The Communications Market: Digital Radio Report Ofcoms sixth annual - PowerPoint PPT Presentation

The Communications Market: Digital Radio Report Ofcom’s sixth annual digital progress report 19 th November 2015

Figure 1 Estimated DAB coverage Existing DAB Aggregate of local BBC national 1 Commercial national (Digital One) coverage multiplexes Households 77.8% 96.4% 89.8% Roads 70.7% 86.3% c.75% Source: Ofcom, BBC, October 2015 Note: “National” means UK-wide. Road coverage refers to motorways and A-roads 1. The BBC is currently expanding its national coverage to reach 97% of households by March 2017 1

Figure 2 Existing FM coverage Existing FM Aggregate of local BBC national (BBC Commercial national coverage coverage Radios 1 to 4) (Classic FM) Households 92.6% 94.9% 90.9% Households (variable) 97.9% 99.1% 97.4% Roads 91.5% 93.1% 86.8% Roads (variable) 95.5% 95.8% 90.3% Source: Ofcom, September 2015 Note: ‘Variable’ indicates that reception may be less than perfect quality; some artefacts will be present on the audio signal or there may be occasional short drop-outs. 2

Figure 3 Number of UK radio stations broadcasting on analogue, September 2015 Type of station AM FM AM/FM total Local commercial 52 236 288 UK-wide commercial 2 1 3 BBC UK-wide networks 1 4 5 BBC local and nations 34 44 46 Community radio 13 221 234 TOTAL 102 506 576 Source: Ofcom, September 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. 3

Figure 4 Number of UK radio stations broadcasting on DAB: September 2015 Type of station Relation to analogue area Number of stations Local DAB in analogue area 131 commercial DAB extends analogue area 9 DAB only 74 UK-wide 14 commercial BBC UK-wide 11 networks BBC local and 44 nations TOTAL 283 Source: Ofcom, September 2015 4

Figure 5 Number of services available on UK DAB, UK map No. BBC Commercial No. local services national national multiplexes 0 - - - 11 - - -   25 -   26-35 1   36-44 2 (see note)   45+ 3 London See box Surrey Channel Islands Not yet licensed Updated: 9.11.15 Source: Ofcom, November 2015. Note: the Tyne and Wear and Teesside areas have one multiplex each, but each of these multiplexes carry more services than most other local multiplexes. 5

Figure 6 Take-up of equipment capable of receiving digital radio: 2015 Year-on-year increase (pp) +5 +2 0 +7 +11 Share of households 100% 80% 60% 96 Fixed or mobile 40% broadband 70 80 57 54 20% 0% Internet Television DAB radio Smartphone Tablet Source: Ofcom Technology Tracker H2 2015; RAJAR Q3 2015 6

Figure 7 Number of analogue and digital radio sets sold: year to Q3 2010-2015 Total annual sales: 4.4 million 7.1 million 6.6 million 5.7 million 5.2 million 4.7 million Digital share 36..4% 26.8% 28.8% 33.3% 34.6% 36.2% of sales: Radio set sales (millions) 10 8 5.2 6 4.7 3.8 3.4 4 3.0 2.8 1.9 1.9 1.9 1.8 1.7 1.6 2 0 Year to Q3 Year to Q3 Year to Q3 Year to Q3 Year to Q3 Year to Q3 2010 2011 2012 2013 2014 2015 Analogue sets DAB sets Source: GfK sales data, 2010-2015. Note: Figures cover GB only, GfK Panelmarket data represents 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. 7

Figure 8 Proportion of drivers and passengers who use a vehicle with a digital radio Proportion of drivers/passengers who use a vehicle that has a digital radio 30% 20% 30 27 21 10% 7 0% Any digital radio in vehicles Q2 2012 Q2 2013 Q2 2014 H2 2015 Source: Ofcom Technology Tracker, Q2 2012 (n=1756), Q2 2013 (n=1709), Q2 2014 (n=1769), H2 2015 (n=2107) Base: Those who use at least one motor vehicle with a radio in most weeks (as a driver or passenger) Question. Is the radio in this vehicle a digital radio?/ How many of the radios in those vehicles are digital radios? 8

Figure 9 Status of digital radio availability in newly registered cars Proportion of newly registered cars (%) Standard Cost Option 90% 73.4 70.0 75% 64.2 61.2 57.0 54.8 60% 50.4 42.8 40.9 45% 38.3 33.3 35.4 25.9 25.5 30% 22.5 19.4 18.9 20.9 19.6 16.5 15.5 14.7 14.0 11.3 27.4 26.0 15% 7.6 7.2 21.1 24.4 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2012 2013 2014 2015 Source: CAP/SMMT 9

