UK radio industry 2010 2011 2012 2013 2014 2015
Weekly reach of radio (% of population) 90.6% 90.8% 89.5% 90.4% 89.5% 89.6%
Average weekly hours per listener 20.1 20.5 22.2 21.5 21.4 21.4
BBC share of listening 55.2% 54.7% 54.7% 54.6% 53.8% 53.6% Total industry revenue* £1,137m £1,164m £1,203m £1,177m £1,248m £1,248m Commercial revenue* £452m £457m £475m £461m £512m £519m BBC expenditure £675m £697m £717m £705m £725m £717m Community radio revenue £10.0m £10.5m £10.8m £10.9m £11.5m £11.6m
Radio share of advertising spend 3.3% 3.3% 3.3% 3.1% 3.2% 3.0%
DAB digital radio take-up (households) 38.2% 42.6% 44.3% 47.9% 49.0% 55.7%
Digital radio listening share 24.6% 27.8% 31.2% 35.6% 37.3% 40.7%
Figure 3.1
Source: RAJAR (all adults age 15+), Ofcom calculations based on figures in BBC Annual Report and Accounts 2015-16 (www.bbc.co.uk/annualreport), AA/Warc, broadcasters. Revenue figures are nominal. DAB take up - Q1 of the following year. *Commercial and total revenue figures for 2010-2013 are not wholly comparable to 2014 and 2015 due to an amendment to the data collection methodology. Digital listening share 12 months to December.
UK radio industry key metrics
1
Figure 3.2
2
71
29 59 71
85 84 88
3
2
5 2
3 10
26
16 11
3 3 7
25 8 8 6 6
5 8 5 4 8 6 3 12 4 3
0%
20%
40%
60%
80%
100%
Adults16+
16-24 25-34 35-44 45-54 55-65 65+
Music videosCD/vinylStreamed musicPersonal digitalOn-demand radioLive radio
Source: Ofcom Digital Day 2016, Data book 1: C2. Adult diary: Chart shows the proportion of all listening time (B2) attributed to each activity (D) by age group. The average weekly minutes figure is among those who did any listening activity across their diary week and also includes simultaneous activity. Base: Adults aged 16+ (1512) 16-24s (129) 25-34s (189) 34-44s (282) 45-54s (299) 55-64s (259) 65+s (354).
Proportion of time spent listening, by age group Proportion of listening time (%)
945 883 817 931 1062 1116 879
Average weekly minutes listening:
Figure 3.3
3
Figure 3.4
Source: RAJAR
4
Breakfast Morning Afternoon Evening Night
Source: RAJAR, all adults (15+), 12 months to Q1 2016, Monday-Sunday, average audience. Base: National Total Survey Area.
Radio - average listening audience – 2016 BBC vs. Commercial
•Av
erag
e lis
teni
ng a
udie
nce
(%)
0
5
10
15
20
0600
-063
006
30-0
700
0700
-073
007
30-0
800
0800
-084
008
40-0
900
0900
-093
009
30-1
000
1000
-103
010
30-1
100
1100
-113
011
30-1
200
1200
-123
012
30-1
300
1300
-133
013
30-1
400
1400
-143
014
30-1
500
1500
-153
015
30-1
600
1600
-163
016
30-1
700
1700
-173
017
30-1
800
1800
-183
018
30-1
900
1900
-193
019
30-2
000
2000
-203
020
30-2
100
2100
-213
021
30-2
200
2200
-223
022
30-2
300
2300
-233
023
30-0
000
BBC
Commercial
Figure 3.5
5
The shift of audio consumption from albums and singles streaming
Streaming services unique audiences (millions)
4.6 5.4
9.9
2.9 3.1
5.7
279.4 245.5
217.1
0
50
100
150
200
250
300
0
2
4
6
8
10
12
2013 2014 2015
Spotify Soundcloud Music sales (digital & physical)
Music sales (million units)
Figure 3.6
Source: Entertainment Retailers’ Association / Official Charts 2016; comScore MMX Multiplatform UK, total digital population 15+, May 2016. Note: Spotify and Soundcloud only. The unique audiences from these two sites account for the largest take-up of the streamed music unique audience. 2013 data are based on May to December 2013, averaged.
6
13
38
14 11 11 7
2
19
51
26 25
8 8 3
0
10
20
30
40
50
60
Adults 16+ 16-24 25-34 35-44 45-54 55-64 65+
2014 2016
Source: Ofcom Digital Day 2016, Data book 1: A1. Adult diary: Chart shows the proportion of adults who recorded activity (D) at any point across their diary week. Base: 2016: Adults aged 16+ (1512), 16-24 (129), 25-34 (189), 35-44 (282), 45-54 (299), 55-64 (259), 65+ (354); 2014: Adults aged 16+ (1644), 16-24 (101), 25-34 (225), 35-44 (348), 45-54 (400), 55-64 (311), 65+ (259)
Weekly reach of streamed music, by age group: 2016 vs. 2014
Figure 3.7
7 • Base: Adults aged 16+ in UK (1512)
Source: Ofcom Digital Day 2016, Data book 1: B4(2) Adult diary: Data is taken from a combination of activities (D) and devices (E) recorded. The calculations are made by netting all grouped activities together and averaging the time spent. Zeros are included so as to reflect the whole UK population..
