VOD services

Figure 1.35 Device used to watch catch-up and video on-demand services at least monthly % of online population 60 40 56 54 59 51 20 42 39 42 45 39 44 44 44 41 35 38 32 35 33 36 31 28 28 29 22 20 17 14 15 19 23 16 19 23 15 19 14 0 12 11 4 F F F F F F F F F F F F F F F F F F M M M M M M M M M M M M M M M M M M ALL ALL ALL NET 16-24 25-34 35-44 45-54 55+ NET 16-24 25-34 35-44 45-54 55+ NET 16-24 25-34 35-44 45-54 55+ Set-Top Box Desktop computer / Laptop computer Smart TV / internet connected Blu-Ray player

60 40 51 49 20 40 38 32 34 34 39 36 33 37 32 21 24 20 23 26 20 24 26 26 23 21 18 17 11 15 13 13 15 11 12 0 3 2 8 8 5 1 1 F F F F F F F F F F F F F F F F F F M M M M M M M M M M M M M M M M M M ALL ALL ALL NET 16-24 25-34 35-44 45-54 55+ NET 16-24 25-34 35-44 45-54 55+ NET 16-24 25-34 35-44 45-54 55+ Smartphone Tablet Games Console Source: Decipher MediaBug – Wave 6 Report. Base: UK Online Population Wave 6 (n=3088), March 2015 VOD / DTO refers to the following services: BBC iPlayer, ITV Player, 4oD, Demand 5, Sky Go, Netflix, Amazon Instant Video, Blinkbox.com, Now TV, Virgin TV Anywhere, Picturebox Films, Viewster, Channel Films, iTunes, Virgin Media Online Movies, Xbox Video, Playstation Video Store, Film 4oD, MUBI, Sainsbury’s Entertainment, UKTV Play, Google Play, Curzon Home Cinema, Wuaki.tv, Sky Store and any video on demand service accessed through a set top box. Figure 1.36 Viewing to short-form video clips

100%

90% 16% 16% 28% 26% 80% 6% Never/would rather not say 13% 42% 10% 70% Less often 16% 14% 17% 60% 13% At least once a month 50% 12% 14% 14% 21% 27% At least once a fortnight 40% 13% 15% 11% 30% 29% At least once a week 20% 21% 10% 21% 28% At least every day 10% 12% 14% 11% 7% 0% 4% All 16-24 25-39 40-54 55+

Source: Ofcom Adult Media Literacy Tracker 2015 q20_13. Thinking of what you do online for your personal use, how often do you do the following? - Watch online or download short video clips such as music videos or comedy clips (such as on YouTube)

39 Figure 1.37 Daily minutes of viewing to short online video clips on sites such as YouTube and news and social media sites Average daily minutes

Average daily minutes amongst all respondents Average daily minutes amongst all respondents who do this activity 80 74

70 64 60 51 49 50

40 33 29 30 25 22 19 20 21 20 16 12 14 7 8 7 10 5 3 5 3 4 1 0 0 Adults 16+ Male Female 6-11 11-15 Aged 6-15 16-24 25-34 35-44 45-54 55-64 65+ (primary (secondary school) school) Source: Ofcom Digital Day 2014

40 Figure 1.38 Sources ever used when looking for information online, by age

All internet users 16-24 25-34 35-44 45-54 55-64 65-74 75+ Base 1609 240 277 319 265 228 150 130 Search engines 95% 97% 96% 95% 95% 92% 96% 88%

Wikipedia 54% 60% 57% 58% 48% 52% 45% 30%

YouTube 47% 57% 54% 55% 43% 34% 32% 12%

Online recommendations from friends 40% 46% 41% 49% 35% 32% 26% 26%

Websites with user reviews 39% 37% 42% 44% 36% 41% 33% 22%

Reviews by critics/ journalists in 30% 35% 29% 35% 27% 30% 20% 19% articles in the wider media

Twitter 19% 30% 27% 22% 11% 10% 6% 4%

Source: Ofcom Media Literacy Tracker (Fieldwork carried out by Saville Rossiter-Base Oct-Nov 2014) IN46 Please think about when you want to look for information about something online? Which, if any, of these sources have you ever used to look for information online (prompted responses, multi-coded) 4141 Figure 1.39 Claimed changes in viewing over the past yearProportion of UK adults (%) Net Viewing methods Doing less Doing more Screen change Via TV set 21% 14% -7 Via other screens 9% 22% +13 Location In home 14% 14% 0 Out of home 12% 8% -4 Linear or other At time of broadcast 28% 9% -19 Personally recorded 13% 26% +13 Catch-up/on-demand 7% 33% +26 Subscription on demand e.g. Netfix 7% 15% +8 Pay-per-view 9% 6% -3 Content/activities PSB - BBC/ITV/C4/Five programmes 18% 12% -6

Content types Short clips 10% 20% +10 Series or boxsets 12% 19% +7 Films 12% 17% +5 International International satellite 6% 3% -3 International online 4%2% -2

Other activities DVDs 37% 8% -29 Cinema 35% 9% -26 Games on computers/phones etc 15% 12% -3 Social media 10% 23% +13 Going out/socialising 24% 16% -8 Source: GfK NOP omnibus, April 2015. Base: All adults (1878) Question wording: QA, For each of the following activities please say if you are doing this more, the same amount or less now compared to a year go? Figure 1.40 Changes in viewing ‘at time of broadcast’

10% Net decrease Net increase +2%

0%

-4% -10%

-14% -16% -20% -19% -22% -23% -24% -26% -30% -28% All adults 16-24 25-34 35-44 45-54 55-64 65+ 75+ ABC1 C2DE 16+ Source: GfK NOP omnibus, April 2015 Base: All adults (n=1878), 16-24 (n=236), 25-34 (n=318), 35-44 (n=293), 45-54 (n=282), 55-64 (n=244), 65+ (n=505), 75+ (n=226), ABC1 (n=739), C2DE (n=1,139) 43 Figure 1.41

Claimed changes in viewing devices, location and means of viewing, among those watching less TV at the time of broadcast

Proportion of UK adults who watch less TV at the time of broadcast (%) Doing less Doing more Net change Screen Via TV set 39% 14% -25 Via other screens 11% 38% +27

Location In home 28% 17% -11 Out of home 18% 12% -6

Linear \ other Personally recorded 18% 38% +20 Catch-up/on-demand 11% 53% +42 Subscription on demand e.g. Netflix 8% 26% +18 Pay-per-view 12% 9% -3

Source: GfK NOP omnibus, April 2015 Base: All adults who claim to watch less TV at the time of broadcast compared to a year ago (475) Figure 1.42

Claimed changes in viewing over the past year, among those watching PSB programmes less Proportion of UK adults who watch PSB programmes less (%) Net change Content types Doing less Doing more Short clips 17% 30% +13 Series or box sets 19% 30% +21 Films 23% 24% +1 International

International satellite 10% 4% -6 International online 9% 1% -8 Other activities

DVDs 52% 9% -43 Cinema 42% 11% -31 Games on computers/phones etc 21% 21% 0 Social media 13% 34% +21 Going out/socialising 31% 20% -1145

Source: GfK NOP omnibus, April 2015 Base: All adults who say they are watching less BBC, ITV/UTV/STV, C4, Five programmes (334) A smartphone society Figure 1.43 Smartphone ownership, by age: 2012-2015

Proportion of adults(%)

2012 2013 2014 2015 100% 90% 88% 87% 84% 80% 77% 80% 73% 72% 66% 66% 61% 60% 60% 60% 51% 50% 43% 39% 39% 40% 32%

19% 18% 20% 14% 8% 5% 0% Adults 16+ 16-24 25-34 35-54 55-64 65+

Source: Ofcom Technology Tracker. Data from Quarter 1 2012-2013, then Wave 1 2014-2015 Base: All adults aged 16+ (2015 n=3756) QD4(QD24B): Do you personally use a smartphone? 47 Figure 1.44 Brand of smartphone owned

Proportion of smartphone owners (%)

80% 16+ 16-24 25-34 35-44 45-54 55+

60% 51%50%

41% 39% 40% 34% 33% 34% 32% 27% 26% 23% 22% 20% 9% 11%9% 11% 8% 7% 8% 8% 6%7% 9% 5% 6% 5% 5% 4%4% 4% 0% Apple iPhone Samsung Nokia Sony HTC Source: Ofcom Research, ‘Connected Devices’, May 2015 Base: All smartphone users aged 16+ (n=1401) Q7. You said you have a smartphone that you connect to the internet. Which of the following brand of phone do you use? If you use more than one please tell us the one you use most often.

48 Figure 1.45 Most missed device, by age

Proportion of adults(%) 100% 16+ 16-24 25-34 35-44 45-54 55+

80%

59% 60% 57% 50% 40% 40% 37% 38% 32% 28% 30% 25% 17% 18% 20% 13% 13% 14% 11% 11% 10% 6% 5% 6% 1% 2% 3% 0% TV set Mobile phone PC/laptop Radio

Source: Ofcom Media Literacy Tracker– adults Base: All adults 16+ A2. (SHOWCARD) Which one of the things you use almost every day would you miss the most if it got taken away? (SINGLE CODE) All with 5% or more of adults responding shown

49 Figure 1.46

Extent to which people say they are ‘hooked’ on their mobile phone, by age

Proportion of smartphone owners (%)

100%

32% 80% 37% 48% 50% 59% 61% Hooked (7-10) 60% 35% 35% 40% 4-6 33% 32%

30% 32% 20% 33% 27% Not hooked (1-3) 19% 18% 8% 9% 0% Adults 16+ 16-24 25-34 35-44 45-54 55+ Source: Ofcom Research, ‘Connected Devices’, May 2015 Base: All smartphone users aged 16+ (n=1401) Q106. If you had to choose a number between 1 and 10, where 1 represented 'I'm not at all hooked on my mobile phone' and 10 represented 'I'm completely hooked on my mobile phone', which number would you choose for yourself?

49 Figure 1.47 Interval between waking up and looking at phone Proportion of smartphone owners (%)

Proportion checking their phone within 5 mins of waking 34% 49%44% 33% 29% 20% 16% Don't know 100% 4% 5% 5% 3% 2% 4% 5% 7% 3% 4% 9% 2%1% 3% 4% 6% 6% 7% 5% 13% Longer than 3 hours 80% 12% 11% 16% 11% 19% 20% 16% Within 2 to 3 hours 13% 23% 16% 60% 22% 16% 19% Within an hour 19% 22% 19% Within 30 minutes 19% 19% 40% 19% 16% 31% Within 15 minutes 29% 16% 23% 23% 13% 20% 18% Within 5 minutes 18% 16% 12% 11% 15% 10% 11% 0% 4% 4% Immediately All adults 18-24 25-34 35-44 45-54 55-64 65+ 18+

Source: Deloitte Global Mobile Consumer Survey, UK edition, May - Jun 2015 Base: Smartphone owners: 18-75 (3039), 18-24 (460), 25-34 (677), 35-44 (609), 45-54 (598), 55-64 (390), 65+ (304) Q42 - Typically how long is the interval between you waking up and looking at your phone for the first time (not including turning off your phone's alarm clock)? 51 Figure 1.48 Interval between looking at phone and preparing to sleep Proportion of smartphone owners (%)

Proportion checking their phone within 5 mins of preparing to sleep 27% 41%35% 27% 23% 13% 12% Don't know 100% 5% 6% 6% 6% 5% 4% 5% 3% 8% 3% 6% 9% Longer than 3 hours 7% 16% 20% 11% 8% 10% 80% 13% 15% 14% Within 2 to 3 hours 18% 20% 17% 20% 60% 16% 21% Within an hour 24% 15% 19% 22% 21% Within 30 minutes 40% 14% 23% 16% 14% 13% 15% Within 15 minutes 27% 20% 11% 20% 17% 19% 15% 10% 9% Within 5 minutes 15% 8% 9% 10% 14% 8% 8% 0% 5% 3% Immediately All adults 18-24 25-34 35-44 45-54 55-64 65+ 18+

Source: Deloitte Global Mobile Consumer Survey, UK edition, May - Jun 2015 Base: Smartphone owners: 18-75 (3039), 18-24 (460), 25-34 (677), 35-44 (609), 45-54 (598), 55-64 (390), 65+ (304) Q44 - At the end of the day, typically how long is the interval between you looking at your phone for the last time and preparing to sleep (not including setting the phone's alarm clock)? 52 Figure 1.49 Most important device for connecting to the internet, by age

Proportion of internet users (%) 100% 4% 8% 14% 11% 11% Other 80% 17% 27% 22% 19% 21% Desktop 60% 25% 22% 30% 33% Tablet 40% 60% 36% Laptop 46% 20% 33% 31% Smartphone 10% 0% Adults 16+ 16-24 25-34 35-54 55+

Source: Ofcom Technology Tracker, W1 2015 Base: All adults aged 16+ who use the internet at home or elsewhere (n = 3095 UK). QE11(QE40): Which is the most important device you use to connect to the internet, at home or elsewhere? “Other” responses include: “Netbook”, “Games console”, “Other device”, “None” and “don’t know”. 53 Figure 1.50 Proportion of time spent on activities on a smartphone in an average day, by age Communications activities Reading / browsing activities Average daily Listening activities Games minutes spent on Watching activities a smartphone

65+ 72% 19% 7% 2% Total: 8 mins Offline: 4 mins Online: 4 mins

16-24 74% 13% 7% 4%2% Total: 216 mins Offline: 83 min Online: 133 min

Adults 72% 14% 7% 5%1% Total: 81 mins 16+ Offline: 40 mins Online: 42 mins

0% 20% 40% 60% 80% 100% Source: Digital Day 7 day diary Base: All smartphone users

54 Figure 1.51

Number of smartphone apps downloaded

Proportion of smartphone owners with apps (%) Mean number of apps 17.2 19.0 13.5 19.0 15.3 100% 2% 2% 3% 2% 2% 4% 3% 6% 9% 1% 9% 2% Don't know 2% 6% 2% 5% 2% 7% 7% 80% 9% 9% 14% Over 50 14% 16% 23% 15% 41-50

60% 28% 26% 25% 31-40 33% 21-30 40% 30% 27% 30% 11-20 24% 20% 25% 6-10 25% 14% 14% 15% 7% 1-5 0% Adults 16+ 16-24 55+ Male Female

Source: Ofcom Research, ‘Connected Devices’, May 2015 Base: All with apps on their smartphone (n=1378) Q105a. How many apps have you downloaded on your current phone? An estimate is fine.

55 Figure 1.52 Top ten types of apps downloaded, by age

Proportion of smartphone owners (%) 100% Adults 16+ 16-24 55+ 85% 80% 71% 65% 62% 62% 59% 60% 60% 58% 56% 52% 50%49% 45% 45% 42% 43% 42% 43% 41% 39% 40% 40% 37% 34% 32% 28% 26% 20% 19% 19% 20% 11%

0% Social Weather Maps Games News Music Travel Banking Shopping Sport networking

Source: Ofcom Technology Tracker Q1 2015. Base: All with a smartphone (n=1766) QD17 (QD28G). SHOWCARD Do you use any of the following types of apps or applications on your smartphone? (MULTI CODE)

56 Figure 1.53

Claimed use of activities on a smartphone

Proportion of smartphone owners (%)

100% 81% 80% 77% 74% 69% 63% 60% 56% 45% 44% 42% 42% 40% 32% 30% 23% 22% 21% 20% 18% 18% 20% 14% 12% 10% 0% Using Twitter networking clips text music Online banking Online clips Accessing social messages Instant messaging Instant Downloading apps Downloading Video internet calls internet Video Downloading music Voice internet callsVoice internet Using 'cloud' storage 'cloud' Using Streaming TV / films Streaming Playing online games Playing online Listening to to streamed Listening General web browsing web General Streamed short video Sending / receiving text / receiving Sending Downloading TV / films Uploading photos/video Uploading Sending photos/video by Making purchases online purchases Making Sending / receiving email / receiving Sending Downloading short video

Source: Ofcom research, ‘Connected Devices’, May 2015 Base: Smartphone users (n=1401) Q36B. And which of the following, if any, do you do on the below device(s)? Smartphone

57 Figure 1.54

Making charitable donations by text message, by age Proportion of mobile phone owners (%) 100% Never 80%

70% 69% 69% 60% 74% 84% Yes, but not in the last month 40%

Yes, in the 20% 24% 23% 19% 22% last month 11% 7% 0% 6% 6% 6% 4% Adults 16+ 16-24 25-34 35-54 55+

Source: Ofcom Technology Tracker, Quarter 1 2015 Base: All mobile phone users (n = 2475). QD11 (QD44). Have you ever sent a donation to charity via a text message from your mobile phone? IF YES - Have you sent a text donation in the last month? (SINGLE CODE) 58 Figure 1.55

Level of acceptability of mobile phone use in social situations Proportion of smartphone owners(%) Amount who have used their device in this situation 22% 45% 42% 68% 75% 67% 78% 100% 11% 13% 18% 80% 38% Don't know 25% 25% 25% 56% 64% 60% 78% Acceptable 40% 34% 60% 59% 55% 30% 20% 25% Neutral 26% 16% 11% 9% 5% 0% Unacceptable In cinemas / In Having Out Watching TV Walking Travelling on theatres restaurants meals with socialising with others along the public with others others at with friends street transport home Source: Ofcom Research, ‘Connected Devices’, May 2015 Base: All smartphone users = 1401 Q110. Thinking about the use of mobile connected devices in general, such as smartphones or tablet computers. For each of the following occasions, please indicate if you have personally used a mobile connected device at this time and/or have been with others when they have used a device on this occasion Q111. And for each occasion, could you indicate the extent to which you think using a mobile device at this time is acceptable? 59 Figure 1.56 Age profiles of smartphone users with and without 4G access

Proportion of smartphone owners (%)

100% 16% 55+ 28% 80% 15% 45-54 20% 60% 27%

21% 35-44 40% 23% 16% 25-34 20%

21% 19% 0% 16-24 Smartphone owners with 4G access Smartphone owners without 4G access

Source: Ofcom Research, ‘Connected Devices’, May 2015 Base: All smartphone owners aged 16+ (n=1401) Q101. 4G is the fourth generation of mobile phone technology and follows on from 2G and 3G. It should make it much quicker to access the internet on mobile devices. Can you access the 4G network service on any of your devices?

60 Figure 1.57

Frequency of online use

Proportion of smartphone owners (%)

100%

4G users Smartphone owners without 4G access 80%

60% 55% 46% 43% 43% 40%

20% 10% 5% 0% 1% 0% More than 10 times a day 2-10 times a day At least once a day At least once a week

Source: Ofcom Research, ‘Connected Devices’, May 2015 Base: Smartphone users who use 4G (n=641); smartphone users without 4G access (n=641) Q10. How often do you personally go online nowadays either at home or elsewhere? By this we mean the amount of times you go online to browse the internet or use online apps.

61 Figure 1.58

Type of internet access on a smartphone, by type of mobile network

Proportion of smartphone owners (%) WiFi Mobile internet

91% 88%

Inside the home

19% 18%

4G users Smartphone owners without 4G access 87%

69% 55% 47% Outside the home

Source: Ofcom Research, ‘Connected Devices’, May 2015 Base: Smartphone users who use 4G (n=641); smartphone users without 4G access (n=641) Q11TT. And thinking specifically about when you use your **smartphone** to access the internet at home, which of these methods do you use? Please select all that apply. Q12_rc_6. And, which of these methods do you use to connect your portable devices to the internet when outside of the home/when you are out and about? - Smartphone 62 Figure 1.59

Connected device couldn’t live without

Proportion of internet users (%)

100% All adults 16+ 4G users Smartphone owners without 4G access

80%

62% 60%

42% 40% 32% 24% 19% 16% 20% 14% 12% 11% 11% 8% 6% 0% Smartphone Laptop Desktop computer Tablet Source: Ofcom Research, ‘Connected Devices’, May 2015 Base: All online adults with (n=2290); smartphone users who use 4G (n=641); smartphone users without 4G access (n=641) Q14a. How often would you say you use 4G to access the internet or use online services on any of your mobile device(s)? ANY USE Q5. Which is the one connected device you would say you couldn’t live without?

63 Figure 1.60 Extent to which smartphone owners say they are ‘hooked’ on their device, 4G users vs. those without 4G access Proportion of smartphone owners (%) 100%

Hooked (7-10) 80% 38% 58%

60%

(4-6) 34% 40%

32% 20% 28% Not hooked (1-3) 10% 0% 4G users Smartphone owners without 4G access

Source: Ofcom Research, ‘Connected Devices’, May 2015 Base: 4G users (n=641); smartphone owners without 4G access (n=641) Q106. If you had to choose a number between 1 and 10, where 1 represented 'I'm not at all hooked on my mobile phone' and 10 represented 'I'm completely hooked on my mobile phone', which number would you choose for yourself?

64 Figure 1.61

Number of smartphone apps downloaded

Proportion of smartphone owners (%) Mean number of apps downloaded

17.2 20.1 14.4 Don't know 100% 2% 2% 2% 3% 6% 10% 2% 2% 5% 7% 3% Over 50 80% 9% 12% 14% 41-50 16% 27% 60% 31-40 26% 27% 21-30 40% 30% 11-20 27% 20% 24% 6-10

14% 19% 9% 1-5 0% All those with apps 4G users with apps Those without 4G access who have apps

Source: Ofcom Research, ‘Connected Devices’, May 2015 Base: All with apps on their smartphone (n=1378); 4G users with apps (n=636); smartphone users without 4G access and have apps on their phone (623) Q105. Which of these type of app have you downloaded on your smartphone?

65 Figure 1.62 Communication activities carried out using a smartphone

Proportion who do each activity on a smartphone (%)

100% 4G users Smartphone owners without 4G access 87%

80% 77% 76% 73% 71% 65% 63% 60% 50% 49%

40% 36% 38% 28% 28% 20% 20%

0% Sending / Sending / Accessing social Instant Sending Using Twitter Internet calls receiving email receiving text networking sites messaging photos/video by (NET video or Source: Ofcom Research, ‘Connectedmessages Devices’, May 2015 text voice-only) Base: Smartphone users who use 4G (n=641); smartphone users without 4G access (n=641) Q36B. And which of the following, if any, do you do on the below device(s)? - SMARTPHONE

66 Figure 1.63

Audio / audio-visual activities carried out using a smartphone

Proportion who do each activity on a smartphone (%)

100% 4G users Smartphone owners without 4G access

80%

60% 57% 47% 40% 40% 28%

20%

0% Audio-visual activities Audio activities (NET streaming / downloading TV/film/short clips) (NET streaming / downloading music/audio)

Source: Ofcom Research, ‘Connected Devices’, May 2015 Base: All smartphone owners (n=1401); smartphone owners who use 4G (n=641); smartphone users without 4G access (n=641) Q36B. And which of the following, if any, do you do on the below device(s)? - SMARTPHONE

67 Figure 1.64

Other online activities carried out using a smartphone

Proportion who do each activity on a smartphone (%)

100% 4G users Smartphone owners without 4G access 81% 80% 73% 70% 66%

60% 58% 56% 55% 55% 51%

37% 40% 33% 35% 30% 23% 20% 18% 18%

0% General web Downloading Using online Online Making Uploading Using cloud Playing browsing apps maps banking purchases photos/video storage games online online content

Ofcom research, ‘Connected Devices’, May 2015 Base: Smartphone owners who use 4G (n=641); smartphone owners without 4G access (n=641) Q36B. And which of the following, if any, do you do on the below device(s)? - smartphone

68 Figure 1.65

Smartphone activities: 4G use compared with previous 3G use

Extent to which smartphone owners do the activity more since having access to 4G (%)

40%

30% 28% 24% 24% 23% 20% 19% 19% 18% 20% 17% 16% 16% 16% 15% 14% 14% 10% 10%

0% Using Twitter text services Online banking Online video/voice) networking sites Accessing social messages Instant messaging Instant Downloading apps Downloading music/audio) Internet calls (NET Using 'cloud' storage 'cloud' Using AV activities (NET TV/film/short clips) TV/film/short Playing online games Playing online General web browsing web General Audio activities (NET activities Audio Sending / receiving text / receiving Sending streaming / downloading streaming streaming / downloading / streaming Uploading photos/videos Uploading Sending photos/video by Making purchases online purchases Making Source: Ofcom Research, ‘Connected Devices’, May 2015 email / receiving Sending Base: 4G users (n=641) Q36BB. Compared to 3G, do you do more or less the following activities now that you are have access to 4G on your smartphone?

69 Communication with friends and family Figure 1.66 Level of agreement with positive statements about online communications Agree Neutral Disagree Don't know Agreement by age 16-24 55+

Technology has changed the way I 69% 20% 7%4% 73% 64% communicate

Being online is invaluable in keeping me up-to-date and informed about current 64% 21% 11% 4% 70% 54% affairs and/or social issues

Being online is invaluable in keeping me 60% 24% 13% 2% 64% 53% close to/in touch with friends and family

New communications methods have made 59% 28% 9% 4% 66% 52% life easier

Being online inspires me to try new things: travel, new restaurants or recipes, new 52% 26% 19% 4% 66% 39% experiences or entertainment

0% 20% 40% 60% 80% 100% Source: Ofcom Research, ‘Connected Devices’, May 2015 Q115. Finally, how much do you agree or disagree with the following statements? Base: Total= 2290

71 Figure 1.67 Level of agreement with negative statements about online communications

Agree Neutral Disagree Don't know Agreement by age 16-24 55+

Being online interrupts face- to-face conversations with 51% 23% 22% 4% 42% 54% friends and family

I spend too much time online compared to time with 20% 29% 48% 3% 32% 11% my friends and family

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

Source: Ofcom Research, ‘Connected Devices’, May 2015 Q115. Finally, how much do you agree or disagree with the following statements? Base: Total= 2290

72 Figure 1.68 Methods of communicating with friends and family, all adults 16+

Method used once a week or more often Method used once a month or more often

Emails 72% 13% 85%

Text messaging 76% 8% 84%

Meeting face to face 67% 14% 81%

Voice calls 61% 12% 73%

Social media 54% 8% 62%

Instant messaging 49% 8% 57%

VOIP - video/voice 21% 13% 34% Any text based services: Weekly use 93% Picture messaging 21% 13% 34% Monthly use 95%

General websites/forums 23% 9% 32% Any voice based services: Post 12% 18% 30% Weekly use 65% Monthly use 77% Tweeting 17% 7% 24%

Personal blog/blog sites 8% 3% 11%

Source: Ofcom Research, ‘Connected0% Devices’, 10% May 2015 20% 30% 40% 50% 60% 70% 80% 90% 100% Q50. We would now like to touch upon how you keep in touch with people. Thinking about your personal communication in general, how often do you do/ use the following to communicate with friends and family? Base: Total = 2290

73 Figure 1.69 Methods of communicating with friends and family: Once a week or more often (by age group)

83% Text messaging 66% 78% Meeting face to face 63% 77% Instant messaging 28% 71% Social media 39% 62% Voice calls 54% 62% Emails 78% 39% Picture messaging 8% 26% VOIP - video 12% 26% Tweeting 9% General websites/forums 22% 17% 16-24 VOIP - voice 21% 10% 55+ 13% Personal blog/blog sites 2% 7% Post 14% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Source: Ofcom Research, ‘Connected Devices’, May 2015 Q50. We would now like to touch upon how you keep in touch with people. Thinking about your personal communication in general, how often do you do/use the following to communicate with friends and family? Base:, 12-15= 515, 16-24= 321, 55+= 1019

74 Figure 1.70 Preferred methods of communicating with family and close friends All responses over 5% for the UK charted Proportion of adults (%) 80% 69% Family members Close friends 64% 60%

40%

20% 10% 11% 6% 6% 5% 7%

0% Meet face to face Voice calls Text messaging Emails

Source: Ofcom Research, ‘Connected Devices’, May 2015 Q52. And which one of these methods do you prefer to ….? Base: All respondents=2039, 12-15= 461

75 Figure 1.71 Preferred methods of communicating with groups of family Proportion of adults (%) 50%

37% 40%

30%

17% 20% 14%

10% 8% 8%

0% Meet face to face Social media sites Emails Instant Messaging Text messaging and apps e.g. Facebook

Source: Ofcom Research, ‘Connected Devices’, May 2015 Q52. And which one of these methods do you prefer to ….? All responses Base: All respondents=2039, 12-15= 461 over 5% for the UK charted 76 Figure 1.72

Preferred method of sending birthday greetings and congratulations Proportion of adults (%) 50%

40% 38%

30%

20% 20% 15%

10% 7% 7%

0% Post (Letters, cards or Meet face to face Social media sites and Text messaging Emails packages) apps e.g. Facebook

Source: Ofcom Research, ‘Connected Devices’, May 2015 Q52. And which one of these methods do you prefer to ….? All responses Base: All respondents=2039, 12-15= 461 over 5% for the UK charted 77 Figure 1.73 Preferred method of communicating with people not known so well

Proportion of adults (%) 50%

41% Friends don’t know well Never met in person 40%

30%

23% 22% 20% 17% 17% 14%

10% 7% 7% 6% 6% 5% 3%

0% Emails Social media sites Meet face to face Text messaging Instant messaging Voice calls and apps e.g. Facebook Source: Ofcom Research, ‘Connected Devices’, May 2015 Q52. And which one of these methods do you prefer to ….? Base: All respondents=2039, 12-15= 461

78 Social media developments 100% or apps ask you somequestionsto now like aboutIN24. I’d socialmedia adults agedBase:elsewhere All home or 16+who goonline at 2014)(1609 in Source: Ofcom’s AdultMediaUseand Attitudes Report 2015 20% 40% 60% 80% Proportion ofonlineadults(%) 0% Figure 1.74 Incidence of having a social media profile,by age: 2007-2014 22% dls1+1-42-43-44-45-465+ 55-64 45-54 35-44 25-34 16-24 Adults 16+

2007 44%

2009 59%

2011 66%

2013 72% 2014 54%

2007 77%

2009 90%

2011 92%

2013 93% 2014 27%

2007 65%

2009 81%

2011 82% (description of social media). Do you have a socialhave mediaprofi (description a you social media).Do of

2013 90% 2014 12%

2007 40%

2009 58%

2011 73%

2013 80% 2014 7%

2007 30%

2009 48%

2011 59%

2013 68% 2014 8%

2007 11%

2009 24% le or accountle or sites onany

2011 33%

2013 49% 2014 3%

2007 7%

2009 19%

2011 21% 80

2013 28% 2014 Figure 1.75 Social media sites used by those with a social media profile: 2013 and 2014 Proportion of all adults with a social media profile (%)

97% 100% 96% 2013 2014

80%

60% 48% 43% 40% 28% 26% 24% 20% 22% 20% 17% 16% 16% 12% 12%14% 12% 9% 7% 5% 5% 6% 2% 4% 4% 0% FacebookFacebook Twitter Whats YouTube Instagram LinkedIn Google+ SnapChat Pinterest Flickr MySpace only App

Source: Ofcom’s Adult Media Use and Attitudes Report 2015 Base: All adults aged 16+ with a social media profile (1093 in 2014). IN25 – Which sites or apps do you have a page or profile on? Responses of 3% or more shown Arrows show significant changes (99% level) between 2013 and 2014 81 Figure 1.76 Frequency of visiting any social media sites or apps, by age Proportion of all adults with a social media profile (%)

More than 10 times a day 2-10 times a day Once a day Less often than daily

All adults 16+ 23% 41% 17% 19%

16-24 34% 47% 10% 8%

25-34 33% 44% 15% 8%

35-44 20% 39% 20% 22%

45-54 11% 39% 22% 27%

55+ 8% 31% 22% 38%

0% 20% 40% 60% 80% 100% Source: Ofcom’s Adult Media Use and Attitudes Report 2015 Base: All with social media profile (1093 in 2014) IN27– How often do you visit any social media sites or apps, using any device?

82 Figure 1.77 Frequency of social media or app use: all adults aged 16+ who have ever used each site

Proportion of current site users (%)

More than 10 times a day 2-10 times a day At least once a day At least once a week Less often than once a week

Facebook 20% 39% 21% 10% 9%

Snapchat 11% 24% 22% 18% 26%

Twitter 11% 24% 21% 17% 27%

WhatsApp 15% 19% 20% 23% 24%

Instagram 5% 23% 21% 18% 32%

YouTube 4% 11% 18% 28% 39%

MySpace 0 5% 14% 13% 68%

Pinterest 2%3% 9% 24% 62%

LinkedIn 1%2% 8% 26% 63%

Flickr 0%3% 6% 19% 72%

0% 20% 40% 60% 80% 100% Source: Ofcom research, ‘Connected Devices’, May 2015 Base: All adults who have ever used each site from Q60 (various) Q65. And how often do you use the following ….? Note: Selected on the top ten sites used from the prompted list at Q60 and ranked on ‘at least once a day’ 83 Figure 1.78 Site and app use among 12-15 year olds Proportion of online users aged 12-15 (%) YouTube 81% Facebook 72% Instagram 55% Snapchat 53% WhatsApp 48% Twitter 37% Use the most(>5%): Pinterest 18% Facebook 30% Vine 18% YouTube 27% Kik 16% Instagram 17% Tumblr 15% Snapchat 13% Ask.fm 11% Flickr 11% Viber 9% MySpace 7% Reddit 5% LinkedIn 4% Delicious 1% StumbleUpon 1% Pheed 1% 0% 20% 40% 60% 80% 100% Source: Ofcom Research, ‘Connected Devices’, May 2015 Base: All respondents aged 12-15= 515 Q60. Which of the following websites have you ever used? Please select all that apply. Q61a. Which one do you use the most? 84 Figure 1.79 Site or app most recently added: 12-15 year olds Proportion of website users aged 12-15 (%) Snapchat 19% Instagram 12% Facebook 11% Whatsapp 9% YouTube 8% Twitter 7% Pinterest 5% Vine 4% Tumblr 3% Google+ 3% Kik 1% Viber 1% LinkedIn 1%

0% 5% 10% 15% 20% Source: Ofcom Research, ‘Connected Devices’, May 2015 Base: All respondents aged 12-15= 515 Q60. Which of the following websites have you ever used? Please select all that apply. Q61a. Which one do you use the most? 85 Figure 1.80 Frequency of use of social media sites or app usage: 12-15 year olds Proportion of current site users (%)

More than 10 times a day 2-10 times a day At least once a day At least once a week Less often than once a week Facebook 19% 31% 23% 14% 12%

YouTube 15% 29% 29% 15% 12%

Instagram 16% 32% 21% 19% 11%

Snapchat 24% 24% 22% 16% 14%

WhatsApp 14% 23% 18% 22% 23%

Twitter 9% 21% 24% 16% 30%

Tumblr 15% 19% 21% 35%

Vine 6% 11% 17% 31% 35%

Kik 13% 4% 11% 9% 62%

Pinterest 1% 7% 16% 26% 50% Source: Ofcom Research, ‘Connected Devices’, May 2015 Q65. And how0% often do you use the following 20% ….? 40% 60% 80% 100% Base: All current users of each website (various)

86 Figure 1.81 Type of topics ‘tweeted’ about, all adult account holders compared to younger and older account holders Proportion of Twitter account holders (%) 60%

52% Adults 16+ 16-24 55+

40% 40% 37% 38% 35% 34% 33% 31% 28% 24% 24% 24% 22% 21% 21% 20% 18% 15% 13% 13% 12% 13% 11% 10% 8% 8% 7% 7% 6% 4% 1% 0% Re-tweets News Complaints/ Daily Friends Local info Family Celebrities Brands None of frustrations activities these Source: Ofcom Research, ‘Connected Devices’, May 2015 Base: All Twitter account holders =822,16-24= 191, 55+=151 Q69a. What do you usually post your tweets about? Please select all that apply. 87 Figure 1.82 Type of Twitter feeds followed, by all adult account holders, and by younger and older account holders Proportion of Twitter account holders (%) 80% Adults 16+ 16-24 55+

61% 60% 56% 55% 50% 47% 45% 44% 40% 33% 33% 29% 30% 26% 25% 24% 21% 20% 18% 19% 18% 20% 16% 12% 12% 13% 11% 9% 6% 5% 0% News Friends Celebrities Local info Family Brands Daily Complaints/ None of activities frustrations these Source: Ofcom Research, ‘Connected Devices’, May 2015 Base: All Twitter account holders =822, 12-15= 168,16-24= 191, 25-34= 169, 35-44=184, 45-54=126, 55+=151 Q71. And what types of Twitter feeds do you follow? Please select all that apply.

