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

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

Public Service Broadcasting in the UK

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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How has the TV landscape changed since 2014?

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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Time spent watching broadcast TV is still large, but falling and centred around older people

Average minutes of viewing per day across the UK

346 349 336 333 298 277 245 216 221 192 199 156 169 122 139 85 118 77

2014 2015 2016 2017 2018 75+ 65-74 55-64 45-54 All individuals (4+) 35-44 25-34 16-24 Children (4-15) Source: BARB. All individuals (4+), network.

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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However in Northern Ireland, the downward trend is evident across all age groups

Average minutes of viewing per day (Northern Ireland)

Source: BARB. BBC areas all individuals (4+).

327 304 291 244 227 185 226 151 172 125 125 78 129 73

2014 2015 2016 2017 2018 55+ 45-54 All individuals (4+) 35-44 25-34 16-24 All children 4-15

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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And in Scotland, this trend is becoming more pronounced

Average minutes of viewing per day (Scotland)

Source: BARB. BBC areas all individuals (4+).

354 336 278 255 240 213 220 164 166 137 134 89 110 72

2014 2015 2016 2017 2018 55+ 45-54 All individuals (4+) 35-44 25-34 16-24 All children 4-15

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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This downward trend is evident in Wales also

Average daily minutes spent viewing (Wales)

Source: BARB. BBC areas all individuals (4+).

366 350 261 223 251 213 235 163 186 139 131 81 151 75

2014 2015 2016 2017 2018 55+ 45-54 All individuals (4+) 35-44 25-34 All children 4-15 16-24

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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However, despite the decline in broadcast TV, watching video as a whole is not shrinking

Source: Ofcom total AV modelling using BARB, TouchPoints and Comscore data

Young adults watch a similar amount of video, but broadcast TV is less than half of viewing

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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But there are big differences between the 16-24s and the 25-34s

93 69 28 14 11 9 57 47 13 11 58 73 5 4 22 27 Adults 25-34 Adults 16-24

Live TV Recorded playback BVOD SVOD Other video on TV set YouTube (not TV set) Other video (not TV set) DVD Games console

Total: 4 hrs 48 mins Total: 4 hrs 15 mins

Source: Ofcom total AV modelling using BARB, TouchPoints and Comscore data

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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Over 2018, YouTube and online subscription video were the key beneficiaries of falling broadcast viewing

4h 50m 4h 54m

Change in average minutes per day 2017-2018 – all individuals, all devices

Source: Ofcom total AV modelling using BARB, TouchPoints and Comscore data

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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Online growth is also presenting a threat to PSB revenue

£6.1bn £6.2bn £6.2bn £6.1bn £5.7bn £5.5bn £0.7bn £1.0bn £1.3bn £1.7bn £2.2bn £2.6bn

2013 2014 2015 2016 2017 2018 Publicly funded channels Commercial PSB portfolio channels Commercial PSB channels Online video Source: Ofcom/broadcasters, Ampere Analysis

Broadcast TV revenue (£bn)

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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3.83m 5.43m 7.24m 8.92m 11.16m 13.33m 2.79m 4.37m 5.94m 6.89m 9.11m 11.47m 1.22m 1.15m 1.65m 3.64m 4.83m 5.96m 0.24m 0.52m 0.85m 1.08m 1.46m 1.62m 0.09m 0.12m 0.09m Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Any SVoD Netflix Amazon Prime Video NOW TV DisneyLife

This year began with almost half of households having an SVoD service

Source: BARB Establishment Survey Q1 2014-2019.

Number of households that subscribe to SVoD

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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TV spend and production trends

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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£889m £855m £343m £308m £828m £802m £582m £547m £224m £211m £360m £331m £1,221m £1,217m £3,045m £3,262m

£7,685m £7,695m 2016 2018 Sports channels Other multichannels Commercial PSB portfolio channels BBC portfolio channels Channel 5 Channel 4 ITV ITV/Breakfast BBC Two BBC One

39% 42%

PSBs continue to be significant contributors to broadcast content spend for UK audiences

Total TV content spend (including acquired content) [£m]

Source: Ofcom/broadcasters

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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However, total first-run network spend by PSBs is showing signs of decline

815 762 852 748 815 302 308 319 299 285 819 828 788 745 755 399 427 463 450 440

107 119 136 136 143 226 205 175 140 147

2,670 2,647 2,735 2,524 2,594

2014 2015 2016* 2017 2018 PSB Online

• riginations

BBC Portfolio Channel 5 Channel 4 ITV BBC Two BBC One

PSB spend on first-run UK originations (£m)

