CMR 2015 TV and AV Slides

1

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.

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

2

Figure 2.2

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

Total TV industry revenue, by source: 2014

£12,834m

£13,227m

£131m

£110m £74m

£57m £14m £6m

12,00012,10012,20012,30012,40012,50012,60012,70012,80012,90013,00013,10013,20013,30013,40013,500

2013revenue

BBC TVspending

Subscriberrevenue

Other NAR PSB NAR PSB portfolioNAR

Other 2014revenue

Revenue (£m)

+7.7%

+5.1%

+2.7% +2.2% +0.9%

+1.9%

+3.1%

3

Figure 2.3

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.

£m

£1,247m £1,323m

£485m £483m £303m £285m

£968m £1,043m

£639m £653m £50m £51m

0

1,000

2,000

3,000

4,000

2013 2014

ITV Breakfast

PSB portfoliochannelsOther multichannels

Channel 5

Channel 4/S4C

ITV1/STV/UTV

£ 3,838m £3,693m 1-year change (%) 3.9%

6.1%

-5.7%

1.4%

-0.6%

2.2%

7.7%

Advertising revenue, by share: 2013 - 2014

4

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.

Annual Growth

38% 26% 53% 42% 28% £33m £66m £75m £92m £121m £155m £25m £38m

£57m £81m

£23m £25m

£104m

£207m

£317m

£32m

£74m £113m

£145m

£190m

£240m

£95m

£180m £238m

£379m

£574m

£793m

0

100

200

300

400

500

600

700

800

900

2009 2010 2011 2012 2013 2014

FTV Ad Revenues

Subscriptions

PPV transactions

DTO transactions

£m

Figure 2.4 Online TV revenues

5

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

£3,143m £3,491m £3,630m £3,547m £3,693m £3,838m

£189m

£179m £176m £184m

£192m £208m

£74m £113m £145m

£190m £240m

£3,364m

£3,745m £3,919m £3,876m

£4,075m £4,285m

0

1,000

2,000

3,000

4,000

5,000

2009 2010 2011 2012 2013 2014

FTV Online AdRevenues

All BroadcasterSponsorship

All BroadcasterNAR

Annual Growth

5.2% 26.2% 8.2% 3.9%

£m

Figure 2.5 Total cross-platform advertising and sponsorship revenue

6

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.

£bn

41.0% 41.6% 42.6% 43.2% 43.1% 43.5%

59.0% 58.4% 57.4% 56.8% 56.9%

56.5%

£8.5bn £9.6bn £9.8bn £9.8bn £10.0bn

£10.6bn

0

2

4

6

8

10

12

2009 2010 2011 2012 2013 2014

All other displayadvertising

Broadcasterdisplay ad spend

Figure 2.6 Broadcaster percentage share of all display advertising expenditure

7 12

21

0

5

10

15

20

25

2013 2014 2015

Smart TVownership

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'?

7

Take-up of smart TVs among UK TV households

Figure 2.7

% of UK TV homes

8

28 29 31

38

45 44.2 48.4

51.3 54.2

0

10

20

30

40

50

60

0

200

400

600

800

1,000

1,200

1,400

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

Smart TV sales and market share

Sales units (000s) %

Figure 2.8

9

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?

Figure 2.9 Activities undertaken on connected TV, by age

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

34 42 42 45 37 30 13

21 29 26 28

27 11

20 24 25 30

25

11

5

20

24 23 26

28

12

5

15

22 21 23

17

7

12

13 18 17

18

7

9

11 12 12

11

7

All 16-24 25-34 35-44 45-54 55-64 65+

Online PPV or download to own(e.g. iTunes)

Paid VOD content through TVservice

Online subscription services (e.g.Netflix)

Browse online

Free VOD content through TVservice

Clips through websites (e.g.YouTube)

Broadcaster catch-up services

78

32 31

13 11 10 7

80

34 30

13 12 10 10

76

31 32

12 10 10 6

0%

20%

40%

60%

80%

100%

I missed theprogramme/ filmwhen it was on

TV and I use it tocatch up

I use it whenthere is nothingon 'normal' TVthat I want to

watch

I want to watchthe programme/film at a time that

suits me

Somebody waswatching

something elseon the TV at thetime it was on soI used it to catch

up

Just to passsome time/ relax

The programme/film was

recommended tome by someone I

know

There is a goodchoice

of programmes/films

All Adults(16+)

16-34

35+

10

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?

Figure 2.10 Reason for using catch up TV via a connected TV, by age

% of catch-up TV users

11

Take-up of DVRs, by platform

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?

% of UK homes with a TV

Figure 2.11 54

%

31%

11%

9%

7%

2%

62%

34%

12%

13%

6%

4%

64%

33%

13%

12%

7%

5%

0%

20%

40%

60%

80%

100%

Total DVR take-up

Sky+ Virgin TiVo or V+ Freeview DVR YouView Broadband TV(BT Vision orTalkTalk TV)

2013

2014

2015

12

Take-up of HD-ready TVs and HDTV services

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 actually watch 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?

% of UK homes with a TV

Figure 2.12

50%

53%

57%

75%

75%

76%

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

2013

2014

2015

Have HD readyTV

Have HDTVservice

13

Take-up and use of 3D-ready TVs

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?