88 Figure 1.83 Extent to which people are ‘hooked’ on social media, by age

Proportion of internet users (%) 100% 6% 22% 17% 35% 31% 24% 80% 41% Hooked (7-10) 28% 60% 31% (4-6) 33% 39% 40% 37% 70% Not hooked (1-3) 55% 47% 20% 36% 21% 25% 0% Adults aged 16+ 16-24 25-34 35-44 45-54 55+

Source: Ofcom research, ‘Connected Devices’, May 2015 Base: All online adults 16+ =2290, 16-24= 321, 25-34= 223, 35-44= 334, 45-54= 393, 55+= 1019 Q91. If you had to choose a number between 1 and 10, where 1 represented 'I'm not at all hooked on social media' and 10 represented 'I'm completely hooked on social media ', which number would you choose for yourself?

89 Figure 1.84 Level of agreement with statements about social media Proportion of internet users (%) Agree Neither agree nor disagree Disagree I can’t understand why people share personal information with people they don’t know well 72% 19% 9% or at all

People aren’t their real selves on social media 59% 33% 8%

Social media creates pressure to be active/get 50% 31% 19% comments/likes

Social media creates pressure to stay in the 49% 33% 18% loop/keep in touch

I have put things on social media I wish I 19% 21% 59% hadn’t

I am happy to share information online that a 16% 27% 57% wide audience can see

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

Source: Ofcom Research, ‘Connected Devices’, May 2015 Q90 How much do you agree or disagree with the following statements regarding social media? Base: All respondents aged 16+= 2290

90 Digital music and photograph collections Figure 1.85 Retention and use of music collections % who have ever had a music % who still have % who still listen collection in a particular that music to that music format format format

CDs 68% 90% 84%

Stored digital music 47% 96% 93%

Cassettes 39% 53% 40% Guide to reading the chart: E.g. 68% of adults have ever had CDs, Vinyl 38% 67% 36% of these, 90% still have them, and of these 84% still listen to music this way

Via a streamed service 21% 88% 91%

Any physical format 70% 90% 84%

Any digital format 51% 96% 96% Source: Kantar Media Omnibus Base: All adults 16+ in the UK who have ever had each format (CDs = 1390, Digital music = 895, Cassette tapes = 799, Vinyl records = 803, On a music streaming service = 387) Base: All adults 16+ in the UK who still own each format (CDs = 1274, Digital music = 857, Cassette tapes = 455, Vinyl records = 555, On a music streaming service = 341) Q1. Have you ever had a personal music collection in any of the following formats, Q2. Which of these collections do you still have, Q3. Which of these collections do you still listen to? 92 Figure 1.86 Music formats listened to instead of physical formats

% of those who still own each physical format but no longer listen to it

Physical music format owned but no longer listened to that way Vinyl Cassette CD

Vinyl - 11% 7%

Cassette 9% - 3%

CD 76% 80% -

Stored digital music 51% 53% 65%

Streamed music service 17% 18% 27%

Any physical format 77% 81% 8% Music format still listened to Music format still listened

Any digital format 54% 57% 74%

Source: Kantar Media Omnibus Base: All adults 16+ in the UK who ever owned a personal music collection but no longer listen to it (Vinyl records = 340, Cassette tapes = 258, CDs = 207) Q3. Which of these collections do you still listen to?

93 Figure 1.87

Reasons no longer have / listen to particular music collections % of those who ever had particular music formats and no longer have / or no longer listen to music that way

My digital music collection is more flexible 30%

I don't have a working CD/record/cassette player 28%

I download music or use online streaming services 18%

It took up too much space 13%

The quality is not as good as on digital formats 8%

It is too expensive/difficult to buy new music in… 3%

I sold it to make some extra cash 3%

Other reason 22%

0% 10% 20% 30% 40%

Source: Kantar Media Omnibus Base: All adults 16+ in the UK who ever owned a personal music collection. Data re-based to exclude those who answer ‘I still own/listen to my music collection’ (N = 569) Question: Q4. If you no longer own or listen to your music collection, can you please tell me why that is?

94 Figure 1.88 Level of agreement with statements about music formats, by age % of those who still have physical / digital music formats

100% Agreement with statements about Agreement with statements about physical formats among those with digital formats among those with 80% physical formats digital formats

58% 55% 60% 50% 49% 49% 39% 16+ 16-24 55+ 41% 40% 33% 34% 32% 30% 27% 27% 22% 19% 22% 20% 14% 20% 15% 13% 11% 11% 10%7% 0% th physical copies friend of music for money formats with me better than digital I like to have the are more convenient It is easier to lend a I like to collect physical makes it easier to find Online music collections Online music collections are cheaper/better value Accessing music online I like being able to carry Analogue sound quality is that comes wi physical music format to a new/access a wider range artwork/information/booklet Source: Kantar Media Omnibus my music collection around Base: All adults in the UK who still own a physical music collection (16+ = 1321, 16-24 = 133, 55+ =620 ) Base: All adults in the UK who still own a digital music collection (16+ = 925, 16-24 = 229, 55+ = 190) Question: Q5. Thinking about different ways of listening to music, which of the following do you agree with?

95 Figure 1.89

Use of different photo formats % of each age group 16+ 16-24 65+ 80% 74% 75% Any photo 86% 88% 85% Any physical format 71% 57% 82% 64% 63% 65% 16+ 16-24 65+ Any digital format 68% 82% 42% 60% 54% 49%

39% 40% 40% 33% 30% 29%

20% 16%16% 16% 14% 15% 11% 12% 10% 8% 9% 5% 7% 0% Framed photos Digital photos Boxes or Digital photos Analogue video Digital photos Photo film not None of these on display or videos albums of or videos footage or videos on yet developed stored on printed photos stored in online photo sharing device storage sites services Source: Kantar Media Omnibus Base: 16+ = 2100, 16-24 = 308, 65+ = 589 Question: Q6. Do you have any of the following?

96 Figure 1.90

Device most often used to take photos % of each age group 100% 89% 16+ 16-24 65+ 80%

60% 60%

40% 35%

22% 20% 14% 9% 6% 3% 4% 2% 2% 0%1% 0% 2% 0% Mobile phone Digital camera Tablet computer Film (analogue) camera Polaroid/instant camera

Source: Kantar Media Omnibus Base: All adults 16+ in the UK (16-24 = 298, 25-34 = 291, 35-44 = 270, 45-54 = 287, 55-64 = 252, 65+ = 386) Question: Q8. And which do you use most often?

97 Figure 1.91 Number of photos taken in an average week % of each age group Average number of photos taken each week 10.7 17.7 15.5 13.3 9.2 6.9 3.1 More than 100 100% 1% 2% 1% 1% 1% 1% 2% 6% 4% 3% 2% 3% 10% 11% 16% 23% 51-100 80% 26% 27% 33% 60% 11-50 61% 53% 53% 40% 61% 56% 56% 1-10

20% 28% 21% 15% 18% None 8% 0% 6% 7% Adults 16+ 16-24 25-34 35-44 45-54 55-64 65+

Source: Kantar Media Omnibus Base: All UK adults = 2100 (rebased): 16-24 = 296, 25-34 = 3801, 35-44 = 357, 45-54 = 337, 55-64 = 322, 65+ = 406) Q9. On average, how many photos would you say you take a week?

98 Figure 1.92

Frequency of taking different types of photo % of all UK adults Total ever taking this type of photo Once a year or 100% 93% 31% 36% 83% 26% 73% less often

80% 8% Once every few 16% months 19% 60% 22% At least once a 22% 35% month 40% 4% 29% 5% 9% At least once a 20% 27% 7% 22% 6% week 8% 10% 7% 15% 6% 8% 10% 8% Every day 0% 7% 3% 3% 1% 1%6% 1%6% Family and Selfies Pets Special Meals/food Tourist friends events attractions

Source: Kantar Media Omnibus Base: All adults 16+ in the UK (N = 2100) Question: Q10. When taking photos, how often do you take photos of the following?

99 Figure 1.93

Frequency of taking selfies, by age % of those who ever take photos 100% Never

80% 34% Once a year or less 51% 56% often 65% 5% 77% Once every few 60% 7% 85% 91% months 16% 6% At least once a 40% 10% 11% 6% month 8% 26% 10% 16% At least once a week 20% 9% 11% 6% 8% 5% 9% 13% 13% 10% 6% 6% 4% 0% 4% 4% 3% 1% 1%3% 1%2% Every day All adults 16-24 25-34 35-44 45-54 55-64 65+ 16+

Source: Kantar Media Omnibus Base: All adults 16+ in the UK who ever take photos (All UK adults = 1784: 16-24 = 298, 25-34 = 291, 35-44 = 270, 45-54 = 287, 55- 64 = 252, 65+ = 386) Q10. When taking photos, how often do you take photos of the following?

100 Figure 1.94

Agreement with statements about digital photography % of adults who ever use digital devices to take photos

I often delete unwanted photos 54% I use social media to share photos with friends and family 44% I save/back up important photos 40% I print important photos 32% I save/back up all the photos I take 31% I only print the photos I want to display 26% I often edit photos using photo editing apps or software 18% I create online photobooks of my important photos 12% None of these 8%

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

Source: Kantar Media Omnibus Base: All adults 16+ in the UK who ever use digital devices to take photos (N = 1717) Q11. Thinking about the digital photos you take, which of the following applies to you?

101 Figure 1.95

Agreement with statements about digital photography, by age

% of those who ever use digital devices to take photos Significantly higher than other group 54% I often delete unwanted photos 54% 62% I use social media to share photos with friends and family 34% 44% I save/back up important photos 38% 28% I print important photos 34% 36% I save/back up all the photos I take 29% 21% I only print the photos I want to display 29% 20% I often edit photos using photo editing apps or software 17% 12% 16-34 35+ I create online photobooks of my important photos 11% 5% None of these 10% 0% 20% 40% 60% 80%

Source: Kantar Media Omnibus Base: All adults 16+ in the UK who ever use digital devices to take photos (16-34 = 587, 35+ = 1130) Q11. Thinking about the digital photos you take, which of the following applies to you?

102 Media literacy: the past decade Figure 1.96 Hours spent online in a typical week, by location: 2005-14 Hours spent online on average each week 25

20.5 20 Elsewhere 2.3 16.8 16.9 15.1 1.8 1.7 14.2 5.5 15 1.2 12.2 0.9 12.1 4.1 4.0 Work 3.4 9.9 0.6 0.7 3.8 10 0.5 3.3 3.1 3.0 HomeHome 12.6 5 10.5 10.9 11.2 8.2 8.4 9.4 6.6

0 2005 2007 2009 2010 2011 2012 2013 2014

Source: Ofcom research, Adults Media Use and Attitudes Report Base: All adults who go online in any location on any device (1609 in 2014) IN6A/IN6B/IN6C: How many HOURS in a typical WEEK would you say you go online at ?

104 Figure 1.97 Weekly internet activities: 2005 vs. 2014 Proportion of internet users (%) Looking at news websites or apps Banking and paying bills online 0% 10% 20% 30% 40% 50% 0% 10% 20% 30% 40% 50%

25% Adults 16+ Adults 16+ 31% 42% 42% 20% 16-24 16-24 17% 42% 34% 30% 25-34 2005 25-34 45% 47% 49% 2014 35-44 31% 38% 45% 35-44

23% 45-54 45-54 30% 38% 43% 17% 55+ 55+ 21% 36% 32%

Source: Ofcom research, Adults Media Literacy Tracker Base: All adults who go online in any location on any device (1609 in 2014) IN15L: How often do you use the internet to . Answer – Daily, Weekly or less often Figure 1.98

Use of the internet for public/civic activities: 2005 vs. 2014

Proportion of internet users (%) Finding out about public services Looking at political or campaigning issues websites 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%

19% Adults 16+ 49% Adults 16+ 78% 44% 24% 16-24 40% 16-24 69% 40% 18% 25-34 54% 2005 25-34 83% 50% 2014 20% 35-44 51% 35-44 88% 51% 18% 45-54 57% 45-54 81% 44% 11% 55+ 44% 55+ 70% 33% Source: Ofcom research, Adults Media Literacy Tracker Base: All adults who go online in any location on any device (1609 in 2014) IN15L: How often do you use the internet to . Answer – Daily, Weekly or less often

106 Figure 1.99

Proportion of adults who have any concerns about media: 2005-14

Proportion of adults (%) TV Radio Internet Mobile phones 80% 73% 70% 70% 61% 60% 55% 54% 50% 52% 51% 51% 50% 46% 42% 40% 40% 39% 39% 37% 40% 34% 36%

30% 26% 24% 24% 20% 21% 20% 20% 14% 11% 11% 9% 9% 9% 10% 8% 7% 0% 2005 2007 2009 2010 2011 2012 2013 2014 Source: Ofcom research, Adults Media Literacy Tracker Base: Adults aged 16+ who use each platform (variable base). IN34/ T5/ R3/ G3/ M3/ IN23 – Can you tell me if you have any concerns about what is on the internet/ TV/ radio. Do you have any concerns about gaming/ mobile phones/ apps? (unprompted responses, multi-coded) Figure 1.100

Agreement with statement: “As long as the internet provides good websites it doesn't really matter who owns the websites or how they're funded”: 2007 vs. 2014

% of internet users Strongly agree Slightly agree Neither/don't know Slightly disagree Strongly disagree

2007 23% 29% 24% 14% 9%

2014 16% 20% 29% 18% 17%

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

Source: : Ofcom research, Adults Media Literacy Tracker Base: All who go online at home or elsewhere on any device (1609) IN35F: As long as the internet provides good websites it doesn't really matter who owns the websites or how they're funded

108 Figure 1.101

Proportion of adults confident of finding the content or information they want when they go online: 2007 vs. 2014 Proportion of internet users (%) 2007 2014

100% 95% 96% 95% 91% 92% 90% 93% 93% 91% 92% 85% 86% 80%

60%

40%

20%

0% Adults 16+ 16-24 25-34 35-44 45-54 55+

Source: Ofcom research, Adults Media Literacy Tracker Base: All internet users (1609 in 2014) IN13B: How confident are you that you can find the content or information you want when you go online

109 Figure 1.102 Opinions on the accuracy of search engine results: 2009-14 Proportion of search engine users (%) 100% 8% 7% 5% 3% 5% 4% Don't know 14% 16% 13% 14% 18% 80% 18%

24% 21% 22% 23% I don't really think about whether 20% 26% or not they have accurate or 60% unbiased information, I just use the sites I like the look of

40% I think that if they have been listed by the search engine, these websites will have 57% 60% 59% 60% 54% 50% accurate and unbiased 20% information I think that some websites will be accurate or unbiased and some won't be 0% 2009 2010 2011 2012 2013 2014

Source: Ofcom research, Adults Media Literacy Tracker Base: All adults aged 16+ who ever use search engines (1516 in 2014). IN45: When you use a search engine to find information, you enter a query in the search box and the search engine will then show some links to websites in the results pages. Which one of these is closest to your opinion about the level of accuracy or bias of the information detailed in the websites that appear in the results pages?

110 Figure 1.103 Attitudes to giving out personal details online: 2005 vs. 2014

Proportion of internet users (%) Give home Give home Pay by card Give mobile Give personal address phone number phone number email address 100% 2% 2% 2% 6% 5% 8% 4% 4% 3% 3% 9% 16% 17% 12% 24% Don’t Know 18% 21% 25% 26% 80% 27% 34% 60% 46% Never do because of 46% concerns 48% 60% 44% 37% 57% 49% 48% 40% Do but have concerns 54% 20% 36% 34% 39% 28% 30% Happy to do this 17% 21% 19% 21% 0% 0% 0% 0% 0% 2005 2014 2005 2014 2005 2014 2005 2014 2005 2014

Source: Ofcom research, Adults Media Literacy Tracker Base: All who use the internet at home (2005) / All who go online at home or elsewhere on any type of device (1609 in 2014) IN38: I’d like you to say how you would feel about doing this in terms of any security concerns…. Entering your home address details? Answer - Have some security concerns about doing this, but would do it

111 Figure 1.104 Extent of agreement with the statement: “Internet users must be protected from seeing inappropriate or offensive content”: 2005-14

Proportion of internet users (%) 100% Strongly agree

80% 53% 51% 56% 57% 54% 60% Slightly agree 60%

Neither/don’t know 40% 27% 31% 25% 26% 27% 22% Slightly disagree 20% 13% 8% 13% 12% 11% 11% 3% 5% 4% 3% 4% 4% Strongly disagree 0% 3% 4% 4% 3% 4% 4% 2005 2007 2009 2011 2013 2014

Source: Ofcom research, Adults Media Literacy Tracker Base: All who go online at home or elsewhere on any type of device (1609 in 2014) IN48B Internet users must be protected from seeing inappropriate or offensive content?

112 Figure 1.105 Use of formal judgements before entering personal details

Proportion of internet users (%) 80% 2005 2014

60% 59% 58% 60% 55% 56% 48% 48% 45% 45% 43% 42% 39% 40% 37%

20% *

0% Adults 16+ 16-24 25-34 35-44 45-54 55-64 65+

Source: Ofcom research, Adults Media Literacy Tracker Base: All who use the internet at home (2005) / All who go online at home or elsewhere on any type of device (1609 in 2014) IN39: Could you tell me whether you would make a judgement about a website before entering these types of details?

113 Developments in the nations Figure 1.106 Average minutes of daily TV viewing, by nation: 2014

220 221* 239 251 227 Average (see note) minutes per 300 person per day

250 All other 68 channels 200 66 62 59 69 PSB portfolio wing, per person per day 52 channels 150 49 46 45 46 Main five PSB 100 channels

131 117 125 50 113 113 Average minutes of vie Average 0 UK England* Scotland Wales Northern Ireland

Source: BARB, Individuals (4+). Main five PSB channels = BBC One, BBC Two, ITV, Channel 4 and Channel 5, including HD variants but excluding +1s. *Note: This figure reflects the average across the English regions with the highest in Border (250) and lowest in West (197) respectively. 115 Figure 1.107

Smart TV take-up across the UK

Proportion of homes with a TV (%)

40% Figures above the bars denote change in %pts compared to Q1 2014

30%

+9 +9+11 +8 +8 20%

10% 21% 21% 19% 17% 15%

0% UK England Scotland Wales Northern Ireland QH18. Are any of your TV sets “Smart TVs”? These are new types of TV that are connected to the internet and can stream video directly onto your television screen, without the need for a computer, set-top box or games console. Source: Ofcom Technology Tracker, Quarter1 2015 Base: All adults aged 16+ with a TV in household (n = 3616 UK, 2197 England, 472 Scotland, 485 Wales, 462 Northern Ireland, 1910 England urban, 287 England rural, 232 London, 249 South East, 241 South West, 241 East Midlands, 242 West Midlands, 242 East of England, 249 Yorkshire & Humber, 245 North East, 256 North West) 116 Figure 1.108 Main media source for UK and world news by nation: 2014 Proportion of adults (%) TOTAL Website 15 15 17 18 9 or apps 100% 6% 0% 6% 7% Don't watch/ read/ 5% 5% 3% listen to news 7% 12% 5% 9% 9% 4% 80% 10% Other 10% 10% 7% 14% 8% 6% 12% 12% Website or apps - 12% 60% 14% through phone

Website or apps - through computer/ 40% tablet 67% Radio 58% 58% 52% 56% 20% Newspapers

0% UK England Scotland Wales Northern Ireland Q62 - Can you tell me which one of these is your ‘main’ source of news about what is going on in the UK and in the world today? Source: Ofcom Media Tracker 2014. Base: All (2,074); England (1,577); Scotland (183); Wales (154); Northern Ireland (160). Prompted, single code. Only responses ≥ 3% labelled. Significance testing shows any difference in the main source of news between any nation and all adults.

117 Figure 1.109 Take-up of smartphones across the UK

Proportion of adults (%) Figures above the bars denote change in %pts 100% compared to Q1 2014

80% +6 +5 +1 +6 +8 60%

40% 66% 67% 63% 63% 63% 20%

0% UK England Scotland Wales Northern Ireland

Nation

QD24B. Do you personally use a Smartphone? A Smartphone is a phone on which you can easily access emails, download files and applications, as well as view websites and generally surf the internet. Popular brands of Smartphone include BlackBerry, iPhone and Android phones such as the Samsung Galaxy. Source: Ofcom Technology Tracker, Quarter 1 2015 Base: All adults aged 16+ (n = 3756 UK, 2264 England, 492 Scotland, 496 Wales, 504 Northern Ireland, 1974 England urban, 290 England rural, 252 London, 258 South East, 247 South West, 245 East Midlands, 249 West Midlands, 252 East of England, 252 Yorkshire & Humber, 251 North East, 258 North West, 1983 England 2011, 2251 England 2012, 2250 England 2013, 2249 England 2014, 2264 England 2015) 118 Figure 1.110 Take-up of tablet computers across UK

Households (%) take-up of tablet computers Figures above the bars 100% denote change in %pts compared to Q1 2014 80%

+15 60% +10 +10 +10 +9

40% 60% 54% 54% 52% 54% 20%

0% UK England Scotland Wales Northern Ireland Nation QE1. Does your household have a PC, laptop, netbook or tablet computer? Source: Ofcom Technology Tracker, Quarter1 2015 Base: All adults aged 16+ (n = 3756 UK, 2264 England, 492 Scotland, 496 Wales, 504 Northern Ireland, 1974 England urban, 290 England rural, 252 London, 258 South East, 247 South West, 245 East Midlands, 249 West Midlands, 252 East of England, 252 Yorkshire & Humber, 251 North East, 258 North West, 1983 England 2011, 2251 England 2012, 2250 England 2013, 2249 England 2014, 2264 England 2015)

119 Figure 1.111

Claimed time spent on the internet in a typical week Hours per week

UK 12.6 5.5 2.3 20.5 Northern 13.6 5.3 2.7 21.6 Ireland

England 12.4 5.7 2.4 20.5

Scotland 13.0 4.8 2.1 19.9

Wales 15.3 4.2 1.6 21.2

0 4 8 12162024 At home At workplace/ place of education Anywhere else

IN6A-C – How many hours in a typical week would you say you use the internet at home/ at your workplace or place of education/ anywhere else? (Unprompted responses, single coded) Base: All adults aged 16+ who use the internet at home or elsewhere (1609 UK, 1022 England, 194 Scotland, 200 Wales, 193 Northern Ireland). Significance testing shows any difference between any nation and the UK. Source: Ofcom research, fieldwork carried out by Saville Rossiter-Base in October to November 2014 120 Figure 1.112 Proportion of premises able to receive superfast broadband services

Proportion of premises (%) 100%

80%

60%

83% 84% 88% 40% 73% 79% 77%

20% 37% 0% 0% UK England Scotland Wales Northern UK Urban UK Rural Ireland

Source: Ofcom / Openreach / Virgin Media / Kcom, June 2015 data

121 Figure 1.113 4G mobile premises coverage, by number of operators

Proportion of premises (%)

100 89.5 92.1 91.1 79.7 80 42.5 46.2 62.8 45.0 60 34.0 18.3 40 10.3 24.1 23.8 28.4 14.0 20 10.8 11.2 40.6 7.5 20.1 12.1 11.0 9.8 0 UK England Scotland Wales N Ireland Four Three Two One

Source: Ofcom / operators, May 2015 data Note: Coverage is based on 100m square pixels covering the UK

122 Figure 1.114

Average weekly reach and listening hours: 2014

England Scotland Wales Northern UK TOTAL Ireland

Average weekly listening 21.5 hours 19.9 hours 22.4 hours 21.6 hours 21.4 hours

Reach 89.4% 86.9% 94.5% 88.9% 89.5%

Source: RAJAR, All adults (15+), year ended Q4 2014. Reach is defined as a percentage of the area adult population who listen to a station for at least 5 minutes in the course of an average week.

123 Figure 1.115

Ownership of DAB digital radios: Q1 2015 Percentage of respondents 50%

40%

30% 47% 43% 44% 20% 37% 29% 10%

0% UK Northern Ireland England Scotland Wales QP9. How many DAB sets do you have in your household? Source: Ofcom Technology Tracker, Wave 1 2015 Base: Adults aged 16+ who listen to radio (n = 2934 UK, 407 Northern Ireland, 1735 England, 386 Scotland, 406 Wales, 193 Northern Ireland urban, 214 Northern Ireland rural, 653 Northern Ireland 2010, 428 Northern Ireland 2011, 404 Northern Ireland 2012, 405 Northern Ireland 2013, 404 Northern Ireland 2014, 407 Northern Ireland 2015) NB. Data in 2011 based on those who listen to radio and have any radio sets in the household that someone listens to in most weeks

124 Figure 1.116 Approximate number of items of post sent each month (residential)

Mean number of items sent per month 6.0 6.1 5.0 6.5 4.5 Items of post sent per month (% of respondents)

100% 5% 5% 5% 3% 6% 6% Don't know 8% 9% 8% 5% 80% 22% 19% 21+ items 23% 23% 28% 11-20 items 60% 17% 18% 19% 19% 5-10 items 19% 40% 17% 20% 3 or 4 items 21% 21% 14% 1 or 2 items 20% 36% 33% 23% 22% 25% None 0% UK England Scotland Wales Northern Ireland Source: Ofcom Residential Postal Tracker, Q2 2014 - Q1 2015 Base: All respondents (n = 3557 adults 16+, 2123 England, 580 Scotland, 418 Wales, 436 Northern Ireland) QC1. Approximately how many items of post – including letters, cards and parcels – have you personally sent in the last month? 125 Figure 1.117

Approximate number of items of post received in the past week Mean number of items received per week 8.5 8.6 8.0 8.7 5.9 Items of post received per week (% of respondents) 100% 6% 6% 4% 8% 2% Don't know 15% 18% 18% 16% 80% 19% 21+ items 30% 60% 38% 11-20 items 39% 39% 36% 5-10 items 40% 19% 19% 3 or 4 items 17% 17% 17% 20% 21% 1 or 2 items 14% 14% 17% 15% 11% 0% 6% 6% 6% 5% None UK England Scotland Wales Northern Ireland Source: Ofcom Residential Postal Tracker, Q2 2014 - Q1 2015 Base: All respondents (n = 3557 adults 16+, 2123 England, 580 Scotland, 418 Wales, 436 Northern Ireland) QD1. Approximately how many items of post – including letters, cards and parcels – have you personally received in the last week? 126 Figure 1.118 Switched some mail to other communication methods over last twelve months Proportion of respondents (%)

100%

30% 80% 37% 37% 41% 38%

No 60% Yes

40% 70% 63% 63% 59% 62% 20%

0% UK England Scotland Wales N Ireland

Source: Ofcom Business Postal Tracker, Q2 2014-Q1 2015 Base: All respondents (n = 1591 UK, 973 England, 217 Scotland, 198 Wales, 203 N Ireland) QF4. Over the last 12 months, has your organisation moved some mail to other communication methods? 127 Background to the Developments in viewing beyond traditional television consumer research

For each of the following activities I read out can you say whether you are doing this more, the same amount or less now compared to a year ago? If you have never done the activity at all, please just tell me. INTERVIEWER: READ OUT EACH STATEMENT INDIVIDUALLY. SINGLE CODE FOR EACH STATEMENT

Screen • Using a TV set to watch any programmes/films/clips i.e. watching any programmes/films/clips using any service (e.g. Freeview, Sky, Netflix, BBC iplayer, via a games console etc) • Using other screens to watch any programmes/films/clips e.g. home computers, tablets, smartphones (rather than the TV set)

Location • Watching any TV, clip, programme when in your own home (watching could be on any screen e.g. TV, home computers, tablets, smartphones) • Watching any TV, clip, programme when out and about (watching could be on any screen e.g. TVs, computers, tablets, smartphones)

Linear or other • Watching TV programmes as they are broadcast on TV (e.g. watching EastEnders when it is shown on BBC1 at 7.30pm or watching Game of Thrones at 9pm on Sky Atlantic when it is broadcast) • Watching TV that you have personally recorded, i.e. after recording it onto a set-top box, or PVR • Watching any ‘catch-up’ or on-demand TV where you watch programmes/films that have been shown on TV recently (via services like BBC iplayer, itv player, 4OD, SkyGo, Virgin Catch–up etc). • Watching programmes/films through on-demand services that you pay a monthly subscription for like Netflix, Amazon Prime, Now TV etc • Paying to watch individual programmes/films e.g. films through Sky’s Box Office service or ‘Pay per movie’ with Virgin Movies

PSB • Watching BBC, ITV/STV/UTV, Channel 4 or Five programmes in particular (through any channel, any screen and at any time)

Content • Watching short clips e.g. like those found on Youtube, or linked on social media like Facebook • Watching series or boxsets in any way, e.g. on TV, tablets, DVDs, Netflix etc • Watching films (though any service, e.g. Netflix, Now TV, DVDs on either your TV set, computers or smartphones)

International • Watching international channels via satellite services from other countries e.g. Hotbird, Turksat, Hellas Sat), Hispasat, Canal+, Cyfra. • Watching programmes/films through international online video services from other countries, e.g. RTÉ Player, Hulu, My TF1, nc+

Other activities • Watching DVDs • Going to the cinema to watch films • Playing games on a console, computer, tablet or smartphone etc • Using social media e.g. Facebook, etc • Going out and socialising CMR 2015: TV and AV Figure 2.1 Industry metrics

UK television industry 2009 2010 2011 2012 2013 2014

Total TV industry revenue (£bn) 11.1 11.8 12.4 12.5 12.8 13.2

Proportion of revenue generated by public funds 23% 22% 21% 21% 20% 21%

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

Proportion of revenue generated by subscriptions 42% 43% 44% 44% 46% 45%

Broadcaster share of total display advertising spend 41% 42% 43% 43% 43% 44%

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

Digital TV take-up (% all households) 88% 92% 94% 96% 95% 93%

Proportion of DTV homes with pay satellite or cable 53% 56% 51% 51% 52% 51%

Minutes spent watching TV per day (per person aged 4+) 225 242 242 241 232 220

Share of the main five channels in all homes 58% 56% 54% 52% 51% 51%

Number of channels broadcasting in the UK 490 510 515 529 527 536

Source: Ofcom/broadcasters/Advertising Association/Warc/BARB/GfK. Note: Expressed in nominal terms. Public funds include DCMS grant to S4C, as well as BBC funding that is allocated to TV (including the proportion of licence fee revenue that goes to S4C). Broadcaster share as a proportion of total display advertising spend excludes direct mail and classified ads and is based on Advertising Association/Warc Expenditure Report. The AA/Warc data is net of discounts, and includes agency commission, but excludes production costs. Spend on originations includes spend on nations and regions programming (not Welsh or Gaelic language programmes but some Irish language).TV viewing based on BARB analysis of viewing to scheduled TV programmes such as those listed in TV listings magazines or on electronic programme guides (EPG) on TV sets. 130 Figure 2.2 Total TV industry revenue, by source: 2014

Revenue (£m) 13,500 13,400 13,300 +2.7% +2.2% +0.9% +3.1% 13,200 +7.7% £57m £14m 13,100 +1.9% £74m £6m 13,000 +5.1% £110m 12,900 £131m 12,800 12,700 12,600 £13,227m 12,500 12,400 £12,834m 12,300 12,200 12,100 12,000 2013 BBC TV Subscriber Other NAR PSB NAR PSB portfolio Other 2014 revenue spending revenue 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 the BBC’s Annual Report and Accounts 2014/15. Excludes revenue generated via online TV, as outlined in Figure 2.4 131 Figure 2.3 Advertising revenue, by share: 2013 - 2014 £m £3,693m £ 3,838m 3.9% 1-year change (%) 4,000 £51m £50m £653m £639m 1.4% ITV Breakfast 3,000 2.2% PSB portfolio £968m £1,043m channels 7.7% Other multichannels 2,000 £303m £285m -5.7% Channel 5 £485m £483m -0.6% Channel 4/S4C 1,000

£1,247m £1,323m 6.1% ITV1/STV/UTV

0 2013 2014

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.

132 Figure 2.4 Online TV revenues

£m Annual 900 Growth £793m 800 38% 700 £240m £574m 600 26% FTV Ad Revenues

500 £190m £379m 400 £317m 53% Subscriptions

£145m 300 £238m £207m £180m 42% PPV transactions 200 £113m £104m £81m £95m £74m £57m £25m £38m 100 £23m £25m £32m £121m £155m £66m £75m £92m DTO transactions 0 £33m 28% 2009 2010 2011 2012 2013 2014 Source: IHS Screen Digest. FTV (free to view) revenues include advertising revenues only and include all services delivering online video free to the end consumer. Subscription includes digital-only subscribers and users of bundled services. PPV (pay-per-view) refers to a method of renting digital content and pay to watch it for a limited period including all content consumed on an on-demand basis. DTO (download-to-own) gives the customer ownership over the files they have downloaded. All figures are nominal. Includes only revenue from long form video content and excludes revenues generated from online usergenerated content.

133 Figure 2.5 Total cross-platform advertising and sponsorship revenue

£m 5,000 Annual Growth £4,285m £4,075m £3,919m £240m 5.2% 4,000 £3,876m £190m £3,745m £113m £208m £74m £176m £145m £192m £3,364m £179m £184m £189m 26.2% FTV Online Ad 3,000 Revenues

2,000 8.2% All Broadcaster £3,693m £3,838m £3,491m £3,630m £3,547m Sponsorship £3,143m

1,000 3.9% All Broadcaster NAR

0 2009 2010 2011 2012 2013 2014

Source: Ofcom/broadcasters/IHS. All figures are nominal.

