IWA Cardiff Media Summit 2017 The Future of Media in Wales - - PowerPoint PPT Presentation

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IWA Cardiff Media Summit 2017 The Future of Media in Wales - - PowerPoint PPT Presentation

IWA Cardiff Media Summit 2017 The Future of Media in Wales #IWAMedia Wales Media Availability of communications better, but range of content much narrower BBC & ITV output & spend on English language TV down, programme range


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IWA Cardiff Media Summit 2017 The Future of Media in Wales

#IWAMedia

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Wales – Media

#IWAMedia

  • Availability of communications better, but range of content much narrower
  • BBC & ITV output & spend on English language TV down, programme range narrower
  • S4C - first ever funding cut
  • Ownership of commercial radio consolidating - severe drop in locally originated output
  • Print circulations of Welsh newspapers falling; monetising online usage a challenge
  • Digital platforms increased access to news, but forensic capacity of journalism down
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Wales – Media Challenges

#IWAMedia

  • Delivering portrayal
  • Extending presence of Welsh issues in radio
  • Implications if indie production moves to 2 main owners– a broadcaster & private

capital

  • Consultation process on Ofcom’s proposal for BBC Operating Licence
  • Effective NEDs for BBC Wales
  • Sustaining plurality of professional journalism at local & Wales level
  • Wales in network news
  • Coherent, holistic Welsh-language service
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doopoll .co

www.doo.vote/iwamedia

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The Future of Media in Wales

IWA Media Summit 2017

29 March 2017

Claire Enders claire.enders@endersanalysis.com

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SLIDE 6

Some of our subscribers

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The Future of Media in Wales, March 2017

Film/Television 21st Century Fox, Arqiva, BBC, BBC Trust, BBC Worldwide, Bein Sports, Bertelsmann, Box Plus, Channel 4, Digital UK, Discovery Communications, Endemol Shine, Fox Networks, Foxtel, Freeview, IMG Media, ITV, Ludorum, Miramax, NBCUniversal, ProSiebenSat.1, Scripps, SevenOne Media, Sky, Sony Pictures, STV, Turner Broadcasting, UKTV, Viacom, Virgin Media, Vivendi, Walt Disney, Warner Bros, YouView Agencies Dentsu Aegis, Engine, Grey, GroupM, GTB, Hogarth & Ogilvy & Mather, J. Walter Thompson, Kantar, Karmarama, Kinetic, MEC, M/ Six, Maxus, Mediacom, Mindshare, Publicis, WPP, Wunderman, Xaxis, Young & Rubicam Publishing Archant, Cedar, Centaur, D C Thomson, DMGT, Dorling Kindersley, Dow Jones, ESI Media, Financial Times, Future, Guardian Media Group, Haymarket, Hearst Magazines, Magnetic Media, Holtzbrinck, Immediate Media, Johnston Press, News UK, Newsworks, NLA Media Access, Penguin Random House, Telegraph Media Group, Time Inc, Trinity Mirror, Which? Telecoms BT, EE, H3G, Liberty Global, Openreach, Post Office, Samsung, TalkTalk Group, Telefónica, Tesco Telecoms, Utility Warehouse, Vodafone, Vonage UK Public Sector DCMS, EBU, European Commission, Ofcom, National Audit Office Music/Radio Bauer Radio, BMG Rights Management, Communicorp, EMI Music Publishing, Pandora, PRS for Music, Sony Music Entertainment, Spotify, Universal Music, Wireless Group Professional Services Accenture, Afiniti, Allen & Overy, Atos, Baringa Partners, Bain & Co, Deloitte Consulting, Edelman, Ernst & Young, KPMG, Linklaters, McKinsey, Miles 33, OC&C Strategy, Oliver & Ohlbaum, PwC, Russell Reynolds, Tata Consultancy Services, Venture Consulting, XIX Entertainment Tech AutoTrader, DAZN, Facebook, Google, Jobsite, Microsoft, NTT Data, RadiumOne, Yahoo! Funds Aberdeen Asset Management, Baillie Gifford, Cedar Rock Capital, Cenkos Securities, Highfields Capital Management, LionTree, Morgan Stanley Investment Management, Veritas Investment Management, CapeView Capital LLP Investment Banks Allen & Co, Barclays Capital, BNP Paribas, Citigroup, Lepe Partners, Moelis & Co, NM Rothschild, The Raine Group Private Equity/VC Apax, Cinven, Gloo Networks, Permira Advisors, Providence Equity, Usaha Tegas

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The UK is connecting across multiple devices

