Public Service Broadcasting in the UK PROMOTING CHOICE - PowerPoint PPT Presentation

Public Service Broadcasting in the UK PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

How has the TV landscape changed since 2014? PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 2

Time spent watching broadcast TV is still large, but falling and centred around older people Average minutes of viewing per day across the UK 75+ 346 349 65-74 333 336 298 55-64 277 245 45-54 221 216 199 192 All individuals (4+) 169 156 139 35-44 122 118 85 25-34 77 16-24 Children (4-15) 2014 2015 2016 2017 2018 Source: BARB. All individuals (4+), network. PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 3

However in Northern Ireland, the downward trend is evident across all age groups Average minutes of viewing per day (Northern Ireland) 327 55+ 304 291 45-54 226 244 227 All individuals (4+) 35-44 185 172 25-34 151 129 125 125 16-24 78 All children 4-15 73 2014 2015 2016 2017 2018 Source: BARB. BBC areas all individuals (4+). PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 4

And in Scotland, this trend is becoming more pronounced Average minutes of viewing per day (Scotland) 354 336 55+ 45-54 278 255 240 All individuals (4+) 220 213 35-44 166 25-34 164 134 137 16-24 110 All children 4-15 89 72 2014 2015 2016 2017 2018 Source: BARB. BBC areas all individuals (4+). PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 5

This downward trend is evident in Wales also Average daily minutes spent viewing (Wales) 366 350 261 55+ 251 45-54 235 All individuals (4+) 223 213 35-44 186 25-34 163 All children 4-15 151 139 131 16-24 81 75 2014 2015 2016 2017 2018 Source: BARB. BBC areas all individuals (4+). PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 6

However, despite the decline in broadcast TV, Young adults watch a similar amount of video, watching video as a whole is not shrinking but broadcast TV is less than half of viewing Source: Ofcom total AV modelling using BARB, TouchPoints and Comscore data PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 7

But there are big differences between the 16-24s and the 25-34s Total: Adults 16-24 69 14 9 47 11 73 4 27 4 hrs 15 mins Adults 25-34 93 28 11 57 13 58 5 22 Total: 4 hrs 48 mins Live TV Recorded playback BVOD SVOD Other video on TV set YouTube (not TV set) Other video (not TV set) DVD Games console Source: Ofcom total AV modelling using BARB, TouchPoints and Comscore data PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 8

Over 2018, YouTube and online subscription video were the key beneficiaries of falling broadcast viewing Change in average minutes per day 2017-2018 – all individuals, all devices 4h 4h 54m 50m Source: Ofcom total AV modelling using BARB, TouchPoints and Comscore data PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 9

Online growth is also presenting a threat to PSB revenue Broadcast TV revenue (£bn) £6.2bn £6.2bn £6.1bn £6.1bn £5.7bn £5.5bn Publicly funded channels Commercial PSB portfolio channels £2.6bn £2.2bn Commercial PSB channels £1.7bn £1.3bn Online video £1.0bn £0.7bn 2013 2014 2015 2016 2017 2018 Source: Ofcom/broadcasters, Ampere Analysis PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 10

This year began with almost half of households having an SVoD service Number of households that subscribe to SVoD 13.33m 11.47m 11.16m 9.11m 8.92m Any SVoD 7.24m 6.89m Netflix 5.94m 5.96m Amazon Prime Video 5.43m 4.83m NOW TV 4.37m 3.83m 3.64m DisneyLife 2.79m 1.65m 1.62m 1.46m 1.22m 1.15m 1.08m 0.85m 0.52m 0.09m 0.12m 0.09m 0.24m Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Source: BARB Establishment Survey Q1 2014-2019. PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 11

TV spend and production trends PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 12

PSBs continue to be significant contributors to broadcast content spend for UK audiences Total TV content spend (including acquired content) [£m] £7,695m £7,685m Sports channels Other multichannels £3,045m £3,262m Commercial PSB portfolio channels BBC portfolio channels £1,221m £1,217m Channel 5 £360m £331m Channel 4 £224m £211m £582m £547m ITV ITV/Breakfast 39% 42% £828m £802m £343m £308m BBC Two £889m £855m BBC One 2016 2018 Source: Ofcom/broadcasters PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 13