134 Figure 2.6 Broadcaster percentage share of all display advertising expenditure

£bn 12 £10.6bn £9.8bn £9.8bn £10.0bn 10 £9.6bn £8.5bn 8 56.5% 56.9% 58.4% 57.4% 56.8% All other display 6 59.0% advertising

4 Broadcaster 42.6% 43.2% 43.1% 43.5% 2 41.0% 41.6% display ad spend

0 2009 2010 2011 2012 2013 2014

Source: AA/WARC Expenditure Report. Note: Total display advertising expenditure includes television ads, TV sponsorship, TV VoD, radio, out of home, cinema, national and regional press display, internet and consumer magazines but does not include response advertising such as direct mail or classified ads. Broadcaster display ads include advertising, sponsorship and online VoD ad revenue. Figures are nominal.

135 Figure 2.7 Take-up of smart TVs among UK TV households

% of UK TV homes 25

20

15

Smart TV 10 21 ownership

12 5 7

0 2013 2014 2015

Source: Ofcom Technology Tracker, W1 2015. Base: All adults aged 16+ with a TV in the household (n = 3616). QH15(QH62): Are any of your TV sets ‘smart TVs'?

136 Figure 2.8 Smart TV sales and market share

Sales units (000s) % 1,400 60 54.2 51.3 1,200 48.4 50 45 44.2 1,000 38 40 800 29 31 28 30 600 20 400

200 10

0 0 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Market Share (%) Sales Units (000s)

Source: GfK

137 Figure 2.9 Activities undertaken on connected TV, by age

44% 54% 51% 56% 60% 36% 17% Any of These

Online PPV or download to own 12 (e.g. iTunes) 11 12 17 11 Paid VOD content through TV 13 service 18 23 18 9 22 21 17 Online subscription services (e.g. 12 26 Netflix) 24 23 28 15 Browse online 30 20 24 25 7 25 7 20 7 Free VOD content through TV 29 28 12 26 27 service 21 11 11 Clips through websites (e.g. 42 42 45 5 YouTube) 34 37 30 5 13 Broadcaster catch-up services All 16-24 25-34 35-44 45-54 55-64 65+

Source: Ofcom Media Tracker 2014. Base: All respondents (2074); 16-24 (297); 25-34 (331); 35-44 (333); 45-54 (333) 55-64 (318); 65+ (462). Only responses >3% labelled. Prompted, multicode. Significance testing shows any difference at ‘Any of these’ level between any age group and all adults. Q7/ Q9C/ Q10C/ Q11C/ Q13 - And which, if any of these devices have been connected to your home broadband service as well as a TV set in the home in the last 12 months to view something on the TV screen? Q14A-H/ Q15 – Which, if any, of these activities have you used your device for in the last 12 months when connected to a TV?138 Figure 2.10 Reason for using catch up TV via a connected TV, by age

% of catch-up TV users

100% 80 78 76 80% All Adults (16+) 60% 16-34 34 40% 32 31 31 30 32 35+ 20% 13 13 12 11 12 1010 10 10 10 7 6 0% I missed the I use it when I want to watch Somebody was Just to pass The programme/ There is a good programme/ film there is nothing the programme/ watching some time/ relax film was choice when it was on on 'normal' TV film at a time that something else recommended to of programmes/ TV and I use it to that I want to suits me on the TV at the me by someone I films catch up watch time it was on so know I used it to catch up

Source: Ofcom Media Tracker. Base: Those using broadcaster catch-up services through connected TV (659); 16-34 (252); 35+ (407). Unprompted, multicode. Showing responses of 5% or more among all adults. Significance testing shows any difference between age groups. Q16 - You said that you use broadcaster catch-up services. What would you say are the reasons that you use the broadcaster? catch-up TV services? 139 Figure 2.11 Take-up of DVRs, by platform

% of UK homes with a TV 100%

80% 64% 62% 2013

60% 54% 2014

40% 34% 33% 31% 2015

20% 13% 13% 12% 12% 11% 9% 7% 7% 6% 5% 4% 2% 0% Total DVR take- Sky+ Virgin TiVo or V+ Freeview DVR YouView Broadband TV up (BT Vision or TalkTalk TV)

Source: Ofcom Technology Tracker, Q1 2013-2015 Base: All adults aged 16+ with a TV in the household: 2013 (3661), 2014 (3635), 2015 (3616) Q: Does your household have Sky+? Q: Does your (Sky+,Virgin TiVo,YouView etc.) set-top box allow you to record and store TV programmes, and also pause and rewind live TV programmes?

140 Figure 2.12 Take-up of HD-ready TVs and HDTV services

% of UK homes with a TV

76% 2015 57% Have HD ready TV 75% 2014 Have HDTV 53% service

75% 2013 50%

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

Source: Ofcom Technology Tracker, Q1 2013-2015 Base: All adults aged 16+ with a TV in the household: 2013 (3661), 2014 (3635), 2015 (3616) QH3(QH53): Is the MAIN TV in your household an HDTV set or HD ready? QH4 (QH54) Although you have an HDTV ready set, to actuallywatch TV channels and programmes that are broadcast in high definition, you need an HD set top box or a TV with built-in HDTV receiver. For the main TV set, does your household have an HDTV service - from either Sky, Virgin Media, Freesat or Freeview?

141 Figure 2.13 Take-up and use of 3D-ready TVs

% of UK homes with a TV

13% 2015 7%

Have 3D ready TV 10% 2014 5% Watch 3D content

8% 2013 4%

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

Source: Ofcom Technology Tracker, Q1 2013-2015 Base: All adults aged 16+ with a TV in the household: 2013 (3661), 2014 (3635), 2015 (3616) QH4 (QH57). Is the MAIN TV in your household 3D ready? IF NECESSARY - By this I mean that the TV can display pictures in 3D from specific channels (such as Sky 3D) or when watching 3D DVDs or Blu-ray discs or when playing 3D video games. / QH5 (QH58). Do you or anyone in your household watch 3D content on your TV - whether from 3D TV channels, 3D DVDs or Blu-ray discs or 3D video games? 142 Figure 2.14 Traditional TV viewing vs. time-shifted minutes: all individuals

Average minutes of viewing/day by type of activity: Total TV, individuals 4+, 2007-2014

218 224 225 242 241 240 232 220 Minutes per person/per day 250 17.2 22.2 24.2 5.8 9.1 13.2 26.2 200 27.2 Time-shift 150 Traditional/live 224.9 211.9 215.4 211.7 219.2 216.4 100 205.6 193.3

Average mins/day Average 50

0 2007 2008 2009 2010 2011 2012 2013 2014

Source: BARB, Network, Some variation in figures due to rounding New BARB panel introduced 1 Jan 2010. As a result pre- and post-panel change data must be treated with caution (see dotted line).

143 Figure 2.15 DVR take-up and time-shifted viewing: all individuals and individuals in DVR homes

100%

DVR owners as % of population 80% 73% 69% 65% 61% 60% 48% Time-shifted viewing among DVR 37% individuals 40% 24% 20% Time-shifted viewing 11% 16% 17% among all individuals 15% 15% 15% 14% 15% 16% 10% 11% 12% 7% 9% 4% 6% 0% 3% 2007 2008 2009 2010 2011 2012 2013 2014

Source: BARB, Network. New BARB panel introduced 1 Jan 2010. As a result pre and post panel change data must be treated with caution (see dotted line).

144 Figure 2.16 Proportion of time-shifted viewing, by age: DVR individuals

Proportion of viewing (%) 25% 24% 23% 22% 20% 25-34 21% 20% 20% 19% 20% 19% 19% 19% 19% 19% 17% 16-24 18% 18% 18% 17% 17% 17% 17% 16% 17% 16% 16% 17% 16% 16% 15% 16% 16% 35-44 15% 15% 15% 15% 15% 15% 15% 15% 15% 14% 14% 14% 14% 13% 13%14% 14%13% 13% Individuals 13% 13% 13% 12% 12% 12% 12% 11% 11% 12% 11% 10% 45-54 10% 10% Children

5% 55-64

65+ 0% 2007 2008 2009 2010 2011 2012 2013 2014

Source: BARB, Network, DVR owners, 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.

145 Figure 2.17 Proportion of time-shifted viewing, by genre: all individuals

Time-shifted viewing as % of total viewing to genre, 2008 vs 2014

35% 32% 23% 22% 17% 16% 15% 15% 14% 14% 12% 11% 11% 11% 11% 10% 9% 8% 8% 7% 5% 4% 2% 2% 2% 0% 0%

30% Total time-shifted 2008 Pp increase in time-shift 2008-2014 25%

20%

15%

10%

5%

0%

Source: BARB, individuals 4+, Network Plus 2008, Network 2014. Network programming based on 4+ area filter. Ranked on proportionof programme genre watched time-shifted, descending. Genre groupings are based on BARB genre codings, categorised by Ofcom.

146 FigureFigure 2.18 2.18 Top five programmes in 2014, live vs. time-shifted: all individuals and DVR individuals

All individuals

Total % of live % watched on % watched up Average % viewing Rank Programme Channel Date Day Start time the same day to 7 days after audience Live watched with as live broadcast 000s other people

1 WORLD CUP 2014: GER V ARG BBC One 13/07/2014 Sunday 20:00:09 14,965 96% 4% 0% 68%

FIFA WORLD CUP 2014: 2 ITV 19/06/2014 Thursday 18:59:00 13,875 95% 4% 0% 64% URUGUAY V ENGLAND THE GREAT BRITISH BAKE 3 BBC One 08/10/2014 Wednesday 20:00:14 13,510 68% 23% 9% 64% OFF 4 WORLD CUP 2014: BRA V GER BBC One 08/07/2014 Tuesday 21:00:08 13,486 96% 3% 0% 61%

5 WORLD CUP 2014: ENG V ITA BBC One 14/06/2014 Saturday 23:13:28 13,343 96% 2% 2% 67%

DVR individuals

Total % of live % watched on % watched up Average % viewing Rank Programme Channel Date Day Start time the same day to 7 days after audience Live watched with as live broadcast 000s other people

1 WORLD CUP 2014: GER V ARG BBC One 13/07/2014 Sunday 20:00:09 11,252 95% 5% 0% 72% THE GREAT BRITISH BAKE 2 BBC One 08/10/2014 Wednesday 20:00:14 10,383 60% 30% 10% 64% OFF 3 WORLD CUP 2014: ENG V ITA BBC One 14/06/2014 Saturday 23:13:28 10,318 95% 3% 2% 70%

4 WORLD CUP 2014: BRA V GER BBC One 08/07/2014 Tuesday 21:00:08 10,049 95% 5% 0% 64% FIFA WORLD CUP 2014: 5 ITV 19/06/2014 Thursday 18:59:00 9,993 94% 6% 0% 66% URUGUAY V ENGLAND Source: BARB. All individuals. Network programming based on 4+ area filter. Data are based on the top five most-watched programmes overall (live/traditional + time-shifted) based on the best single performing episode 000s, with proportion of live vs time-shifted and co-viewing % added for detail. 147 Figure 2.19 The top 20 most-watched programmes live (excl. sport): 2014

Total live % watched % watched up to Start average % # Programme Channel Date Day on the same 7 days after time audience Live day as live broadcast 000s

1 NEW YEAR'S EVE FIREWORKS BBC One 31/12/2014 Wednesday 23:59:01 11,426 91% 2% 6%

2 THE GREAT BRITISH BAKE OFF BBC One 08/10/2014 Wednesday 20:00:14 9,176 68% 23% 9% 3 BRITAIN'S GOT TALENT (SERIES 8) ITV 12/04/2014 Saturday 19:59:12 8,936 75% 14% 7% 4 STRICTLY COME DANCING BBC One 20/12/2014 Saturday 18:29:55 8,831 76% 16% 8% 5 QUEEN AND ADAM LAMBERT ROCK BIG BEN LIVE BBC One 31/12/2014 Wednesday 00:10:01 8,792 93% 4% 4%

6 STRICTLY COME DANCING: THE RESULTS BBC One 20/12/2014 Saturday 20:50:10 8,784 76% 12% 12%

7 I'M A CELEBRITY GET ME OUT OF HERE! (SER ITV 16/11/2014 Sunday 21:02:05 8,636 74% 14% 8%

8 CORONATION STREET ITV 20/01/2014 Monday 20:29:00 8,477 80% 12% 6%

9 CALL THE MIDWIFE BBC One 19/01/2014 Sunday 20:00:29 8,250 73% 12% 15%

10 THE EUROVISION SONG CONTEST BBC One 10/05/2014 Saturday 20:00:02 8,034 90% 8% 2%

11 THE X FACTOR RESULTS (SERIES 11) ITV 14/12/2014 Sunday 20:02:35 7,969 81% 13% 3%

12 CHILDREN IN NEED BBC One 14/11/2014 Friday 19:30:03 7,567 89% 9% 3%

13 THE X FACTOR (SERIES 11) ITV 30/08/2014 Saturday 20:04:55 7,277 72% 18% 6%

14 SPORT RELIEF BBC One 21/03/2014 Friday 18:59:00 7,236 90% 7% 3%

15 DOWNTON ABBEY ITV 02/11/2014 Sunday 21:02:42 7,176 70% 10% 16%

16 BRITAIN'S GOT TALENT RESULT (SERIES 8) ITV 26/05/2014 Monday 21:34:10 6,991 82% 11% 6%

17 THE VOICE UK BBC One 08/02/2014 Saturday 19:12:17 6,940 74% 16% 10%

18 EASTENDERS BBC One 21/04/2014 Monday 19:59:23 6,869 76% 16% 9%

19 SIX O'CLOCK NEWS BBC One 14/02/2014 Friday 18:00:06 6,856 97% 3% 0%

20 SHERLOCK BBC One 01/01/2014 Wednesday 20:59:48 6,843 54% 18% 28% Source: BARB. All individuals. Network programming based on 4+ area filter. Programmes with a minimum duration of 10 minutes. Excludes sports programming. Data are based on the top 20 most-watched programmes (best episode) based on live audience in 000s with proportions of time-shifted viewing added for detail. 148 Figure 2.20 Proportion of traditional TV viewing that is co-viewed, by day part: 2007 and 2014

Proportion of co-viewed live viewing across the day by half-hour – individuals in 2+ households, Total TV, 2007 and 2014 100% Peak time 90%

80%

70%

60%

50% 2007 40% 2014 30%

20%

10%

0%

Source: BARB. Individuals in 2+ households, Network. Based on co-viewing during live/traditional broadcast split by half-hour time bands.

149 Figure 2.21 Proportion of all AV viewing: traditional TV viewing vs. DVR and VoD

Live Recorded VOD H1 2010 92% 6%2% H2 2010 91% 7% 2% H1 2011 90% 8% 2% H2 2011 89% 9% 2% H1 2012 88% 9% 3% H2 2012 88% 9% 3% H1 2013 87% 9% 4% H2 2013 86% 10% 4% H1 2014 85% 10% 6% 0% 50% 100% Proportion of viewing minutes across all devices

Source: 3 Reasons estimates (including BARB data). Base: All devices, long-form professional AV content, Live includes simulcast. Excludes physical consumption (e.g. DVDs), and short-form

150 Figure 2.22 Total broadcast TV industry revenue, by source Growth 1 year 5yr CAGR to 2014 £m £11,088 £11,794 £12,366 £12,486 £12,834 £13,227 3.1% 3.6% Total 7,000

5,879 5,989 6,000 5,428 5,518 1.9% 5.2% Subscription 5,027 revenue 5,000 4,655 3,838 3,630 3,693 Net 4,000 3,491 3,547 3.9% 4.1% 3,143 advertising 3,000 revenue 5.1% 1.3% BBC income 2,555 2,563 2,585 2,671 2,596 2,727 2,000 allocated to TV 1,000 0.9% -1.8% Other 736 712 723 749 667 672 0 revenue 2009 2010 2011 2012 2013 2014

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 Sky UK, Virgin Media, BT TV, TalkTalkTV and Channel 4 subscriber revenue as well as, in previous years, that of Setanta Sports, ESPN and Top Up TV 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. Totals may not equal the sum of the components due to rounding. 151 Figure 2.23 Total broadcast TV industry revenue, by share

TV industry revenue shares (%) £11,088m£11,794m £12,366m £12,486m £12,834m £13,227m

50% 45.8% 44.2% 45.3% 42.0% 42.6% 43.9% Subscription revenue 40%

29.6% 29.4% 28.4% 28.8% 29.0% Net advertising 30% 28.3% revenue

20% 23.0% 21.7% 20.9% 21.4% 20.2% 20.6% BBC income allocated to TV 10%

6.6% 6.0% 5.8% 6.0% 0% 5.2% 5.1% Other revenue 2009 2010 2011 2012 2013 2014

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 Sky UK, Virgin Media, BT TV, TalkTalkTV and Channel 4 subscriber revenue as well as, in previous years, that of Setanta Sports, ESPN and Top Up TV 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. Totals may not equal the sum of the components due to rounding.

152 Figure 2.24 Total TV industry revenue, by sector Growth 5yr Revenue (£m) 1 year CAGR £11,088£11,794 £12,366 £12,486 £12,834 £13,227 3.1% 3.6% Total 14,000

12,000 1.9% 5.2% Platform operators £5,989 10,000 £5,428 £5,518 £5,879 £5,027 £4,655 8,000 4.8% 4.8% Commercial multichannels 6,000 £1,855 £1,879 £2,089 £1,650 £1,747 £1,994 2.4% 2.6% Main 4,000 £2,126 £2,354 £2,407 £2,334 £2,359 £2,414 commercial PSB channels 2,000 £2,656 £2,665 £2,676 £2,755 £2,603 £2,734 5.0% 0.6% Publicly-funded channels 0 2009 2010 2011 2012 2013 2014 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. The platform operators are Sky UK, Virgin Media, BT TV and TalkTalkTV as well as, in previous years, Setanta Sports, ESPN and Top Up TV in the UK (Republic of Ireland revenue is excluded).The platform operators figures also contain subscription revenue for Channel 4. Main commercial PSB channels comprise ITV/ITV Breakfast, STV, UTV, Channel Television, Channel 4, Channel 5 and S4C. Commercial multichannels comprise all multichannels including the commercial PSB portfolio channels. Publicly-funded channels comprise BBC One, BBC Two, the BBC portfolio channels and S4C. The commercial revenues of S4C are included with the main commercial PSB channels while their licence fee revenue and DCMS grants come under publicly-funded channels. Totals may not equal the sum of the components due to rounding. 153 Figure 2.25 TV net advertising revenues, by source: 2009-2014

NAR(£m) Growth 4,000 £3,838m £3,630m £3,693m 1 year 5yr CAGR £3,491m £3,547m

£3,143m £1,043m £908m £968m 4% 4% Combined 3,000 £834m £910m £802m £518m £544m £639m £653m £561m 8% 5% Commercial £445m 2,000 multichannels

2% 8% Commercial PSB portfolio £2,140m £2,178m £2,077m £2,085m £2,141m 1,000 £1,896m channels

3% 2% Commercial PSB channels

0 2009 2010 2011 2012 2013 2014

Source: Ofcom/broadcasters. Note: Figures expressed are in nominal terms and replace previous data published by Ofcom. Commercial PSB channels comprise ITV, STV, UTV, Channel Television, ITV Breakfast, Channel 4, Channel 5 and S4C (and their ‘+1’ channels); Commercial PSB portfolio channels include, where relevant, ITV2, ITV3, ITV4, CITV, ITVBe, ITV Encore, ITV Breakfast 2, E4, More 4, Film 4, 4Seven, 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.

154 Figure 2.26 TV net advertising revenue market shares: 2013 - 2014

Proportion of NAR £3,693m £3,838m 100% Commercial multichannels 26.2% 27.2% 80% Commercial PSB portfolio channels S4C 17.3% 17.0% 60% 8.2% 7.4% Channel 5

12.5% 40% 13.1% Channel 4 1.3% 1.3% ITV Breakfast 20% 33.8% 34.5% ITV/STV/UTV 0% 2013 2014

Source: Ofcom/broadcasters. Note: Totals are expressed in nominal terms. Revenues attributed to ‘+1’ channels are included with those from their main channels.

155 Figure 2.27 Breakdown of other commercial TV channel revenue: 2013-2014 Total ‘other’ revenue = £672m (+1%)

Other £189m (-1%) Sponsorship £208m (+8%)

S4C £8m (-59%)

PPV £34m Programme (+10%) Sales £48m (+8%) TV Shopping Interactive £146m (-6%) £40m (+19%)

Source: Ofcom/broadcasters. Note: Percentage figures in brackets represent year-on-year change for total non-broadcast revenue versus 2014. TV shopping represents aggregate operating margin of products sold via television. A funding agreement which was reached in April 2013 meant that the majority of S4C funding now comes out of the BBC’s licence fee income. 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 numberof 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. 156 Figure 2.28 Revenue generated by multichannel broadcasters, by genre: 2013-2014

Total revenue = £5,481m across the eight included genres (+2%) Music £117m (-6%) Movies £766m (-2%) Entertainment £1,690m (+11%)

Factual £264m (+13%) Sport £2,285m (-2%) Kids £190m (+1%) Leisure News £40m (-21%) £129m (+1%) Source: Ofcom/broadcasters. Note: Percentage figures in brackets represent year-on-year change for total revenue compared to 2013. 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.

157 Figure 2.29 Spend on network TV programmes: 2013-2014

1 yr change £m £5,811m £6,355m +9.4% 7,000 +1% £181m Channel 5 6,000 £269m £179m £236m £260m £311m +3% Other PSB portfolio channels £246m 5,000 £298m £492m -4% BBC portfolio channels £486m £757m 4,000 £708m £818m +4% BBC Two £794m 3,000 £813m +1% Channel 4 £747m 2,000 +7% Other multichannels

£2,477m +3% ITV/ITV Breakfast 1,000 £2,093m +9% BBC One 0 2013 2014 +18% Film/Sport channels

Source: Ofcom/broadcasters. Note: Figures expressed in nominal prices. Figures do not include spend on nations’ and regions’ output. BBC portfolio channels includes BBC Three, BBC Four, BBC News, BBC Parliament, CBBC and CBeebies (but not BBC HD). ‘Other multichannels’ include all genres (excluding sports and films). Programme spend comprises in-house productions, commissions from independents, acquired programmes and repeats (originations and acquisitions).

158 Figure 2.30 Independent producer TV-related revenues Growth 5 year £m 1 year CAGR 3,000 £2,779m -2.5% 6.3% Total £2,588m £14m £2,708m £40m £25m £2m £39m 2,500 £2,227m £41m £2,145m £755m 84.0% 7.4% Other UK £18m £694m £1,999m £27m £25m £670m 2,000 £17m £26m £32m -2.0% 4.1% £495m £652m £156m £180m Pre-production £369m £152m £147m £185m £184m £70m £87m 1,500 £115m £154m £119m £165m -8.1% 13.5% Other international income 1,000 15.7% 20.7% International sales of UK £1,539m £1,668m £1,586m £1,395m finished programmes £1,356m £1,247m 500 24.8% 9.9% UK rights income

0 2009 2010 2011 2012 2013 2014 -4.9% 2.6% Primary UK commissions Source: PACT Independent Production Sector Financial Census and Survey 2015. 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. 159 £55

Fig 2.31 Relative share of spend on first-run UK-originated content, by genre, in-house vs. independent producers: 2009 and 2014

Total spend on first-run originations (£m) £41 £88 £304 £516 £7 £504 £482 £20 £13 £545 £2,521 £47 £91 £292 £569 £26 £420 £451 £17 £15 £414 £2,342 9% 7% 22% 24% 21% 23% 40% 44% 40% 45% 44% 47% 52% 48% 46% 64% 70% 66% 78% 72% 100% 100% 91% 93% 78% 76% 79% 77% 60% 56% 60% 55% 56% 53% 48% 52% 54% 36% 30% 34% 22% 28% 2009 2014 2009 2014 2009 2014 2009 2014 2009 2014 2009 2014 2009 2014 2009 2014 2009 2014 2009 2014 2009 2014 Arts & Childrens News & Drama & Education Entertainment Factual Feature Films Religion & Sports Grand Total Classical Current Affairs Soaps & Comedy Ethics Music Internal External Source: Ofcom/broadcasters. Note: Figures are expressed in nominal terms. Includes spend by the five main PSB channels and BBC portfolio channels on first-run originated content broadcast all day, and excludes nations’/regions’ output. 160 Figure 2.32 Spend on first-run UK originated output on the five main networks £m 3,000

£2,588m £2,585m Growth £2,516m £2,506m £2,413m £2,451m £266m £277m 1 year 5yr CAGR £261m £267m £256m £263m 5% 1% £212m £257m £244m £247m £229m 2,000 £189m £564m £549m 6% 2% Nations & £611m £624m £563m £484m Regions 6% 5% Late night

1,000 14% -2% Day time £1,502m £1,515m £1,357m £1,419m £1,429m £1,476m 3% 2% Peak time

0 2009 2010 2011 2012 2013 2014 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 portfolio channels, BBC Alba or S4C .

161 Figure 2.33 Total and first-run UK-originated hours of output on the PSB channels: 2014

Proportion of hours 87,087 43,690 100% 11,926 YOY change (%) 11,199 80% Total First-run UK hours originations 32,833 60% 2.4% -0.3% Programmes for 13,284 Nations & Regions

40% 0.4% -0.2% BBC Portfolio Channels 42,328 20% 19,207 0.1% 1.8% Five Main PSB Channels (network) 0% Total Hours Total First-run UK originated hours

Source: Ofcom/broadcasters. Note: The first-run figures include in-house productions and external commissions, but 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.

162 Figure 2.34 Hours of first-run UK originated output on the five main PSB channels hours

35,000 Growth 30,485 30,681 30,041 30,052 30,092 30,406 1 Year 5 yr CAGR 30,000 +1.0% -0.1% 25,000 10,439 11,060 11,647 11,002 11,232 11,199

20,000 -0.3% +1.4% Nations & Regions 15,000 14,632 13,316 13,338 13,365 13,180 13,463 2.1% -1.7% Non-peak 10,000 network

5,000 1.0% -0.1% Peak-time 5,414 5,665 5,696 5,685 5,680 5,744 network 0 2009 2010 2011 2012 2013 2014

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

163 Figure 2.35 Proportion of spend on new commissions vs. returning series: PSB groups

Estimated primary rights spend (£m)

% of spend 498 498 437 508 476 474 374 398 313 388 367 486 298 303 287 346 402 380 63 27 47 57 41 52 100%

80% 54% 57% 59% 62% 65% 65% 66% 66% 66% 67% 71% 73% 60% 73% 76% 78% 79% 79% 81% 81% 82% 85% 85% 90% 92%

40%

20% 46% 43% 41% 38% 35% 35% 34% 34% 34% 33% 29% 27% 27% 24% 22% 21% 21% 19% 19% 18% 15% 15% 8% 0% 10% 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 BBC ITV/STV/UTV Channel 4/S4C Channel 5 New Commission Returning Series

Source: PACT Independent Production Sector Financial Census and Survey 2015. Note: Figures include commissions by the PSB portfolio channels.

164 Figure 2.36 First-run UK-originated output by the PSB channels per week: all day and peak time All Day Peak-Time 800 200 629 613 619 622 619 624 167 173 175 175 173 170

BBC portfolio 600 BBC portfolio 150 channels channels 64 65 65 63 60 63 Channel 5 243 Channel 5 248 253 256 256 255

Channel 4 12 14 12 12 14 Channel 4 400 100 11 54 27 35 31 30 33 22 23 22

Hours per week 21 Hours per week 22 23 ITV/ITV 57 58 59 64 57 57 ITV/ITV Breakfast Breakfast 26 26 26 26 25 101 101 101 99 98 94 26 BBC Two 200 BBC Two 50 57 23 70 73 66 66 54 20 22 21 22 22 BBC One BBC One 104 106 105 107 124 128 26 26 26 27 26 27 0 0 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 Source: Ofcom/broadcasters. Note: Figures do not include nations’ and regions’ output. BBC portfolio channels include BBC Three, BBC Four, BBC News, BBC Parliament, CBBC and CBeebies 165 Figure 2.37 Genre mix on the five main PSB channels: peak time Proportion of total hours 7,964 8,009 7,961 7,964 7,954 7,930 100% Children's 357 483 334 514 359 493 533 611 675 661 545 515 Sport

80% 1,144 1,491 Films 1,225 1,520 1,469 1,579 Entertainment & Comedy

1,746 1,486 60% 1,648 1,559 1,543 1,346 Drama & Soaps

Factual

40% Education 2,656 2,512 2,501 2,446 2,629 2,559 Religious

20% Arts & Classical Music 197 190 163 168 142 166 308 328 298 324 333 308 Current Affairs 878 879 857 882 923 927 0% News 2009 2010 2011 2012 2013 2014 Source: Ofcom/broadcasters. Note: Includes five main channels including ITV Breakfast, figures do not include hours of nations’ and regions’ output. 166 Figure 2.38 Genre mix on five main PSB channels: daytime Proportion of total hours 21,597 21,654 21,610 21,665 21,680 21,748 100% 1,946 1,668 Children's 4,137 4,214 4,204 4,213 1,608 2,029 Sport 80% 1,645 1,415 1,505 1,650 1,488 1,624 Films 1,645 1,721 1,557 1,753 3,716 3,962 Entertainment & Comedy

60% 2,814 2,596 2,627 2,877 Drama & Soaps 1,734 1,367 Factual 2,590 2,719 2,375 1,862 40% Education 7,400 7,758 Religious 4,775 5,232 5,777 6,045 20% Arts & Classical Music 438 440 549 594 661 695 Current Affairs 2,881 2,793 2,679 2,750 2,632 2,536 News 0% 2009 2010 2011 2012 2013 2014 Source: Ofcom/broadcasters. Note: Includes five main channels plus ITV Breakfast. Figures do not include hours of nations’ and regions’ output.

167 Figure 2.39 Genre mix on the BBC portfolio channels: all day

Proportion of total hours 33,15133,202 33,230 33,362 32,705 32,833 100% 1,622 1,588 1,369 1,561 1,243 1,249 1,532 1,768 1,908 1,988 2,002 1,970 Other 1,077 1,296 1,151 890 1,277 1,136 2,629 2,405 2,648 2,703 1,999 2,229 80% Entertainment & Comedy 8,406 8,213 8,178 8,362 8,409 8,306 Arts & Classical Music 60% 1,339 1,472 1,421 1,204 1,256 1,323 Factual 40% Children's

16,546 16,460 16,555 16,710 16,566 16,517 20% Current Affairs

News 0% 2009 2010 2011 2012 2013 2014

Source: Ofcom/broadcasters. All figures are nominal. Note: BBC portfolio channels include BBC Three, BBC Four, BBC News, BBC Parliament, CBBC and CBeebies. Investment figures are nominal. ‘Other’ includes: education, drama, film, religion and sports

168 Figure 2.40 Total multichannel hours and first-run originations/acquisitions: 2014

Proportion of hours by channel genre (%)

Total = 1,726,157 Total = 254,520 1 year change % Total (2013 = 1,457,138) (Total 2013 = 199,880) Total First Run 100% -8% 52% Music 298,332 34,075 7,930 80% 17% 1% Movies 229,738

180,386 85,236 5% 5% Sport 60% 127,112 58,139 20% 7% News 138,761 40% 59,020 16% -4% Leisure 208,050 1,589 6,453 1,633 20% 2% -41% Children's 485,639 58,584 6% 17% Factual 0% 77% 153% All Hours12 First-Run Hours Entertainment

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

169 Figure 2.41 Multichannel content spend in key genres: 2013-2014 £m 1 year 4,000 change % £3,062m £3,503m 14% 3,500 £89m £38m £81m -9% Leisure £292m 3,000 £80m £43m £77m Music £285m -5% 2,500 £772m -11% Children's £721m 2,000 12% News 1,500 5% Factual £2,186m 1,000 £1,808m 2% Movies

500 7% Entertainment

0 21% Sport 2013 2014

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

170 Figure 2.42 Platform take-up: 2001-2014 TV households (m) 28 Analogue Terrestrial 26 Only 24 Digital Terrestrial only 22 20 18 Analogue cable 16 14 Digital cable 12 10 Free to view digital 8 satellite 6 4 Pay digital satellite 2 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Multichannel take-up 38.5% 39.4% 45.3% 52.9% 61.8% 69.4% 77.3% 84.3% 88.2% 91.5% 94.4% 95.5% 94.7% 92.9% (% all households) Source: BARB Establishment Survey. Note: Data points are based on household level data for Q4 of each year.

171 Figure 2.43

Platform demographics by age, socio-economic group and viewing minutes

% platform profile Average minutes per day 16-24 25-44 45-64 65+ AB C1 C2 DE 100% 231 250 11% 14% 220 219 18% 207 27% 27% 23% 23% 80% 33% 200 31% 31% 32% 18% 19% 19% 60% 29% 17% 150

31% 40% 41% 30% 32% 100 37% 39% 28% 31% 20% 50 25% 22% 27% 26% 15% 12% 17% 15% 0% 0

Source: Platform profile – Ofcom Technology Tracker 2014. Average minutes - BARB 2014 data

172 Figure 2.44 Average minutes of broadcast television viewing per day, by age: all homes Average minutes per day

350 343 345 347 341 340 315 316 314 Adults 65+ 306 314 311 309 300 301 294 301 298 278 279 Adults 55-64 268 264 263 271 269 270 269 253 255 256 250 243 245 241 242 242 242234 242 241 225 225 232 227 232 Adults 45-54 222 219220 216 218217 219 217 216 220 211 208 205 200 200 198 204 199 196 196 199 185 Individuals 169 165 169 156 157 155 154 157 150 144 151 150 151 147 142 148 Adults 35-44 135 132 134 139 137 134 138 118 100 Adults 25-34

50 Adults 16-24 Children 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

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

173 Figure 2.45

Average 2014 audiences, weekdays/weekends, by day part: all homes Average audience (millions) 28 24 20 Weekend 16 Weekday 12 8 4 0 06:00 - 09:00 - 12:00 - 15:00 - 18:00 - 21:00 - 24:00 - 03:00 - 07:00 10:00 13:00 16:00 19:00 22:00 01:00 04:00

Source: BARB, all individuals 4+

174 Figure 2.46

Average 2014 weekday audiences, by day part and age: all homes Average audience (millions) 7 6 Children 5 Adults 16-24 4 Adults 25-34 3 Adults 35-44 2 Adults 45-54 Adults 55-64 1 Adults 65+ 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+).