The Future of Media in Wales, March 2017 7

85% 73% 58% 64% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2011 2012 2013 2014 2015 2016 Home Internet use Smartphone Tablet Laptop 16-34s Home Internet use 16-34s Smartphone

[Source: Ofcom Tech Trackers H2 or Wave 3]

UK connectivity: take up

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17 billion extra hours online by 2020, 75% on mobile

The Future of Media in Wales, March 2017

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10 20 30 40 50 60 70 80 90 2012 2013 2014 2015 2016 2017f 2018f 2019f 2020f PC Tablet Smartphone

Excludes offline app and TV-based usage; PC 6+, smartphone/tablet 8+ [Source: Enders Analysis based on comScore]

Total internet consumption (hours, bn)

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Smartphones have created new consumption habits

The Future of Media in Wales, March 2017 9

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

16-34 Adults

Jul-Sep 2016 Base: 2,893 adults 16+ [Source: Ofcom ‘Tech Tracker H2 2016’]

In the last week used a mobile phone to…

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Under 45s spend more time online than watching TV

The Future of Media in Wales, March 2017 10

119 157 183 235 324 66 92 83 73 39 123 142 122 83 47 23 29 32 34 32 212 263 237 190 118 50 100 150 200 250 300 350 18-24 25-34 35-44 45-54 55+ Television PC Smartphone Tablet

[Source: Enders Analysis, comScore, BARB/Infosys+]

Average time online by device and age, per capita, 2016 (mins/day)

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Social media usage is becoming the norm

The Future of Media in Wales, March 2017 11

39% 27% 13% 15% 3% 36% 37% 36% 22% 10% 9% 14% 11% 14% 6% 85% 78% 60% 50% 19% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 16-24 25-34 35-44 45-54 55+ More than 10 times a day 2-10 times a day Once a day

Base: All adults [Source: Ofcom Adults media use and attitudes 2016]

Title

Frequency of vising social media sites (%, 2015)

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Rise of global media players

The Future of Media in Wales, March 2017 12

2017 2007

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Video viewing is moving slowly away from the TV set

The Future of Media in Wales, March 2017 13

88 67 75 84 100 99 60 65 70 75 80 85 90 95 100 105 110 2010 2011 2012 2013 2014 2015 2016 Individuals Children Adults 16-34 Adults 35-54 Adults 55+

[Source: Enders Analysis, BARB/InfoSys+]

Reported daily average viewing time to the TV set (2010=100)

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Broadcasters will still have over 80% viewing share in 2026

The Future of Media in Wales, March 2017 14

50 100 150 200 250 300 350 2016 2021f 2026f 2016 2021f 2026f 2016 2021f 2026f Individuals 4+ Adults 16-34 Adults 55+ Broadcaster SVOD Other online video

[Source: Enders Analysis]

Average video viewing across UK population, 2011-2026f (mins/day)

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Newspaper’s circulation continues to decline

The Future of Media in Wales, March 2017 15

19.0 18.1 17.6 16.5 15.4 14.4 13.6 35.3 33.9 30.9 28.8 25.8 23.5 21.2 13.3 11.7 12.0 11.3 10.9 10.4 9.9 43.4 41.2 37.4 32.9 30.1 28.5 26.6 111.0 104.9 97.9 89.5 82.2 76.8 71.3 20 40 60 80 100 120 2009 2010 2011 2012 2013 2014 2015 Mid-Market Popular Quality Regional

[Source: Enders Analysis based on ABC]

Newspaper circulation volumes per week (m)

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£31 in print revenue lost for every £1 gained in digital

The Future of Media in Wales, March 2017 16

(130) (128) (97) (154) (95) 34 30 30 5 3

  • 160
  • 140
  • 120
  • 100
  • 80
  • 60
  • 40
  • 20

20 40 2012 2013 2014 2015 2016 Q1-Q3 Print loss Digital gain

[Source: Enders Analysis, AA/WARC]

Digital gain versus print loss in national newspapers (£m)

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Access to News is changing fast

The Future of Media in Wales, March 2017 17

78% 40% 35% 32% 69% 29% 33% 48% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% TV Newspapers Radio Any internet or apps 2013 2016

[Source: Ofcom ‘News consumption in the UK’]

Platforms used for news ‘nowadays’, 2013-2016

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Social media has increasingly important role in online news

The Future of Media in Wales, March 2017 18

48% 42% 36% 31% 18% 16% 7% 4% Online TV and radio companies Social media sites Search engines Online newspapers Online news aggregation sites Online news organisations Online news magazines Blogs

Base: 1,393 adults who use the internet for news nowadays, Nov 2016 [Source: Ofcom ‘News Research 2016’]

Online sources used for news, 2016

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Press to online advertising substitution is clear

The Future of Media in Wales, March 2017 19

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% National newspapers Other press Online TV Other media

[Source: Enders Analysis, AA/WARC]

Share of advertising by medium (%)

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The Future of Media in Wales??

