BBC Market Impact Assessment: Proposed changes to BBC iPlayer and BBC Three Qualitative research report Prepared for Ofcom Prepared for Ofcom 1 Contents Contents ........................................................................................................................................................... 2 1 Executive summary ............................................................................................................................... 4 1.1 Background to the research .................................................................................................................... 4 1.2 Summary of key findings ......................................................................................................................... 5 2 Background and objectives ................................................................................................................. 11 2.1 Background ............................................................................................................................................ 11 2.2 Research aim and objectives ................................................................................................................. 12 2.3 Research approach ................................................................................................................................ 12 2.3.1 Overview ........................................................................................................................................... 12 2.3.2 Workshop groups – overview and sample ........................................................................................ 13 2.3.3 In-home ethnographic interviews – overview and sample ............................................................... 14 3 Current viewing behaviour and motivations for watching by platform and device ............................. 15 3.1 Introduction ........................................................................................................................................... 15 3.2 Summary of key findings ....................................................................................................................... 15 3.3 Viewing behaviour and motivations by platform .................................................................................. 15 3.4 Viewing behaviour and motivations by device ...................................................................................... 18 4 Market perceptions ............................................................................................................................. 22 4.1 Introduction ........................................................................................................................................... 22 4.2 Summary of key findings ....................................................................................................................... 22 4.3 Varying market perceptions by age and level of tech engagement ...................................................... 22 4.4 Perceptions of BBC iPlayer versus other catch-up and on-demand services ........................................ 24 4.4.1 Perceptions of iPlayer versus other broadcaster catch-up services .................................................. 24 4.4.2 Perceptions of iPlayer versus on-demand services ........................................................................... 25 4.5 Initial perceptions of BBC Three ............................................................................................................ 28 5 Finding content ................................................................................................................................... 29 5.1 Introduction ........................................................................................................................................... 29 5.2 Summary of key findings ....................................................................................................................... 29 5.3 Content discoverability: searching versus browsing ............................................................................. 30 2 5.4 Content discoverability by platform ...................................................................................................... 31 5.4.1 Finding linear content ....................................................................................................................... 31 5.4.2 Finding catch-up content................................................................................................................... 32 5.4.3 Finding on-demand content .............................................................................................................. 34 5.5 The role of devices in searching for and browsing content .................................................................. 36 5.6 The role of social media in searching for and browsing content .......................................................... 37 5.6.1 Social media as a channel of influence .............................................................................................. 37 5.6.2 Social media as a content destination ............................................................................................... 38 5.7 Too much choice can hinder decision-making ...................................................................................... 38 6 Reactions to the proposed change to BBC iPlayer ............................................................................... 40 6.1 Introduction ........................................................................................................................................... 40 6.2 Summary of proposal ............................................................................................................................ 40 6.3 Summary of key findings ....................................................................................................................... 41 6.4 Existing perceptions of BBC iPlayer ....................................................................................................... 42 6.5 Impressions of proposed change to BBC iPlayer ................................................................................... 43 6.5.1 Initial ratings ...................................................................................................................................... 43 6.5.2 Considered impressions of the proposed change ............................................................................. 44 6.6 Perceived impact of proposed change to BBC iPlayer on viewing behaviours ..................................... 49 6.7 Summary of project market impact of BBC iPlayer proposal ................................................................ 50 7 Reactions to the proposed changes to BBC Three ............................................................................... 51 7.1 Introduction ........................................................................................................................................... 51 7.2 Summary of proposal ............................................................................................................................ 51 7.3 Summary of key findings ....................................................................................................................... 52 7.4 Existing perceptions of BBC Three ......................................................................................................... 53 7.5 Impressions of proposed changes to BBC Three ................................................................................... 58 7.5.1 Initial ratings ...................................................................................................................................... 58 7.5.2 Considered impressions of the proposed changes ........................................................................... 59 7.6 Perceived impact of proposed changes to BBC Three on viewing behaviours ..................................... 64 7.7 Summary of projected market impact of BBC Three proposal.............................................................. 68 3 1 Executive summary 1.1 Background to the research Ofcom commissioned Kantar Media to conduct a series of qualitative workshop groups and in-depth interviews with members of the public to help explore the potential market impact of proposed changes to BBC iPlayer and BBC Three. The qualitative research was required to feed into the Market Impact Assessment (MIA), assigned to Ofcom, as part of the Public Value Test (PVT) to which any new or substantially altered BBC services are subject. The purpose of the MIA is to assess the effect of the proposed service changes on other services in the market, considering both the direct impact on consumers and producers of other services and the likely impact on competition and market development. Within the overall aim of exploring the potential market impact of the proposed changes to BBC iPlayer and BBC Three, the specific objectives of the study were to: Explore and understand motivations for watching broadcast TV, versus watching catch-up, versus watching video on-demand (VOD) Explore audiences’ existing perceptions of iPlayer and BBC Three, versus other linear channels, catch-up services, VOD services, and content aggregators Understand how people find on-demand content from services that have no TV presence/