% of UK homes with a TV

Figure 2.13

4%

5%

7%

8%

10%

13%

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

2013

2014

2015

Have 3D ready TV

Watch 3D content

14

Traditional TV viewing vs. time-shifted minutes: all individuals

211.9 215.4 211.7 224.9 219.2 216.4 205.6 193.3

5.8 9.1 13.2 17.2 22.2 24.2

26.2 27.2

0

50

100

150

200

250

2007 2008 2009 2010 2011 2012 2013 2014

Time-shift

Traditional/live

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

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).

218 224 225 242 241 240 232 220 Minutes per person/per day

Aver

age

min

s/da

y

Figure 2.14

15

11%

24%

37%

48%

61% 65% 69%

73%

15% 15% 15% 14% 15% 16% 16% 17%

3% 4% 6% 7% 9% 10% 11% 12%

0%

20%

40%

60%

80%

100%

2007 2008 2009 2010 2011 2012 2013 2014

DVR owners as % ofpopulation

Time-shifted viewingamong DVRindividuals

Time-shifted viewingamong all individuals

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).

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

Figure 2.15

Figure 2.16

16

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.

17% 19% 19% 18%

21% 22%

23% 24%

13%

16% 18%

16%

19% 19% 19% 20%

20% 18% 17%

15% 17% 17%

19% 20%

15% 15% 15% 14%

15% 16% 16% 17%

14% 14% 15%

12%

14% 15% 16%

17%

13% 13% 13% 13% 15% 15%

16% 17%

12% 13%

14% 13% 13% 14%

15% 16%

12% 11% 10% 10%

11% 11% 12% 12%

0%

5%

10%

15%

20%

25%

2007 2008 2009 2010 2011 2012 2013 2014

25-34

16-24

35-44

Individuals

45-54

Children

55-64

65+

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

Proportion of viewing (%)

17

0%

5%

10%

15%

20%

25%

30%

35%

Total time-shifted 2008 Pp increase in time-shift 2008-2014

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

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

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

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%

18

All individuals

Rank Programme Channel Date Day Start time

Total Average audience

000s

% Live

% watched on the same day

as live

% watched up to 7 days after

broadcast

% of live viewing

watched with other people

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

2 FIFA WORLD CUP 2014: URUGUAY V ENGLAND ITV 19/06/2014 Thursday 18:59:00 13,875 95% 4% 0% 64%

3 THE GREAT BRITISH BAKE OFF BBC One 08/10/2014 Wednesday 20:00:14 13,510 68% 23% 9% 64%

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

Rank Programme Channel Date Day Start time

Total Average audience

000s

% Live

% watched on the same day

as live

% watched up to 7 days after

broadcast

% of live viewing

watched with other people

1 WORLD CUP 2014: GER V ARG BBC One 13/07/2014 Sunday 20:00:09 11,252 95% 5% 0% 72%

2 THE GREAT BRITISH BAKE OFF BBC One 08/10/2014 Wednesday 20:00:14 10,383 60% 30% 10% 64%

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%

5 FIFA WORLD CUP 2014: URUGUAY V ENGLAND ITV 19/06/2014 Thursday 18:59:00 9,993 94% 6% 0% 66%

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.

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

19

# Programme Channel Date Day Start time

Total live average

audience 000s

% Live

% watched on the same day as live

% watched up to 7 days after broadcast

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.

The top 20 most-watched programmes live (excl. sport): 2014 Figure 2.19

20

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

20072014

Proportion of traditional TV viewing that is co-viewed, by day part: 2007 and 2014

Peak time

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

Figure 2.20

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

21

85%

86%

87%

88%

88%

89%

90%

91%

92%

10%

10%

9%

9%

9%

9%

8%

7%

6%

6%

4%

4%

3%

3%

2%

2%

2%

2%

0% 50% 100%

H1 2014H2 2013H1 2013H2 2012H1 2012H2 2011H1 2011H2 2010H1 2010

Proportion of viewing minutes across all devices

Live Recorded VOD

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

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

22

Figure 2.22

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.

Total broadcast TV industry revenue, by source

4,655

5,027 5,428 5,518

5,879 5,989

3,143 3,491 3,630 3,547 3,693 3,838

2,555 2,563 2,585 2,671 2,596 2,727

736 712 723 749 667 672 0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2009 2010 2011 2012 2013 2014

Subscriptionrevenue

Netadvertisingrevenue

BBC incomeallocated toTV

Otherrevenue

£11,794 £11,088

1.9%

3.9%

5.2%

4.1%

0.9% -1.8%

£m 1 year 5yr CAGR Growth

to 2014

£12,366 £12,486 3.1% 3.6%

5.1% 1.3%

£12,834 Total £13,227

23

Figure 2.23

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.

Total broadcast TV industry revenue, by share

42.0% 42.6% 43.9% 44.2% 45.8% 45.3%

28.3% 29.6% 29.4% 28.4% 28.8% 29.0%

23.0% 21.7% 20.9% 21.4% 20.2% 20.6%

6.6% 6.0% 5.8% 6.0% 5.2% 5.1% 0%

10%

20%

30%

40%

50%

2009 2010 2011 2012 2013 2014

Subscriptionrevenue

Net advertisingrevenue

BBC incomeallocated to TV

Other revenue

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

24

Figure 2.24

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.

