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 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 #IWAMedia

Wales – Media Challenges • 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 #IWAMedia

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The Future of Media in Wales IWA Media Summit 2017 Claire Enders claire.enders@endersanalysis.com 29 March 2017

Some of our subscribers Music/Radio Film/Television Publishing Funds Bauer Radio, BMG Rights 21st Century Fox, Arqiva, Archant, Cedar, Centaur, D C Aberdeen Asset Management, Communicorp, BBC, BBC Trust, BBC Thomson, DMGT, Dorling Management, Baillie EMI Music Publishing, Worldwide, Bein Sports, Kindersley, Dow Jones, ESI Gifford, Cedar Rock Pandora, PRS for Music, Sony Bertelsmann, Box Plus, Media, Financial Times, Capital, Cenkos Music Entertainment, Spotify, Channel 4, Digital UK, Future, Guardian Media Securities, Highfields Universal Music, Wireless Discovery Communications, Group, Haymarket, Hearst Capital Management, Group Endemol Shine, Fox Magazines, Magnetic Media, LionTree, Morgan Stanley Networks, Foxtel, Freeview, Holtzbrinck, Immediate Investment Management, IMG Media, ITV, Ludorum, Media, Johnston Press, Veritas Investment Professional Services Miramax, NBCUniversal, News UK, Newsworks, NLA Management, CapeView Accenture, Afiniti, Allen & ProSiebenSat.1, Scripps, Media Access, Penguin Capital LLP Overy, Atos, Baringa Partners, SevenOne Media, Sky, Sony Random House, Telegraph Bain & Co, Deloitte Pictures, STV, Turner Media Group, Time Inc, Consulting, Edelman, Ernst & Investment Banks Broadcasting, UKTV, Viacom, Trinity Mirror, Which? Young, KPMG, Linklaters, Allen & Co, Barclays Virgin Media, Vivendi, Walt McKinsey, Miles 33, OC&C Capital, BNP Paribas, Disney, Warner Bros, YouView Telecoms Strategy, Oliver & Ohlbaum, Citigroup, Lepe Partners, BT, EE, H3G, Liberty Global, PwC, Russell Reynolds, Tata Moelis & Co, NM Openreach, Post Office, Consultancy Services, Venture Agencies Rothschild, The Raine Samsung, TalkTalk Group, Consulting, XIX Entertainment Dentsu Aegis, Engine, Grey, Group Telefónica, Tesco Telecoms, GroupM, GTB, Hogarth & Utility Warehouse, Tech Ogilvy & Mather, J. Walter Private Equity/VC Vodafone, Vonage UK AutoTrader, DAZN, Facebook, Thompson, Kantar, Apax, Cinven, Gloo Google, Jobsite, Microsoft, Karmarama, Kinetic, MEC, M/ Public Sector NTT Data, RadiumOne, Networks, Permira Six, Maxus, Mediacom, Yahoo! DCMS, EBU, European Advisors, Providence Mindshare, Publicis, WPP, Commission, Ofcom, Equity, Usaha Tegas Wunderman, Xaxis, Young & National Audit Office Rubicam The Future of Media in Wales, March 2017 6

The UK is connecting across multiple devices UK connectivity: take up 100% 90% 85% 80% 73% 70% 64% 60% 58% 50% 40% 30% 20% 10% 0% 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] The Future of Media in Wales, March 2017 7

17 billion extra hours online by 2020, 75% on mobile Total internet consumption (hours, bn) 90 80 70 60 50 40 30 20 10 0 2012 2013 2014 2015 2016 2017f 2018f 2019f 2020f Excludes offline app and TV-based usage; PC 6+, smartphone/tablet 8+ PC Tablet Smartphone [Source: Enders Analysis based on comScore] The Future of Media in Wales, March 2017 8

Smartphones have created new consumption habits In the last week used a mobile phone to… 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Jul-Sep 2016 Base: 2,893 adults 16+ 16-34 Adults [Source: Ofcom ‘Tech Tracker H2 2016’] The Future of Media in Wales, March 2017 9

Under 45s spend more time online than watching TV Average time online by device and age, per capita, 2016 (mins/day) 350 300 263 237 250 29 212 32 190 200 23 34 142 324 150 122 118 123 235 83 32 100 183 157 47 119 50 92 83 73 66 39 0 18-24 25-34 35-44 45-54 55+ Television PC Smartphone Tablet [Source: Enders Analysis, comScore, BARB/Infosys+] The Future of Media in Wales, March 2017 10