However, total first-run network spend by PSBs is showing signs of decline PSB spend on first-run UK originations (£m) 2,735 2,670 2,647 2,594 2,524 PSB Online 175 226 205 147 136 140 originations 107 119 143 136 BBC Portfolio 463 399 427 440 450 Channel 5 788 819 828 755 745 Channel 4 319 302 285 308 299 ITV 852 815 815 BBC Two 762 748 BBC One 2014 2015 2016* 2017 2018 Source: Ofcom/broadcasters *Closure of BBC Three linear channel PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 14

The share of PSB network spend outside London is less than 50% Proportion of qualifying spend by macro-region (%) 50% 50% Other 1.6 45% 1.2 1.1 3.2 0.9 1.4 1.9 1.5 3.5 40% 1.7 Midlands & East 1.2 1.5 5.2 3.4 3.4 3.2 4.3 35% 5.1 5.6 Northern Ireland 5.7 30% 13.3 14 Wales 10.1 7.8 25% 9.7 20% Scotland 15% Southern England 22.5 21.5 20.7 10% 20.3 20.2 Northern England 5% 0% 2014 2015 2016 2017 2018 Source: Ofcom/broadcasters PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 15

BBC drama production has driven increased network spend in Northern Ireland Proportion of qualifying spend and hours (%) Spend 1.7 Hours 1.5 1.2 1.2 1.2 1 0.9 0.9 0.9 0.8 2014 2015 2016 2017 2018 Source: Ofcom/broadcasters PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 16

The proportion of PSB network spend is highest in Scotland Proportion of qualifying spend and hours (%) Spend 8.6 8.5 Hours 7.9 7.5 7.2 5.7 5.6 5.2 5.1 4.3 2014 2015 2016 2017 2018 Source: Ofcom/broadcasters PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 17

Long-running series have maintained the proportion of network spend in Wales Proportion of qualifying spend and hours (%) Spend 3.5 Hours 3.4 3.4 3.2 3.2 2.7 2.7 2.5 2.4 1.8 2014 2015 2016 2017 2018 Source: Ofcom/broadcasters PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 18

PSBs account for most of the commissions in the nations Northern Ireland Scotland Wales Spending PSB network - £26m PSB network - £123m PSB network - £76m Other - £39m Other - £100m Other - £98m Key genres Factual entertainment Sport (31%), Factual entertainment (42%), General factual Entertainment (27%), (34%), General factual (20%), Drama (13%) General Factual (20%) (25%), Drama (18%) No. of producers 6 20 13 Source: O&O, Regionality trends within the UK production sector , September 2018 PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 19

PSB spend across genres continues to be diverse PSB network spend on first-run originations (£000s) 3% 3% 3% 4% 4% Other 11% 12% 10% 12% 12% 3% 3% 3% 3% Drama 3% 9% 10% 9% 10% 10% Children's 16% 15% 16% 16% 17% Soaps 4% 4% 4% 4% 4% Entertainment 20% 14% 19% 22% 18% Comedy Sports 23% 22% 21% 21% 19% Factual 13% 13% 12% 12% 12% News & Current Affairs 2014 2015 2016 2017 2018 Source: Ofcom/broadcasters PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 20

Drama remains the most expensive programming for PSBs Average PSB network spend per hour on first run UK-originated content, by selected genre (£k) £771 £764 £352 £353 £189 £178 £176 £167 £95 £94 £18 £18 2016 2018 2016 2018 2016 2018 2016 2018 2016 2018 2016 2018 News & Current Affairs Factual Drama Soaps Entertainment Sports PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 21

High spend levels by international SVoD players have resulted in more drama-centric offerings than PSBs PSB first-run UK originated hours vs SVoD hours Five main PSBs 29% 5% 11% 1% 37% 16% SVoD 623 hours* Netflix 14% 56% 16% 14% PSB 32,188 channels hours Amazon Prime 14% 54% 4% 11% 17% But PSBs outstrip them in terms of volume of first-run UK originations NOW TV 25% 37% 9% 12% 15% Factual Drama Entertainment Comedy Children's News & Current Affairs Other Source: Ofcom/broadcasters, Ampere Analysis (Dec 2018) *Netflix, Amazon and Sky Originals where primary production country is the UK PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 22

So what do people think about PSB? PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 23