Average time spent on grouped activities per day Among adults 16+ in the UK
3h 47m
0h 18m
0h 7m
1h 14m
0h 14m
0h 31m
0h 25m
1h 30m
0h 28m
TV Or Films On A TV Set
TV Or Films On AnotherDevice
Other Video
Radio On Radio Set
Radio On Another Device
Other Audio
Voice Comms
Text Comms
Games
Change from 2014
- 9 mins
+ 5 mins
+ 2 mins
+ 7 mins
+ 1 mins
+ 2 mins
- 7 mins
- 9 mins
- 2 mins
Figure 3.8
8 8
Figure 3.9
Radio industry revenue 2010-2015 Revenue (£m)
Source: Ofcom / operator data / BBC Annual Report 2009-2016 Note: BBC expenditure figures are estimated by Ofcom based on figures from 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. Commercial and total revenue figures for 2010-2013 are not wholly comparable to 2014 and 2015 due to an amendment to the data collection methodology.
1,137 1,164 1,203 1,177 1,248 1,248
675 697 717 705 725 717
452 457 475 461 512 519
211 220 222 207 261 267 136 130 139 141 136 133 92 92 98 95 94 95 0
200
400
600
800
1000
1200
1400
2010 2011 2012 2013 2014 2015
Total
BBC expenditure(estimated)
Total commercial
Nationalcommercial
Local commercial
Commercialsponsorship
9
Source: Ofcom / operator data
Radio expenditure and revenue percentage change, year on year
Figure 3.10
Source: RAJAR, all adults (15+), Q1 2016. Base: National Total Survey Area. Note: UTV Radio commenced trading as Wireless Group in March 2016 and Orion Media Group was acquired by Bauer in May 2016.
Share of all radio listening hours: Q1 2016
BBC network radio, 46.6%
BBC local/regional, 7.5%
Global, 18.5%
Bauer, 14.0%
Orion, 1.1%
Communicorp UK, 2.5%
UTV, 2.8% Other, 7.0%
Percentage share of listening hours
Figure 3.11
Commercial radio by weekly audience reach: Q1 2016
Source: RAJAR, all adults (15+), Q1 2016. Base: National Total Survey Area * Q1 ‘15 and Q1 ’16 Note: UTV Radio commenced trading as Wireless Group in March 2016 and Orion Media Group was acquired by Bauer in May 2016.
21,989 16,675
4,172 3,394 1,294 930 603 0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0
5,000
10,000
15,000
20,000
Global Bauer UTV Communicorp Orion UKRD CeladorWee
kly
reac
h (th
ousa
nds)
Annual change in reach*
Weekly UK audience reach
Figure 3.12
41.0% 31.1% 7.8% 6.3% 2.4% 1.7% 1.1%
+1.9pp +1.0pp -0.6pp +0.3pp +0.2pp +0.1 -0.2pp
12
Digital Audio Broadcasting UK radio services broadcasting May 2016
UK Commercial
90% coverage
UK Commercial
75% coverage
BBC UK-wide
Local Commercial
Total
Multiplexes 1 1 1 54 57
Services 12 18 11 396* 437*
* Includes simulcast services (205 unique services). Excludes BBC local radio services
Figure 3.13
Source: Ofcom, May 2016
Analogue UK radio stations broadcasting May 2016
Type of station AM FM AM/FM total
Local commercial 51 235 286
UK-wide commercial 2 1 3
BBC UK-wide networks 1 4 5
BBC local and nations* 35 43 43
Community radio 6 233 239
TOTAL 95 516 576
Figure 3.14
Source: Ofcom, May 2016 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 3.15
Income 2010 2011 2012 2013 2014 2015
Average (mean) income
£65,750 (-12.9%)
£60,250 (-8.3%)
£57,000 (-5.4%)
£55,500 (-2.7%)
£55,750 +0.8%
£53,500 (-4.2%)
Median income £42,500 (-7.14%)
£40,500 (-4.8%)
£35,250 (-13.1%)
£33,250 (-5.6%)
£35,750 +6.9%
£32,500 (-8.5%)
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.
Average income for community radio stations: 2010 to 2015
Figure 3.16
15
Source: Ofcom analysis of community broadcasters’ returns. Figures rounded.