Social media usage is becoming the norm Title Frequency of vising social media sites (%, 2015) 100% 90% 85% 78% 80% 9% 14% 70% 60% 60% 36% 50% 11% 50% 37% 14% 40% 36% 30% 22% 19% 20% 39% 6% 27% 10% 10% 15% 13% 3% 0% 16-24 25-34 35-44 45-54 55+ Base: All adults More than 10 times a day 2-10 times a day Once a day [Source: Ofcom Adults media use and attitudes 2016] The Future of Media in Wales, March 2017 11

Rise of global media players 2007 2017 The Future of Media in Wales, March 2017 12

Video viewing is moving slowly away from the TV set Reported daily average viewing time to the TV set (2010=100) 110 105 100 100 99 95 90 88 85 84 80 75 75 70 67 65 60 2010 2011 2012 2013 2014 2015 2016 Individuals Children Adults 16-34 Adults 35-54 Adults 55+ [Source: Enders Analysis, BARB/InfoSys+] The Future of Media in Wales, March 2017 13

Broadcasters will still have over 80% viewing share in 2026 Average video viewing across UK population, 2011-2026f (mins/day) 350 300 250 200 150 100 50 0 2016 2021f 2026f 2016 2021f 2026f 2016 2021f 2026f Individuals 4+ Adults 16-34 Adults 55+ Broadcaster SVOD Other online video [Source: Enders Analysis] The Future of Media in Wales, March 2017 14

Newspaper’s circulation continues to decline Newspaper circulation volumes per week (m) 120 111.0 104.9 97.9 100 89.5 43.4 82.2 41.2 76.8 80 37.4 71.3 32.9 30.1 28.5 13.3 60 11.7 26.6 12.0 11.3 10.9 10.4 40 9.9 35.3 33.9 30.9 28.8 25.8 23.5 21.2 20 19.0 18.1 17.6 16.5 15.4 14.4 13.6 0 2009 2010 2011 2012 2013 2014 2015 Mid-Market Popular Quality Regional [Source: Enders Analysis based on ABC] The Future of Media in Wales, March 2017 15

£31 in print revenue lost for every £1 gained in digital Digital gain versus print loss in national newspapers (£m) 34 40 30 30 20 5 3 0 -20 -40 -60 -80 -100 (95) (97) -120 (128) -140 (130) (154) -160 2012 2013 2014 2015 2016 Q1-Q3 Print loss Digital gain [Source: Enders Analysis, AA/WARC] The Future of Media in Wales, March 2017 16

Access to News is changing fast Platforms used for news ‘nowadays’, 2013-2016 90% 78% 80% 69% 70% 60% 48% 50% 40% 40% 35% 33% 32% 29% 30% 20% 10% 0% TV Newspapers Radio Any internet or apps 2013 2016 [Source: Ofcom ‘News consumption in the UK’] The Future of Media in Wales, March 2017 17

Social media has increasingly important role in online news Online sources used for news, 2016 Online TV and radio companies 48% Social media sites 42% Search engines 36% Online newspapers 31% Online news aggregation sites 18% Online news organisations 16% Online news magazines 7% Blogs 4% Base: 1,393 adults who use the internet for news nowadays, Nov 2016 [Source: Ofcom ‘News Research 2016’] The Future of Media in Wales, March 2017 18

Press to online advertising substitution is clear Share of advertising by medium (%) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% National newspapers Other press Online TV Other media [Source: Enders Analysis, AA/WARC] The Future of Media in Wales, March 2017 19

The Future of Media in Wales?? The Future of Media in Wales, March 2017 20

Press in Wales is becoming less reliant on print Wales’ newspapers circulation per week (m) 14 12.9 0.3 11.7 12 0.3 11.0 2.3 0.3 10.1 2.1 0.3 10 1.9 9.0 1.7 0.3 7.7 1.5 8 0.2 7.0 1.2 0.2 1.1 6 10.6 9.7 9.1 8.4 4 7.6 6.5 5.8 2 0 2009 2010 2011 2012 2013 2014 2015 Paid daily titles Paid Sunday Free [Source: Enders Analysis] The Future of Media in Wales, March 2017 21

Impressive digital audiences, but less engagement Monthly audience of online sites, 000s (LHA) & time spent per user, mins (RHA), Feb 2017 The Future of Media in Wales, March 2017 22

Welsh voices are few and far between in radio Share of radio listening in Wales, Q4 2016, % 6.2 BBC Produced in Wales Welsh 2.3 language [VALUE].0 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] The Future of Media in Wales, March 2017 23