Total TV industry revenue, by sector Revenue (£m)

£2,656 £2,665 £2,676 £2,755 £2,603 £2,734

£2,126 £2,354 £2,407 £2,334 £2,359 £2,414

£1,650 £1,747 £1,855 £1,879 £1,994 £2,089

£4,655 £5,027 £5,428 £5,518 £5,879 £5,989

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2009 2010 2011 2012 2013 2014

Platformoperators

Commercialmultichannels

MaincommercialPSB channels

Publicly-fundedchannels

1.9%

2.4%

5.2%

2.6%

4.8%

1 year 5yr

CAGR

Growth

4.8%

£11,794 £11,088 £12,366 £12,486 £12,834 3.1% 3.6%

0.6% 5.0%

£13,227 Total

25

Figure 2.25

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.

TV net advertising revenues, by source: 2009-2014

£1,896m £2,140m £2,178m £2,077m £2,085m £2,141m

£445m £518m £544m £561m £639m £653m

£802m

£834m £908m £910m £968m £1,043m £3,143m

£3,491m £3,630m £3,547m

£3,693m £3,838m

0

1,000

2,000

3,000

4,000

2009 2010 2011 2012 2013 2014

Commercialmultichannels

Commercial PSBportfoliochannels

Commercial PSBchannels

NAR(£m)

3%

1 year 5yr CAGR

Growth

2%

4% 4%

8% 5%

2% 8%

Combined

26

TV net advertising revenue market shares: 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.

Figure 2.26

33.8% 34.5%

1.3% 1.3% 13.1% 12.5%

8.2% 7.4%

17.3% 17.0%

26.2% 27.2%

0%

20%

40%

60%

80%

100%

2013 2014

CommercialmultichannelsCommercial PSBportfolio channelsS4C

Channel 5

Channel 4

ITV Breakfast

ITV/STV/UTV

Proportion of NAR £3,693m £3,838m

Total ‘other’ revenue = £672m (+1%)

27

Figure 2.27 Breakdown of other commercial TV channel revenue: 2013-2014

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 number of broadcaster returns being made by the time of writing, rather than material changes in the contributions that these revenue components are making to total industry income.

Sponsorship £208m (+8%)

Programme Sales £48m

(+8%)

Interactive £40m (+19%)

PPV £34m (+10%)

S4C £8m (-59%)

TV Shopping £146m (-6%)

Other £189m (-1%)

28

Figure 2.28

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.

Revenue generated by multichannel broadcasters, by genre: 2013-2014

Entertainment £1,690m (+11%)

Factual £264m (+13%)

Kids £190m (+1%) Leisure

£40m (-21%) News £129m (+1%)

Sport £2,285m (-2%)

Movies £766m (-2%)

Music £117m (-6%)

Total revenue = £5,481m across the eight included genres (+2%)

29

Figure 2.29

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).

Spend on network TV programmes: 2013-2014

£2,093m £2,477m

£747m £813m

£794m £818m

£708m

£757m £486m

£492m £298m

£311m £246m

£236m £260m

£269m £179m

£181m

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2013 2014

Channel 5

Other PSB portfolio channels

BBC portfolio channels

BBC Two

Channel 4

Other multichannels

ITV/ITV Breakfast

BBC One

Film/Sport channels

+9.4% £m 1 yr change

£5,811m £6,355m

+3%

+1%

+7%

+9%

+18%

+3%

-4%

+4%

+1%

Figure 2.30

£1,395m £1,356m £1,247m £1,539m £1,668m £1,586m

£115m £154m £165m

£185m £147m £184m

£70m £87m £119m

£152m £156m £180m

£369m £495m £652m

£670m £755m £694m

£32m £26m

£25m

£41m £40m

£39m

£17m £27m

£18m

£2m £14m

£25m

£1,999m £2,145m £2,227m

£2,588m £2,779m

£2,708m

0

500

1,000

1,500

2,000

2,500

3,000

2009 2010 2011 2012 2013 2014

Total

Other UK

Pre-production

Other internationalincome

International sales of UKfinished programmes

UK rights income

Primary UKcommissions

-2.0%

15.7%

4.1%

20.7%

13.5% -8.1%

84.0% 7.4%

9.9% 24.8%

-2.5% 6.3%

2.6% -4.9%

30

1 year 5 year CAGR

Growth

£m

Independent producer TV-related revenues

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.

Fig 2.31

31

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.

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

£47 £41

£91 £88

£292 £304

£569 £516

£26 £420 £20

£55

£7 £504 £15 £451

£13 £482 £414 £17

£545 £2,342

£2,521 Total spend on first-run originations (£m)

60% 53% 56% 60% 78% 76%

48% 52%

22%

79%

30% 28% 34% 36%

55%

77% 91% 93%

54% 56%

40% 47% 44% 40% 22% 24%

52% 48%

78%

21%

70% 72% 66% 64%

100% 100%

45%

23% 9% 7%

46% 44%

2009

2014

2009

2014

2009

2014

2009

2014

2009

2014

2009

2014

2009

2014

2009

2014

2009

2014

2009

2014

2009

2014

Arts &Classical

Music

Childrens News &Current Affairs

Drama &Soaps

Education Entertainment& Comedy

Factual Feature Films Religion &Ethics

Sports Grand Total

Internal External

32

Figure 2.32

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 .