Distribution of total income levels across the community radio sector Proportion of stations (%)
11
17 21
13
8 5 6 5
2 3 4 1 3
1
13
23
9 9 8 8
4 7
3 3 7
3 4 1
15 18
12 12 9
6 7 6 2 1
6 2 2 2
16 18
11 13
4
9 7
5 2 2
8
2 2 2 0
10
20
30
2012 2013 2014 2015
Community radio income, by source
Income by source (%)
Figure 3.17
26 29 30 26 30
33 29 25 26 25
10 7 6 4 5
13 14 13 15 14
18 20 26 28 25
0%
20%
40%
60%
80%
100%
2011 2012 2013 2014 2015
Other income
Donations
SLAs
Grants
On airadvertising andsponsorship
Source: Ofcom analysis of community broadcasters’ returns
17
Figure: 3.18
Average income by type of community served
Source: Ofcom analysis of community broadcasters’ returns
30% 45%
37% 24%
0
30% 29%
25%
24%
27% 35% 33%
14%
11%
8%
8% 37% 25%
15%
22%
24%
100%
23%
22%
£53,558
£69,860
£37,057
£57,796 £59,638
£73,035
£50,579
£0
£20,000
£40,000
£60,000
£80,000
£100,000
Sectoraverage
(216stations)
Minorityethnic (28)
Geographic- town/rural
(102)
Geographic- urban (28)
Military (9) Religious(12)
Youth (22)
Other
Donations
SLAs
Grants
On-air ads
12%
Figure 3.19
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.
Average expenditure for community radio stations: 2010 to 2015
Expenditure 2010 2011 2012 2013 2014 2015
Average (mean) expenditure
£67,000 (-12.3%)
£64,250 (-4.1%)
£58,000 (-9.7%)
£55,000 (-5.0%)
£53,500 (-2.7%)
£54,800 2.3%
Median expenditure
£43,000 (-17.5%)
£41,000 (-4.9%)
£35,500 (-15.4%)
£35,750 2.7%
£33,250 (-6.8%)
£33,250 0%
Community radio expenditure, by type
Expenditure by source (%)
Figure 3.20
47 49 51 49 50
12 13 13 13 14 11 12 11 12 11 9
9 9 11 10 21 17 15 15 15
0%
20%
40%
60%
80%
100%
2011 2012 2013 2014 2015
Other
Technical
Admin andmarketing
Premises
Staff
Source: Ofcom analysis of community broadcasters’ returns
20
Figure: 3.21
Average expenditure by type of community served
Source: Ofcom analysis of community broadcasters’ returns
50% 40% 44%
53% 80%
45% 52%
14% 19%
14%
10% 0
15% 10%
11% 14%
13%
9% 5% 17%
9% 10%
8%
10%
9% 10% 6%
13% 15%
20%
19%
19% 17%
16%
£54,817
£66,831
£36,862
£66,180 £59,638
£71,061
£53,731
£0
£20,000
£40,000
£60,000
£80,000
£100,000
Sectoraverage
(216stations)
Minorityethnic (28)
Geographic- town/rural
(102)
Geographic- urban (28)
Military (9) Religious(12)
Youth (22)
Other
Technical costs
Admin andmarketing
Premises
Staff
Figure 3.22
Sector average
Total original hours per week 90
Number of volunteers 79
Total volunteer hours per week 186
Number of volunteers trained 51
Source: Ofcom analysis of community broadcasters’ returns
Community radio hours and volunteers
90.8% 89.5% 90.4% 89.5% 89.6% 89.3%
67.6% 66.4% 67.1% 65.6% 65.3% 65.1% 64.9% 63.5% 64.9% 63.9% 64.5% 64.0%
61.3% 60.3% 61.1% 59.9% 59.8% 59.8% 52.0% 50.5% 51.4% 50.8% 49.7% 49.7% 30.5% 30.9% 32.5% 31.6% 33.3% 34.0%
18.7% 17.8% 17.8% 16.8% 15.1% 15.3% 6.0% 6.2% 6.2% 7.6% 7.3% 7.1%
0%
20%
40%
60%
80%
100%
2011 2012 2013 2014 2015 Q1 2016
All radio
All BBC
All commercial
BBC network
Local commercial
NationalcommercialBBC nations /localOther
22
Source: RAJAR, All adults (15+), calendar years 2011-2015, Q1 2016
Reach of radio, by sector
Figure 3.23
Percent of population
54.7% 54.7% 54.6% 53.8% 53.6% 54.1%
46.0% 46.3% 46.2% 46.0% 46.1% 46.6%
43.0% 42.8% 42.8% 43.1% 43.8% 43.2% 31.2% 30.2% 29.7% 30.1% 28.5% 27.7%
11.8% 12.5% 13.1% 13.0% 14.4% 14.6%
8.7% 8.4% 8.4% 7.8% 7.0% 7.1% 2.3% 2.5% 2.6% 3.1% 2.7% 2.7%
0%
20%
40%
60%
2011 2012 2013 2014 2015 Q1 2016
All BBC Radio
BBC network
All commercial
LocalcommercialNationalcommercialBBCnations/localOther
23