Figure 10 Number of radios listened to at home ‘in most weeks’ Proportion of households % 50% Q2 2012 Q2 2013 Q2 2014 H2 2015 40% 30% 42 20% 39 38 35 34 34 33 31 28 23 22 22 10% 3 2 2 1 1 1 1 1 5 0% None 1 2-3 4-5 6-10 Don't know Source: Ofcom Technology Tracker Base: All respondents Q2 2012 (2893), Q2 2013 (2879), Q2 2014 (2877), H2 2015 (2863) Question. In total, how many radio sets do you have in your home that you, or someone in your household, listen to in most weeks? 10

Figure 11 The location of radio sets in the home Proportion of respondents % 40% 35% 30% 25% 20% 34 15% 27 23 10% 5% 5 3 3 2 2 2 2 1 1 0% Source: Ofcom Technology Tracker, H2 2015 Base: All respondents, n=2863 Question. In which of these rooms at home do you have any radios? 11

Figure 12 Proportion of individuals claiming to own a DAB set in the home Proportion of adults (15+) 60% 53.7 48.7 50% 45.2 41.9 39.4 40% 35.4 32.3 28.7 30% 21.7 20% 10% 0% Q3 2007 Q3 2008 Q3 2009 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Source: RAJAR / Ipsos MORI / RSMB 12

Figure 13 Take-up of DAB digital radio, by multiplex area % of Households – Q3, 2015 25.0 - 29.9% 30.0 - 34.9% 35.0 - 39.9% 40.0 - 44.9% 45.0 - 49.9% > 50.0% n/a Source: RAJAR, Q3 2015 Note: this map is based on analysis which uses the total survey area of the individual station which best represents the coverage area of each digital multiplex. 13

Figure 14 Distribution of listening hours across analogue and digital platforms, by quarter: Q3 2014- Q3 2015 Share of total listening hours 100% 37.8 37.9 80% 39.6 39.9 41.9 60% 5.8 5.9 6.2 6.3 Digital 7.7 Unspecified 40% Analogue 56.4 56.2 54.3 53.7 50.4 20% 0% Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Source: RAJAR. All adults (15+) Note: ‘Unspecified’ relates to listening where the radio platform was not confirmed by the listener. 14

Figure 15 Distribution of listening hours across digital platforms, by quarter: Q3 2014 to Q3 2015 % share of listening hours Total digital share of listening hours 37.8% 37.9% 39.6% 39.9% 41.9% 50% 2.3 40% 2.1 2.1 1.8 1.9 6.9 6.4 6.8 6.1 6.4 30% 5.0 4.7 4.8 4.7 5.0 20% 27.7 26.7 25.9 25.2 24.5 10% 0% Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 DAB DTV Internet Digital Not stated Source: RAJAR. All adults (15+) Note: ‘Digital unspecified’ relates to listening to digital-only stations where the survey respondent has not specified the listening platform used. 15

Figure 16 Distribution of listening hours across analogue and digital platforms, 12 months to Q3: 2011 - 2015 Share of total listening 100% 26.7 30.3 34.9 36.8 80% 39.6 7.8 7.2 4.7 60% 5.8 Digital 6.5 Unspecified 40% Analogue 65.5 62.5 60.4 57.3 53.9 20% 0% Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Source: RAJAR. All adults (15+) Note: ‘Unspecified’ relates to listening where the radio platform was not confirmed by the listener 16

Figure 17 Share of listening, by digital platform and area DAB DTV Online/apps All digital Share of listening 0 - 4.9% 5.0 - 9.9% 10.0 - 14.9% 15.0 - 19.9% 20.0 - 24.9% 25.0 - 29.9% 30.0 - 34.9% 35.0 - 39.9% 40.0 - 44.9% 45.0 - 49.9% > 50.0% n/a Source: RAJAR, Q3 2015 Note: these maps are based on analysis which uses the total survey area of the individual station which best represents the coverage area of each digital multiplex 17

Figure 18 Digital radio’s share of total radio listening hours, by platform Year ending Q3 year-on-year change (percentage points) +4.1 +3.1 0 +0.5 +0.5 Share of total listening hours 50% 40% 30% 20% 39.6 26.3 10% 2.1 6.9 4.7 0% All Digital DAB DTV Online/apps Digital unspecified Source: RAJAR. All adults (15+), 12 months to Q3 2015 Note: ‘Digital unspecified’ relates to listening to digital-only stations, where the survey respondent has not specified the platform used. 18

Figure 19 Proportion of individuals who claim to listen to radio on a mobile phone or tablet at least once per month Proportion of individuals (%) 50% 40.7 40% 36.4 36.2 36.3 33.9 32.7 32.3 30.0 30% 25.9 25.8 25.4 23.4 23.2 22.4 22.0 21.8 21.3 19.9 19.8 19.3 19.1 18.4 20% 15.9 15.9 14.8 13.2 12.8 10% 0% Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 All adults (15+) 15-24 25+ Source: RAJAR / Ipsos MORI / RSMB Note: As of Q1 2014 the figures include listening via a tablet 19