175 Figure 2.47

Average 2014 weekend audiences, by day part and age: all homes Average audience (millions) 7 6 Children 5 Adults 16-24 4 Adults 25-34 3 Adults 35-44 2 Adults 45-54 Adults 55-64 1 Adults 65+ 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+

176 Figure 2.48 Average weekly TV reach in all homes, by channel 15 minute consecutive weekly reach - full weeks

100% BBC One 87.1% 88.7% 83.4% 88.2% 86.9% 82.3% 80.3% 80% 78.6% 78.3% 78.8% BBC Two 76.8% 78.6% 77.8% 73.7% 74.5% 77.8% 77.3% 79.0% 75.5% 73.6% 71.0% 70.0% 69.1% 62.5% 63.5% 68.0% 68.0% 66.7% 62.7% 68.8% 63.8% 62.7% 60.6% 58.8% 57.9% 60.2% 60% 62.4% 59.6% 55.9% 55.2% 54.6% ITV 51.8% 56.9% 57.0% 57.9% 56.7% 54.1% 49.9% 50.2% 53.3% 53.3% 48.1% 50.6% 48.0% 45.5% 40% Channel 4 (incl 43.6% 43.8% 41.8% 39.5% 41.1% 39.6% 40.3% 40.3% 39.0% 36.9% 35.9% S4C - 2009) 20% Channel 5

0% Others 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: BARB, all individuals (4+). Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. Note: Following digital switchover in Wales in 2010 S4C ceased to carry Channel 4 content. S4C is therefore included in the Channel 4 figure in and prior to 2009 but not from 2010 onwards. S4C weekly reach in 2014 was 0.5% (all homes). The main five PSB channels include viewing to their HD channel variants but exclude viewing to their +1 channels. 177 Figure 2.49

Channel shares in all homes: 1988 to 2014 Audience share

100% All other 5% 6% 7% 8% 9% 9% 9% channels 10% 12% 13% 10% 14% 17% 10% 2% 20% 22% 11% 24% 11% 4% 5% 26% 11% 30% 11%

80% 6% 33% Channel 5 36% 11% 6% 40% 42% 10% 6% 45% 46% 48% 10% 49% 6% 49% 7% 11% 42%

42% 6% 10% 44% 43% 10% 6% 10% 41% 5% Channel 60% 40% 40% 10% 35% 37% 5% 4(incl S4C 10% 33% 5% 32% 10%

9% 5% 31% 4% - 2009) 8% 4% 29% 4% 4% 7% 27% 24% 6% 24% 6% ITV 6% 5% 23% 5% 11% 11% 40% 22% 10% 20% 11% 19% 11% 18% 12% 10% 11% 18% 11% 12% 17% 16% 15% 15% 11% 15% 11% 11% 11% 11% 10% 9%

11.0% BBC Two 9% 9% 8% 6% 7% 6% 7% 7% 20% 6% 39% 38% 37% 36% 34% 33% 33% 32% 32% 31% 29% 28% 27% 27% 26% 26% 25% 23% 23% 22% 22% 22% BBC One 21% 21% 21% 21% 21% 0% 198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014

Source: BARB, TAM JICTAR and Ofcom estimates. All individuals (4+) Notes: a new BARB panel was introduced in 2010, as a result, pre- and post-panel change data must be compared with caution (see dotted line); following digital switchover in Wales in 2010 S4C ceased to carry Channel 4 content, S4C is therefore included in the Channel 4 figure in and prior to 2009 but not from 2010 onwards; S4C share in 2014 was 0.1% (all homes); the main five PSB channels include viewing to their HD channel variants but exclude viewing to their +1 channels. 178 Figure 2.50

Main five PSB channels’ audience share, all homes Audience share 73.8% 70.4% 66.7% 63.5% 60.5% 57.8% 55.4% 53.6% 52.1% 51.1% 51.2% 100% Channel 5

80% Channel 4 6.6% 6.4% (incl S4C - 5.7% 9.7% 5.1% 2009) 60% 9.7% 5.0% 9.8% 4.9% 8.6% 7.5% 4.5% ITV 6.8% 4.4% 4.2% 4.1% 4.0% 22.8% 6.2% 5.9% 21.5% 5.6% 4.9% 4.8% 19.6% 19.2% 40% 18.4% 17.8% 17.0% 16.0% 14.9% 15.3% 14.7% 10.0% BBC Two 9.4% 8.8% 8.5% 7.8% 7.5% 6.9% 6.6% 6.1% 5.8% 6.1% 20% 24.7% 23.3% 22.8% 22.0% 21.8% 20.9% 20.8% 20.7% 21.3% 21.0% 21.7% BBC One 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 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: Following digital switchover in Wales in 2010 S4C ceased to carry Channel 4 content. S4C is therefore included in the Channel 4 figure in and prior to 2009 but not from 2010 onwards. S4C 2014 channel share = 0.1%. The five main PSB channels include viewing to their HD channel variants but exclude viewing to their +1 channels. 179 Figure 2.51

Main five PSB channels’ audience share, by platform Audience share 100% Digital terrestrial 80% homes

60% All homes

40%

Cable or 20% satellite homes 0%

Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec 04 05 06 07 08 09 10 11 12 13 14

Source: BARB, individuals (4+) in platform homes, based on share %. Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. Note: Following digital switchover in Wales in 2010 S4C ceased to carry Channel 4 content. S4C is therefore included in the Channel 4 figure in and prior to 2009 but not from 2010 onwards. S4C 2014 channel share = 0.1%. The five main PSB channels include viewing to their HD channel variants but exclude viewing to their +1 channels.

180 Figure 2.52

Channel share, by platform: 2014 Audience share 100% Other

80% 45.7% 48.8% 54.1% 48.9% Channel 5 60% Channel 4 4.2% 4.0% 4.9% 4.1% 4.8% 3.4% 5.2% 4.3% 40% 15.5% ITV 14.7% 15.2% 13.6% 6.1% 6.5% 5.5% 20% 5.2% BBC Two 21.7% 23.2% 19.3% 21.1% 0% BBC One All homes Digital terrestrial Digital satellite Digital cable individuals individuals individuals Source: BARB. Individuals (4+) in platform homes, based on share%. The five main PSB channels include viewing to their HD channel variants but exclude viewing to their +1 channels.

181 Figure 2.53

Proportion of total TV viewing hours, by platform signal Share of hours 100% Other 11.9% 11.4% 11.1% 11.8% 12.6% 13.6% 13.7% 13.6% 14.5% 14.6% Platforms

80% Digital cable 28.4% 32.6% 35.3% 36.3% 38.7% 40.4% 40.3% 40.9% 40.9% 40.5% 60% Digital satellite 10.0% 2.2% 15.5% 20.9% 40% 1.2% 27.8% Digital 0.5% 31.8% terrestrial 37.7% 47.4% 0.3% 42.6% 44.8% 20% 39.3% 44.3% 44.3% 32.1% 0.2% Analogue 23.7% 16.6% 0.1% satellite,Analog 8.2% 0.0% ue cable 0% 3.3% 0.0%0.6% 0.0% 0.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: BARB, individuals 4+, all homes, total hours. Based on viewing through the reception mode present in home as a proportion of all viewing through all platforms on all TV sets in home. Note: New BARB panel introduced in 2010. As a result, pre- and post- panel change data must be compared with caution.

182 Figure 2.54 Proportion of main five PSB channels’ 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% 0.2% 0.3% 7.2% 7.3% 7.5% 8.5% 9.2% 11.8% 12.2% 12.6% 14.0% 14.6% 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% 33.7% 34.4% 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% 50.3% 53.1% 52.2% 50.7% and satellite 20% 39.0% 28.4% 0.1% Analogue terrestrial 14.6% 0.0% 6.0% 0% 1.1%0.0% 0.0% 0.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: BARB, all individuals, total hours. Based on viewing through the reception mode present in home as a proportion of all viewing through all platforms through all TV sets in home. Note: New BARB panel introduced in 2010. As a result, pre- and post-panel change data must be compared with caution.

183 Figure 2.55 Main five PSB, PSB portfolio, and other channels’ shares in multichannel homes

Audience share 100%

27.5% 26.5% 26.6% 27.6% 32.9% 30.9% 29.4% 28.3% 28.5% 28.1% 80% 34.9% Others

11.6% 13.9% 15.7% 20.4% 60% 7.6% 9.4% 16.7% 18.6% 21.3% 21.4% 20.7% PSB portfolio channels 40%

57.5% 57.7% 57.5% 56.7% Main five PSB 56.0% 54.8% 53.9% 53.1% 52.0% 51.1% 51.2% 20% channels

0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: BARB. 2004-2009: All individuals, multichannel network. 2010 - 2012: Individuals in multichannel homes, Network. 2013+: All individuals, Network. Following digital switchover in 2012, from 2013 onwards all homes are multichannel homes. Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. The main five PSB channels include viewing to their HD channel variants but exclude viewing to their +1 channels. 184 Figure xxxx Figure 2.56 Broadcaster family shares in multichannel homes Audience share 100% 14.0% 13.8% 12.9% 12.8% 12.2% 11.6% 13.1% 11.2% 11.7% 12.1% 12.6% Other 0.0% 0.0% 2.6% 2.7% 2.6% 2.6% 2.3%0.0% 2.4% 2.4% 2.5%0.0% 2.3%0.0% 2.8% 2.8% 3.0% 2.8% 2.7% 2.7% 4.0% 4.3% 4.5% Virgin Media 3.5% 3.2% 3.9% 4.0% 4.0% 4.9% 80% 4.0% 4.0% 3.9% 4.2% 8.1% 8.8% 8.3% 8.4% 8.2% 8.7% 7.6% 6.8% 7.4% Viacom 10.6% 9.4% 5.9% 6.0% 5.6% 5.9% 6.0% 5.9% 6.0% 5.9% 5.3% 5.1% 5.0% 11.5% 11.6% 11.6% 11.1% 10.9% UKTV 60% 11.2% 11.2% 11.7% 11.5% 8.6% 9.6% BSkyB* 22.7% 22.7% 22.7% 23.1% 22.3% 23.0% 22.0% 40% 22.0% 22.4% 22.2% 22.6% Channel 5 Channel 4

20% ITV 29.5% 29.8% 30.6% 31.2% 31.8% 31.5% 32.5% 33.0% 33.4% 32.4% 33.1% BBC 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: BARB. 2004-2009: All individuals, multichannel network. 2010 - 2012: Individuals in multichannel homes, network. 2013+: All individuals, network. Following digital switchover in 2012, from 2013 onwards all homes are multichannel homes. 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. ITV includes all ITV network channels, not just those owned by ITV plc. 185 Figure 2.57 BBC family shares in multichannel homes Audience share 29.5% 29.8% 30.6% 31.2% 31.8% 31.5% 32.5% 33.0% 33.4% 32.4% 33.1% 35% 1.2% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.0% 1.0% 30% 1.2% 0.8% 1.1% 1.2% 1.1% 1.3% 1.3% 0.6% 0.8% 0.8% 1.4% Other BBC 0.6% 0.6% 1.0% 1.1% 1.2% 1.3% 1.4% 1.5% 1.7% 1.5% 0.7% 0.9% CBeebies 25% 6.1% 6.1% 6.9% 7.1% 7.0% 6.9% 6.6% 6.5% 5.8% 6.7% 6.8% CBBC 20% BBC News 24

15% BBC Four BBC Three 21.3% 21.0% 21.7% 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 2013 2014 Source: BARB. 2004-2009: All individuals, multichannel Network. 2010 - 2012: individuals in multichannel homes, network. 2013+: All Individuals, Network. Following digital switchover in 2012, from 2013 onwards all homes are multichannel homes. Source: BARB. Note: ‘Other’ includes BBC Parliament, BBC red button channels, BBC Olympics channels in 2012, BBC Choice, BBC HD and BBC Knowledge. The 24 BBC Olympics channels accounted for 0.21% share in 2012 . 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 186 Figure 2.58 ITV family shares in multichannel homes

Audience share 22.0% 22.4% 22.2% 22.6% 22.7% 22.7% 22.7% 23.1% 22.3% 23.0% 22.0%

35% Other ITV

30% ITVBe

25% ITV Encore

0.5% 0.6% 1.0% 1.1% 1.0% 1.1% 1.1% 1.1% 1.2% 1.4% 1.4% 1.6% 1.2% 20% 2.0% 2.4% 1.8% 2.2% 2.4% 2.5% 2.6% CITV 2.3% 2.6% 2.4% 2.3% 2.6% 2.6% 2.7% 2.8% 2.7% 2.4% 15% ITV4

10% ITV3 18.8% 18.4% 17.5% 17.6% 17.2% 16.9% 16.6% 16.5% 15.7% 16.2% 15.6% 5% ITV2

0% ITV 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: BARB. 2004-2009: All individuals, multichannel network. 2010 - 2012: Individuals in multichannel homes, network. 2013+: All Individuals, network. Following digital switchover in 2012, from 2013 onwards all homes are multichannel homes. Note: ITV, ITV2, ITV3 and ITV4 include their +1 services. HD variants are included with all channels where applicable. ‘Other’ includes (when relevant) ITV Play, ITV News, Men & Motors and Plus. ITV Encore and +1 commenced reporting 09.06.14, ITVBe started reporting 08.10.14 and ITVBe+1 on 19.11.14. 14 Note: A new BARB panel187 was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. Figure 2.59 Channel 4 family shares in multichannel homes

Audience share 8.6% 9.6% 11.2% 11.2% 11.7% 11.5% 11.5% 11.6% 11.5% 11.1% 10.9% 14% 4seven

12% 4Music 0.6% 0.8% 1.0% 1.2% 0.5% 1.2% 1.1% 1.2% 10% 0.9% 1.0% 1.2% 1.2% 1.9% 1.0% 1.2% 1.4% 1.5% More4 Total 1.6% 1.8% 1.8% 1.5% 1.5% 8% 1.2% 1.8% 1.9% 1.8% 0.8% 1.8% 0.8% 0.8% 1.9% 2.0% Film4 Total 6% 0.9% 0.9% 0.9% 0.8% E4 Total 8.2% 4% 7.9% 7.4% 7.3% 6.8% 6.4% 6.1% 5.9% 5.6% 5.0% 2% 4.8% Channel 4 +1

0% Channel4 (incl 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 S4C - 2009) Source: BARB. 2004-2009: All individuals, multichannel network. 2010 - 2012: individuals in multichannel homes, network. 2013+: All individuals, network. Following digital switchover in 2012, from 2013 onwards all homes are multichannel homes. 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 4tJuly 2012. Note: Following digital switchover in Wales in 2010 S4C ceased to carry Channel 4 content. S4C is therefore included in the Channel 4 figure in and prior to 2009 but not from 2010 onwards. S4C 2014 channel share = 0.1%. HD and SD viewing included. 188 Figure 2.60

Channel 5 family shares in multichannel homes Audience share 5.0% 5.3% 5.1% 5.6% 5.9% 6.0% 5.9% 5.9% 6.0% 6.0% 5.9% 14%

12% Channel 5+24 10% 5 USA 8%

6% 5* 0.6% 0.7% 0.8% 0.9% 1.0% 1.0% 1.0% 1.0% 4% Channel 5 5.3% 2% 5.0% 4.9% 4.6% 4.7% 4.7% 4.5% 4.4% 4.5% 4.4% 4.4%

0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: BARB. 2004-2009: All individuals, multichannel network. 2010-2012: individuals in multichannel homes, network. 2013+: All individuals, network. Following digital switchover in 2012, from 2013 onwards all homes are multichannel homes. Note: A new BARB panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution. Channel 5+24 launched 4 February 2014. Channels include their +1 service and HD viewing shares.

189 Figure 2.61

Sky family shares in multichannel homes Audience share 10.6% 9.4% 8.7% 7.6% 6.8% 7.4% 8.1% 8.8% 8.3% 8.4% 8.2% 14% Sky Atlantic

12% Former Virgin TV channels* 10% 0.6% Sky Arts/Real Lives 2.9% 0.6% 8% 0.5% Sky Travel 1.2% 1.6% 1.3% 1.3% 2.4% 0.5% 0.6% 1.2% 2.7% 0.5% 0.7% 6% 2.2% 0.6% 0.6% 0.7% 0.7% Sky News 3.2% 2.4% 2.5% 2.1% 2.2% 2.3% 2.2% 2.2% 2.1% 4% 2.2% 1.6% Sky One/Two/Three 1.4% 1.4% 1.2% 1.2% 1.2% 1.2% 1.3% (Pick TV) Sky Movies channels 2% 3.7% 3.5% 3.2% 3.2% 2.7% 2.9% 2.7% 2.7% 2.7% 2.7% 2.6% 0% Sky Sports channels 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: BARB. 2004-2009: All individuals, multichannel network. 2010 - 2012: individuals in multichannel homes, network. 2013+: All individuals, network. Following digital switchover in 2012, from 2013 onwards all homes are multichannel homes. 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.

190 Figure 2.62

UKTV family shares in multichannel homes Audience share 4.2% 4.0% 4.0% 3.9% 3.9% 4.0% 4.0% 4.0% 4.3% 4.5% 4.9% 14% Other UKTV 12% Really 10% Drama UKTV G2/Dave 8% Alibi 6% Eden 0.0% 0.0% 0.0% Good Food 0.2% 0.1% 0.1% 0.7% 4% 0.2%0.1% 0.4% 0.3% 0.2% 0.1% 0.0% 0.0% 0.0% 0.0% 0.3% 0.2% 0.2% 0.4% 0.7% 1.2% 1.1% 0.3% 0.2% 0.5% 1.2% 1.3% 1.1% 1.3% 1.3% Yesterday 0.4% 0.3% 0.1% 0.6% 0.4% 0.2% 0.4% 0.4% 0.4%0.1% 0.8% 0.6% 0.1%0.2% 0.5% 0.4%0.1% 0.1% 0.1% 0.1% 0.4% 0.4% 2% 0.0% 0.6% 0.6% 0.1%0.3% 0.2% 0.1% 0.1% 0.0% 0.4% 0.4% 0.4% 0.6% 0.8% 1.0% 0.8% Home 0.0% 0.3%0.0% 0.2% 0.2% 0.1% 0.7% 1.9% 0.3%0.1% 0.5% 0.5% 0.5% 0.1% 0.1% 0.1% 1.6% 1.4% 1.2% 0.5% 0.5% 0.5% 0% 0.9% 0.7% 0.7% 0.6% 0.6% 0.5% 0.5% UKTV Watch 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 UKTV Gold/G.O.L.D Source: BARB. 2004-2009: All individuals, multichannel network. 2010 - 2012: individuals in multichannel homes, network. 2013+: All individuals, Network. Following digital switchover in 2012, from 2013 onwards all homes are multichannel homes. Note: In 2008 figures, new channel names and shares have been matched to old channels. Dave went live in Oct 2007. Drama launched in July 2013 and is included in ‘Other’ 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. 191 Figure 2.63 Top channels by share, all homes: 2013-2014

Share Rank Share Rank Channel 2014 2014 2013 Channel 2014 2014 2013 BBC One 21.7% 1 1 Dave 1.2% 11 12 ITV 14.7% 2 2 Film4 1.2% 12 10 BBC Two 6.1% 3 3 ITV4 1.1% 13 16 Channel 4 4.8% 4 4 BBC News 1.0% 14 15 Channel 5 4.0% 5 5 More4 1.0% 15 14 ITV3 2.1% 6 6 Sky Sports 1 1.0% 16 13 ITV2 1.9% 7 7 Sky 1 1.0% 17 18 E4 1.4% 8 9 BBC4 0.9% 18 19 BBC Three 1.4% 9 8 5 USA 0.9% 19 20 CBeebies 1.3% 10 11 ITV +1 0.8% 20 21

Source: BARB. individuals 4+ Note: Includes viewing to HD variants but excludes viewing to channels’ +1 services

192 Figure 2.64 Age and gender profile of the 30 most-viewed channels, all homes: 2014

Older (% over 45 years old)

Drama BBC ITV3 News Yesterday 5 USA BBC1 BBC2 BBC ITV4 ITV More 4 Pick TV Four Sky News Quest Sky Sports 1 ITV+1 Channel 5 Film4 Channel 4 5* ITV2 Channel 4+1 Dave Sky Sports Sky 1 News E4 BBC Three E4+1

CBBC CBeebies % Female % Male

Younger (% under 45 years old)

Source: BARB Note: The profile of a channel is calculated relative to the television population in all homes. Includes viewing to HD variants but excludes viewing to channels’ +1 services

193 Figure 2.65 Opinion on the quality of programmes over the past 12 months (% of adults with a TV)

Stayed the 39 same 49 48 45 49 54 57 54 50 8 13 Improved 16 18 14 18 18 20 21 52 40 30 28 27 34 18 18 24 Got worse

All 16-24 25-34 35-44 45-65 55-64 65+ ABC1 C2DE Source: Ofcom Media Tracker 2014. ‘Don't know’ responses not charted. Q20 - Do you feel that over the past year television programmes have improved, got worse or stayed about the same? Base: All with any TV sets (2,016); 16-24 (285), 25-34 (316); 35- 44 (324) 45-54 (325); 55-64 (312); 65+ (454); ABC1 (1,045), C2DE (970). Prompted, single code. Significance testing shows any difference between any age group and all adults and any difference between socio-economic groups. 194 Figure 2.66 Top reasons given for programmes getting worse in past 12 months

Base: All those who said programmes had got worse (30% of adults with a TV) 80% Adults (16+) 16-34 35+ 70%

60%

50%

40%

30% 57 55 58 47 20% 43 42 32 34 32 26 30 10% 19 14 1265 12 13 10 9 11 9 68998 0% More repeats Lack of variety General lack Too many More bad More violence More sex More Other of quality reality shows language antisocial behaviour

Source: Ofcom Media Tracker 2014. Q22 - In what ways do you think that the television programmes have got worse over the past year? Base: All saying programmes ‘got worse’ over past year (639); 16-34 (114); 35+ (525). Unprompted, multimode. Only top individual responses are charted. Significance testing shows any difference between age groups.

195 Figure 2.67

Opinion on the amount of sex, violence and swearing on TV (% of adults with a TV)

7 6 13 1 3 Don't know 2

47 52 Too little 57

An acceptable amount

43 40 28 Too much

Sex Violence Swearing

Source: Ofcom Media Tracker 2014. Q46 - Do you think, in general, that there is too much, too little or an acceptable amount of each of the following on television: a) sex? b) violence? c) swearing? Base: All with any TV sets (2,016). Prompted, single code.

196 CMR 2015: Radio and audio Figure 3.1 UK radio industry key metrics

UK radio industry 2009 2010 2011 2012 2013 2014

Weekly reach of radio (% of 89.8% 90.6% 90.8% 89.5% 90.4% 89.5% population)

Average weekly hours per head 19.8 20.1 20.5 22.2 21.5 21.4

BBC share of listening 55.3% 55.2% 54.7% 54.7% 54.6% 53.8%

Total industry revenue £1,101m £1,137m £1,164m £1,203m £1,177m £1,220m

Commercial revenue £439m £452m £457m £475m £461m £483m

BBC expenditure £653m £675m £697m £717m £705m £725m Community radio revenue £9.0m £10.0m £10.5m £10.8m £10.9m £11.5m

Radio share of advertising spend 3.5% 3.3% 3.3% 3.3% 3.1% 3.2%

DAB digital radio take-up 34.5% 38.2% 42.6% 44.3% 47.9% 49.0% (households) Source: RAJAR (all adults age 15+), Ofcom calculations based on figures in BBC Annual Report and Accounts 2014-15 note 2c (www.bbc.co.uk/annualreport), AA/Warc, broadcasters. Revenue figures are nominal. DAB take up - Q1 of the following year. Figure 3.2 Radio industry revenue and spending 2009-2014

£ million 1,203 1,220 1200 1,164 1,177 1,101 1,137

1000 483 457 475 461 439 452 800 Total commercial

600 BBC expenditure (estimated) 400 653 675 697 717 705 725 200

0 2009 2010 2011 2012 2013 2014 Source: Broadcasters Note: BBC expenditure figures are estimated by Ofcom based on figures in Note 2c of the BBC Annual Report (www.bbc.co.uk/annualreport); figures in the chart are rounded and are nominal. Community radio revenue is included in the total, but not shown on the chart. Figure 3.3

Commercial revenue percentage change 2013-2014

Percentage change in revenue 20% 17.3% 15%

10% 4.9% 5%

0%

-5% -6.6% -6.2% -10% All commercial radio National advertising Local advertising Sponsorship

Source: Ofcom / operator data 2013-2014 Figure 3.4

BBC station expenditure percentage change 2013-14 to 2014-15

Annual % change of BBC radio station expenditure BBC 1Xtra 13.3% BBC Radio 5 Live Sports Extra 9.6% BBC 6Music 4.2% BBC Radio 1 2.8% BBC 4 Extra 1.4% BBC Local/National 0.5% BBC Radio 5 Live -0.6% BBC Radio 2 -0.7% BBC Asian Network -0.9% BBC Radio 3 -2.8% BBC Radio 4 -4.1% -10% -5% 0% 5% 10% 15% Source: BBC Annual Report 2014-15. Note that these are financial year figures, excluding BBC-wide overheads, and are therefore not directly comparable to those set out in Section 3.2.2. Figures are nominal. Figure 3.5 Use of streaming services and radio stations among regular music listeners, by age: 2014 Proportion of regular music listeners (%) 80% 74% 63% 60%

39% 42% 42% 40% 28% 18% 20% 13%

0% 16-24 25-39 40-54 55+ Internet streaming services Radio stations

Source: YouGov, New Generations and the Future of Radio 2014, fieldwork August 2014. Base: Regular music listeners (663). Q: Thinking about how you listen to music, which of the following do you use regularly? Please choose all that apply.

202 Figure 3.6

Use of streamed audio services among internet users, by age: Q1 2015 Proportion of each age group (%) 60

50 12

40 21 8 30 6 6 14 5 20 11 12 9 2 10 24 6 3 13 16 13 4 10 7 0 5 All adults 16-24 25-34 35-44 45-54 55-64 65+ Any service Free services Subscription services

Source: Ofcom research, Q1 2015 Base: All internet users (2298). Q: Which, if any, of these do you use the internet for?

203 Figure 3.7

Methods of paying for music services, 2014 Proportion of respondents (%)

Type of payment 48 8 37 11

0 255075100 Subscription Part of a contract Per use Other/don't know Source: YouGov, Audiovisual consumption 2015, fieldwork May 2014. Base: those that pay for a music service (266) Q. How do you pay for your music, […] service?

204 Figure 3.8

Proportion of listening time spent with each activity Proportion of listening time (%) 100 86 80 83 80 71 74 65 60

40 30 30 24 20 11 14 11 6 8 5 6 44221 0 All adults 16-24 25-34 35-44 45-54 55-64 65+ Radio Own digital music Streaming

Source: Ofcom Digital Day 7-Day Diary, Q1 2014 Base: All listening activity records for adults 16+, (17290), 16-24 (999), 25-34 (2342), 35-44 (4113), 45- 54 (4334), 55-64 (3284), 65+ (2218)

205 Figure 3.9 Volume of tracks streamed online and revenue from subscription streaming: 2012-2014 Number of tracks streamed (million) Revenue from subscription streaming (£m)

20000 £175m £200m

15000 £150m £106m 10000 £77m £100m 14,763 5000 £50m 7,471 3,700 0 £0m 2012 2013 2014 Number of tracks streamed Revenue from subscription streaming Year on year growth: 97.6% 65.0%

Source: Entertainment Retailers’ Association / Official Charts Note: Subscription revenue is a BPI estimate. The number of tracks streamed includes subscription and ad-funded streams and excludes video streams.

206 Figure 3.10

Number of different songs in the top 100 on each platform: Q4 2014 Number of songs

170 105 127 402

0 100 200 300 400 Radio only Streaming only Shared songs Percentage of different songs on each platform: 42% 26% 32%

Source: Ofcom analysis of RadioMonitor and The Official Charts Company data, Q4 2014

207 Figure 3.11

Origin of songs in the top 100 on each platform: Q4 2014 Number of songs

170 80 105 41 6

0% 20% 40% 60% 80% 100% Radio only Radio first Streaming only Streaming first Entered both together

Source: Ofcom analysis of RadioMonitor and The Official Charts Company data, Q4 2014

208 Figure 3.12

Most popular sources for the discovery of new music, 2014 Proportion of respondents (%) 80 75 69 65 60 61 60 52 49 48 49 43 44 38 40 27 25 21 24 23 24 21 23 20 20 21 18 20 19 19 18 20 19 1615 16 11 10 11

0 Radio Word of Seeing live Music TV Online Music TV Social media mouth music streaming shows sites All adults 16-24 25-39 40-54 55+ Source: YouGov, Music Consumption 2014, fieldwork August 2014. Base: Those that strive to discover new music, all adults (684), 16-24 (118), 25-39 (198), 40-54 ((185), 55+ (183) Q. How do you typically discover music you have not heard previously? Please choose all that apply. 209 Figure 3.13

Radio industry revenue 2009-2014 Revenue (£m) 1,220 Total 1,164 1,203 1,177 1200 1,101 1,137 BBC expenditure 1000 (estimated) 725 800 653 675 697 717 705 Total commercial

600 475 483 439 452 457 461 National 400 commercial 243 206 211 220 222 207 Local commercial 200 133 136 130 139 141 132 89 0 90 92 92 98 95 Commercial 2009 2010 2011 2012 2013 2014 sponsorship Source: Ofcom / operator data / BBC Annual Report 2008-2015 Note: BBC expenditure figures are estimated by Ofcom based on figures in Note 2c of the BBC Annual Report (www.bbc.co.uk/annualreport); figures in the chart are rounded and are nominal. Total includes community radio, but community radio is not shown on the chart. Total commercial includes all sources of revenue - national, local, sponsorship and ‘other’, but ‘other’ is not shown on the chart.

210 Figure 3.14

UK radio advertising spend and share of total advertising: 2009-2014

Revenue (£m) Share of total advertising revenue 800 4% 3.5% 3.3% 3.3% 3.3% 3.1% 3.2% 600 3%

400 2% 575.4 505.5 523.0 532.5 552.7 536.8 200 1%

0 0% 2009 2010 2011 2012 2013 2014 Radio advertising expenditure Share of total advertising expenditure

Source: AA/Warc Advertising Expenditure report. Figures are nominal.

211 Figure 3.15

Commercial radio revenue per listener

£ per listener 15

10

£13.74 £13.55 £14.29 £13.35 £14.14 5

0 2010 2011 2012 2013 2014

Source: Broadcaster returns and RAJAR, 2010-2014. Figures are nominal. Figure 3.16

Commercial radio revenue by source of revenue and type of station: 2014

£ million

Source of 250 133 91 21 495 revenue

Type of 164 303 28 495 revenue

0 100 200 300 400 500

National advertising Local advertising Sponsorship Other Analogue only Simulcast Digital only

Source: Broadcaster returns

213 Figure 3.17

Proportion of analogue commercial radio licences owned, by group

Celador Radio 6.9% 6-10 stations in UTV group 6.2% 21.2% UKRD 6.5% 2-5 stations in group 4.1% Bauer Radio 14.7% Independent 15.8% Global Radio 24.7%

Source: Ofcom, May 2015 Figure 3.18

Share of all radio listening hours: to Q1 2015

Percentage share of listening hours

Other, 8.7% Orion, 0.9%

UTV, 3.4% BBC network, 46.0% Communicorp UK, 2.4

Bauer, 13.3%

Global, 18.2%

BBC local/regional, 7.1%

Source: RAJAR, all adults (15+), twelve months to Q1 2015. Base: National Total Survey Area Figure 3.19 Commercial radio by weekly audience reach: Q1 2015

Weekly UK 39.1% 30.6% 8.7% 6.1% 2.3% 2.0% 1.6% audience reach

Annual change in reach* -0.7pp +0.7pp +0.1pp +0.1pp +0.1pp 0 +0.3pp

45% 20,000 40% 35% 15,000 30% 25% 10,000 20,902 20% 16,360 15% 5,000 10% 1,233 1,077 5% 4,636 3,274 840 0 0% Weekly reach (thousands) reach Weekly Global Bauer UTV Communicorp Orion UKRD Celador

Source: RAJAR, all adults (15+), Q1 2015. Base: National Total Survey Area * Q1 ‘14 and Q1 ’15 UKRD figures include The Local Radio Company Figure 3.20

Year on year Weekly reach of BBC stations: Q1 2015 percentage Average weekly listening (% UK adults), and year on year change point change BBC Radio 2 28.4% -0.5 BBC Radio 4 20.1% -0.7 BBC Radio 1 19.4% -0.9 BBC Local/Regional 15.4% -2.2 BBC Radio 5 live 10.9% -0.7 BBC 6 Music 3.8% -0.1 BBC Radio 3 3.7% +0.3 BBC Radio 4 Extra 3.3% +0.2 BBC World Service 2.6% 0 1Xtra from the BBC 1.9% -0.2 BBC 5 live Sports Extra 1.9% 0 BBC Asian Network UK 1.1% 0 0% 10% 20% 30% Source: RAJAR, all adults (15+), year ending Q1 2015 Figure 3.21

BBC radio stations: spend on radio content, 2014-15

Cost (£m) BBC Local Radio 115.6 0.2% BBC Radio 4 87.8 -4.4% BBC Radio 5 Live 49.1 -0.2% BBC Radio 2 46.2 -3.3% BBC Radio 1 40.5 0.7% BBC Radio 3 38.4 -5.9% BBC Radio Scotland 21.7 -4.0% BBC Radio Ulster/BBC Radio Foyle 17.3 -0.6% BBC Radio Wales 14.1 5.2% BBC Radio Cymru 12.8 9.4% BBC 6Music 8.0 1.3% BBC Asian Network 6.2 -6.1% BBC 1Xtra 6.2 10.7% BBC 4 Extra 3.9 -4.9% BBC Radio nan Gàidhael 3.7 -2.6% BBC Radio 5 Live Sports Extra 2.5 4.2% 0123456781091112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960616263646566676869707172737475767778798081828384858687888990919293949596979810099101102103104105106107108109110111112113114115116117118119120121122123124125126127128129130131132133134135136137138139140141142143144145146147148149150 Source: BBC Annual Report 2014-15. Year-on-year change shown in red text to the right of the absolute value. Figure 3.22

Digital Audio Broadcasting UK radio services broadcasting May 2015

Commercial BBC Local Total UK-wide UK-wide Commercial

Multiplexes 1 1 54 56

Services 14 10 401* 425*

* Includes simulcast services (201 unique services). Excludes BBC local radio services

Source: Ofcom, May 2015

219 Figure 3.23 Analogue UK radio stations broadcasting May 2015

Type of station AM FM AM/FM total

Local commercial 52 237 289

UK-wide commercial 2 1 3

BBC UK-wide networks 1 4 5

BBC local and nations* 35 43 43

Community radio 6 221 227

TOTAL 96 506 567

Source: Ofcom, May 2015 Note: the conditions of each licence will determine the amount of programming that may be shared between these licensed services. Here we have taken the view that a service providing at least four hours a day of separate programming (even if the same brand has other services) equals one service. * Includes simulcasts. Figure 3.24

Average income for community radio stations: 2009 to 2014

Income 2009 2010 2011 2012 2013 2014

Average (mean) £75,500 £65,750 £60,250 £57,000 £55,500 £55,750 income (-10.2%) (-12.9%) (-8.3%) (-5.4%) (-2.7%) (+0.8%)

Median income £46,750 £42,500 £40,500 £35,250 £33,250 £35,750 (-15.0%) (-7.14%) (-4.8%) (-13.1%) (-5.6%) (+6.9%)

Source: Ofcom analysis of community broadcasters’ returns Note: The data collection period changed from the financial year to the calendar year as of 2011. Data from previous years has been adjusted to reflect this. Figure 3.25

Distribution of total income levels across the community radio sector Proportion of stations (%) 30 23 21 20 17 18 15 15 13 13 13 1111 1211 12 11 9 9 8 9 8 10 8 7 7 7 7 6 6 6 6 6 6 5 5 4 3 5 4 3 4 3 4 2 332 3 3 2 3 2 2 1 1 1 1 1 0

2011 2012 2013 2014

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

222 Figure 3.26 Community radio income, by source

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

Source: Ofcom analysis of community broadcasters’ returns Figure: 3.27

Average income by type of community served

£100,000

£80,000 Other £67,000 £65,250 £63,000 £60,250 Donations £55,750 £60,000 18% £52,750 21% 28% 28% 12% 49% SLAs £40,000 £38,000 6% 15% 21% 44% 24% Grants 9% 100% 26% 42% £20,000 30% 27% 45% On-air ads 27% 26% 33% 19% 16% £0 Sector Minority GeographicGeographic Military (9) Religious Youth (22) average ethnic (29) - town/rural- urban (29) (13) (206 (93) 0 stations) Source: Ofcom analysis of community broadcasters’ returns

224 Figure 3.28

Average expenditure for community radio stations: 2009 to 2014

Expenditure 2009 2010 2011 2012 2013 2014

Average (mean) £76,500 £67,000 £64,250 £58,000 £55,000 £53,500 expenditure (-11.4%) (-12.3%) (-4.1%) (-9.7%) (-5.0%) (-2.7%)

Median £52,250 £43,000 £41,000 £35,500 £35,750 £33,250 expenditure (5.3%) (-17.5%) (-4.9%) (-15.4%) (2.7%) (-6.8%)

Source: Ofcom analysis of community broadcasters’ returns Note: The data collection period changed from the financial year to the calendar year as of 2011. Data from previous years has been adjusted to reflect this. Figure 3.29 Community radio expenditure, by type

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

Premises 47 49 51 49 20%

Staff 0% 2011 2012 2013 2014

Source: Ofcom analysis of community broadcasters’ returns Figure: 3.30

Average expenditure by type of community served

£100,000

Other £80,000 £66,500 £62,250 £62,250 Technical costs £60,000 £53,500 18% £52,750 19% 21% £47,750 15% 7% 9% 17% 5% 12% £37,500 13% 11% 13% Admin and £40,000 20% 9% 6%0 10% marketing 12% 19% 14% 7% 13% 13% 19% 13% 13% Premises £20,000 15% 53% 73% 49% 57% 49% 33% 39% Staff £0 Sector Minority GeographicGeographic Military (9) Religious Youth (22) average ethnic (29) - town/rural - urban (29) (13) (206 (93) stations)

Source: Ofcom analysis of community broadcasters’ returns

227 Figure 3.31

Community radio hours and volunteers

Sector average

Total original hours per week 93

Number of volunteers 87

Total volunteer hours per week 209

Number of volunteers trained 60

Source: Ofcom analysis of community broadcasters’ returns Figure 3.32

Recorded music retail revenues: 2012-2014

Revenue (£m) Year on year change 1,013 1,047 1,030 1000 106 77 175 171 168 -1.6% Total 142 65.1% Subscription streaming 500 -15.3% Singles 766 774 713 -7.8% Albums

0 2012 2013 2014

Source: Entertainment Retailers’ Association / Official Charts. Figures are nominal.