The Future of Media in Wales, March 2017 20

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Press in Wales is becoming less reliant on print

The Future of Media in Wales, March 2017 21

10.6 9.7 9.1 8.4 7.6 6.5 5.8 2.3 2.1 1.9 1.7 1.5 1.2 1.1 0.3 0.3 0.3 0.3 0.3 0.2 0.2 12.9 11.7 11.0 10.1 9.0 7.7 7.0 2 4 6 8 10 12 14 2009 2010 2011 2012 2013 2014 2015 Paid daily titles Paid Sunday Free

[Source: Enders Analysis]

Wales’ newspapers circulation per week (m)

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Impressive digital audiences, but less engagement

The Future of Media in Wales, March 2017 22

Monthly audience of online sites, 000s (LHA) & time spent per user, mins (RHA), Feb 2017

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Welsh voices are few and far between in radio

The Future of Media in Wales, March 2017 23

6.2 2.3 [VALUE].0

Share of radio listening in Wales, Q4 2016, %

Other Welsh licences but part of networks BBC Radio Wales BBC Radio Cymru Nation Broadcasting

N.B. Swansea Sound on AM has 12 hours of Welsh language programming a week

[Source: RAJAR]

Produced in Wales

BBC

Welsh language

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The PSBs are highly viewed…

The Future of Media in Wales, March 2017 24

75 72 74 73 71 71 72 72 73 73 74 74 75 75 76 BBC One ITV Wales 2014 2015

[Source: Ofcom PSB Annual Report 2016]

“Regional news progs provide a wide range of good quality news about my area” (% rating for delivery) 29.9 18.8 29.9 21.9 5 10 15 20 25 30 35 BBC One ITV Wales 2015 2016

Note: Individuals 4+, Includes HD variants, excludes +1 variants [Source: Ofcom]

Early Evening News programme audience share (%)

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Contributing to plurality of voice and the creative sector

The Future of Media in Wales, March 2017 25

External Commissions

  • Welsh indies T/O ~ £37m
  • 18 indies produced

network programming for PSBs in 2015

  • C4 investment £8m on

65 hours

  • Plus, content for Wales

Internal Commissions

  • BBC Studios
  • ITV Cymru
  • Both also supply S4C
  • ITV Studios acquisition of

TwoFour & Boom

Plurality of voice

  • ITV Cymru nearly 300

hours

  • BBC TV nearly 500 hours
  • S4C programming from:
  • Indies
  • BBC Studios
  • ITV Cymru

In 2015 the BBC Spent £178m on network and local content from Wales

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Summary

The Future of Media in Wales, March 2017 26

  • Traditional media faces ongoing disruption from digital
  • Globalisation brings new players with much deeper pockets
  • Decline of Welsh newspapers not offset by online
  • National issues face being sidelined by global agendas
  • Public service broadcasting remains key to future of Welsh

media and creative industries

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IWA Cardiff Media Summit 2017 A sustainable media workforce

#IWAMedia

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IWA Cardiff Media Summit 2017 An interview with Charlotte Moore

#IWAMedia

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IWA Cardiff Media Summit 2017 What’s the story: Will professional journalism survive in Wales?

#IWAMedia

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Sustaining Welsh Language Media TV - Changing audience behaviour:

  • decline in TV viewing, growth of social media
  • but TV viewing s9ll relevant for at least next decade
  • EPG prominence less important than presence on Apps
  • S4C: DCMS Review – scope to widen remit?

Welsh Language Radio:

  • BBC Radio Cymru
  • Radio Cymru Mwy – experiment on DAB/on-line
  • Commercial Radio – 5 sta9ons have some Welsh

language content

  • Community Radio (10 sta9ons in Wales)
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Sustaining Welsh Language Media Connectivity and on-line

  • Papurau Bro on-line & Hyper-local Media
  • Golwg 360
  • Yr Awr Gymraeg
  • BBC Cymru Fyw

Impact of Global Media

threat or opportunity?

  • Facebook & Google 80% share of digital ad

revenues Welsh Government:

  • £4.2 million support for Welsh Language includes funding for

Papurau Bro

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IWA Cardiff Media Summit 2017 Please remember to share your thoughts on www.doo.vote/iwamedia Thank you for coming

#IWAMedia