£1,357m £1,419m £1,429m £1,502m £1,476m £1,515m

£611m £624m £563m £564m £484m £549m

£189m £212m £247m £257m £229m

£244m £256m

£261m £267m £266m £263m

£277m £2,413m

£2,516m £2,506m £2,588m £2,451m

£2,585m

0

1,000

2,000

3,000

2009 2010 2011 2012 2013 2014

Nations &Regions

Late night

Day time

Peak time

£m

2%

1%

-2%

5%

5yr CAGR

6%

5%

14%

6%

1 year Growth

3% 2%

Spend on first-run UK originated output on the five main networks

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

42,328 19,207

32,833 13,284

11,926 11,199

0%

20%

40%

60%

80%

100%

Total Hours Total First-run UK originated hours

Programmes forNations & Regions

BBC PortfolioChannels

Five Main PSBChannels (network)

87,087 43,690 Proportion of hours

YOY change (%)

2.4% -0.3%

0.4% -0.2%

0.1% 1.8%

Total hours

First-run UK originations

33

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.

Figure 2.33

34

Figure 2.34

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.

Hours of first-run UK originated output on the five main PSB channels

5,414 5,665 5,696 5,685 5,680 5,744

14,632 13,316 13,338 13,365 13,180 13,463

10,439 11,060 11,647 11,002 11,232 11,199

30,485 30,041 30,681 30,052 30,092 30,406

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2009 2010 2011 2012 2013 2014

Nations &Regions

Non-peaknetwork

Peak-timenetwork

Growth

5 yr CAGR

-0.1%

+1.4%

-1.7%

-0.1%

1 Year

+1.0%

-0.3%

2.1%

1.0%

hours

Figure 2.35

35

35%

29%

27%

34%

34%

46%

10%

21%

19%

24%

8%

15%

19%

27%

35%

34%

21%

33%

43%

18%

41%

22%

15%

38%

65%

71%

73%

66%

66%

54%

90%

79%

81%

76%

92%

85%

81%

73%

65%

66%

79%

67%

57%

82%

59%

78%

85%

62%

0%

20%

40%

60%

80%

100%

2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014

New Commission Returning Series

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

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

% of spend

BBC ITV/STV/UTV Channel 4/S4C Channel 5

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

Estimated primary rights spend (£m)

36

26 26 26 27 26 27

20 22 21 22 22 23

26 26 26 26 26 25

22 22 23 23 22 21

11 12 14 12 12 14

63 64 65 65 63 60

0

50

100

150

200

2009 2010 2011 2012 2013 2014

Hou

rs p

er w

eek BBC portfolio

channels

Channel 5

Channel 4

ITV/ITVBreakfast

BBC Two

BBC One

167 173 175 175 173 170

Peak-Time

Figure 2.36

104 106 105 107 124 128

70 73 66 66 54 57

101 101 101 99 98 94

57 58 59 64 57 57 54 27 35 31 30 33

243 248 253 256 256 255

0

200

400

600

800

2009 2010 2011 2012 2013 2014

Hou

rs p

er w

eek BBC portfolio

channels

Channel 5

Channel 4

ITV/ITVBreakfast

BBC Two

BBC One

All Day

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

First-run UK-originated output by the PSB channels per week: all day and peak time

629 613 619 622 619 624

37

Figure 2.37

Source: Ofcom/broadcasters. Note: Includes five main channels including ITV Breakfast, figures do not include hours of nations’ and regions’ output.

Proportion of total hours

878 879 857 882 923 927

308 328 298 324 333 308 197 190 163 168 142 166

2,656 2,512 2,501 2,446 2,629 2,559

1,746 1,648 1,559 1,543 1,486 1,346

1,144 1,225 1,520 1,469 1,491 1,579

611 675 661 545 533 515

357 483 334 514 359 493

0%

20%

40%

60%

80%

100%

2009 2010 2011 2012 2013 2014

Children's

Sport

Films

Entertainment & Comedy

Drama & Soaps

Factual

Education

Religious

Arts & Classical Music

Current Affairs

News

7,954

Genre mix on the five main PSB channels: peak time

7,930 7,964 8,009 7,961 7,964

38

Figure 2.38

Source: Ofcom/broadcasters. Note: Includes five main channels plus ITV Breakfast. Figures do not include hours of nations’ and regions’ output.