229 Figure 3.33

Distribution of recorded music retail revenues: 2012-2014 Total recorded music revenues £1.01bn £1.05bn £1.03bn 100% Streaming Streaming 80% 42% 48% 50% 34% 60% Albums Albums 40% 39% Singles 58% 52% 50% 20% Singles Digital share 27% 0% Physical share 2012 2013 2014 Digital format split in 2014

Source: Entertainment Retailers’ Association / Official Charts

230 Figure 3.34

Recorded music sales, by volume: 2010-2014

Sales volumes (million units) 200 188.6 177.9 182.2 161.8 155.7 150 124.8 117.5 21 103.9 97.2 100 26.6 89.9 Digital 30.5 176.6 187.8 181.6 32.6 29.7 159.7 155 Physical 50 103.8 90.9 73.4 64.6 60.2

0 2.1 1.3 0.8 0.6 0.7 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Albums Singles

Source: Entertainment Retailers’ Association / Official Charts

231 Figure 3.35

Reach of radio, by sector

Percent of population 100% 90.6% 90.8% 89.5% 90.4% 89.5% 89.3% All radio

67.1% 67.6% All BBC 80% 66.4% 67.1% 65.6% 65.2% 63.7% 64.9% 63.5% 64.9% 63.9% 63.4% All commercial 60% 61.3% 60.6% 60.3% 61.1% 59.9% 59.2% BBC network 51.5% 52.0% 50.5% 51.4% 50.8% 50.0% 40% Local commercial 32.5% 31.6% 32.0% 28.5% 30.5% 30.9% National 20% 18.4% 18.7% 17.8% 17.8% 16.8% 16.5% commercial BBC nations / 6.3% 6.0% 6.2% 6.2% 7.6% 6.9% local 0% Other 2010 2011 2012 2013 2014 Q1 2015

Source: RAJAR, All adults (15+), calendar years 2010-2014, Q1 2015

232 Figure 3.36

Share of listening hours, by sector

Percent of listening hours 60% 55.2% 54.7% 54.7% 54.6% 53.8% 54.4% All BBC Radio

46.3% 46.0% 46.3% 46.2% 46.0% 46.9% BBC network

40% 42.6% 43.0% 42.8% 42.8% 43.1% 42.8% All commercial 31.5% 31.2% 30.2% 29.7% 30.1% 28.6% Local commercial 20% National 13.1% 13.0% 14.2% commercial 11.1% 11.8% 12.5% BBC 7.6% 8.9% 8.7% 8.4% 8.4% 7.8% nations/local 2.2% 2.3% 2.5% 2.6% 3.1% 2.8% Other 0% 2010 2011 2012 2013 2014 Q1 2015

Source: RAJAR, All adults (15+), calendar years 2010-2014, Q1 2015

233 Figure 3.37

Weekly listening hours by age group, 2005-2014

Average hours listened per week 30

26.2 65+ 26.1 25.8 25.9 25.4 25.2 25.0 25.6 25.8 25.5 25 24.0 23.6 55-64 22.9 22.4 22.1 22.0 22.5 22.2 All adults 21.5 21.4 45-54 20 20.1 35-44 19.7 18.7 17.8 25-34 17.2 15-24 16.3 17.0 15 16.3 15.5 15.0

10 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: RAJAR, average weekly listening per listener, calendar years 2005-2014

234 Figure 3.38

Change in time spent listening, by age group: 2010-2014

Percentage change in average weekly listening hours

3.0%

1.0%

-1.0% -0.8% -0.4% -3.0% -3.2% -5.0% -5.0% -5.0% -7.0% -7.8% -9.0% -8.0% Minutes difference: 42min 78min 90min 66min 12min 78min 6min 15+ 15-24 25-34 35-44 45-54 55-64 65+

Source: RAJAR, all adults 15+. Calendar years 2010 and 2014 average hours difference, by age group Figure 3.39

Change in time spent listening, by sector: 2010-2014

Percentage change in average listening hours 5.0%

1.3%

0.0%

-3.2% -5.0% -3.7% -4.9% -3.9%

-8.3% -8.1% -10.0% Minutes difference: 18min 48min 36min 48min 30min 6min 60min (Actual) All radio All BBC BBC network BBC local/nations All commercial National commercial Local commercial

Source: RAJAR, all adults 15+. Calendar years 2010 and 2014 average hours difference, by sector Figure 3.40 Average weekly listening by demographic, year ending Q1 2015

Weekly listening hours 30 Average listening per week 21.3 hours 25

20

24.5 25.3 15

23.3 22.4 22.8 10 20.6 20.3 20.1 17.7 14.9 5

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

Source: RAJAR, all adults (15+), year ending Q1 2015, average weekly listening hours per listener Figure 3.41 Devices currently used for radio listening % of respondents 65% Car radio 68% 36% Portable radio set 43% 29% Television 31% 24% Clock radio 24% 23% Desktop or laptop computer 29% 22% Radio as part of hi-fi equipment 29% Smartphone 19% 14% 12% WiFi/Internet radio 5% 2014 12% Tablet computer 7% 2013 5% MP3 player (e.g. iPod) 7% 5% A ‘whole home audio’ system 1% 4% Other 1% 3% Mobile phone (not smartphone) 4% 2% Games console 1% Don't know 1% 0% 20% 40% 60% 80%

Source: YouGov, YouGov SixthSense New Generations and the Future of Radio surveys (3rd-9th May 2013) and YouGov New Generations and the Future of Radio Survey (29th August 2014-8th September 2014) Base: 863 UK radio listeners aged 16+ (2013) and 868 UK radio listeners aged 16+ (2014) Q15. Which of the following devices do you currently listen to the radio on?

238 Figure 3.42 Location of listening – year to Q1, 2011-2015

% share of listening hours

Q1 2015 62 22 16 0.2 At home Q1 2014 63 21 16 0.2 Car/van/lorry Q1 2013 64 21 15 0.3 Work/elsewhere Q1 2012 64 20 15 0.4 Not stated Q1 2011 65 20 15 0.4

0 20406080100

Source: RAJAR, year ending Q1 2011-2015 all adults 15+

239 Figure 3.43 Types of radio content listened to, top 10 responses % of respondents Music 69%

UK/ international news headlines 37%

Local news headlines 30%

Weather 29%

Sport 25%

Comedy (incl. comedy quizzes) 18%

Transport news 17%

Phone-ins 15%

Other current affairs programmes 14%

Local affairs 14%

0% 20% 40% 60% 80% Source: YouGov New Generations and the Future of Radio Survey (29th August 2014-8th September 2014) Base: 868 UK radio listeners aged 16+ Q23. What type of content do you listen to on the radio? Please choose all that apply.

240 Figure 3.44

Importance of local radio station service

14 17 12 12 13 17 14 16 12 17 11 Not important 22 18 14 18 21 20 22 26 14 21 18 Neither/ don't know 34 36 36 31 37 42 36 37 35 41 36 Fairly important 38 30 34 32 34 30 30 Very important 27 21 27 27

All 16-24 25-34 35-44 45-54 55-64 65+ ABC1 C2DE Male Female Source: Ofcom Media Tracker 2014. Base: All who listen to a local radio station (769); 16-24 (105); 25-34 (124); 35-44 (130); 45-54 (136); 55- 64 (109); 65+ (165); ABC1 (419); C2DE (349); Male (383); Female (386). Prompted, single code. Significance testing shows any difference between any age group and all adults and any difference between socio-economic groups and by gender. Q59 – How important to you is the service that local radio stations provide?

241 Figure 3.45 Reliance on BBC local/ local commercial radio stations for local issues and events

40% 35 36 33 30 30% 28 28 25 24 20%

10%

0% Local news Local travel/weather Local emergencies (e.g. Info about local snow, floods) events/the community

BBC local radio listeners Local commercial radio listeners

Source: Ofcom Media tracker 2014. Base: All who listen to BBC local radio stations (551); All who listen to local commercial radio stations (562). Q55/ Q56 - To what extent do you personally rely on BBC local / local commercial radio stations for coverage of the following local issues and events? % ‘rely on’ - a score of 1 or 2 on a scale of 1 to 5 where 1 is completely rely on 242 Figure 3.46

Importance that local radio station is based locally

13 13 15 15 12 10 13 15 11 14 13 Not important 17 12 22 21 22 30 24 22 25 22 21 Neither/ don't 36 35 know 33 24 32 32 32 37 33 34 36 Fairly important 39 37 41 32 29 30 36 33 31 Very important 21 26

All 16-24 25-34 35-44 45-54 55-64 65+ ABC1 C2DE Male Female Source: Ofcom Media Tracker 2014. Base: All who listen to a local radio station (769); 16-24 (105); 25-34 (124); 35-44 (130); 45-54 (136); 55- 64 (109); 65+ (165); ABC1 (419); C2DE (349); Male (383); Female (386). Prompted, single code. Significance testing shows any difference between any age group and all adults and any difference between socio-economic groups and by gender. Q60 – How important is to you that your local radio station is based in your local area? 243 Figure 3.47

Satisfaction with local radio station

2 223333131 21 17 15 18 Dissatisfied 19 21 16 21 21 23 21

Neither/ don't know 82 81 84 81 78 79 77 76 75 74 76 Satisfied

All 16-24 25-34 35-44 45-54 55-64 65+ ABC1 C2DE Male Female Source: Ofcom Media Tracker 2014. Base: All who listen to a local radio station (769); 16-24 (105); 25-34 (124); 35-44 (130); 45-54 (136); 55- 64 (109); 65+ (165); ABC1 (419); C2DE (349); Male (383); Female (386). Prompted, single code. Significance testing shows any difference between any age group and all adults and any difference between socio-economic groups and by gender. Q58 – How satisfied are you with what you hear on your local radio station? 244 Figure 3.48 Listening to music; 2013 and 2014 % of respondents 56% Radio stations 65%

38% Personal music installed on an MP3 player 49%

34% Online video (e.g. YouTube) 34%

33% Personal music via a Hi-Fi system 39%

Personal music installed on a mobile 29% phone/smartphone 29% 2014 23% 2013 Internet streaming services (e.g. Spotify) 19%

21% TV music channels/programmes 23%

3% Online ‘personalised radio’ services 2%

4% Other 4%

0% 20% 40% 60% 80% Source: YouGov, YouGov SixthSense New Generations and the Future of Radio surveys (3rd-9th May 2013) and YouGov New Generations and the Future of Radio Survey (29th August 2014 - 8th September 2014) Base: 863 UK radio listeners aged 16+ (2013) and 868 UK radio listeners aged 16+ (2014) Q36. Thinking about how you listen to music, which of the following do you use regularly?

245 Figure 3.49 Sources used for finding out about new music or concerts % of respondents 43% Artist/band websites 35% 42% Radio stations 54% 41% Recommendations from friends/family 46% 33% Social networking sites 36% 31% Online shopping sites (e.g. Amazon) 31% 26% Online video (e.g. YouTube) 39% 22% Reviews in newspapers 29% 2014 19% TV music channels/programmes 22% 2013 19% Online reviews on music websites 24% 18% Internet streaming services 19% 17% Email/text alert system/newsfeed 13% 12% Reviews in music magazines 12% 9% Other 6% 0% 10% 20% 30% 40% 50% 60% Source: YouGov, YouGov SixthSense New Generations and the Future of Radio surveys (3rd-9th May 2013) and YouGov New Generations and the Future of Radio Survey (29th August 2014 - 8th September 2014) Base: 863 UK radio listeners aged 16+ (2013) and 868 UK radio listeners aged 16+ (2014) Q38. In terms of how you find out about the new music you buy or concerts you attend, which of the following sources do you regularly use? 246 Figure 3.50 Digital radio’s share of radio listening, Q1 2014

Digital radio platforms’ share of all radio hours

50%

39.6 Internet 40% 36.7 36.1 36.7 36.8 37.7 37.8 34.3 35.6 31.5 31.3 33.0 6.4 6.1 6.8 5.0 6.0 5.7 5.8 6.4 6.2 2.1 30% 4.6 4.2 4.9 1.5 1.7 1.7 1.6 1.7 1.8 1.8 Digital 1.9 1.8 5.0 4.7 4.8 2.1 1.9 5.0 5.3 5.2 5.2 5.0 4.8 unspecified 4.7 4.8 5.1 20% TV 23.9 23.7 24.1 24.5 25.2 25.9 10% 20.1 20.4 21.1 22.5 23.0 23.4 DAB 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 Source: RAJAR Note: ‘Digital unspecified’ relates to listening to digital-only stations where the survey respondent has not specified the listening platform used. ‘Internet’ is classified as ‘Online/Apps’

247 Figure 3.51

Share of listening hours across analogue and digital platforms

100% 17.8% 20.1% 24.0% 26.5% 29.2% 80% 34.3% 36.6% 39.6% 9.5% Digital 12.5% 9.3% 8.1% 7.7% 60% 5.1% 5.6% 6.2% Unspecified

40% 72.7% Analogue 67.5% 66.7% 65.4% 63.1% 60.5% 57.8% 54.3% 20%

0% Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015

Source: RAJAR, all adults (15+), data relates to Q1 results as shown Note: ‘Unspecified‘ relates to listening where the radio platform was not confirmed by the listener Figure 3.52

Listening to radio via TV, internet and mobile phone

Proportion of respondents (%) who have listened to radio via digital television, internet or mobile phone 30% 27 27 27 25 25 24 24 22 23 22 22 20 21 20% 15 16 16 14 13 10 10 10 10%

0% 2009 2010 2011 2012 2013 2014 2015 TV Internet Mobile Phone Source: Ofcom Technology Tracker. Data from Quarter 1 of each year 2012-2013, then Wave 1 2014-2015 Base: All adults aged 16+ (n = 6090 UK 2009, 9013 UK 2010, 3474 UK 2011, 3772 UK 2012, 3750 UK 2013, 3740 UK 2014, 3756 UK 2015) QP11. How often, if at all, do you access the radio via – Digital radio via: TV, Internet, DAB radio, mobile phone? *NB 2013-15 measures for internet combine responses across radio listeners and internet users, 2013-15 measures for mobile phone combine responses across radio listeners and mobile phone users 249 Figure 3.53

Ownership of DAB sets: Q1 2015

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

45%

30% 49.0% 44.3% 47.9% 38.2% 42.6% 32.1% 34.5% 15% 27.3%

0% Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015

Source: RAJAR / Ipsos MORI / RSMB Q1 2008-2015

250 Figure 3.54 Take-up of equipment capable of receiving radio: Q1 2015

Year-on-year increase (pp) +3 0 +1 +5 +10

Share of households 100%

80%

60% 97 40% 85 66 49 54 20%

0% Internet TV DAB radio Smartphone Tablet Source: Research from: Ofcom, RAJAR Q1 2015

251 Figure 3.55 Platform split by sector and station: year ending Q1 2015

Share Overall radio sector National commercial BBC network of radio listening 100% 46% 8% 13% 30% 4% 2% 1% 7% 18% 1% 12% 4% 100% 6% 5% 9% 4% 7% 5% 6% 4% 5% 6% 5% 4% 5% Not Stated 21% 26% 30% 80% 36% 34% 39% 38% 42% 41% 42% 47% 62% 60% 73% Digital

40% 70% 67% 65% 56% 58% 60% 56% Analogue 53% 52% 54% 48% 20% 34% 23% 0%

Source: RAJAR, year ending Q1 2015, adults 15+ Figure 3.56 Most popular digital-only stations - UK, Q1 2015

Average weekly reach year ending Q1 2015 (millions) % change year on year

2.5 Radio group +11% 2.0 +10% Bauer BBC 0 +21% 1.5 Independent +57% -12% 0 1.0 2.0 +22% -12% 1.8 -22% 1.4 1.4 +13% -23% -21% +21% 0.5 1.1 1.0 1.0 0.9 0.9 0.7 0.6 0.5 0.5 0.5 +9% 0.2 0.0

Source: RAJAR, year ending Q1 2015 adults 15+ Figure 3.57

Number of analogue and digital radio sets sold Digital share of sales: 26.1% 27.2% 31.6% 35.7% 35.7% 36.5%

Retail set sales (millions)

10

7.1 6.8 5.9 5.4 1.8 1.9 4.8 5 1.9 4.4 DAB sets 1.9 1.7 1.6 Analogue sets 5.2 5.0 4.0 3.5 3.1 2.8 0 Year to Year to Year to Year to Year to Q1 Year to Q1 Q1 2010 Q1 2011 Q1 2012 Q1 2013 2014 2015 Source: GfK sales data, 2010-2015 Note: Figures cover GB only, GfK Panelmarket data represent over 90% of the market. Categories of device included are; portable radios, personal media players, car audio systems, home audio systems, clock radios, radio recorders, headphone stereos, tuners and receivers. 254 Figure 3.58

Likelihood to buy a DAB radio within the next 12 months

Percentage of respondents who listen to the radio but have no DAB set in the home

Likely to buy Unlikely to buy Don't know

14% 67% 19%

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

Source: Ofcom Technology Tracker, W1 2015 Base: Those who listen to the radio but have no DAB sets in the home (n=1690) QP6(QP12): How likely is it that your household will get a DAB radio in the next 12 months?

255 Figure 3.59 Unique audiences of selected music streaming sites Unique audience (thousands) 12000 Spotify SOUNDCLOUD.COM 10000 9,570 TuneIn 8000 7,089 7,313 6,799 Audible, Inc. 6,329 6,215 6000 5,243 5,346 DEEZER.COM

4000 LAST.FM 2,258 2,174 2,140 1,876 MIXCLOUD.COM 2000 Grooveshark 0 Jan-2015 Feb-2015 Mar-2015 Apr-2015 RADIOPLAYER.CO.UK

Source: comScore MMX Multiplatform UK, total digital population 15+, April 2015

256 Figure 3.60 Audio internet use

% of respondents 40% 33% 30% 20% 20% 11% 10% 6%

0% Downloading music Listening to radio Streamed audio Streamed audio files services (free) services (subscription based)

Source: Ofcom Technology Tracker, W1 2015 Base: Those with access to the internet at home or elsewhere (n= 3095) QE20(QE5A): Which, if any, of these do you use the internet for?

257 Figure 3.61 Platforms currently used for mobile radio listening % of respondents 32% BBC iPlayer Radio app 28% 23% Tunein Radio app 23% BBC iPlayer Radio via internet browser 19% 23% Specific radio station app 19% 16% Specific radio station via internet browser 14% 18% 13% Via the radio tuner on MP3/ smartphone etc. 22% Radioplayer app 10%12% Radioplayer via internet browser 7%8% 2014 Tunein Radio via internet browser 6% 8% 2013 Other radio apps 6% Podcast via app 5% 4% Podcast via internet browser 5% WunderRadio app 1%2% Other 4% 9% Don't know 8% 0% 10% 20% 30% 40% Source: YouGov, YouGov SixthSense New Generations and the Future of Radio surveys (3rd-9th May 2013) and YouGov New Generations and the Future of Radio Survey (29th August 2014-8th September 2014) Base: 863 UK radio listeners aged 16+ (2013) and 868 UK radio listeners aged 16+ (2014) Q16. Which of the following do you use to listen to the radio on your mobile device?

258 Figure 3.62 BBC iPlayer quarterly radio requests

Radio requests (millions) 250 238 219 220 213 201 200 205 205 43 200 35 35 42 42 39 36 37 On-demand 150

100 Simulcast 184 185 195 165 163 171 163 166 50

0 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014

Source: Ofcom calculations based on BBC iStats Note: A change in methodology means that Q1 2013 is not comparable to previous data.

259 Figure 3.63

Share of listening hours, by nation Listening hours share 100% 3% 4% 2% 12% 5% Other 26% 80% 30% 33% 29% 35% Local 13% Commercial 60% 13% 13% 14% 10% UK 7% 9% 7% 8% Commercial 40% 20% BBC 49% Local/Nations 20% 47% 40% 46% 24% BBC Network 0% England Scotland Wales Northern UK TOTAL Ireland

Average weekly 21.5 hours 19.9 hours 22.4 hours 21.6 hours 21.4 hours listening Reach 89.4% 86.9% 94.5% 88.9% 89.5% Source: RAJAR, All adults (15+), calendar year 2014

260 CMR 2015: Telecoms and networks Industry metrics and summary

262 Figure 4.1 UK telecoms industry: key statistics

2009 2010 2011 2012 2013 2014 Total operator-reported revenue (£bn) 41.3 40.4 39.9 39.4 38.1 37.4 Operator-reported retail revenue (£bn) (excluding CDS) 27.9 27.8 28.0 28.5 28.4 28.5 Operator-reported wholesale revenue (£bn) 10.6 9.9 9.2 8.2 7.0 6.2 Average monthly household telecoms spend (£, 2014 87.20 86.50 84.63 84.00 81.40 81.30 prices)

Fixed access and call revenue (£bn) 9.6 9.3 9.0 8.8 8.7 8.5 Fixed internet revenue (£bn) 3.2 3.3 3.5 3.8 4.2 4.8 Fixed lines (millions) 33.5 33.4 33.3 33.2 33.3 33.2 Fixed broadband connections (millions) 18.4 19.6 20.7 21.8 22.8 23.7 Broadband connections with headline speed ≥30Mbit/s 0.0 0.2 1.0 3.1 5.3 7.1 (millions) Fixed voice call minutes (billions) 128 123 111 103 92 80

Mobile retail revenues (£bn) 15.0 15.1 15.4 15.9 15.6 15.3 Mobile voice call minutes (billions) 127 131 131 132 135 137 SMS & MMS messages sent (billions) 106 129 150 151 129 110 Mobile data volumes (PB) - - - - 283 533 Active mobile subscriptions (millions) (including M2M) 80.6 81.5 82.2 83.2 82.7 83.7

Source: Ofcom / operators Notes: CDS refers to corporate data services; connection figures are at year-end.

263 Key market developments

264 4G

265 Figure 4.2

Total 4G subscription numbers 4G subscriptions (millions) % of all subscriptions that are 4G

25 28% 30% 23% 20 25% 19% 4G subscription 20% numbers 15 15% (millions) 23.6 15% 10 19.1 15.8 10% 12.9 4G subscriptions 5 3% 5% as % of total 1% 2.7 0 1.3 0% Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014

Source: Operator data Note: Includes all consumers whose tariff allows them to access 4G mobile services, even those without a 4G-enabled device or in areas where their provider has no 4G coverage.

266 Figure 4.3 4G outdoor premises coverage, by network 4G premises coverage (%)

100 81 75 65 66 68 53 50 43 June 2014 37 March 2015 25 No data 0 Vodafone Telefonica (O2) EE Three

Source: Ofcom mobile broadband performance reports, November 2014 [http://stakeholders.ofcom.org.uk/binaries/research/broadband-research/mbb-nov14.pdf] & April 2015 [http://stakeholders.ofcom.org.uk/binaries/research/broadband- research/april15/Ofcom_MBB_Performance_Report_April_2015.pdf] Note: 4G coverage data were not available for Three in June 2014.

267 Figure 4.4 4G take-up overall, by age, gender and socio-economic group % of respondents

50%

40%

30%

45% 20% 42% 34% 30% 31% 28% 28% 25% 10% 11% 0% Overall 16-24 25-44 45-54 55+ Male Female ABC1 C2DE Socio-economic Age Gender group Source: Ofcom Technology Tracker. Data from wave 1, 2015 Base: UK adults 16+, ABC1 (1948) C2DE (1807) male (1832) female (1924) 16-24 (514), 25-44 (1247), 44- 54 (1447) and 55+ (1447) QD6 (QD41) Do you have a 4G service? This is a relatively new service that enables faster mobile internet access. 268 Figure 4.5

Average 4G and 3G HTTP download, upload and web browsing speeds overall: Q4 2014

HTTP download and upload speeds Web browsing speed Average speed (Mbit/s) Average speed (seconds) 20 1.50

14.7 15 13.6 1.04 1.00 0.72 10 5.9 0.50 5 1.6 0 0.00 HTTP download speed HTTP upload speed 4G 3G

Source: Ofcom mobile broadband measurement fieldwork October to December 2014 Note: Speeds are the average (mean) of all 4G tests and all 3G tests.

269 Figure 4.6 Satisfaction levels with 4G compared to 3G, by category % of respondents 100% 1% 1% 5% 3% 3% 2% 12% 8% Very dissatisfied 22% 80% 33% 28% 38% Dissatisfied 60% Neither satisfied nor dissatisfied 53% Satisfied 40% 49% 48% 44% Very satisfied 20% 19% 13% 9% 8% 0% Speed Data quality Reception Value for money Source: YouGov, 4G Tariffs 22-28 May 2015 Base: Online UK adults 16+ who have upgraded from 3G to 4G (574) q33_1. How satisfied are you with your upgrade to 4G (compared with 3G), in terms of internet speed, quality of reception/coverage, data quality and value for money? 270 Figure 4.7 Importance of factors when deciding to take up a 4G plan % of respondents 100% 4% 9% 13% 6% 13% 20% 7% 38% 75% 13% 13% 24% 18% Don't know 19% 6 Least 15% important 18% 5 24% 23% 50% 19% 19% 4 20% 20% 3 17% 18% 17% 2 17% 25% 1 Most 44% 20% 10% important 15% 13% 19% 8% 10% 9% 9% 0% 6% Cheap price Extent of Speed of Unlimited data Unlimited Not being tied network internet Minutes/ Texts into too long a coverage connectivity contract Source: YouGov, 4G Tariffs 22-28 May 2015 Base: Online UK adults 16+ who do not currently have 4G (388) Q40. Which of these would be most important when deciding which 4G plan to take up? Please put in rank order of 1-6 where 1 = most important and 6 = least important. 271 VoIP

272 Figure 4.8 Proportion of internet users regularly using VoIP services: 2014-2015 Proportion of internet users (%) 29 30 30 28 Video 25 23 24 23 23 23 calling 21 21 22 21 only 20 20 19 20 18 20 19 20 16 14 17 Voice & 16 19 13 15 14 13 14 18 15 video 7 13 14 12 10 4 calling 6 5 4 3 4 6 3 4 6 3 4 8 2 7 4 3 3 3 Voice 4 4 3 5 4 4 4 0 4 4 0 3 1 3 2 3 2 2 3 calling only 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 All adults 16-2425-39 40-54 55+ MaleFemale ABC1 C2DE

Source: YouGov VoIP 24-31 March 2015 and YouGov VoIP 1-6 May 2014 Base: Online UK adults 16+ 2015 (n = 2110) and 2014 (n = 1048) q1. Which of these, if any, do you use on a regular basis as a method of communication, for either business or personal use? Note: Excludes those who only use VoIP to make voice calls on mobile handsets.

273 Figure 4.9 Use of VoIP providers: 2014-2015

Proportion of VoIP users (%)

60 55 50 42 40 2014 29 30 25 20 20 2015

10 4 4 3 3 0 Skype WhatsApp Apple FaceTime Viber Google Hangouts

Source: YouGov VoIP 24-31 March 2015 and YouGov VoIP 1-6 May 2014 Base: Online UK current VoIP users 16+ 2015 (n = 1325), 2014 (n = 834) Q5. And which of these, if any, do you currently use for making phone calls, video calls, instant messaging and/or faxing?

274 Figure 4.10 Devices used to make VoIP calls: 2014-2015

Proportion of VoIP users (%)

80

61 60 55 2014 42 42 39 40 36 28 24 2015 20 2 3 0 Smartphone Laptop computer Tablet computer Desktop computer Dedicated VoIP handset Source: YouGov VoIP 24-31 March 2015 and YouGov VoIP 1-6 May 2014 Base: Online UK VoIP users 16+ 2015 (n = 1008), 2014 (n = 398) q6. On which of the following devices do you use VoIP services, whether for making phone calls, video calls, instant messaging and/or faxing?

275 Figure 4.11 Use of voice services on mobile phones: 2015

Proportion of respondents using VoIP on a mobile phone (%)

15 14 13 12 12 12 12 11 Mostly 7 10 9 use VoIP 8 10 8 7 8 9 7 Only use 5 8 VoIP 7 7 4 3 4 3 3 4 1 0 1 All adults 16-24 25-39 40-54 55+ Male Female ABC1 C2DE Source: YouGov VoIP 24-31 March 2015 Base: Online UK adults who use VoIP on their smartphone 16+ (617), 16-24 (118), 25-39 (181), 40-54 (175), 55+ (143), male (258), female (359), ABC1 (343) and C2DE (274) Q7. You’ve stated that you use VoIP on your smartphone and/or feature phone. Thinking specifically about voice calls (i.e. not using video), which of the following best describes your use? 276 Figure 4.12 Network used to connect to VoIP services, by device type: 2015

Proportion of mentions (%)

100 1 3 2 Other 32 3 24 16 8 7 31 80 11 14 4G mobile 22 38 3G mobile 60 14 1 WiFi hotspots 40 75 73 Ethernet 51 20 46 Home WiFi 0 Smartphone Laptop computer Tablet computer Desktop computer

Source: YouGov VoIP 24-31 March 2015 Base: Online UK adults who use VoIP 16+ (1008) Q8. And how do you connect to VoIP from the device/s you use?

277 Figure 4.13 Frequency of VoIP use: 2014-2015

Proportion of VoIP users (%) 100 3 5 Unsure 22 22 80 Less than once a month 16 12 60 Once a month 10 11 40 Once a fortnight 34 38 Weekly 20 14 13 Daily 0 2014 2015

Source: YouGov VoIP 24-31 March 2015 and YouGov VoIP 1-6 May 2014 Base: Online UK adults who use VoIP 16+ 2015 (1008) and 2014 (398) Q15. Which of the following best describes how frequently you use VoIP services?

278 Figure 4.14 Advantages of VoIP

Proportion of mentions (%)

5 3 Price related 7 Video calling 8 Can call wherever there is a web connection 44 Ability to send files mid-conversation 12 Group calling Call quality is better if the connection is fast enough 22 Other

Source: YouGov VoIP 24-31 March 2015 Base: Online UK adults who use VoIP 16+ 2015 (1008) Q22. Which of these, if any, do you feel are advantages of using VoIP over traditional methods of calling?

279 Figure 4.15 Paying for VoIP services: 2015

Proportion of VoIP users (%)

100 6 2 6 8 5 4 7 4 8 80 Unsure

60 73 79 Don't pay for any 79 91 76 79 78 80 77 40 Pay for some

20 13 Pay for all 10 8 10 10 10 10 10 0 6 6 8 7 6 8 4 6 5 55+ All Male 16-24 25-39 40-54 ABC1 C2DE adults Female

Source: YouGov VoIP 24-31 March 2015 Base: Online UK adults who use VoIP 16+ 2015 (1008) Q17. Do you pay for any of the VoIP service/s you use?

280 Take-up and use of fixed and mobile broadband services

281 Figure 4.16 Development of UK maximum available headline fixed broadband and theoretical mobile data speeds: 2004-2014

Speed (Mbit/s) 300 Cable ADSL 200 FTTP

330 330 UMTS (3G) 100 HSPA (3.5G) 200 200

160 HSPA+ (3.5G) 24 24 100 100 100 LTE (4G) 50 50 4 10 0 0.4 0.4 14 14 14 14 14 42 Fixed Fixed Fixed Fixed Fixed Fixed Fixed Fixed Fixed Fixed Fixed Mobile Mobile Mobile Mobile Mobile Mobile Mobile Mobile Mobile Mobile Mobile 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source Ofcom Note: Mobile figures are the theoretical maximums offered by the deployed technologies.