Source: RAJAR, All adults (15+), calendar years 2011-2015, Q1 2016
Percent of listening hours
Share of listening hours, by sector
Figure 3.24
14.5 17.9 20.2
23.4
24.5 25.4
22.5 20.3 20.2 22.8
0
5
10
15
20
25
30
15-24 25-34 35-44 45-54 55-64 65-74 AdultMen
AdultWomen
ABC1Adults
C2DEAdults
Average listening per week 21.4 hours
Weekly listening hours
Source: RAJAR, all adults (15+), year ending Q1 2016, average weekly listening hours per listener
Average weekly listening by demographic, year ending Q1 2016
Figure 3.25
Figure 3.26
25
0
5
10
15
20
25
30
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
65+55-6445-54Adults 15+35-4425-3415-24
Source: RAJAR, all adults (15+), Q4 of each year, 12 month weighted, all radio TSA
Average weekly listening, by age: 2005-2015 Average listening hours per week
26 26
23.9 23.0 23.4 23.7 24.1 24.5 25.2 25.9 26.7 27.7 27.7 30.9
5.3 5.2 5.2 5.0 4.8 5.0 4.7 4.8 4.7 5.0 4.9 5.4
1.5 1.7 1.7 1.6 1.7 1.8 1.8 2.1 2.1 2.3 2.4 6.0 5.7 5.8 6.4 6.2 6.4 6.1 6.8 6.4 6.9 6.8 7.8 36.7 35.6 36.1 36.7 36.8 37.7 37.8 39.6 39.9 41.9 41.8 44.1
0%
10%
20%
30%
40%
50%
Q22013
Q32013
Q42013
Q12014
Q22014
Q32014
Q42014
Q12015
Q22015
Q32015
Q42015
Q12016
Internet
Digitalunspecified
TV
DAB
Source: RAJAR Note: ‘Digital unspecified’ relates to listening to digital-only stations where the survey respondent has not specified the listening platform used. With effect from Q1 2016 this term has been eliminated. ‘Internet’ is classified as ‘Online/Apps’
Figure 3.27 Digital radio’s share of radio listening, Q1 2016 Digital radio platforms’ share of all radio hours
27
Figure 3.28
Listening to radio via TV, internet and mobile phone
Source: Ofcom Technology Tracker. Data from Quarter 1 of each year 2012-2014, then Half 1 2015-2016 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, 3737 UK 2016) QP11D/E/C: How often, if at all, do you access the radio via – Digital radio via: TV, Internet, mobile phone? *NB 2013-16 measures for internet combine responses across radio listeners and internet users, 2013-16 measures for mobile phone combine responses across radio listeners and mobile phone users
Proportion of respondents (%) who have listened to radio via digital television, internet or mobile phone
25 25 27 27 27
24 22 23
15 16 14
16
22 23 24 25
10 10 10 13
20 21 22 21
0%
10%
20%
30%
40%
2009 2010 2011 2012 2013 2014 2015 2016
TV Internet Mobile Phone
28
Source: RAJAR / Ipsos MORI / RSMB Q1 2009-2016
Figure 3.29
Ownership of DAB sets: Q1 2016
32.1% 34.5% 38.2% 42.6% 44.3% 47.9% 49.0% 55.7%
0%
15%
30%
45%
60%
Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016
Percentage of adults who claim to own a DAB set / have a DAB set in the home
58% 55% 77%
32%
71% 59% 57%
43%
69% 63% 57% 56% 50%
42% 45% 23%
68%
29% 41% 43% 57%
31% 37% 43% 44% 50%
0%
20%
40%
60%
80%
100%
Digital
Analogue
Source: RAJAR, year ending Q1 2016, adults 15+ Note: With effect from Q1 2016 the term ‘not stated/specified’ was been eliminated.
100% 46% 7% 15% 29% 3% 2% 2% 6% 18% 1% 12% 4%
Overall radio sector National commercial BBC network Share of radio listening
Platform split by sector and station: year ending Q1 2016
Figure 3.30
Most popular digital-only stations - UK, Q1 2016
Source: RAJAR, year ending Q1 2016 adults 15+
Average weekly reach year ending Q1 2016 (millions) % change year on year
2.2 2.0 1.6 1.5 1.5 1.4
1.1 1.0 0.9 0.8 0.8 0.7 0.6 0.5 0.5 0.3 0.0
0.5
1.0
1.5
2.0
2.5 +6%
+2% -4%
+16%
+13% +11%
+10%
+12%
-11%
+33% +42%
+1% +6% +2%
Bauer BBC
Radio group
Independent
Figure 3.31
-2% +43%