Genre mix on five main PSB channels: daytime

2,881 2,793 2,679 2,536 2,750 2,632

438 440 549 594 661 695

4,775 5,232 5,777 6,045 7,400 7,758

2,590 2,719 2,375 1,862

1,734 1,367 2,814 2,596 2,627 2,877

3,716 3,962 1,645 1,557 1,721 1,753

1,645 1,415 1,505 1,650 1,488 1,624

1,608 2,029 4,137 4,214 4,204 4,213 1,946 1,668

0%

20%

40%

60%

80%

100%

2009 2010 2011 2012 2013 2014

Children's

Sport

Films

Entertainment & Comedy

Drama & Soaps

Factual

Education

Religious

Arts & Classical Music

Current Affairs

News

Proportion of total hours

21,748 21,654 21,597 21,610 21,665 21,680

39

Figure 2.39

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

Genre mix on the BBC portfolio channels: all day

16,546 16,460 16,555 16,710 16,566 16,517

1,339 1,472 1,421 1,204 1,256 1,323

8,406 8,213 8,178 8,306 8,362 8,409

2,629 2,405 2,648 2,703 1,999 2,229 1,077 1,296 1,151 890 1,277 1,136 1,532 1,768 1,908 1,988 2,002 1,970 1,622 1,588 1,369 1,561 1,243 1,249

0%

20%

40%

60%

80%

100%

2009 2010 2011 2012 2013 2014

Other

Entertainment &Comedy

Arts & Classical Music

Factual

Children's

Current Affairs

News

33,202 Proportion of total hours

32,833 33,151 33,230 33,362 32,705

40

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.

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

Proportion of hours by channel genre (%)

485,639 58,584

208,050

6,453

138,761

1,633

58,139

1,589

127,112

59,020

180,386 85,236

229,738 7,930

298,332 34,075

0%

20%

40%

60%

80%

100%

1 2

Music

Movies

Sport

News

Leisure

Children's

Factual

Entertainment

Total = 1,726,157 Total (2013 = 1,457,138)

Total = 254,520 (Total 2013 = 199,880)

1 year change % Total First Run

-8% 52%

17% 1%

5% 5%

20% 7%

16% -4%

2% -41%

6% 17%

77% 153% All Hours First-Run Hours

41

Figure 2.41

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

Multichannel content spend in key genres: 2013-2014

£1,808m £2,186m

£721m

£772m £285m

£292m

£77m

£81m

£80m

£89m

£43m

£38m

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2013 2014

Leisure

Music

Children's

News

Factual

Movies

Entertainment

Sport

£m 1 year change %

14%

-9%

-5%

-11%

12%

5%

2%

7%

21%

£3,062m £3,503m

Figure 2.42

42

Source: BARB Establishment Survey. Note: Data points are based on household level data for Q4 of each year.

Platform take-up: 2001-2014 TV households (m)

02468

10121416182022242628

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Analogue TerrestrialOnly

Digital Terrestrial only

Analogue cable

Digital cable

Free to view digitalsatellite

Pay digital satellite

Multichannel take-up (% all households)

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%

Figure 2.43

43

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

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

25% 22% 27% 26%

30% 28% 31% 32%

18% 17%

19% 19%

27% 33% 23% 23%

16-24 25-44 45-64 65+ AB C1 C2 DE

15% 12% 17% 15%

37% 31%

41% 39%

31% 29%

31% 32%

18% 27% 11% 14%

0%

20%

40%

60%

80%

100%220 231 219 207

0

50

100

150

200

250

Average minutes per day % platform profile

Figure 2.44

44

306 301 294 301 315 314

343 345 347 341 340

268 264 263 271 278 279

311 316 314 309 298

241 242 243 242 253 255

269 270 269 256 245

222 219 216 218 225 225 242 242 241 232

220 222 220 216 217 219 217 234 232 227 216

199 211 208 200 198 205 204 199 196 196 185

169 156 157 155 151 150 154

169 165 157 148 138 144 135 132 134 139 137 151 147 142 134

118

0

50

100

150

200

250

300

350

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Adults 65+

Adults 55-64

Adults 45-54

Individuals

Adults 35-44

Adults 25-34

Adults 16-24

Children

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.

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

Figure 2.45

45

0

4

8

12

16

20

24

28

06:00 -07:00

09:00 -10:00

12:00 -13:00

15:00 -16:00

18:00 -19:00

21:00 -22:00

24:00 -01:00

03:00 -04:00

Weekend Weekday

Source: BARB, all individuals 4+

Average 2014 audiences, weekdays/weekends, by day part: all homes Average audience (millions)

Figure 2.46

46

0

1

2

3

4

5

6

7

06:00 -07:00

09:00 -10:00

12:00 -13:00

15:00 -16:00

18:00 -19:00

21:00 -22:00

00:00 -01:00

03:00 -04:00

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

Average 2014 weekday audiences, by day part and age: all homes Average audience (millions)

Source: BARB, all individuals (4+).

Figure 2.47

47

0

1

2

3

4

5

6

7

06:00 -07:00

09:00 -10:00

12:00 -13:00

15:00 -16:00

18:00 -19:00

21:00 -22:00

00:00 -01:00

03:00 -04:00

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

Average 2014 weekend audiences, by day part and age: all homes Average audience (millions)

Source: BARB, all individuals 4+

Figure 2.48

48

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.