282 Figure 4.17

Cross-ownership of fixed and mobile broadband: 2010-2015

Proportion of respondents (%) 78 79 81 84 80 4 74 2 4 4 2 71 5 3 4 4 7 2 4 Smartphone 6 8 access only 60 9 9 Mobile broadband only 40 70 73 64 68 Fixed & mobile 56 58 broadband 20 Fixed broadband only 0 2010 2011 2012 2013 2014 2015 Source: Ofcom Technology Tracker. Data from Q1 of each year 2009-2013, then wave 1 2014-2015 Note: Mobile broadband excludes data use on a smartphone handset; smartphone access-only data are not available prior to 2012 Base: All adults aged 16+ (6090 in 2009, 9013 in 2010, 3474 in 2011, 3772 in 2012, 3750 in 2013, 3740 in 2014 3756 in 2015) 283 Figure 4.18 Cross-ownership of fixed and mobile broadband services, by age, socio- economic group and housing type Proportion of respondents (%)

100 91 94 93 92 88 Smartphone 84 83 5 7 42 81 22 1 access only 4 42 5 6 5 76 6 80 2 5 241 70 9 4 5 4 Mobile broadband 32 8 3 60 58 3 2 2 only Fixed & mobile 40 79 76 80 74 82 80 73 64 67 54 57 broadband 20 Fixed broadband 0 only All 65+ 16-24 25-34 35-54 55-64 ABC1 C2DE Rent - social Source: Ofcom Technology Tracker. Data from wave 1 2015 Rent - private Own/ mortgage Note: Mobile broadband excludes data use on a smartphone handset Base: All adults aged 16+ (3756), aged 16-24 (514), aged 25-34 (606), aged 35-54 (1189), aged 55-64 (586), aged 65+ (861), ABC1 (1948), C2DE (1807), Own/ mortgage home (2224), Rent home – social (869), Rent home – private (505).

284 Figure 4.19 Average actual fixed and mobile data speeds: H2 2014

Speed (Mbit/s) 30

22.8

20 14.7

10 5.9

0 Fixed broadband 3G mobile 4G mobile Source Ofcom: UK fixed-line broadband performance, November 2014 (http://stakeholders.ofcom.org.uk/market-data-research/other/telecoms-research/broadband- speeds/broadband-speeds-november2014/) and Measuring mobile broadband performance in the UK (http://stakeholders.ofcom.org.uk/market-data-research/other/telecoms-research/broadband- speeds/mobile-bb-april-15/)

285 Figure 4.20 Use of online activities among fixed-only and mobile-only broadband users Proportion of respondents (%) 100 87 Fixed 79 80 broadband 66 59 58 -only 60 51 39 38 40 29 Mobile 26 24 22 22 18 21 20 17 broadband 20 14 13 8 997 5 -only* 0 Email Using VoIP clips Purchasing Using Twitter programmes goods/services services Watching free profressional TV Watching live TV video content Listening to radio Listening Watching purchased Watching Watching short video Using streamed audio Watching catch-up TV Social networking sites Source: Ofcom Technology Tracker, wave 1 2015 Base: All adults who only use fixed broadband (2519), all adults who only use mobile broadband (75) Note: *Caution: base between 50 and 100 therefore results are indicative only QE20 (QE5A) Which, if any, of these do you use the internet for? 286 Figure 4.21 Lowest available residential fixed and mobile pricing: 2010-2014

Monthly price (£)

50 41 3G (10GB data) 40 31 4G (10GB data) 30 27 27 23 23 20 19 18 Standard fixed broadband 20 16 16 (unlimited data) 10 15 16 15 15 15 ≥30Mbit/s fixed broadband (unlimited data) 0 2010 2011 2012 2013 2014

Source: Ofcom / Teligen, data from July of each year Note: Fixed broadband includes line rental where this is required; the price of a 4G service in 2013 related to an 8GB service with an additional 2GB data bolt-on.

287 Fixed voice tariff re-balancing and stand-alone landline households

288 Figure 4.22

Residential line rental prices: 2006-2014 £ per month (Dec 2014 prices) 20 BT 15 Sky

10 Virgin Media /ntl/Telewest TalkTalk 5 EE/Orange

0 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: Ofcom / Pure Pricing UK broadband pricing briefings Note: Prices as at December of each year; adjusted for CPI; excludes line rental saver pre-payment tariffs.

289 Figure 4.23

Fixed-line call volumes, by type of call Billions of minutes 304 300 245 Narrowband 137 internet calls 199 Other voice calls 200 82 44 165 146 Calls to mobiles 25 29 15 130 16 24 31 5 124 7 16 16 28 2 1 112 103 7 7 15 24 22 1 92 International calls 100 7 147 12 12 20 1 80 7 7 10 18 18 6 96 8 15 120 112 107 5 74 UK geographic 97 92 85 83 calls 75 69 61 54 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: Ofcom/operator data

290 Figure 4.24

Average monthly retail revenue per fixed line £ per month Per cent 60 80 69.4 Out-of- 66.6 63.2 bundle calls 50 59.2 52.6 54.2 60 49.7 51.7 40 45.0 47.0 42.0 Line rental & bundled 30 27.62 26.02 25.83 40 25.27 24.75 23.71 23.31 calls 22.52 22.04 21.74 21.17 20 16.03 14.30 13.68 12.72 11.95 11.23 10.68 9.19 8.12 7.26 6.48 Line rental 20 as a % of 10 total spend 13.33 13.93 14.47 14.69 11.59 11.72 12.15 12.55 12.80 12.48 12.63 (right axis) 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: Ofcom/operator data Note: Excludes VAT.

291 Figure 4.25

Split of fixed-only homes, by demographic

Age Socio-economic group Income Working status

1% 4% 7% 2%10% 18% 20% 33% 44% 14% 51% 53%

22% 14% 82% 25%

16-24 25-34 35-44 Under £20k 45-54 55-64 65-74 AB C1 C2 DE £20k or more Working Not working 75+ Refused to answer

Source: Kantar Media Omnibus. Base: All landline-only customers with sole/joint responsibility for paying the bill (241)

292 Figure 4.26 Awareness and use of alternative providers: landline-only customers

Current landline provider Awareness of fixed voice providers Proportion of respondents (per cent) Proportion of respondents (per cent) 100 1 2 1 10 911100 14 10 80 14 80 17 21 22 60 8 60 94 94 22 92

40 25 86

40 81 80 80 77 75 59

54 57 20 20 51

32 33 32 31 29 27 28 16 17 13 14 18 9 0 0 8

All landline Landline Landline BT Sky

customers only with Tesco Co-op

broadband Talk Talk Post Office Don't know Other John Lewis TalkTalk Virgin Media All with landline Virgin Media Landline with broadband Sky BT Landline only Source: Kantar Media Omnibus. Base: All landline customers (with sole/ joint responsibility for paying the bill) (1095); Landline only (241); Landline with fixed broadband (826) Q5A. Which provider do you use for your landline service? Q11. Before today, which of the following companies were you aware it is possible to get a landline service from? 293 Industry section

294 Figure 4.27

Summary of UK telecoms revenues 2014 5yr Revenue (£bn) change CAGR 50 41.3 40.4 39.9 Total -2.0% -2.0% 39.4 38.1 40 2.8 2.7 37.4 2.8 2.7 2.7 2.6 Corporate data -1.0% -1.0% 30 15.0 15.1 15.4 services 15.9 15.6 15.3 Retail mobile -2.1% 0.3% 20 12.9 12.7 12.5 Retail fixed 3.2% 0.6% 12.6 12.8 13.3 10 Wholesale 10.6 9.9 9.2 -11.5% -10.2% 8.2 7.0 6.2 services 0 2009 2010 2011 2012 2013 2014 Source: Ofcom / operators, with the exception of corporate data services, which sourced from IDC. Notes: ‘Corporate data services’ comprises web hosting, Ethernet, IP VPN, digital leased line, corporate VoIP and frame relay/ATM services; wholesale mobile comprises wholesale mobile voice, messaging and data services, mobile voice and SMS termination revenue and wholesale inbound roaming revenue (i.e. - revenue from overseas operators when their subscribers use UK networks). 295 Figure 4.28

Outgoing fixed and mobile voice call volumes

Billions of minutes 2014 5yr 300 change CAGR 255 254 242 235 226 218 Total -3.9% -3.1% 200 127 131 131 132 135 137 Mobile 2.0% 1.6% 100 128 123 111 103 Fixed -12.6% -8.9% 92 80 0 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators

296 Figure 4.29

Fixed lines and mobile subscriptions Millions 100 2014 5yr 88.2 88.4 89.9 84.7 86.3 change CAGR 80.6 80

60 Fixed lines -0.2% -0.2%

40 33.5 33.4 33.3 33.2 33.3 33.2 Mobile subscriptions 1.8% 2.2% 20

0 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators

297 Figure 4.30

Mobile share of voice connections, revenues and volumes Per cent

80 2014 pp 5 year pp 69.5 69.6 69.8 70.2 70.0 70.2 change change 63.1 64.4 64.1 64.3 60 60.9 61.8 63.1 0.2 0.7 59.5 Connections 54.2 56.3 49.7 51.6 40 Revenues 0.2 3.4

Call volumes 3.7 13.4 20

0 2009 2010 2011 2012 2013 2014

Source: Ofcom/operator data Note: Mobile voice revenues will be overstated as they include revenues from bundled messaging and data services.

298 Figure 4.31

Unbundled BT local exchanges and connected premises Per cent 2014 pp 5 year pp 100 change change 94.1 95.1 95.2 89.0 91.9 80 84.5 Proportion of 0.2 10.7 premises connected 56.6 56.7 60 53.2 to unbundled 47.2 exchanges 41.5 36.0 Proportion of 0.1 20.7 40 exchanges that have been unbundled 20 26.4 27.7 28.9 22.4 23.9 19.0 Proportion of lines 1.1 9.9 provided using LLU 0 2009 2010 2011 2012 2013 2014

Source: Ofcom / BT

299 Figure 4.32

Unbundled fixed lines

Millions 2014 5yr 10 9.2 9.6 8.8 change CAGR 1.2 7.9 1.7 8 7.5 2.4 Total 3.8% 8.6% 6.4 2.7 6 3.5 Partially -26.2% -20.2% 3.8 8.4 unbundled 4 7.6 6.4 5.2 Fully unbundled 10.4% 26.7% 2 4.0 2.6 0 2009 2010 2011 2012 2013 2014

Source: BT

300 Fixed voice services

301 Figure 4.33

Retail fixed voice revenues Revenue (£bn) 2014 5yr change CAGR 10 9.6 9.4 9.0 8.8 1.2 8.7 8.5 Total -2.6% -2.6% 1.1 1.0 8 0.9 0.8 0.8 1.6 1.5 1.2 1.0 0.9 0.8 Non-geographic -2.0% -7.6% 0.5 0.4 0.3 0.3 0.2 calls 0.4 0.9 0.8 6 1.3 1.2 1.1 1.0 Calls to mobiles -14.9% -13.7%

4 International -13.5% -13.7% calls 5.8 5.9 5.1 5.1 5.3 5.6 UK geographic -13.5% -9.4% 2 calls Line rental & 1.5% 3.0% 0 bundled calls 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators

302 Figure 4.34

Average monthly retail voice revenue per fixed line £ per month 2014 5yr change CAGR 25 23.71 23.31 22.52 22.04 21.74 2.95 21.17 Total -2.6% -2.2% 2.82 2.44 20 2.23 2.07 2.02 3.92 3.64 3.07 2.59 2.25 1.91 Non-geographic -2.0% -7.3% 1.20 1.11 0.95 0.83 0.68 0.59 calls 15 2.48 2.27 1.96 3.16 3.10 2.72 Calls to mobiles -14.9% -13.4%

10 International -13.6% -13.4% calls 14.47 14.69 12.48 12.63 13.33 13.93 UK geographic -13.6% -9.1% 5 calls Line rental & 1.5% 3.3% 0 bundled calls 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators

303 Figure 4.35

Fixed voice call volumes, by type of call Billions of minutes 2014 5yr change CAGR 150 127.9 123.0 Total -12.6% -8.9% 111.1 23.7 21.7 102.6 19.7 91.7 Non-geographic -14.4% -8.7% 100 12.3 11.8 6.7 18.3 80.2 calls 6.7 10.3 17.6 6.5 9.4 5.9 8.4 15.1 Calls to mobiles -14.4% -10.3% 4.9 7.2 4.3 50 85.1 82.8 International calls -12.0% -8.4% 74.6 69.0 60.9 53.6 UK geographic -11.9% -8.8% 0 calls 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators

304 Figure 4.36

Share of retail fixed voice call volumes

Market share (per cent) 2014 pp 5 year pp 100 change change 21 18 30 29 27 24 Other indirect -2.7 -11.5 80 operators

29 31 Other direct 2.3 16.2 60 15 19 23 26 operators 14 13 12 12 13 13 40 Virgin Media 0.6 -0.4

20 42 39 38 38 38 37 BT -0.2 -4.3

0 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators Note: Excludes non-geographic voice calls.

305 Figure 4.37

Number of fixed lines Millions 40 2014 5yr 33.5 33.4 33.3 33.2 33.3 33.2 change CAGR

30 8.8 8.3 7.7 10.2 9.7 9.4 Total -0.2% -0.2%

20 Business -7.2% -5.3%

23.4 23.8 23.9 24.5 25.0 25.5 10 Residential 2.1% 1.8%

0 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators

306 Fixed data services

307 Figure 4.38

Retail residential and SME fixed internet revenues £billions

4.9 2014 5yr 5 change CAGR 4.2 4 3.8 3.5 18.5% 8.8% 3.2 3.3 Total 3 4.9 Broadband 18.5% 9.4% 2 3.8 4.2 3.2 3.3 3.5 1 Narrowband -53.4% -55.8%

0 2009 2010 2011 2012 2013 2014

Source: Ofcom / operator data

308 Figure 4.39

Retail fixed broadband lines

Millions 2014 5yr 23.7 change CAGR 25 22.8 21.8 20.7 2.3 3.6 19.6 0.4 1.1 Total 4.0% 5.3% 20 18.4 0.1 4.3 4.0 4.1 4.4 4.5 3.8 Others 0.0% -0.3% 15 Fibre 55.4% n/a 7.9 8.7 6.4 7.5 8.9 8.9 10 Cable 3.3% 3.4%

5 LLU-ADSL 0.2% 7.1% 8.1 8.0 8.2 7.7 7.1 6.6 Non-LLU ADSL -7.5% -4.1% 0 2009 2010 2011 2012 2013 2014

Source: Ofcom / operator data

309 Figure 4.40

Premises able to receive NGA and superfast broadband services

Proportion of premises (per cent) NGA broadband services Superfast broadband services 100

80

60

90 92 40 83 88 67 20 37

0 UK UK Urban UK Rural

Source: Ofcom / Openreach / Virgin Media / Kcom, May 2015 data

310 Figure 4.41

UK residential broadband lines, by headline speed Per cent 100 1 2 5 8 14 20 'Up to' 30Mbit/s and 24 24 28 80 32 higher 41 45 53 60 60 Over 'up to' 10Mbit/s 63 and less than 'up to' 66 64 40 68 61 59 30Mbit/s 54 51 'Up to' and including 41 20 31 8Mbit/s to 10Mbit/s 23 13 12 10 9 0 8 4 2 1 1 1 Less than 'up to' 8Mbit/s Nov-14 Nov-13 Nov-12 Nov-11 Nov-10 May-14 May-13 May-12 May-11 May-10 Source: Ofcom, based on data provided by the UK’s largest ISPs by retail market share (representing over 90% of the total market). Note: The above ‘up to’ 10Mbit/s and less than ‘up to’ 30Mbit/s category includes ADSL2+ lines which are not marketed using a connection speed. 311 Figure 4.42

Superfast fixed broadband lines Connections (millions) As a proportion of all connections (%)

30.0 10 30 23.2 8 Connections 20 ≥30Mbit/s 6 14.3 As a proportion 4 7.1 of all 10 connections 5.0 5.3 2 3.1 0.9 0.2 1.0 0 0.2 0 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators Notes: Includes estimates where Ofcom does not receive data from operators; includes Ofcom adjustment to exclude FTTC connections delivering less than 30Mbit/s.

312 Figure 4.43

Average actual residential fixed broadband download speeds Speed (Mbit/s) 25 22.8

20 17.8 18.7 14.7 15 12.0 9.0 10 7.6 6.2 6.8 4.1 5.2 5 3.6

0 Apr-09 Nov-11 Nov-12 Nov-13 Nov-14 Nov-08 May-10 May-11 May-12 May-13 May-14 Nov/Dec-10 Source: Ofcom, using data provided by SamKnows

313 Figure 4.44

Retail fixed broadband market shares Per cent 2014 pp 5 year pp 100 10 10 10 10 9 8 change change 5 4 3 3 3 4 80 17 16 14 Others -0.6 -1.7 23 20 18 EE 0.3 -1.1 20 20 60 21 21 22 22 TalkTalk Group -1.5 -8.4 22 40 18 19 21 Virgin Media -0.3 -2.8 13 15 Sky 1.3 9.4 20 27 28 30 30 31 32 BT 0.8 4.7 0 2009 2010 2011 2012 2013 2014

Source: Ofcom / operator data

314 Mobile voice and data services

315 Figure 4.45 Mobile retail revenue, by service

£billions 2014 5yr change CAGR 20

15.9 Total -1.5% 0.3% 15.0 15.1 15.4 15.5 15.3 15 2.5 1.6 1.8 2.1 2.7 2.7 Out-of bundle 3.1% 11.7% 2.7 2.6 2.5 2.4 1.8 1.3 data 10 Out-of-bundle -28.2% -13.4% 3.7 3.2 2.9 4.7 4.3 3.9 messaging Out-of-bundle -9.7% -9.2% 5 calls 7.8 8.3 6.1 6.4 6.8 7.3 Access and 6.5% 6.5% bundled services 0 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators

316 Figure 4.46

Average monthly retail revenue per mobile subscription £ per month

30.00 2014 pp 5 year pp 30 28.15 27.50 26.71 change change 24.38 23.15 Post-pay -5.0% -5.0% 20

16.00 15.60 15.74 16.14 15.59 15.38 Blended -1.3% -0.8%

10 Pre-pay -7.1% -6.8%

7.07 6.23 5.91 5.81 5.36 4.98 0 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators Note: Mobile voice revenues include revenues from bundled messaging and data services.

317 Figure 4.47

Outgoing mobile call minutes, by type of call

Billions 2014 5yr 150 137 change CAGR 131 131 132 135 127 7 8 7 8 8 8 8 7 Total 2.0% 1.6% 6 6 7 8 100 Other calls 8.2% -2.1% 38 38 42 43 47 52 International -12.0% 4.6%

50 43 46 43 42 41 39 Off-net mobile 9.8% 6.5% On-net mobile -3.1% -1.9% 32 32 32 31 32 32 UK geographic -0.9% 0.2% 0 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators

318 Figure 4.48

Outgoing SMS and MMS messages Billions 200

150

100 150 151 129 129 50 106 110

0 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators

319 Figure 4.49

Mobile subscriptions, by connection type Millions 2014 5yr 100 88.2 88.4 89.9 change CAGR 84.7 86.3 6.3 80.6 3.2 4.1 5.0 5.7 80 4.1 4.9 5.2 5.1 4.9 5.2 Total 1.8% 2.2%

60 M2M 9.9% n/a

40 76.5 76.7 77.0 78.1 77.8 78.5 Dedicated 5.9% 4.9% mobile 20 broadband Mobile 0.9% 0.5% 0 handset 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators

320 Figure 4.50

Mobile subscriptions, by pre-pay and post-pay Millions 2014 5yr 100 88.2 88.4 89.9 change CAGR 84.7 86.3 80.6 80 Total 1.8% 2.2% 33.0 39.9 43.9 48.5 60 52.5 55.6 Post-pay 5.9% 11.0% 40 Pre-pay -4.3% -6.3% 47.6 44.8 42.5 20 39.7 35.9 34.3

0 2009 2010 2011 2012 2013 2014

Source: Ofcom / operator data Note: Includes M2M

321 Figure 4.51

Mobile data connections, by type Millions 2014 5yr change CAGR 80 Total 13.6% 25.4% 62.6 60 55.1 6.3 48.5 5.7 M2M 9.9% n/a 39.4 5.0 40 32.6 4.1 3.2 51.2 Internet on 14.9% 26.1% 44.5 20.2 38.4 handset 20 30.1 24.6 16.1 Dedicated 5.9% 4.9% mobile 0 4.1 4.9 5.2 5.1 4.9 5.2 broadband 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators

322 Business markets

323 Figure 4.52

Retail business telecoms revenues, by service £billions 2014 5yr change CAGR 10.2 9.8 10 9.6 9.7 9.4 9.2 Total -1.4% -1.9% 2.8 2.7 2.8 2.7 8 2.7 2.6 Corporate data -1.0% -1.0% services 6 3.1 3.2 Mobile -0.9% 1.6% 3.3 3.5 3.4 3.4 4 0.7 Non-corporate 10.0% 4.5% 0.7 0.7 0.7 0.8 0.9 internet 2 3.6 3.2 Fixed voice -5.9% -8.1% 2.9 2.8 2.5 2.4 0 2009 2010 2011 2012 2013 2014

Source: Ofcom / operator data, with the exception of corporate data services, sourced from IDC Note: Fixed voice figures exclude revenues from non-geographic voice calls; corporate data services compromises web hosting, Ethernet, IP VPN, digital leased line and frame relay/ATM services.

324 Figure 4.53

Business voice call minutes Business fixed and mobile voice call minutes Business VoIP voice call minutes Billions of minutes Billions of minutes 59.6 57.1 60 52.6 20 48.5 44.7 43.5 29.7 15 40 28.5 26.3 24.2 23.6 24.8 10 16.8 20 13.8 11.0 29.9 28.6 26.3 24.3 5 8.6 21.2 18.7 5.3 6.6 0 0 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014

Fixed Mobile Source: Ofcom / operator data / IDC for VoIP data only Note: VoIP volumes are not fully captured in the business fixed and mobile voice call minutes chart. It is not possible to sum the totals of both charts to calculate total business call volumes as some VoIP minutes may be included in the business fixed and mobile voice call minutes data.

325 Figure 4.54

Business fixed voice and SME fixed broadband lines Millions of connections

6 2014 5yr 6.0 5.9 5.8 change CAGR 5 5.4 5.1 4.8 PSTN lines -6.5% -4.2% 4 4.2 3.7 3.6 3.4 3.2 3 2.9 ISDN -8.4% -6.9% channels 2 2.4 2.5 2.2 2.4 SME 3.8% 6.5% 1.8 2.0 broadband 1

0 2009 2010 2011 2012 2013 2014

Source: Ofcom / operator data Note: Mobile voice revenues include revenues from bundled messaging and data services.

326 Figure 4.55

Average monthly retail revenue per business fixed line £ 2014 5yr change CAGR 30 26.10 25.72 25.33 24.91 24.96 24.38 Total -2.3% -1.4% 5.76 5.47 4.85 4.28 3.98 3.45 Calls to mobiles -13.3% -9.7% 20 1.52 1.25 1.22 1.13 1.06 1.32 2.64 2.43 2.27 2.14 3.25 2.93 International -6.6% -7.0% calls 10 UK geographic -5.6% -8.0% 17.73 15.56 15.61 16.98 16.98 17.58 calls Line rental & 0.8% 2.6% bundled calls 0 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators Note: Excludes revenues from non-geographic voice calls.

327 Figure 4.56

Breakdown of business mobile revenues £billions 2014 5yr 4 change CAGR 3.5 3.3 3.4 3.4 3.1 3.2 3 Total -0.9% 1.6% 1.4 1.3 1.3 1.1 1.2 1.3

2 Out-of-bundle data -4.8% 3.2% and messaging 1 2.0 2.0 2.0 2.1 2.1 2.1 Voice and bundled 1.5% 0.8% services 0 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators

328 Figure 4.57

Business mobile voice and dedicated mobile data connections

Subscriptions (millions) 0.0

9.7 Residential 3.3 Business M2M 6.3 1.9

68.7

Subscriptions including voice Dedicated data subscriptions

Source: Ofcom / operators Note: Mobile broadband excludes smartphone data use.

329 Figure 4.58 Breakdown of corporate data services’ revenues 2014 5yr change CAGR £billions

3 2.8 2.7 2.8 2.7 2.7 2.6 Total -1.0% -1.0%

IP-VPN services -2.1% -1.1% 2 1.4 1.4 1.4 1.4 1.3 1.3

Ethernet/Digital 0.6% -0.7% leased line services 1 0.7 0.7 0.7 0.7 0.7 0.7 Web hosting 0.5% 0.9%

0.6 0.6 0.6 0.6 0.6 0.6 Frame/cell services -39.4% -32.9% 0 0.1 0.1 0.0 0.0 0.0 0.0 2009 2010 2011 2012 2013 2014

Source: IDC

330 The telecoms user

331 Figure 4.59

Average household spend on telecoms services £ per month (2014 prices) 3.9% 3.8% 3.8% 3.8% 4% 3.6% 3.5% Fixed internet 100 87.20 86.50 84.63 84.00 81.40 81.30 3% 10.84 11.18 11.63 12.26 12.90 14.74 Mobile voice & data 2% 50 50.71 50.01 Fixed voice 49.29 48.77 45.98 44.37 1% As a proportion 25.65 25.31 23.71 22.98 22.52 22.18 of total 0 0% household spend 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators / ONS Notes: Includes estimates where Ofcom does not receive data from operators; adjusted to CPI; includes VAT.

332 Figure 4.60

Take-up of key telecoms technologies Proportion of households / adults (%) 95 100 92 93 94 94 95 Mobile telephony 85 (household) 85 85 84 84 84 84 80 79 80 82 80 Fixed telephony 76 77 73 74 76 75 78 (household) 71 72 72 73 Internet connection 67 61 60 65 57 (household) 49 Total broadband 39 (household) 40 32 Fixed broadband 21 (household) 20 Internet on mobile 17 phone (adults) 15 13 0 5 8 6 Dedicated mobile 2010 2011 2012 2013 2014 2015 broadband (household) Source: Ofcom Technology Tracker. Data from Q1 of each year 2007-2013, then wave 1 2014-2015. Base: All adults aged 16+ (2015 n=3756). QE1: Does your household have a PC or laptop computer? / QE8(QE2): Do you or does anyone in your household have access to the internet/ World Wide Web at home (via any device, e.g. PC, laptop, mobile phone etc.)? / QE12(QE9): Which of these methods does your household use to connect to the internet at home? Use of internet on mobile is personal take-up measure, whereas the other data relate to household take-up. 333 Figure 4.61

Cross-ownership of fixed and mobile voice telephony services

Proportion of respondents (per cent) 2014 pp 5 year pp change change 100 1 1 1 14 15 15 15 16 15 0-1 80 None

60 Mobile only -1 1

78 79 79 79 80 80 40 Fixed and 02 mobile

20 Fixed only 0-3

0 7 6 5544 2010 2011 2012 2013 2014 2015

Source: Ofcom Technology Tracker. Data from Q1 2009-2013, wave 1 2014-2015 Base: All adults aged 16+ QC1: Household phone ownership

334 Figure 4.62

Comparison of average fixed and mobile voice call prices Pence per minute 15 2014 5 year change change 11.7 10.6 9.4 10 8.8 Fixed 1.2 3.6 8.5 8.1

8.1 8.1 8.2 8.3 8.2 8.1 Mobile -0.1 -0.4 5

0 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators Note: Includes estimates where Ofcom does not receive data from operators; fixed calculation excludes non-geographic voice calls.

335 Figure 4.63

Home internet access, by age and socio-economic group Proportion of adults (per cent) 94 100 94 94 92 92 91 91 91 90 90 89 89 85 84 82 82 80 80 79 79 78 80 75 2013 70 67 67 65 2014 60 56 2015

40 40 32 31

20

0 UK 16-24 25-34 35-54 55-64 65-74 75+ ABC1 C2 DE Source: Ofcom Technology Tracker. Data from Q1 2013, W1 2014-2015 Base: All adults aged 16+ (n=3756) QE8(QE2): Do you or does anyone in your household have access to the internet/ World Wide Web at home (via any devices, e.g. PC, laptop, mobile phone etc)? 336 Figure 4.64

Location of internet access Proportion of adults aged 16+ (per cent) 82 At home 72 At work 35 25 2015 31 At someone elses house 10 At library or educational 13 institution 11 2010 6 At internet cafe 2 4 All other locations 1 0 20406080100 In total, 86% of adults used the internet in Q1 2015 Source: Ofcom Technology Tracker. Data from Q1 2010, wave 1 2015 Base: All adults 16+ QE9(IN6):Do you ever go online anywhere other than in your home at all (via any device, e.g. PC, laptop, mobile phone, etc.)? IF YES: Where is that?

337 Figure 4.65

Household penetration of fixed and dedicated mobile broadband Proportion of respondents (per cent) Total broadband 71% 74% 76% 75% 77% 80% 100 take-up 24 20 29 26 25 23 80 2 None 5 3 4 4 6 7 8 2 4 60 9 9 Mobile only

40 73 Fixed and mobile 64 70 68 56 58 20 Fixed only

0 2010 2011 2012 2013 2014 2015 Source: Ofcom Technology Tracker. Data from Q1 of each year 2009-2013, then wave 1 2014-2015 Base: All adults aged 16+ (6090 in 2009, 9013 in 2010, 3474 in 2011, 3772 in 2012, 3750 in 2013, 3740 in 2014, 3756 in 2015) Note: Excludes smartphone only homes. 338 Figure 4.66 Use of methods of communication other than traditional voice telephony Proportion of respondents (per cent)

100 83 80 81 82 78 78 80 80 71 2012

60 52 54 53 55 2013 40 40 35 37 2014 28 32 22 24 20 17 14 17 2015 4 8 0 Mobile Email Social VoIP (voice Mobile instant Video calls messaging networking call only) messaging sites Source: Ofcom Technology Tracker. Data from Q1 2012-2013, wave 1 2014-2015 Base: All adults 16+ Note: VoIP data for 2013 are not comparable to those from previous years they have been compiled on a different basis. QD28A Which, if any, of the following activities, other than making and receiving voice calls, do you use your mobile for? QE5A Which, if any, of these do you use the internet for? QE30 Have you or anyone in your household ever 339 used one of these services to make voice calls using the internet at home? (Answers used relate to current use) Fixed voice services

340 Figure 4.67

Real price of a basket of residential fixed voice services £ per month (2014 prices) 25 2014 5yr 20.94 21.19 change CAGR 19.92 20.18 20.18 20.63 20 1.74 1.71 1.70 Total 1.85 1.91 1.87 0.60 0.54 0.52 1.2% 1.2% 0.87 0.80 0.66 2.37 2.29 2.51 2.40 2.32 15 2.43 Calls to mobiles -0.1% -1.6% International calls -3.5% -9.7% 10 14.77 14.96 15.25 15.97 16.32 16.67 UK geographic calls -3.6% -1.2% 5 Fixed access 2.2% 2.5% 0 2009 2010 2011 2012 2013 2014 Annual -5.6% 1.3% 0.0% 2.3% 1.5% 1.2% change Source: Ofcom / operators Note: Includes estimates where Ofcom does not receive data from operators; excludes non-geographic voice calls; adjusted for CPI; includes VAT.

341 Figure 4.68

Average monthly outbound fixed voice call volumes per person Minutes per month 2014 5yr change CAGR 200 172 164 Total -13.1% -9.6% 32 147 150 29 135 Non-geographic -14.9% -9.3% 17 16 26 120 9 24 104 voice calls 9 14 23 100 9 12 Calls to mobiles -14.9% -10.9% 8 11 20 6 9 6 Outgoing -12.5% -9.1% 114 110 50 99 91 international calls 79 70 UK geographic -12.4% -9.5% calls 0 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators

342 Figure 4.69

Average revenue per fixed-voice call minute Pence per minute 2014 5yr 15 change CAGR 12.9 12.4 12.4 11.9 11.0 10.7 Calls to mobiles-0.5% -3.8% 10 9.5 11.0 10.7 8.6 7.5 7.6 UK geographic 12.9% 10.7% 7.3 (inc. line rental) 5 6.6 5.9 5.6 5.5 5.4 International -2.2% -5.7%

0 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators

343 Figure 4.70

Overall satisfaction with residential fixed voice services Proportion of adults with service (%) 100 91 89 89 90 89 89

80 34 32 34 34 30 32 Fairly satisfied 60

40 Very 57 57 56 56 59 57 satisfied 20

0 2010 2011 2012 2013 2014 2015

Source: Ofcom Technology Tracker. Data from Q1 2010-2013, wave 1 2014-2015 Base: All adults aged 16+ with a fixed line phone Note: Includes only those who expressed an opinion. Q: Thinking about your home phone service only, please use this card to say how satisfied you are with the overall service provided by (main supplier)? 344 Fixed data services

345 Figure 4.71

Real average monthly price of a residential fixed broadband connection £ per month (2014 prices) Annual -11.0% -2.1% 0.8% 1.6% 0.8% 9.6% change 20 £18.86 £17.04 £16.68 £16.80 £17.08 £17.21 15

10

5

0 2009 2010 2011 2012 2013 2014 Average 4.1Mbit/s 6.2Mbit/s 7.6Mbit/s 12Mbit/s 17.8Mbit/s 22.8Mbit/s actual (April) (November) (November) (November) (November) (November) speed Source: Ofcom / operator data Note: Includes estimates where Ofcom does not receive data from operators; includes VAT; adjusted for CPI. Excludes cost of line rental.

346 Figure 4.72 Lowest-cost bundled fixed broadband options from major ISPs Standard Broadband Standard Standard Broadband Broadband broadband, ≥30Mbit/s, broadband broadband ≥30Mbit/s ≥30Mbit/s & fixed line & fixed line & only & fixed line only fixed line pay-TV pay-TV BT - 21.49 24.49 - 24.49 24.49 EE - 26.35 29.35 - 36.35 39.35 Plusnet 12.49* 25.94 - 17.49* 30.94 -

Sky - 23.90 33.89 - 26.40 46.40

TalkTalk - 21.70 26.70 - 31.70 36.70

Virgin Media -** -** -** 28.50 34.49 38.99 Source: Pure Pricing UK Broadband Pricing Briefing, 10 June 2015 Note: All tariffs exclude activation charges and promotional discounts and include VAT; all tariffs are the lowest price available; contract lengths vary; allowances for fixed-line and mobile calls, and availability of TV channels included within packages may differ by operator and option. Prices shown are packages as marketed to customers. Some operators allow users to customise packages to include e.g. anytime calls. *Plusnet ‘broadband only’ offers require a fixed line service from Plusnet or another BT based landline provider.