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

82.3% 80.3% 78.6% 78.3% 77.8% 77.3% 78.6% 79.0% 77.8% 75.5% 73.6%

62.7% 59.6%

57.0% 57.9%

57.9% 55.9% 55.2% 54.6% 51.8% 49.9%

48.1%

76.8% 73.7% 71.0% 70.0% 69.1% 68.0% 68.0% 66.7% 63.8% 62.7% 60.2% 62.4%

62.5% 60.6% 58.8%

56.7% 54.1% 53.3% 53.3% 50.6% 48.0% 45.5%

43.6% 43.8% 41.8% 39.5% 41.1% 39.6% 40.3% 40.3% 39.0% 36.9% 35.9%

50.2% 56.9%

63.5% 68.8%

74.5%

78.8% 83.4% 87.1% 88.7%

88.2% 86.9%

0%

20%

40%

60%

80%

100%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

BBC One

BBC Two

ITV

Channel 4 (inclS4C - 2009)

Channel 5

Others

Figure 2.49

49

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.

Channel shares in all homes: 1988 to 2014 Audience share

38%

39%

37%

36%

34%

33%

32%

32%

33%

31%

29%

28%

27%

27%

26%

26%

25%

23%

23%

22%

22%

21%

21%

21%

21%

21%

22%

11%

11%

10%

11%

11%

10%

11%

11%

12%

12%

11%

11%

11%

11%

11%

11.0

%

10%

9%

9%

9%

8%

7%

7%

7%

6%

6%

6%

42%

42%

44%

43%

41%

40%

40%

37%

35%

33%

32%

31%

29%

27%

24%

24%

23%

22%

20%

19%

18%

18%

17%

16%

15%

15%

15%

9%

8%

9%

10%

10%

11%

11%

11%

11%

11%

10%

10%

11%

10%

10%

10%

10%

10%

10%

9%

8%

7%

6%

6%

6%

5%

5%

2% 4% 5% 6% 6% 6% 6% 7% 6% 6% 5% 5% 5% 5% 4% 4% 4% 4%

5%

6%

7%

9%

10%

12%

13%

14%

17%

20%

22%

24%

26%

30%

33%

36%

40%

42%

45%

46%

48%

49%

49%

0%

20%

40%

60%

80%

100%

198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014

All otherchannels

Channel 5

Channel4(incl S4C- 2009)ITV

BBC Two

BBC One

Figure 2.50

50

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.

Main five PSB channels’ audience share, all homes Audience share

24.7% 23.3% 22.8% 22.0% 21.8% 20.9% 20.8% 20.7% 21.3% 21.0% 21.7%

10.0% 9.4% 8.8% 8.5% 7.8% 7.5% 6.9% 6.6% 6.1% 5.8% 6.1%

22.8% 21.5% 19.6% 19.2% 18.4% 17.8% 17.0% 16.0% 14.9% 15.3% 14.7%

9.7% 9.7% 9.8% 8.6% 7.5% 6.8% 6.2% 5.9% 5.6% 4.9% 4.8%

6.6% 6.4%

5.7% 5.1% 5.0% 4.9% 4.5% 4.4% 4.2% 4.1% 4.0%

0%

20%

40%

60%

80%

100%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Channel 5

Channel 4(incl S4C -2009)ITV

BBC Two

BBC One

73.8% 70.4% 66.7% 63.5% 60.5% 57.8% 55.4% 53.6% 52.1% 51.1% 51.2%

Figure 2.51

51

0%

20%

40%

60%

80%

100%

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Digitalterrestrialhomes

All homes

Cable orsatellitehomes

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.

Main five PSB channels’ audience share, by platform Audience share

Figure 2.52

52

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.

Channel share, by platform: 2014 Audience share

21.7% 23.2% 19.3% 21.1%

6.1% 6.5% 5.2% 5.5%

14.7% 15.5% 13.6% 15.2%

4.8% 4.9% 4.3%

5.2% 4.0% 4.2%

3.4% 4.1%

48.8% 45.7% 54.1% 48.9%

0%

20%

40%

60%

80%

100%

All homes Digital terrestrialindividuals

Digital satelliteindividuals

Digital cable individuals

Other

Channel 5

Channel 4

ITV

BBC Two

BBC One

Figure 2.53

53

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.

Proportion of total TV viewing hours, by platform signal Share of hours

47.4% 39.3%

32.1% 23.7%

16.6% 8.2% 3.3% 0.6% 0.0% 0.0%

2.2% 1.2%

0.5% 0.3%

0.2% 0.1%

0.0% 0.0% 0.0% 0.0%

10.0% 15.5%

20.9% 27.8%

31.8% 37.7% 42.6% 44.8% 44.3% 44.3%

28.4% 32.6% 35.3% 36.3% 38.7% 40.4% 40.3% 40.9% 40.9% 40.5%

11.9% 11.4% 11.1% 11.8% 12.6% 13.6% 13.7% 13.6% 14.5% 14.6%

0%

20%

40%

60%

80%

100%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

OtherPlatforms

Digital cable

Digital satellite

Digitalterrestrial

Analoguesatellite,Analogue cable

54

Figure 2.54

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.

67.2% 58.6%

50.3% 39.0%

28.4% 14.6%

6.0% 1.1% 0.0% 0.0%

1.4% 0.8%

0.3%

0.1%

0.0%

0.1% 0.0%

0.0% 0.0% 0.0%

8.6% 13.7%

19.3% 27.4%

33.9% 42.0%

49.4% 53.1% 52.2% 50.7%

15.6% 19.5% 22.6% 25.0% 28.3% 31.5% 32.4% 33.1% 33.7% 34.4%

7.2% 7.3% 7.5% 8.5% 9.2% 11.8% 12.2% 12.6% 14.0% 14.6% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.1% 0.2% 0.3%

0%

20%

40%

60%

80%

100%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Other Platforms

Digital cable

Digital satellite

Digital terrestrial

Analogue cableand satellite

Analogueterrestrial

Share of hours

Proportion of main five PSB channels’ viewing hours by platform signal

55

Figure 2.55

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.

57.5% 57.7% 57.5% 56.7% 56.0% 54.8% 53.9% 53.1% 52.0% 51.1% 51.2%

7.6% 9.4% 11.6% 13.9% 15.7% 16.7% 18.6% 20.4% 21.3% 21.4% 20.7%

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

0%

20%

40%

60%

80%

100%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Others

PSB portfoliochannels

Main five PSBchannels

Audience share

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

29.5% 29.8% 30.6% 31.2% 31.8% 31.5% 32.5% 33.0% 33.4% 32.4% 33.1%

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

8.6% 9.6% 11.2% 11.2% 11.7% 11.5% 11.5% 11.6% 11.6% 11.1% 10.9% 5.0% 5.3% 5.1% 5.6% 5.9% 6.0% 5.9% 5.9% 6.0% 6.0% 5.9% 10.6% 9.4% 8.7% 7.6% 6.8% 7.4% 8.1% 8.8% 8.3% 8.4% 8.2% 4.2% 4.0% 4.0% 3.9% 3.9% 4.0% 4.0% 4.0% 4.3% 4.5% 4.9% 3.5% 3.2% 3.0% 2.8% 2.7% 2.7% 2.3% 2.4% 2.4% 2.5% 2.3% 2.8% 2.8% 2.6% 2.7% 2.6% 2.6% 0.0% 0.0% 0.0% 0.0% 0.0% 14.0% 13.8% 12.9% 12.8% 12.2% 11.6% 13.1% 11.2% 11.7% 12.1% 12.6%

0%

20%

40%

60%

80%

100%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Other

Virgin Media

Viacom

UKTV

BSkyB*

Channel 5

Channel 4

ITV

BBC

56

Figure xxxx

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.

Audience share Broadcaster family shares in multichannel homes

Figure 2.56

57

Figure 2.57

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

19.5% 19.3% 20.0% 19.9% 20.4% 20.0% 20.2% 20.5% 21.3% 21.0% 21.7%

6.7% 6.8% 6.9% 7.1% 7.0% 6.9% 6.6% 6.5% 6.1% 5.8% 6.1% 0.7% 0.9% 1.0% 1.1% 1.2% 1.3% 1.4% 1.5% 1.7% 1.5% 1.4% 0.6% 0.6%

0.6% 0.8% 0.8% 0.8% 1.1% 1.2% 1.0% 1.1% 1.0% 1.3% 1.3% 1.2% 1.3% 1.3% 1.3% 1.3% 1.3% 1.2% 1.3% 1.3%

0%

5%

10%

15%

20%

25%

30%

35%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Other BBC

CBeebies

CBBC

BBC News 24

BBC Four

BBC Three

BBC Two

BBC One

32.5% 33.0% 33.4% 32.4% 33.1% 29.5% 29.8% 30.6% 31.2%

Audience share 31.8% 31.5%

BBC family shares in multichannel homes

58

Figure 2.58

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 panel was introduced in 2010. As a result, pre- and post-panel change data must be compared with caution.

18.8% 18.4% 17.5% 17.6% 17.2% 16.9% 16.6% 16.5% 15.7% 16.2% 15.6%

2.0% 2.4% 2.3% 2.6% 2.4% 2.6% 2.6% 2.7% 2.7% 2.8% 2.4%

1.2% 1.4% 1.4% 1.6% 1.8% 2.2% 2.4% 2.5% 2.6% 2.3%

0.5% 0.6% 1.0% 1.1% 1.0% 1.1% 1.1% 1.1% 1.2%

0%

5%

10%

15%

20%

25%

30%

35%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Other ITV

ITVBe

ITV Encore

CITV

ITV4

ITV3

ITV2

ITV

22.0% 22.4% 22.2% 22.6% 22.7% Audience share

22.7% 23.1% 22.3% 22.7%

ITV family shares in multichannel homes

23.0% 22.0%

59

Figure 2.59

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.

7.3% 7.9% 8.2% 7.4% 6.8% 6.4% 6.1% 5.9% 5.6% 5.0% 4.8%

0.8% 0.8% 0.8% 0.9% 0.9% 0.9% 0.8%

1.2% 1.6%

1.9% 1.8% 1.8% 1.8% 1.9% 1.8% 1.8%

1.9% 2.0%

0.5% 0.9% 1.0% 1.0% 1.2% 1.4% 1.5% 1.5% 1.5%

0.6% 0.8% 1.0% 1.2% 1.1% 1.2% 1.2% 1.2% 1.2%

0%

2%

4%

6%

8%

10%

12%

14%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

4seven

4Music

More4 Total

Film4 Total

E4 Total

Channel 4 +1

Channel4 (inclS4C - 2009)

8.6% 9.6% 11.2% 11.2% 11.5% 11.7% Audience share

11.5% 11.6% 11.5%

Channel 4 family shares in multichannel homes

11.1% 10.9%

Figure 2.60

60

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.