** Virgin Media does not offer broadband at speeds lower than 30Mbit/s. 347 Figure 4.73

Average fixed broadband data use GB per month 70 60 50

40 Average data use (GB per month) 30 58 20 30 23 10 17 0 Mar 2011 Jun 2012 Jun 2013 Jun 2014 6.8 Mbit/s 9.0 Mbit/s 14.7 Mbit/s 18.7 Mbit/s Average actual (May 2011) (May 2012) (May 2013) (May 2014) download speed

Source: Ofcom Infrastructure Reports 2011 - 2014

348 Figure 4.74

Take-up of fixed broadband, by age Proportion of households (per cent) 100

80

60 86 83 83 82

40 81 80 78 78 78 77 76 76 75 74 73 73 73 72 72 72 70 64 62 20 54 38 30 29 25 0 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 All adults 16-24 25-34 35-54 55-64 65-74 75+

Source: Ofcom Technology Tracker. Data from Q1 2013, then wave 1 2014-2015 Base: All adults aged 16+ (3750 in 2013, 3740 in 2014, 3756 in 2015) Note: It is likely that the fall in take up among 65-74s in 2013 was due to a sampling error.

349 Figure 4.75

Satisfaction with aspects of fixed broadband service Proportion of adults with fixed broadband (per cent) 100 90 86 87 88 88 86 80 80 80 81 84 80 80 40 41 44 40 39 41 37 60 38 41 41 39 38 Fairly satisfied 40 50 48 49 20 46 43 45 42 39 39 41 47 43 Very satisfied 0 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 Overall Speed of service Source: Ofcom Technology Tracker. Data from Quarter 1 2009-2013, then wave 1 2014-2015 Base: All adults aged 16+ with a fixed broadband connection Note: Includes only those who expressed an opinion. Q: Thinking about your fixed broadband internet service, please use this card to say how satisfied you are with your main supplier for... The overall service/ The speed of your service while online (not just the connection) provided by (main provider)? 350 Mobile voice and data services

351 Figure 4.76

Real price of a basket of mobile services £ per month (2014 prices) 2014 5yr 20 change CAGR 17.24 15.86 Total 15.09 14.87 -0.4% -4.1% 15 3.69 14.02 13.96 2.94 2.38 2.20 1.87 1.56 Metered 4.32 3.63 3.02 2.53 1.99 1.79 -16.4% -15.8% 10 messaging

Metered voice -9.8% -16.1% 5 9.23 9.30 9.69 10.14 10.16 10.60 Rental & bundled 4.4% 2.8% 0 services 2009 2010 2011 2012 2013 2014 Annual -17.6% -8.0% -4.9% -1.4% -5.7% -0.4% change Source: Ofcom / operators Note: Includes estimates where Ofcom does not receive data from operators; excludes non-geographic voice calls; adjusted for CPI; includes VAT.

352 Figure 4.77 Average monthly outbound mobile call minutes, by subscription type

Minutes per month 2014 5yr 300 change CAGR 252 252 240 228 220 217 Pay monthly -1.1% -13.8% 200

Blended 2.5% 5.2% 139 143 142 142 143 147 100 Pre-pay -1.4% -17.4% 65 61 57 57 54 54 0 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators Note: Includes estimates where Ofcom does not receive data from operators.

353 Figure 4.78 Average monthly outbound mobile messages per subscriber, by subscription type Messages per month 2014 5yr 250 235 231 change CAGR 210 200 191 167 171 Pay monthly-10.2% 2.7%

150 163 162 141 138 Blended -15.5% 0.7% 100 116 117

80 Pre-pay -21.1% -39.0% 50 74 75 72 58 45 0 2009 2010 2011 2012 2013 2014

Source: Ofcom / operators Note: Includes estimates where Ofcom does not receive data from operators.

354 Figure 4.79

Satisfaction with aspects of mobile service Proportion of adults with service (per cent) 94 95 94 100 93 93 91 89 87 88 88 87 86 80 33 32 37 35 33 33 30 30 35 36 31 33 Fairly 60 satisfied

40 61 61 60 60 Very 58 58 57 58 55 52 56 53 20 satisfied

0 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 Overall Accessing the network Source: Ofcom Technology Tracker. Data from Q 1 2009-2013, wave 1 2014-2015 Base: All adults aged 16+ with a mobile phone Note: Includes only those who expressed an opinion. Q: Thinking about your mobile phone service, please use this card to say how satisfied you are with your main supplier for... The overall service/ Reception/ accessing network provided by (main provider)?. 355 Figure 4.80 Use of data services on mobile phones, by age and socio-economic group

Proportion of adults (per cent)

100 89 86 85 81 75 75 80 74 2012 69 68 66 66 61 61 2013 58 57 56 56

60 54 49 49 2014 46 43 42 41 39 39 2015 37 34 40 34 27 27 17

20 14 9 5 3 0 Total 16-24 25-34 35-54 55-64 65+ ABC1 C2 DE Source: Ofcom Technology Tracker. Data from Q 1 2011-2013, wave 1 2014-2015 Base: All adults aged 16+ (2015 n=3756) Note: Internet use includes accessing the internet, downloading and streaming content, connecting using WiFi and using VoIP. QD28A: Which if any, of the following activities, other than making and receiving voice calls, do you use your mobile for? 356 Figure 4.81

Use of mobile data services among mobile users Proportion of mobile users using service (per cent)

60 56 52 51 50 47 2012 45 43 40 39 41 40 2013 40 36 35 32 34 2014 29 29 30 26 26 2015 23 25 19 19 20

10

0 Web browsing Emailing Social Downloading Instant Watching video networking apps messaging clips Source: Ofcom Technology Tracker. Data from Q 1 2012-2013, wave 1 2014-2015 Base: All mobile users aged 16+ QD9A: Which if any of the following activities, other than making and receiving voice calls, do you use your mobile for? 357 Figure 4.82

Location of internet access using a mobile handset Proportion of mobile internet users (per cent) 1% Always use in the home 8% 8% Mainly use in the home 19% Use equally inside and outside the home

Mainly use outside the home

63% Always use outside the home

Source: Ofcom Technology Tracker, W1 2015 Base: All adults aged 16+ who access the internet on their mobile phone QD15(QD28C): Which one of these best describes where you use your mobile phone to access the internet? 358 Figure 4.83 Location of mobile internet use outside the home

Proportion of respondents (%) 0 20406080100

76 When travelling 70 69 Outdoors 69 2015 66 Indoor public spaces 67

At someone elses 60 2012 house 55 53 At work 49 3 Other 3

Source: Ofcom Technology Tracker, W1 2015 Base: All adults aged 16+ who use their mobile phone to access the internet outside the home QD16 (QD28F). SHOWCARD In which of these places do you use your mobile phone to access the internet outside of the home? Answers shown were first asked in 2012 survey 359 CMR 2015: Internet and online content Figure 5.1

UK internet and web-based content market: key statistics

UK internet and web-based content market 2009 2010 2011 2012 2013 2014 2015

1Internet take-up (%) 73 75 77 79 80 82 85 1Internet on mobile-phone take-up (%) 20 21 32 39 49 57 61 2Monthly active audience on laptop/desktop 38.6m 43.1m 42.2m 43.6m 44.6m 45.1m n/a computers 2Time spent web browsing per laptop/desktop 29.4 30.9 31.5 34.7 34.2 29.8 n/a internet user per month (hours) 3Digital advertising expenditure (£) 3.6bn 4.1bn 4.8bn 5.4bn 6.3bn 7.2bn n/a 3Mobile advertising revenue (£) 38m 83m 203m 529m 1021m 1625m n/a

Note: With the exception of internet, and internet on mobile phone, take-up data, all data relate to the calendar year, meaning that 2015 data are currently unavailable. Source: 1Ofcom consumer research, Q1 each year (2009-2013), then Wave 1 (2014&2015) 2comScore MMX, UK, annual average from reported monthly values; 3IAB/PwC Digital Adspend Study 2009-2014. Note: Caution is advised in comparing values before and after February 2011 because of a change in comScore methodology.

361 Figure 5.2 Physical storage formats used at home % of respondents Content I have purchased/downloaded Content I have created/curated Net use % CDs 66 14 72 DVDs 66 11 72 Built in memory on my device 46 25 56 Memory card 42 27 61 USB Flash drive 39 25 54 Removable hard disk drive 30 16 38 Vinyl 34 4 37 VHS video cassettes 28 8 32 Audio cassette tapes 23 8 27 Blue-ray discs 22 3 24 Analogue film/ cinefilm/ photographic negatives 12 11 21 Games console cartridges 14 3 16 Floppy disks 10 6 14 Zip disks 3 3 5 Data tape format 12 3 0 102030405060708090 Source: YouGov, Attitudes Towards Technology 2015, April 2015 Base: Online UK adults 16+ (2147) Q31. Which of the following do you have at home? Please choose all that apply. Note: ‘Net use’ refers to use for purchased/ downloaded content and/or created/ curated content. The sum of the people who use a particular physical media for content they have purchased, and the proportion who use it for content they have created/curated, double-counts the proportion who do both, and hence the net-use figure reported above is lower. 362 Figure 5.3 Use of online storage service % of respondents who answered ‘yes’ when asked if use online data storage services

50 44 42 40 36 32 30 30

20

10

0 Total 16-24 25-39 40-54 55+

Source: YouGov, Attitudes Towards Technology 2015 Base: Online UK adults 16+ (2147), 16 – 24 (279), 25 – 39 (384), 40 – 54 (554), 55+ (930) Q26. Q.26 Do you use online data storage services, such as Dropbox, iCloud or Google Drive for your personal needs? 363 Figure 5.4 Claimed use of selected online storage services % of respondents Total 16-24 25-39 40-54 55+ 60

50 49 50 47 45 46 45 44 45 44 40 40 34

29 30 27 27 25 23 24 21 19 20 17 14 9 10 10 7 3 0 Dropbox iCloud GoogleDrive iTunes CloudDrive Source: YouGov, Attitudes Towards Technology 2015 Base: Online UK adults 16+ who use online data storage services (773), 16 – 24 (126), 25 – 39 (175), 40 – 54 (189), 55+ (283) q29. Which of the following online storage services, if any, do you use for your personal needs?

364 Figure 5.5 Use of selected online storage services on desktop and laptop computers Unique audience (millions) Dropbox (App) OneDrive ICLOUD.COM MEGA.CO.NZ Box (App) Copy (App) 8

6

4

2

0 Jul-2014 Jul-2013 Apr-2014 Oct-2014 Apr-2013 Oct-2013 Jun-2014 Jan-2015 Jun-2013 Jan-2014 Feb-2015 Mar-2015 Feb-2014 Mar-2014 Aug-2014 Sep-2014 Nov-2014 Dec-2014 Aug-2013 Sep-2013 Nov-2013 Dec-2013 May-2014 May-2013 Source: comScore MMX, UK, home and work panel, April 2013 to March 2015 Entities reported in MMX: Dropbox (App) [M], OneDrive [C], ICLOUD.COM [P], MEGA.CO.NZ [P], Box (App) [M], Copy (App) [M]. Note: Services may include other websites and apps e.g. for mobile uploads, apart from those identified above.

365 Figure 5.6 Types of content stored on online storage services

% of respondents 80 74

60

44 40

24 22 21 18 17 20 14 10 9 6 0 myself purchased purchased / family Apps I have downloaded Music I have purchased / downloaded Music I have Games I have Games I created/ mixed purchased purchased / downloaded with individuals with Films and TV created myself correspondence Emails and other Personal official Personal eBooksonline / documents which relate to me or my Documents I have publicationshave I programmes I have programmes Videos I have taken Videos Photos I have taken Source: YouGov, Attitudes Towards Technology 2015 Base: Online UK adults 16+ who use online data storage services (773), 16 – 24 (126), 25 – 39 (175), 40 – 54 (189), 55+ (283) Q27. What types of content/media do you use online data storage for? 366 Figure 5.7 Reasons for using online data storage % of respondents Total 16-24 25-39 40-54 55+ 60 53 49 46 48 50 45 45 45 46 45 41 41 43 39 39 40 34 32 33 30 29 30 29 30 27 27 25 25 24 25 24 23 222324 22 2221 20 22 20 1919 19 20 18 1718 18 17 1717 15 1516 1515 11 12 10

0 destroyed, any data information hard drive video clips Viruses could drivesbe can are affordable Can access my Can access and I couldand I lose are very reliable damaged or lost computer/device content from any from content damage the data to PC’s/laptop’s External/PC hard The storage sites The storage sites memory in my my in memory Additional back up Additional back More easily share photos, music and computer/devices I have a lot to store Do not want to lose not want Do My data is very safe There’s not enough Source: YouGov, Attitudes Towards Technology 2015, April 2015 Base: Online UK adults 16+ who use online data storage services (773), 16 – 24 (126), 25 – 39 (175), 40 – 54 (189), 55+ (283) q34. Thinking about why you use online storage, which of the following statements, if any, apply to you? 367 Figure 5.8 Concerns about online storage % of respondents Total 16-24 25-39 40-54 55+ 50 46 44 4344 43 41 39 40 37 3535 29 30 30 28 27 24 24 20 20 18 18 15 15 1314 13 13 11 12 12 9 8 10 7 7 6 4 5 5 3 2 2 3 2 2 1 2 1 1 0 1 1 0 0 Other Don’t know None of these of None service confidential because of because of confidential passwords for I would ensure I wouldI only put online storage I wouldI not put I’ve cut back on storage provider on inbuilt memory/ external hard drive information/content data beinghacked previously due to I have considered online storage use online storage accountsstrong are changing my online my changing I worry about private I hacking/privacy fears hacking/privacy fears hacking/privacy information/content in information/content closure/bankruptcy of I have been unable to access content stored access content Source: YouGov, Attitudes Towards Technology 2015 Base: Online UK adults 16+ who use online data storage services (773), 16 – 24 (126), 25 – 39 (175), 40 – 54 (189), 55+ (283) q36. Now thinking about levels of trust of online storage, which of the following statements, if any, apply to you? 368 Figure 5.9 Importance of keeping content % of respondents ranking content type as 1st, 2nd or 3rd most important out of 12

Photos I have taken 72

Documents I have created myself 43

Personal official documents which relate to… 35

Videos I have taken 32

Emails and other correspondence with… 25 Music I have purchased 22

Apps I have purchased / downloaded 12

eBooks / online publications I have… 8

Music I have created/ mixed myself 8

Films and TV programmes I have purchased 5 Games I have purchased / downloaded 5

Other 3

0 20406080 Source: YouGov, Attitudes Towards Technology 2015 Base: Online UK adults 16+ who use online data storage services (773), 16 – 24 (126), 25 – 39 (175), 40 – 54 (189), 55+ (283) q28_6. Thinking about the types of media that you would like to save or keep, which of the following are the most important to you? Please rank them in order, with the most important first. 1 being most important and 10 being least important. 369 Figure 5.10 Digital preservation challenges and awareness % of respondents Total 16-24 25-39 40-54 55+ 60 58 54 52 49 50

40 38

30 25 21 21 21 20 16 16 17 13 14 14 10 12 10 12 10 9 9 10 9 10 10 8 7 7 8 8 8 8 7 7 4 0 Don't know None of these another did not a have hardware tools to tools hardware store the content store the have compatible have from one format to format one from long term long longevity content as I did not drive/card/cartridge When storing digital and use the content the use and as to how I save and convert digital content digital convert content as I could no as content content as my device as content Have used software or media e.g. floppy disc physical media format physical content I consider their I consider content capable of reading the of reading capable due due to disc read errors when making decisions software or app to open app or software Unable to access digital access to Unable Unable to access digital access to Unable Unable to access digital access to Unable longer read the physical read longer

Source: YouGov, Attitudes Towards Technology 2015 Base: Online UK adults 16+ (2147), 16 – 24 (279), 25 – 39 (384), 40 – 54 (554), 55+ (930) q40. Which of the following statements applies to you?

370 Figure 5.11 Actions taken to safeguard continued access to content % of respondents Total 16-24 25-39 40-54 55+ 40 35 32 29 29 29 30 27 26 26

22 21 20 19 20 18 15 14 13 14 12 11 10 8 9 8 9 10 7 7 7 8 8 8 7 7 7 6 7 6 5 4 4 4

0 my etc. Don’t know without member It is not It and told passwords friend/family None of these of None to find them to find content in an in content area where it I have shared passwords on passwordsa to thought about I have given my given I have the content with PC/laptop/tablet I have saved my someone where a family member a family I have saved the can be accessed passwords down I have written my something I have Source: YouGov, Attitudes Towards Technology 2015, April 2015 Base: Online UK adults 16+ who use online data storage services (773), 16 – 24 (126), 25 – 39 (175), 40 – 54 (189), 55+ (283) Q39. Have you taken any of the following steps to safeguard your data/content? 371 Figure 5.12 Household internet access: 2005 to 2015 Proportion of adults (%) 100 Internet 82 85 77 79 80 80 73 75 80 67 76 75 77 64 71 74 78 Total 60 60 68 72 72 73 broadband 67 60 58 65 65 61 52 57 Fixed 49 broadband 40 41 39 31 32 Internet on 21 mobile 20 20 17 12 15 13 5 8 6 Mobile 0 broadband 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 W1 2015 W1

Source: Ofcom Technology Tracker. Data from Quarter 1 of each year 2005-2013, then Wave 1 2014-2015. Base: All adults aged 16+ (n=3756). Note 1: “Internet on mobile” is the % of adults who use a mobile phone for any of the following activities: Instant messaging, Downloading Apps or programs, email, internet access, downloading video, video streaming, visiting social networking sites. Note 2: From Q1 2009 the ‘Internet’ figure includes those who access the internet on mobile phones. QE2: Do you or does anyone in your household have access to the internet/World Wide Web at home (via any device, e.g. PC, mobile phone etc)? QE9: Which of these methods does your household use to connect to the Internet at home? Note 3: Mobile broadband is connecting a device using a USB stick or dongle, or built-in connectivity in a laptop or netbook or tablet computer with a SIM card 372 Figure 5.13

Wireless router take-up in broadband homes: 2007 to 2015 Use within broadband households (%) 100 93 95 89 85 80 75 66 60 52 44 40 34

20

0 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 W1 2014 W1 2015

Source: Ofcom Technology Tracker. Data from Q1 2007-2013, wave 1 2014-2015 Base: Wireless router take-up - adults aged 16+ with a broadband connection at home. From 2009 this is based on fixed broadband connections only. QE28(QE35): Do you or anyone in your household use a fixed wireless internet connection at home (Wi-Fi)?

373 Figure 5.14

Ownership of internet-enabled devices Household take-up (%) 80 Year-on-year difference +5 +2 +10 +/-0 +/-0 -1 +4 -4 +9 +/-0 +1 N/A 60

40 66 65 54 47 20 38 34 28 20 20 5 8 3 0 Smart Laptop Tablet Games VOD Desktop E-reader* Portable Smart Netbook HDMI Smart phone console STB games TV device Watch* console Source: Ofcom Technology Tracker, W1 2015 Base: Adults aged 16+ n = 3756 Note: IP-enabled devices include laptop, games console (Xbox 360, PS3, Wii/Wii U), desktop PC, smartphone, portable games console (Nintendo DS range, PlayStation Portable/Vita), VOD STB (all Virgin TV customers, Sky+ HD, BT TV, TalkTalk TV and YouView), e-reader, tablet, netbook, smart TV, and HDMI device (Roku, Chromecast, Now TV). *E-reader and Smart Watch take-up stated here is per household while elsewhere in the report we state figures by individual take-up. Smart Watches were not included in the survey prior to 2015. 374 Figure 5.15

Take-up of internet enabled devices by socio-economic group Proportion of adults (%) 100 AB C1 C2 DE 80 78 7271 73 66 63 60 60 56 58 52 5050 45 47 44 43 42 3840 38 37 35 40 34 32 29 25 25 26 21 19 21 21 16 18 20 14 14 13 9 7 5 3 2 3 33223 0 Smart Laptop Tablet Games VOD Desktop E-reader Portable Smart Netbook USB TV Smart phone Console Box Games TV device Watch Console Source: Ofcom Technology Tracker, W1 2015 Base: Adults aged 16+, AB n = 828, C1 n = 1120, C2 n = 781, DE n = 1026 Note: Ranked by overall household ownership

375 Figure 5.16

Take-up of internet-enabled devices, by age Proportion of adults (%) 100 90 87 16-24 25-34 35-54 55+ 80 76 80 73 75 68 64 6463 6061 60 48 46 39 37 3737 35 35 40 32 34 30 30 29 27 2826 27 23 21 2122 20 17 12 10 12 6 6 5 4 6 5 4 1 3 11 0 Smart Laptop Tablet Games VOD Desktop E-reader Portable Smart Netbook USB TV Smart phone Console Box Games TV device Watch Console

Source: Ofcom Technology Tracker, W1 2015 Base: 16-24 n = 514, 25-34 n = 606, 35-54 n = 1189, 55+ n = 1447 Note: Ranked by overall household ownership

376 Figure 5.17 Tablet computer ownership, by age and socio-economic group: 2012- 2015 Household take-up (%)

2012 2013 2014 2015 80 64 60 61 62 60 54 53 49 51 51 44 44 37 40 33 35 28 28 31 24 27 20 15 15 16 11 14 11 11 4 6 0 Total 16-24 25-34 35-54 55+ ABC1 C2DE

Source: Ofcom Technology Tracker. Data from Quarter 1 of each year 2012-2013, then Wave 1 2014-2015 Base: All adults aged 16+, 2012=3772, 2013=3750, 2014=3740, 2015=3756 QE1: Does your household have a PC, laptop, netbook or tablet computer?

377 Figure 5.18

Number of different internet-enabled devices per household, Q1 2015 Proportion of households(%) 20 100 89 78 65 52 38 24 14 7 2.5 0.7 0.1 100

15.0 15 14.0 14.0 75 12.0 12.0 Own n no. of devices 10.0 10.0 Own at least n no. of devices 10 50 7.0

5 4.0 25 2.0 1.0 0.1 0.0 0 0 None One Two Three Four Five Six Seven Eight Nine Ten ElevenTwelve n number of different devices

Source: Ofcom research, Q1 2015, Base: Adults aged 16+ n = 2673 Note: IP-enabled devices include laptop, games console (Xbox 360, PS3, Wii/Wii U), desktop PC, smartphone, smartwatch, portable games console (Nintendo DS range, PlayStation Portable/Vita), VOD Box (all Virgin TV customers, Sky+ HD, BT Vision, TalkTalk TV and YouView), e-reader, tablet, netbook, smart TV and HDMI device.

378 Figure 5.19 Device ownership, by number of different internet-enabled devices in the household Proportion of households that own device (%) Laptop 100% Smartphone

80% VOD Box Games console 60% Tablet Desktop PC 40% E-reader Portable games 20% console Smart TV Netbooks 0% 12345678HDMI Number of different internet-enabled devices in household Source: Ofcom research, Q1 2015, Base: Adults aged 16+ with at least one IP-enabled device n = 2411 Note: IP-enabled devices include laptop, games console (Xbox 360, PS3, Wii/Wii U), desktop PC, smartphone, smartwatch, portable games console (Nintendo DS range, PlayStation Portable/Vita), VOD Box (all Virgin TV customers, Sky+ HD, BT Vision, TalkTalk TV and YouView), e-reader, tablet, netbook, smart TV and HDMI device.

379 Figure 5.20

Most important device for internet access Internet users (%) 100% 11 4 8 11 Other 14 17 11 17 12 13 14 80% 17 27 19 22 22 19 19 15 17 21 23 Desktop 60% 25 22 25 30 31 29 33 35 28 Tablet 40% 32 60 36 Laptop 46 41 20% 33 32 34 31 31 37 25 Smartphone 0% 10 C1 C2 AB DE UK 55+ Male 16-24 25-34 35-54 Female Gender Age group Social group

Source: Ofcom Technology Tracker, W1 2015 Base: All adults aged 16+ who use the internet at home or elsewhere (n = 3095 UK). QE11(QE40): Which is the most important device you use to connect to the internet, at home or elsewhere? “Other” responses include: “Netbook”, “Games console”, “Other device”, “None” and “don’t know”.

380 Figure 5.21

Active internet audience: March 2015 Million 50 47.5 45.1

40 36.4

30

20

10

0 Digital audience Laptop and desktop audience Mobile audience Source: comScore MMX, UK, home and work panel, March 2015; comScore MMX-MP, UK, March 2015; comScore MoMX UK, March 2015. Note: ‘Digital audience’ is the unique audience across desktop/laptops and mobile. Mobile audience includes Android smartphones and iOS smartphones and tablets. Only those entities that have been tagged as part of the census network report Android tablet usage data.

381 Figure 5.22 Average time spent online: March 2015 Hours 100 88.9

80

58.6 60

40 31.3

20

0 Total digital audience All smartphones (browser & Laptop and desktops app combined) Source total digital audience: comScore MMX-MP, UK, March 2015, (bases include ages 6+ for desktops/laptops, 18+ for mobile devices; Source all smartphones: comScore MoMX, UK, 18+, March 2015. Source laptops and desktops: comScore MMX, home and work panel, UK, 6+, March 2015; Note: All smartphones, includes iPhones and Android handsets, browser and application use.

382 Figure 5.23 Average time online on a laptop/desktop, by age and gender: March 2015 Hours 50 42.2 41.1 40.0 40 37.9 36.9 37.2 33.3 34.6 31.3 32.4 30 27.5 27.2 Male 20 Female

10 6.5 6.2

0 Adults (18+) 6-14 15-24 25-34 35-44 45-54 55+

Source: comScore MMX, home and work panel, March 2015 Note: Time spent online is a measure of time spent browsing web pages on laptop and desktop computers only. It excludes time spent accessing other media such as audio or video content.

383 Figure 5.24 Average time online on a smartphone, by age and gender: March 2015

Hours 80 76.8 75.6 69.9 68.9 61.6 60.2 61.4 60 55.7 51.7 43.0 42.6 40 37.8 Male Female

20

0 Adults (18+) 18-24 25-34 35-44 45-54 55+

Source: comScore MoMX, March 2015. Browser and application access combined. Note: Includes Android and iOS smartphones

384 Figure 5.25

Internet take up and intentions: 2008 - 2015 Adults (%) 100% 12 17 17 15 14 14 Don't intend to get 21 22 1 2 2 2 2 2 4 3 4 3 80% 4 8 3 5 5 6 Don't know if will 60% get

Likely to get in 80 82 85 40% 76 79 next 12 months 70 73 65

20% Internet connection at home 0% 2008 2009 2010 2011 2012 2013 2014 2015 Source: Ofcom Technology Tracker. Data from Q1 of each year 2008-2013, then wave 1 2014-2015 Base: All adults aged 16+ (5812 in 2008, 6090 in 2009, 9013 in 2010, 3474 in 2011, 3772 in 2012, 3750 in 2013, 3740 in 2014, 3756 in 2015). QE2/ QE24 – Do you or does anyone in your household have access to the internet / World Wide Web at home (via any device)?/ How likely are you to get internet access at home in the next 12 months? 385 Figure 5.26

Main reasons for not having a home broadband connection Proportion of those without broadband (%)

50 44 46 44 41 40 2012

30 2013 25 25 23 22 22 21 20 20 19 18 18 18 2014 20 15 17 16 1517 15 13 12 10 2015

0 Don't need it Don’t want a Don't have Too expensive Too old to use Likely to get in computer knowledge / internet next year skills Source: Ofcom Technology Tracker. Data from Q1 2012-2013, wave 1 2014-2015 Base: All adults without the internet aged 16+ (n=681) QE31(QE25A): Why are you unlikely to get internet access at home in the next 12 months?

386 Figure 5.27 Perceived advantages of being online among internet non-users I don't think there are any advantages to me being online 52 %

Finding information quickly (for example about news, weather, sport, hobbies health etc.) 22 Staying in touch with people, making free phone/ video calls, share photos 11

Getting the best deals and saving money 9

Being more independent/ less dependent on other people to do things for me like booking things or ordering things 6 Finding out about and applying for social services or completing government processes 5

Watching TV programmes or films or playing games online 3

Finding a job or course to do 2

ANY OF THESE ADVANTAGES 34

Don't know 14

Source: Ofcom research, fieldwork carried out by Saville Rossiter-Base in October to November 2014 Base: Adult internet users aged 16+ who do not go online at home or elsewhere (281) IN12 Which, if any, of the following do you think would be the main advantages to you of being online? Can you think of any other advantages for you personally in being online? (prompted responses, multi-coded) 387 Figure 5.28 Claimed use of the internet for selected activities

Adults (%) Any 95 2 97 General surfing/browsing 72 13 85 Sending and receiving email 68 15 83 Purchasing goods/services 32 30 62 Banking 46 15 61 Using social networking sites 44 12 56 TV/ Video viewing 37 17 54 Instant messaging 31 15 46 Finding/ downloading info for work 25 17 42 Finding health information 14 24 38 Watching short video clips 23 14 37 Used in the past week Playing games 21 12 33 Downloading music 14 19 33 Use less often Using local council/ Government websites 12 21 33 Finding/ downloading info for college 16 12 28 Trading/auctions 10 15 25 Uploading/ adding content to internet 12 12 24 Listening to radio 11 9 20 Streaming audio services 7 6 13 0% 20% 40% 60% 80% 100%

Source: Ofcom Technology Tracker, wave 1 2015 Base: All adults aged 16+ who use the internet at home or elsewhere (n = 3095 UK) QE5. Which, if any, of these do you use the internet for? 388 Use of the internet by SMEs Top ten internet applications for SMEs

SMEs with fixed internet (%)

Email 97 Web access 89 Ordering goods and services online 83 Online banking 74 Using HMRC services 72 Company website 69 Paying for goods/services via BACS 62 Looking for advice on regulation 59 Looking for general business advice 57 Taking orders for goods online 42 0 102030405060708090100

Source: Ofcom research. Fieldwork April – June 2014 QA10a: Which if any of the following internet applications does your organisation use for business purposes? Base: All with fixed internet (Total n=1267, 1-4 n=471, 1-9 n=737, 10-49 n=301, 50-249 n=229).

389 Figure 5.29 Top ten most popular internet properties among the digital audience: March 2015 Unique audience (millions)

50 46 41 40 40 37 37 33 31 30 28 28 27

20

10

0 Google Sites Facebook BBC Sites Microsoft Amazon Yahoo Sites eBay Mail Online / Sky Sites Apple Inc. Sites Sites Daily Mail Source: comScore MMX Multi-Platform, UK, March 2015 All sites listed are at the property level [P]. Please note MMX Multi-Platform includes laptop/desktop browsing, laptop/desktop video streams, on-network and Wi-Fi mobile browsing and app use. Note: Starting with July 2013 data, comScore added tablet data to the mobile data field of MMX MP. Only those entities that have been tagged as part of the census network report tablet usage data. 390 Figure 5.30

Top ten comScore properties among the digital audience, by time spent Total Minutes (billions)

Facebook 51.04 Google Sites 34.16 BBC Sites 9.52 Apple Inc. 8.01 Microsoft Sites 7.98 Yahoo Sites 5.52 eBay 4.90 NETFLIX.COM 3.22 Amazon Sites 3.02 Sky Sites 2.85 0 102030405060

Source: comScore MMX Multi-Platform, UK, March 2015 Note: All sites listed are at the property level. Time spent online is a measure of time spent laptop/desktop webpage browsing and on-network and Wi-Fi mobile browsing and application data. It excludes time spent accessing audio content.

391 Figure 5.31 Most popular app downloads March 2015 App ranking by number of downloads in UK - iOS and Google Play Combined

App Company 1 WhatsApp Messenger Facebook 2 Facebook Facebook 3 Facebook Messenger Facebook 4 YouTube Google 5 Crossy Road HIPSTER WHALE 6 Instagram Facebook 7 Skype Microsoft 8 Snapchat Snapchat 9 Spotify Spotify 10 Candy Crush Soda Saga King Source: App Annie Index https://www.appannie.com/indexes/all-stores/rank/overall/?month=2015-03- 01&country=GB

392 Figure 5.32

Audience of search engines: March 2015

Unique audience (millions) 50 Digital Audience Desktop/laptop Total Mobile 39.6 40 32.0 30 21.7 20 17.3 13.4 14.0 11.7 10 6.3 3.7 0 Google Search [C] Bing [C] Yahoo Search [C]

Source: Source: comScore MMX Multi-Platform, comScore MMX, comScore MoMX, UK, March 2015 MMX Multi-Platform includes laptop/desktop browsing, laptop/desktop video streams and mobile use. ‘Total mobile’ includes Android smartphones and iOS smartphones and tablets. Only those entities that have been tagged as part of the census network report Android tablet usage data.

393 Figure 5.33

Digital audience of social networking services: April 2015

Unique audience (millions) and reach as % total digital audience 50 86% 46% 44% 43% 30% 20% 13% 1% 40.7 40

30 21.6 20.7 20.2 20 14.1 9.4 10 6.1 0.2 0 Facebook Twitter Linkedin Google+ Instagram Pinterest Myspace Friends Reunited Group Source: comScore MMX-MP, UK, April 2015 Note: Entities cited from comScore MMX Multi-Platform: FACEBOOK.COM [M], TWITTER.COM [P], LinkedIn [P], Google Plus [C], INSTAGRAM.COM [M], PINTEREST.COM [P], MySpace [P], Friends Reunited Group [P]. MMX Multi-Platform includes laptop/desktop browsing, laptop/desktop video streams and mobile use. Mobile use includes Android smartphones and iOS smartphones and tablets. Only those entities that have been tagged as part of the census network report Android tablet usage data. 394 Figure 5.34 Unique audience of selected social networking websites on laptop/desktop computers: April 2012 to 2015 Unique audience (millions) 40 Apr-12 Apr-13 Apr-14 Apr-15

31.130.0 30.1 30 29.0

20

9.7 10.410.6 10 9.1 9.1 8.7 8.9 8.4 8.6 5.4 5.1 2.6 1.9 0.6 0.3 0.7 0.9 0.4 0.2 0 Facebook Twitter Linkedin Google+ Myspace Friends Reunited Group

Source: comScore MMX, UK, home and work panel, April 2012 to April 2015. Note: Entities cited from comScore MMX: FACEBOOK.COM [M], TWITTER.COM [P], LinkedIn [P], Google Plus (2012-2014), Google + [C] (2015), MySpace [P], Friends Reunited Group [P]

395 Figure 5.35 Unique audience of selected social networking services, across devices: April 2015 Million 50 Total Digital Population Desktop & laptop 40.7 Mobile (Browser & App Combined) Smartphones (Browser & App Combined) 40 Smartphones (Browser) Smartphones (App)

30.130.5 30 26.0 22.0 21.6 19.7 20.7 20.2 20 16.2 15.4 14.2 14.1 11.8 10.3 11.1 9.1 8.9 9.6 9.1 8.6 8.6 9.4 10 7.3 7.6 7.2 7.0 5.9 3.7 4.7 4.0 3.4 2.9 2.4 1.2 2.3 0 FACEBOOK.COM TWITTER.COM Linkedin Google+ INSTAGRAM.COM PINTEREST.COM Source: comScore MMX home and work panel, MMX-MP, MoMX UK, April 2015. Note: Mobile devices include iOS and Android smartphones, iPads. Android tablets included for tagged entities. Entities cited include FACEBOOK.COM [M], TWITTER.COM [P], Linkedin [P], Google+ [C], INSTAGRAM.COM [M], PINTEREST.COM [P]. ‘Mobile’ includes Android smartphones and iOS smartphones and tablets and Android tablets. Only those entities that have been tagged as part of the census network report Android tablet usage data. ‘Smartphones’ includes iOS and Android smartphones. 396 Figure 5.36 Unique audience for selected online video sharing services: March 2015 Unique audience (millions) and active reach % 50 87% 55% 74% 26% 6% 7% 13% 6% 9% 9% 1% 4% 5% 2% 0% 4% 3% 3% 4% 3% 1% 41.5 40 Digital Audience Laptop & desktop audience Mobile Audience 30 27.1 24.9

20 12.2 10 6.3 4.4 2.5 2.7 2.9 3.3 2.4 2.1 2.0 0.6 1.6 1.0 0.2 1.3 1.1 1.5 0.3 0 YOUTUBE.COM [M] Vimeo [P] DAILYMOTION.COM VINE.CO [M] MSN Video [S] TWITCH.TV [P] Yahoo Screen [C] [P]

Source: comScore MMX, UK, home and work panel, comScore MMX-MP, UK and comScore MoMX, UK. All March 2015. Note: MMX Multi-Platform includes laptop/desktop browsing, laptop/desktop video streams and mobile use. Mobile audience includes Android smartphones and iOS smartphones and tablets. Only those entities that have been tagged as part of the census network report Android tablet usage data.