Channel 5 family shares in multichannel homes Audience share

5.0% 5.3% 4.9% 4.6% 4.7% 4.7% 4.5% 4.4% 4.5% 4.4% 4.4%

0.6% 0.7% 0.8% 0.9% 1.0% 1.0% 1.0% 1.0%

0%

2%

4%

6%

8%

10%

12%

14%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Channel 5+24

5 USA

5*

Channel 5

5.3% 5.1% 5.6% 5.0% 5.9% 6.0% 5.9% 5.9% 5.9% 6.0% 6.0%

Figure 2.61

61

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.

Sky family shares in multichannel homes Audience share

3.7% 3.5% 3.2% 3.2% 2.7% 2.9% 2.7% 2.7% 2.7% 2.7% 2.6%

3.2% 2.5% 2.2% 1.6% 1.4% 1.4% 1.2% 1.2% 1.2% 1.2% 1.3%

2.9% 2.4% 2.7%

2.2% 2.1% 2.4% 2.2% 2.3% 2.2% 2.2% 2.1%

0.6% 0.6% 0.5%

0.5% 0.5% 0.6% 0.6% 0.7% 0.6% 0.7% 0.7%

1.2% 1.6% 1.3% 1.3% 1.2%

0%

2%

4%

6%

8%

10%

12%

14%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Sky Atlantic

Former Virgin TVchannels*Sky Arts/Real Lives

Sky Travel

Sky News

Sky One/Two/Three(Pick TV)Sky Movies channels

Sky Sports channels

10.6% 9.4% 8.7% 7.6% 6.8% 7.4% 8.1% 8.8% 8.3% 8.4% 8.2%

Figure 2.62

62

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.

UKTV family shares in multichannel homes Audience share

1.9% 1.6% 1.4% 1.2% 0.9% 0.7% 0.7% 0.6% 0.6% 0.5% 0.5%

0.0% 0.0% 0.0% 0.0% 0.1% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5%

0.8% 0.6% 0.4% 0.3% 0.3% 0.2% 0.2% 0.1% 0.1% 0.1% 0.1%

0.4% 0.4% 0.6% 0.6% 0.4% 0.4% 0.6% 0.8% 1.0% 0.8% 0.7%

0.3% 0.3% 0.2% 0.2% 0.3% 0.2% 0.1% 0.1% 0.1% 0.1% 0.1%

0.2% 0.2% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%

0.1% 0.2% 0.5% 0.6%

0.5% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4%

0.2% 0.2% 0.4% 0.7% 1.2% 1.3% 1.2% 1.1% 1.1% 1.3% 1.3%

0.0% 0.0% 0.0% 0.0% 0.3% 0.7% 0.2% 0.4% 0.3% 0.2% 0.1% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0%

0%

2%

4%

6%

8%

10%

12%

14%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Other UKTV

Really

Drama

UKTV G2/Dave

Alibi

Eden

Good Food

Yesterday

Home

UKTV Watch

UKTV Gold/G.O.L.D

4.2% 4.0% 4.0% 3.9% 3.9% 4.0% 4.0% 4.0% 4.3% 4.5% 4.9%

63

Figure 2.63

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

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

Top channels by share, all homes: 2013-2014

64

Younger (% under 45 years old)

CBeebies

ITV2

% Female

More 4

Channel 5

% Male

Older (% over 45 years old)

BBC1

Sky Sports News

Sky Sports 1

ITV4

Dave

BBC News Yesterday

BBC Four Sky News

Film4

Sky 1

E4+1

CBBC

BBC2

Pick TV

ITV3 5 USA

Channel 4+1

ITV

E4

Quest

BBC Three

Channel 4 5* ITV+1

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

Figure 2.64

Drama

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

Figure 2.65

65

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.

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

30 18 18

28 24 40

52

27 34

16 20 21

18 18

13 8

18 14

49 54 57 48 54 45 39

50 49

All 16-24 25-34 35-44 45-65 55-64 65+ ABC1 C2DE

Stayed thesame

Improved

Got worse

Figure 2.66

66

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.

Top reasons given for programmes getting worse in past 12 months

57 43

32 30

12 12 10 9 8

55 47

26 19

6 5 9 6 8

58

42 34 32

14 13 11 9 9 0%

10%

20%

30%

40%

50%

60%

70%

80%

More repeats Lack of variety General lackof quality

Too manyreality shows

More badlanguage

More violence More sex Moreantisocialbehaviour

Other

Adults (16+) 16-34 35+

Base: All those who said programmes had got worse (30% of adults with a TV)

Figure 2.67

67

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.

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

28 43 40

57

47 52

2 3 1 13 7 6

Sex Violence Swearing

Don't know

Too little

An acceptable amount

Too much