397 Figure 5.37 Claimed use of video on mobile phones

Audience (millions)

14 12 10 8 6 4 2 0 Apr-2014 May-2014 Jun-2014 Jul-2014 Aug-2014 Sep-2014 Oct-2014 Nov-2014 Dec-2014 Jan-2015 Feb-2015 Mar-2015 YouTube Facebook Vine Yahoo Dailymotion Vimeo MSN

Source: comScore MobiLens. All users 13+

398 Figure 5.38 Gaming activities carried out in the past week % of respondents 60 54 Total 16-24 25-39 40-54 55+ Male Female 50 46 41 40 38 37 34 33 31 29 30 25 26 2222 22 21 19 20 16 18 17 16 11 12 10 10 9 10 10 7 7 6 7 6 6 6 5 3 4 4 3 2 1 2 2 0 Play any game on a Play any game on a Play any game on a Play games which are Played a stand-alone Play a stand-alone mobile phone and or desktop/laptop games console more than 10 years old game with other game with other tablet computer connected to a TV set (‘retrogaming’) people via the internet people via the internet e.g. multiplayer on a on a desktop or laptop games console computer (online connected to a TV set multiplayer) (online multiplayer)

Source: YouGov, Attitudes Towards Technology 2015, April 2015 Base: Online UK adults 16+ (2147), 16 – 24 (279), 25 – 39 (384), 40 – 54 (554), 55+ (930), Male (1018), Female (1129) q4. Have you done any of the following in the past week?

399 Figure 5.39 Watching and streaming games footage in the past week % of respondents 25 22 Total 16-24 25-39 40-54 55+ Male Female

20

15

10 9 10 8 7

5 4 5 5 4 4 4 3 2 2 2 2 1 1 1 1 2 1 1 1 0 0 0 0 0 Watched other people play Watched online footage of other Streamed or uploaded footage of Taken part or attended (either in videogames /computer games via people playing games via a myself playing games on a person or online) a video/computer a non-gaming specialist video site dedicated gaming service e.g. computer and or console game tournament (this is Twitch.TV sometimes called ‘e-sports’)

Source: YouGov, Attitudes Towards Technology 2015, April 2015 Base: Online UK adults 16+ (2147), 16 – 24 (279), 25 – 39 (384), 40 – 54 (554), 55+ (930), Male (1018), Female (1129) q4. Have you done any of the following in the past week?

400 Figure 5.40 Unique visitors to selected games platforms on desktop and laptop computers

Unique audience (millions) Steam (App) [M] Origin (App) [M] GOG.COM [P] 5

4

3

2

1

0 Jul-2014 Jul-2013 Oct-2014 Oct-2013 Apr-2014 Apr-2013 Jun-2014 Jan-2015 Jun-2013 Jan-2014 Feb-2015 Mar-2015 Feb-2014 Mar-2014 Aug-2014 Sep-2014 Nov-2014 Dec-2014 Aug-2013 Sep-2013 Nov-2013 Dec-2013 May-2014 May-2013

Source: comScore MMX, UK, home and work panel, April 2013 to March 2015

401 Figure 5.41

Digital audience of selected online retail services: March 2015

Unique audience (millions) 32.1 Amazon 21.6 21.1 28.2 eBay Sites 19.9 18.5 14.1 Argos 7.9 8.5 12.7 Tesco 5.7 8.4 9.8 Asda 4.6 6.5 6.1 Marks and Spencer 3.9 2.9 5.3 John Lewis 3.4 2.4 5.3 Next 3.6 2.3 4.7 Digital Audience Desktops & laptops Mobile Audience Asos 2.9 2.4 4.0 Debenhams 2.6 1.9 0 10203040

Source: comScore MMX Multi-Platform, comScore MMX, comScore MoMX UK, March 2015. Note: MMX Multi-Platform includes laptop/desktop browsing, laptop/desktop video streams and mobile use. Mobile use includes Android smartphones and iOS smartphones and tablets. Only those entities that have been tagged as part of the census network report Android tablet usage data. comScore dictionary entities used were Amazon [M], eBay Sites [M], Argos [M], TESCO.COM* [M], Asda [M], MARKSANDSPENCER.CO [M], NEXT.CO.UK [M], ASOS.COM [M], DEBENHAMS.COM [M], John Lewis [M] * Indicates that the entity has assigned traffic to certain pages in the domain to other entities

402 Figure 5.42 Mobile retail activities conducted by mobile internet users: March 2014 and March 2015 Mobile internet users (%)

26 Found store location 25 26 Purchased goods or services 25 23 Compared product prices 22 22 Researched product features 21 Mar-15 20 Mar-14 Checked product availability 19 18 Found coupons or deals 17 6 Mobile payments POS 5 0 5 10 15 20 25 30

Source: comScore MobiLens, UK, 3 month averages ending March 2014 and March 2015 Base: Mobile internet users 13+

403 Figure 5.43 Selected mobile payments and financial services activities conducted by mobile internet users: March 2014 and March 2015 Mobile internet users (%)

37 Bank Accounts 36 24 Electronic Payments/Money Transfer 22 18 Credit Cards 15 Mar-15 6 Mobile Payments POS 5 Mar-14 Used NFC-enabled device/sticker for mobile POS 4 payment 3 3 Scanned QR/bar code for mobile POS payment 3 0 5 10 15 20 25 30 35 40

Source: comScore MobiLens, UK, 3 month averages ending March 2014 and March 2015 Base: mobile internet users 13+

404 Figure 5.44 News consumption, by platform and age: 2015

% of adults in UK 85% Television 72% 93% 46% Newspapers 34% 56% 39% Any internet or apps* 46% 23% 39% Radio 21% 46% Internet or apps on a computer/ laptop/ 30% 29% netbook/ tablet 21% 21% Word of mouth 23% 18% 20% All UK Internet or apps on a mobile 29% 6% 16-24 6% Magazines 5% 55+ 6% 3% Interactive TV, TV apps 2% 3% 1% None of these / Don’t follow news 5% 0%

Source: Ofcom Technology Tracker, W1 2015 Base: All adults aged 16+ (3756). QN1: Which of the following do you use for news nowadays? *Any internet or apps; aggregate of all internet devices.

405 Figure 5.45 Audience and reach of selected news services Unique audience (million) / reach (%) 27.8 BBC News 19.6 59% 54% 24.5 DAILYMAIL.CO.UK 18.5 52% 51% 21.0 The Guardian 14.1 44% 39% 19.0 TELEGRAPH.CO.UK 12.7 40% 35% 18.4 MIRROR.CO.UK 14.7 39% 40% 14.4 INDEPENDENT.CO.UK 10.3 30% 28% 12.8 BUZZFEED.COM 10.0 27% 27% 9.8 METRO.CO.UK 7.8 21% 21% 7.7 ITV News 6.4 16% 18% 5.3 HUFFINGTONPOST.CO.UK* 4.2 11% Total digital auidence 12% 5.1 VICE.COM 3.5 Mobile audience 11% 10% THESUN.CO.UK 2.1 5% 1.4 4% 0 5 10 15 20 25 30 Source: comScore MMX-MP and MoMX, UK, March 2015. MMX Multi-Platform includes laptop/desktop browsing, laptop/desktop video streams and mobile use. Mobile includes Android smartphones and iOS smartphones and tablets. Only those entities that have been tagged as part of the census network report Android tablet usage data. Entities Note: comScore dictionary entities used were BBC News [C], DAILYMAIL.CO.UK [M], The Guardian [P], TELEGRAPH.CO.UK [M], MIRROR.CO.UK [C], INDEPENDENT.CO.UK [P], BUZZFEED.COM [P], METRO.CO.UK [M], ITV News [M] HUFFINGTONPOST.CO.UK* [C], VICE.COM [M], THESUN.CO.UK [C]. * Indicates that the entity has assigned traffic to certain pages in the domain to other entities 406 Figure 5.46 Use of online media for local area % respondents

Used a website or app from a TV channel, newspaper or radio station 26 dedicated to area 24 Used any other website or app dedicated to area Used a catch-up service (e.g. iPlayer, ITV/STV/UTV Player) to watch 21 a regional news programme about your area Watched a video about or concerning your local area on a 20 website/app of a local newspaper, local radio or other TV broadcaster Watched a video with hyperlocal content on social media (e.g. 18 Facebook, Twitter) Watched a video with hyperlocal content on a general online video 18 service (e.g. YouTube, Vimeo) Watched a video about or concerning your local area on any other 17 website or app Streamed or created and uploaded online a video you have made 14 which is about (or relevant to) the area in which you live/work 0 102030 Source: YouGov, Audio visual consumption survey 2015, May 2015 Base: Online UK adults 16+ (2114), q. q39_rc. We’d now like to ask about ‘hyperlocal’ content. This means news or content services pertaining to a town, village, single postcode or other small, geographically defined community. In relation to the area where you currently either live or work (or have done in the past) have you

407 Figure 5.47

UK advertising expenditure: 2014 Expenditure (£ millions)

Internet 7,194

TV 4,766 4,911

Press brands 2,961 655 3,616

Direct Mail 1,835 Non-Digital Digital Out of home 1,019

Radio 575

Cinema 202

0 1000 2000 3000 4000 5000 6000 7000 Source: AA/Warc Expenditure Report, April 2015 Note: ‘Press brands’ is a consolidation of magazine brands and national and regional news brands. Total digital advertising spend is double-counted in digital TV spend (broadcaster VOD revenue), and in press brands’ digital spend.

408 Figure 5.48

Digital advertising expenditure, by type: 2008 - 2014 £ millions 8000 7,194

6,258 1,047 6000 5,448 882 4,822 818 Other 4,097 759 3,773 4000 3,364 3,559 Classifieds 718 3,471 713 658 3,087 Paid for search 2,708 Display 2000 2,245 1,942 2,097 2,274 1,280 1,479 1,825 697 772 1,050 0 2008 2009 2010 2011 2012 2013 2014

Source: IAB / PwC Digital Adspend Study 2008-2014 Note: ‘Content and native advertising’ was included as a new format for 2014; before this the revenue would have sat elsewhere within display (e.g. sponsorships).

409 Figure 5.49

Digital display video advertising revenue £ millions 500 442 2111 400 310 300 16 Video other 200 Social Video 200 410 20 Pre-post roll 118 288 100 121 53 178 28 105 12 53 0 12 28 2008 2009 2010 2011 2012 2013 2014

Source: IAB / PwC Digital Adspend Study 2008-2014

410 Figure 5.50

Mobile advertising expenditure: 2011 - 2014 £ millions 2000 1,625 19 1500

769 1,021 Other 1000 Display 424 529 Search 500 153 837 203 581 365 0 137 2011 2012 2013 2014

Source: IAB / PwC Digital Adspend Study 2011 – 2014 .

411 CMR 2015: Post Figure 6.1

UK postal services industry key metrics

UK postal services industry 2010 2011 2012 2013 2014

Addressed letter volumes 15.6bn 14.6bn 13.5bn 12.9bn 12.7bn

Addressed letter revenues £4.1bn £4.1bn £4.2bn £4.2bn £4.3bn

Proportion of access in total mail 44% 49% 54% 56% 56%

Letter volumes delivered by operators other than 11.3m 8.5m 18.0m 56.1m 158.5m Royal Mail

Direct mail share of total advertising spend 15.9% 14.9% 14.5% 14.1% 13.9%

Source: Royal Mail Regulatory Financial Statements, Royal Mail Wholesale, Royal Mail Group Annual Reports, AA/Warc, Nielsen. Note: Royal Mail calendar year volume figures are derived from Ofcom calculations based on financial year figures in Royal Mail’s Regulatory Statements and unaudited submissions to Ofcom and are therefore not directly comparable with Royal Mail’s published accounts. Royal Mail figures relate to the "Reported Business”. Prior data are not comparable. Figures are nominal. Figure 6.2

Value of UK e-commerce sales, 2008-2014 Value (£ billion) 104.0 100 91.0 78.2 80 68.0 58.8 60 49.8 43.8 40

20

0 2008 2009 2010 2011 2012 2013 2014

Source: Interactive Media in Retail Group, January 2015

414 Figure 6.3 Delivery and fulfilment factors considered to be important when choosing a retailer % of respondents stating each factor

Offers free delivery 56

Deliveries are quick and efficient 49

Offers click & collect in store 28

Offers range of delivery options 26

The provider used for delivery 11

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

Source: YouGov, Innovations in Retailing, fieldwork March 2015. Base: All adults 16+, 2114. Q: Which, if any, of the following do you consider to be important factors when you are choosing a retailer? Please choose all that apply.

415 Figure 6.4 Features of delivery that consumers like to have in place when shopping online % of respondents stating each feature Email confirmation at all stages of delivery 63 Tracking of parcel/goods in real time 61 Texts with exact time of product delivery 43 Click and collect 40 One hour time slots for delivery 39 Delivery options which include Sundays 32 Able to amend delivery details after order 32 Delivery to alternative collection points 24

0% 20% 40% 60% 80% Source: YouGov, Innovations in Retailing, fieldwork March 2015. Base: All adults 16+, 2114. Q: Which, if any, of the following systems do you like to have in place, as standard, when ordering online (including via your mobile)? Please choose all that apply.

416 Figure 6.5

Appetite to pay for enhanced delivery features % of respondents that would be prepared to pay for each feature

Faster delivery time 16

Specified delivery time 14

Real time tracking 6

Change delivery details after order 4

Not prepared to pay to upgrade at all 60

0% 20% 40% 60%

Source: YouGov, Innovations in Retailing, fieldwork March 2015. Base: All adults 16+, 2114. Q: Still thinking of online deliveries, which of the following statements do you agree with? Please choose all that apply.

417 Figure 6.6

Service types used for e-retail fulfilment: 2012-2013 Proportion of parcels (%) 100%

80% 57% 60% Economy 67% 60% Specified day (including next day) 40% Specified time 40% 36% 20% 30%

0% 3% 3% 4% 2012 2013 2014

Source: Ofcom analysis of IMRG / Metapack Delivery Index, January 2012-December 2014. Note: Specified time includes: AM, PM, before 10am, evening and school run. ‘Specified day’ includes same day, next day and Sunday. Proportions rebased to exclude international.

418 Figure 6.7

Preferred delivery location for online shopping % of respondents

Home delivery 68 Click and Collect 14 Don’t know 6 Delivery to work 6 Delivery to relatives/friends home 3 Delivery to parcel locker 2 Delivery to parcel shop 1 Delivery to Post Office 1 Other 0 0% 20% 40% 60% 80%

Source: YouGov, Innovations in Retailing, fieldwork March 2015. Base: All adults 16+, 2114. Q: Now thinking about shopping online (including via your mobile) and the delivery of your purchases, in general which of the following do you prefer?

419 Figure 6.8

Delivery time expectations, UK retailers and overseas retailers % of respondents 60% 57

40% 35 31 21 20% 14 9 9 5 6 4 4 0 0 0 1 2 0% 1-3 days 4-6 days 7-10 days 11-14 days Up to 3 Up to 4 Longer Don’t know weeks weeks than a month UK retailer Overseas retailer

Source: YouGov, Innovations in Retailing, fieldwork March 2015. Base: All adults 16+, 2114. Q: EXCLUDING large goods/furniture, if you were to order a product from a UK retailer/overseas retailer (e.g. a book, DVD, dress, phone etc.), how long would you consider an acceptable time for standard delivery to your chosen address? 420 Figure 6.9

Whether delivery concerns have ever stopped an order being made % of respondents

All adults 16+ 45 46 9

England 45 46 9

Wales 46 49 5

Scotland 42 51 7

Northern Ireland* 59 25 16

0 20406080100 Yes No Don’t know Source: YouGov, Innovations in Retailing, fieldwork March 2015. Base: All adults 16+, 2114, England, 1771, Wales, 104, Scotland. 178, Northern Ireland, 51. Q: Have you ever not ordered a product because of concerns over the delivery? *Note: Base size for Northern Ireland is <100.

421 Figure 6.10

Delivery concerns that have stopped an order being made % of respondents

Delivery charges were too high 55

Delivery time was too long 51

Was not able to arrange a suitable delivery time 24

Previous poor experience with retailer/deliverer 21

Return charges were too high 17

Unable to arrange a suitable delivery location 8

Item was too valuable 8

0 204060

Source: YouGov, Innovations in Retailing, fieldwork March 2015. Base: All adults 16+ who have not ordered a product due to delivery concerns, 954. Q: Why did your concerns regarding delivery stop you from ordering the product? Please choose all that apply.

422 Figure 6. 11

Addressed letter revenues: 2010-2014 Revenue (£m) 5,000 Total market 4,236 4,084 4,059 4,156 4,255 4,000 Royal Mail total 3,936 4,062 4,055 3,905 3,993 2,856 3,000 2,635 2,552 2,568 2,543 Royal Mail end- to-end* 2,000 1,441 1,512 Royal Mail 1,270 1,494 1,080 access 1,000 Access operators 142 150 157 163 164 0 64511 35 End-to-end 2010 2011 2012 2013 2014 operators Source: Royal Mail Regulatory Financial Statements, operator returns to Ofcom, Ofcom estimates. Royal Mail calendar year revenue figures are derived from Ofcom calculations based on financial year figures in Royal Mail’s Regulatory Statements and unaudited submissions to Ofcom and are therefore not directly comparable with Royal Mail’s published accounts. Royal Mail figures relate to the "Reported Business”. *Royal Mail end-to-end is an Ofcom calculation and refers to Royal Mail total letters revenues excepting access. Royal Mail access revenues are as per its Regulatory Financial Statements and include a small amount of parcels. The effect of this is that Royal Mail’s access revenues are slightly overstated and its end-to-end revenues are slightly understated. Prior data are not comparable. Figures are nominal.

423 Figure 6. 12

Addressed letter volumes: 2010 -2014 Volume (million items) 18,000 15,567 14,598 Total mail 13,482 12,874 12,681 12,000 Royal Mail end- 8,650 to-end* 7,166 7,228 7,185 7,098 Royal Mail 6,000 6,906 7,423 6,236 access 5,633 5,424 Other operators 11 9 18 56 159 0 end-to-end 2010 2011 2012 2013 2014 letters Source: Royal Mail Regulatory Financial Statements, operator returns to Ofcom, Ofcom estimates. Royal Mail calendar year volume figures are derived from Ofcom calculations based on financial year figures in Royal Mail’s Regulatory Statements and unaudited submissions to Ofcom and are therefore not directly comparable with Royal Mail’s published accounts. Royal Mail figures relate to the "Reported Business”. *Royal Mail end-to-end is an Ofcom calculation and refers to Royal Mail total letters volumes excepting access. Royal Mail access volumes are as per its Regulatory Financial Statements and include a small amount of parcels. The effect of this is that Royal Mail’s access volumes are slightly overstated and its end-to-end volumes are slightly understated. Prior data are not comparable. 424 Figure 6. 13

Proportion of access in total mail: 2010-2014 Year on year growth rate of access volumes 13.1% 3.8% 0.9% -0.6% -1.2% Proportion of access in total mail volume 60%

40%

56% 56% 49% 54% 20% 44%

0% 2010 2011 2012 2013 2014

Source: Royal Mail Regulatory Financial Statements, Operators’ returns, Ofcom estimates

425 Figure 6. 14

Other operators’ end-to-end delivered volumes: 2010 to 2014 Volume (million items) 160

120

80 158.5

40 18.0 56.1 11.3 8.5 0 2010 2011 2012 2013 2014

Source: Ofcom analysis of operators’ returns

426 Figure 6. 15

Letter revenue, by type of mail: 2013-14 to 2014-15 Proportion of letters revenue generated by each type (%)

100% 44 9 8 80% 9 9 5 5 Other 60% 24 26 International Social 40% Publishing Marketing 49 48 20% Business

0% 2013-14 2014-15

Source: Royal Mail plc, full year 2014-15 results, and Royal Mail plc, full year 2013-14 results Note: relates to Royal Mail revenue and not the total market, so accounts for c.95% of total revenue

427 Figure 6. 16

UK direct mail advertising spend and share of total advertising: 2010 - 2014 Spend (£m) Share of total advertising spend (%) 2000 18% 15.9% 14.9% 14.5% 14.1% 13.9% 1500 12%

1000 1,719 1,648 1,569 1,490 1,459 6% 500

0 0% 2010 2011 2012 2013 2014 Spend on direct mail Direct mail share of advertising spend

Source: AA/Warc Advertising Expenditure report / Nielsen. Figures are nominal.

428 Figure 6. 17

Share of direct mail expenditure, by sector: 2010-2014 Share of spend (%) 40%

31.9% 31.3% 30.8% 29.3% 28.7% 30% Retail Financial 21.2% 20.2% 19.2% 20.1% 19.2% Government 20% Industrial 18.4% 16.8% 17.4% 17.6% 18.0% Services 10% Durables Consumables

0% 2010 2011 2012 2013 2014

Source: AA/Warc Expenditure report / Nielsen

429 Figure 6. 18

Magazine subscription circulation: 2010-2014 Average subscription circulation (thousands) Share of print circulation (%) 15.1% 14.8% 7,500 13.9% 14.3% 14.9% 15

5,000 10

6,437 6,424 6,196 2,500 5,515 4,909 5

0 0 2010 2011 2012 2013 2014 Subscription circulation Share of total print circulation

Source: Mediatel/ABC, 6-monthly net average circulation and subscription sales

430 Figure 6. 19

First and Second Class single piece stamp prices: 2007-2015 Price (p)

95 100 90 90 93 First Class 80 75 73 74 66 69 69 Large Letter 61 62 63 58 60 60 Second Class 60 52 51 48 47 46 Large Letter 42 41 40 39 53 54 First Class 40 34 36 50 50 36 32 20 30 Second Class 24 27

0 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: Royal Mail. Figures are nominal. Prices refer to Royal Mail First and Second Class Standard and Large Letter list prices for letters up to 100g,

431 Figure 6. 20

Number of items sent per month Mean number of items sent per month 6.0 4.0 5.7 7.9 Items of post sent per month (% of respondents) 100% 3 1 5 5 4 9 8 9 10 80% 18 23 25 Don't know 17 26 21+ items 60% 11-20 items 19 21 25 19 5-10 items 40% 21 3 or 4 items 20 18 20% 1 or 2 items 33 23 21 18 None 0% Adults 16+ 16-34 35-54 55+ Source: Ofcom Residential Postal Tracker, Q2 2014 - Q1 2015 Base: All respondents (n = 3557 adults 16+, 996 16-34, 1205 35-54, 1356 55+) QC1. Approximately how many items of post – including letters, cards and parcels – have you personally sent in the last month? 432 Figure 6. 21

Number of parcels sent per month Mean number of parcels sent per month 1.1 0.9 1.1 1.1 Parcels sent per month (% of respondents) 100% 111 3 4 23 34 Don't know 5 5 7 17 80% 20 21+ parcels 21 22 11-20 parcels 60% 5-10 parcels 40% 75 3 or 4 parcels 70 69 66 1 or 2 parcels 20% None 0% Adults 16+ 16-34 35-54 55+ Source: Ofcom Residential Postal Tracker, Q2 2014 - Q1 2015 Base: All respondents (n = 3557 adults 16+, 996 16-34, 1205 35-54, 1356 55+) QC2. And how many of these items sent in the last month were parcels rather than letters or cards?

433 Figure 6. 22

Categories of mail sent in the past month Proportion of consumers (%)

70 63 Personal mail 64 81

53 16+ 54 16-34 Formal mail 57 49 35-54 55+ 40 47 Parcels 44 32

0 102030405060708090 Source: Ofcom Residential Postal Tracker, Q2 2014 - Q1 2015 Base: All who have personally sent any items of post in the last month (n = 2685 adults 16+, 652 16-34, 948 35-54, 1085 55+) QC5. Which of these types of mail would you say you have personally sent in the last month by post? (MULTICODE) 434 Figure 6. 23

Types of mail sent in the past month Proportion of consumers (%) 80 68 60 56 48 49 43 43 46 43 38 39 40 35 31 30 30 30 28 29 26 29 25 22 24 25 18 20

0 Formal letters Payments for Personal letters Invitations/ Larger parcels Smaller parcels bills greetings cards/ postcards Adults 16+ 16-34 35-54 55+ Source: Ofcom Residential Postal Tracker, Q2 2014 - Q1 2015 Base: All who have personally sent any items of post in the last month (n = 2685 adults 16+, 652 16-34, 948 35-54, 1085 55+) QC5. Which of these types of mail would you say you have personally sent in the last month by post? (MULTICODE) 435 Figure 6.24 Percentage of respondents reporting an increasing or decreasing amount of post sent in the past two years Proportion of consumers (%)

Increase Decrease 30 26 24 25 23 22 20 17 15 16 15 9 10 5 0 Adults 16+ 16-34 35-54 55+ Net increase: -8pp 5pp -8pp -17pp Source: Ofcom Residential Postal Tracker, Q2 2014 - Q1 2015 Base: All respondents (n = 3557 adults 16+, 996 16-34, 1205 35-54, 1356 55+) QC10. SHOWCARD Compared with two years ago, would you say that the number of items you send through the post has... increased greatly, increased slightly, stayed the same, decreased slightly, decreased greatly?

436 Figure 6.25

Methods of communication being used instead of post Proportion of consumers (%) 100 77 80 75 65 60 51 47 37 37 40 33 29 25 29 28 27 22 19 18 20 16 16 16 13121213 16 8 7 8 11 11 9 2 4 0 Email Text Mobile Social Landline In-person/ Instant None in messaging/ phone calls networking phone calls face-to-face Messaging particular SMS sites/ apps Adults 16+ 16-34 35-54 55+ Source: Ofcom Residential Postal Tracker, Q2 2014 - Q1 2015 Base: All who say that the number of items sent by post has decreased, compared to two years ago (n = 812 adults 16+, 164 16-34, 311 35-54, 337 55+) QC13. As your use of post has decreased compared with two years ago, which, if any, of these other forms of communication are you using more instead of post? (MULTICODE) 437 Figure 6. 26

Number of items received per week Mean number of items received per week 8.5 7.1 9.2 8.9 Items of post received per week (% of respondents) 100% 6 5 66 13 80% 18 21 20 Don't know 32 21+ items 60% 39 38 45 11-20 items 40% 18 5-10 items 3 or 4 items 17 17 20% 21 15 1 or 2 items 14 13 11 9 None 0% 6 3 5 Adults 16+ 16-34 35-54 55+ Source: Ofcom Residential Postal Tracker, Q2 2014 - Q1 2015 Base: All respondents (n = 3557 adults 16+, 996 16-34, 1205 35-54, 1356 55+) QD1. Approximately how many items of post – including letters, cards and parcels – have you personally received in the last week? 438 Figure 6.27

Number of parcels received per week Mean number of parcels received per week 0.9 1.0 1.1 0.7 Number of parcels received per week (% of respondents) 100% 4 5 4 3 Don't know 7 6104 80% 18 21+ parcels 23 24 27 11-20 parcels 60% 5-10 parcels

40% 73 3 or 4 parcels 64 62 57 1 or 2 parcels 20% None 0% Adults 16+ 16-34 35-54 55+

Source: Ofcom Residential Postal Tracker, Q2 2014 - Q1 2015 Base: All respondents (n = 3557 adults 16+, 996 16-34, 1205 35-54, 1356 55+) QD2. And how many of these items received in the last week were parcels rather than letters or cards?

439 Figure 6.28

Proportion of consumers reporting delivery of parcels by company Company parcels delivered by (% of all who have received a parcel in the past week)

80 % 72 Only Royal Mail 7% 60 %

Royal Mail 40 % 21% and any 46% other/s 20 % 12 10 Only other/s 7776 4 3 0 %

26% Don't know

Source: Ofcom Residential Postal Tracker, Q4 2013-Q1 2014 Base: All who have received a parcel in the last week (n = 796 adults 16+) QD17. Thinking of the parcels that you have received in the last week, which of these companies delivered the parcels? (MULTICODE) Chart shows companies mentioned by more than 1% of those receiving any parcels in the last week 440 Figure 6.29

Categories of mail received in the past week Proportion of consumers receiving each type of mail (%)

100 90 83 83 80 76 68 72 71 57 60 16+ 46 46 4744 47 47 42 39 39 41 16-34 40 37 30 35-54 20 55+

0 Personal mail Direct mail Transactional Parcels Publications mail Source: Ofcom Residential Postal Tracker, Q2 2014 - Q1 2015 Base: All respondents (n = 3557 adults 16+, 996 16-34, 1205 35-54, 1356 55+) QD4. Please think about items that are addressed to you personally rather than leaflets or charity collection envelopes or bags that may come through your letterbox. Which of these types of items would you say you have personally received through the post in the last month? (MULTICODE)

441 Figure 6.30

Types of mail received in the past week Proportion of respondents who have received each type of mail (%)

Bills/ invoices/ statements 83 Standard circulars 55 Letters from organisations you know 49 Addressed direct mail 44 Catalogues/ brochures 38 Larger parcels 35 Invitations/ greetings cards 30 Smaller parcels 27 Personal letters 21 Subscription magazines 17 0 20406080100 Source: Ofcom Residential Postal Tracker, Q2 2014 - Q1 2015 Base: All respondents (n = 3557 adults 16+) QD4. Please think about items that are addressed to you personally rather than leaflets or charity collection envelopes or bags that may come through your letterbox. Which of these types of items would you say you have personally received through the post in the last month? (MULTICODE) 442 Figure 6.31

Awareness of the price of a First Class stamp Proportion of respondents (%) 100% Don't know 80% 33 36 32 33 Incorrect price 60% - over 62p 22 22 20 25 Correct price - 40% 11 11 13 7 62p 20% 33 31 35 33 Incorrect price - under 62p 0% Adults 16+ 16-34 35-54 55+ Source: Ofcom Residential Postal Tracker, Q2 2013-Q1 2014 Base: All respondents (n = 3557 adults 16+, 996 16-34, 1205 35-54, 1356 55+) QF1. As far as you know, how much does it currently cost to send a standard letter by First Class using a stamp? (single code) Note: Our research was conducted before April 2015, when the price of a First Class stamp increased from 62p to 63p.

443 Figure 6.32

Awareness of the price of a Second Class stamp Proportion of respondents (%) 100% Don't know 80% 42 45 49 45 Incorrect price 60% - over 53p 11 9 12 4 13 3 7 Correct price - 40% 2 53p

20% 39 43 39 36 Incorrect price - under 53p 0% Adults 16+ 16-34 35-54 55+

Source: Ofcom Residential Postal Tracker, Q2 2014 - Q1 2015 Base: All respondents (n = 3557 adults 16+, 996 16-34, 1205 35-54, 1356 55+) QF2. As far as you know, how much does it currently cost to send a standard letter by second class using a stamp? (SINGLE CODE) 444 Figure 6.33

Perception of value for money of First and Second Class stamps Total who agree First or Second Class stamps are good value for money 56% 48% Proportion of respondents (%) 100% 11 14 Don't know 80% 16 20 Very poor 16 60% 16 Fairly poor Neither good 40% 40 34 nor poor Fairly good 20% 17 15 Very good 0% First Class Stamp Second Class Stamp

Source: Ofcom Residential Postal Tracker, Q2 2014 - Q1 2015 Base: All respondents (n = 3557 adults 16+) QF3/4. It currently costs 62p/53p to send a standard letter First/ Second Class within the UK. How would you rate the Royal Mail's First/ Second Class service in terms of value for money? (SINGLE CODE) 445 Figure 6.34

Attitudes to post – proportion of consumers agreeing to each statement

Adults 16-34 35-54 55+ 16+ I prefer to send letters or emails to companies rather than make a 60 65 64 53 phone call, so that I have a written record I prefer to send emails rather than letters whenever possible 54 73 59 35 I only use post if there is no alternative 44 52 46 37 I send fewer letters by post now due to the cost 29 26 26 35 I would feel cut off from society if I can't send or don't receive post 51 38 47 64 I only send my mail First Class if it needs to get there the next day 53 53 50 56 I trust Second Class post to get there in a reasonable timeframe 61 59 60 65

Source: Ofcom Residential Postal Tracker, Q2 2014 - Q1 2015 Base: All respondents (n = 3557 adults 16+, 996 16-34, 1205 35-54, 1356 55+) QH2A-H. Agreement with statements about sending/ receiving post

446 Figure 6.35

Reliance on letters and cards as a way of communicating Proportion of respondents (%) 100% 9 9 11 16 Don't know 80% 19 21 21 Not at all reliant 23 11 9 60% 10 Not very reliant 11 33 40% 35 39 Neither 33 Fairly reliant 20% 28 22 16 21 Very reliant 0% Adults 16+ 16-34 35-54 55+

Source: Ofcom Residential Postal Tracker, Q3 2014 - Q1 2015 Base: All respondents (n = 2354 adults 16+, 675 16-34, 802 35-54, 877 55+) QE6. How reliant would you say you are on post in terms of letters and cards as a way of communicating? (SINGLE CODE) 447