Source: Ofcom/broadcasters *Closure of BBC Three linear channel

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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The share of PSB network spend outside London is less than 50%

22.5 20.3 21.5 20.2 20.7 13.3 14 7.8 9.7 10.1 5.2 4.3 5.7 5.6 5.1 3.2 3.5 3.2 3.4 3.4 1.2 0.9 1.5 1.2 1.7 1.6 1.1 1.9 1.5 1.4 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 2014 2015 2016 2017 2018 Other Midlands & East Northern Ireland Wales Scotland Southern England Northern England

Proportion of qualifying spend by macro-region (%)

Source: Ofcom/broadcasters 50%

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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BBC drama production has driven increased network spend in Northern Ireland

1.2 0.9 1.5 1.2 1.7 0.8 0.9 1 0.9 1.2 2014 2015 2016 2017 2018 Spend Hours Proportion of qualifying spend and hours (%) Source: Ofcom/broadcasters

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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The proportion of PSB network spend is highest in Scotland

5.2 4.3 5.7 5.6 5.1 7.5 7.2 8.6 8.5 7.9 2014 2015 2016 2017 2018 Spend Hours

Proportion of qualifying spend and hours (%)

Source: Ofcom/broadcasters

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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Long-running series have maintained the proportion of network spend in Wales

3.2 3.5 3.2 3.4 3.4 1.8 2.7 2.5 2.4 2.7 2014 2015 2016 2017 2018 Spend Hours

Proportion of qualifying spend and hours (%)

Source: Ofcom/broadcasters

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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PSBs account for most of the commissions in the nations

Northern Ireland Scotland Wales Spending PSB network - £26m Other - £39m PSB network - £123m Other - £100m PSB network - £76m Other - £98m Key genres Factual entertainment (42%), General factual (20%), Drama (13%) Sport (31%), Entertainment (27%), General Factual (20%) Factual entertainment (34%), General factual (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

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PSB spend across genres continues to be diverse

12% 12% 12% 13% 13% 19% 21% 22% 23% 21% 22% 18% 20% 14% 19% 4% 4% 4% 4% 4% 16% 16% 15% 17% 16% 9% 10% 9% 10% 10% 3% 3% 3% 3% 3% 11% 12% 12% 12% 10% 3% 3% 3% 4% 4%

2014 2015 2016 2017 2018 Other Drama Children's Soaps Entertainment Comedy Sports Factual News & Current Affairs

PSB network spend on first-run originations (£000s)

Source: Ofcom/broadcasters

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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Drama remains the most expensive programming for PSBs

£18 £18 £95 £94 £764 £771 £352 £353 £178 £189 £176 £167 2016 2018 2016 2018 2016 2018 2016 2018 2016 2018 2016 2018 News & Current Affairs Factual Drama Soaps Entertainment Sports

Average PSB network spend per hour on first run UK-originated content, by selected genre (£k)

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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25% 14% 14% 29% 37% 54% 56% 5% 9% 4% 11% 12% 11% 16% 15% 17% 14% 1% 37% 16%

NOW TV Amazon Prime Netflix Five main PSBs Factual Drama Entertainment Comedy Children's News & Current Affairs Other

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 SVoD 623 hours* PSB channels 32,188 hours But PSBs outstrip them in terms of volume of first-run UK originations

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

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So what do people think about PSB?

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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The majority of audiences highlighted that PSB programmes continue to inform their understanding of the world

59% 62% 60% 56% 58% 47% 49% 57% 55% News programmes are trustworthy Helps me understand what's going on in world Regional news programmes provide good quality news Interesting programmes about history/science/arts High-quality soaps/dramas made in UK Portrays my region/nation fairly to rest of UK It shows high-quality comedy made in the UK Shows different kinds of cultures within UK It shows different parts of the UK, including England, Northern Ireland, Scotland, Wales Purpose 1 - Informing our understanding of the world Purpose 2 - Stimulating knowledge and learning Purpose 3 - Reflecting UK cultural identity Purpose 4 - Representing diversity and alternative viewpoints

Delivery of PSB purposes: 2018 (7-10 ratings) Source: Ofcom PSB Tracker 2018

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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Although among 16-24s who watch PSB channels, this falls to just

• ver half

54% 52% 53% 43% 55% 44% 47% 53% 52% News programmes are trustworthy Helps me understand what's going on in world Regional news programmes provide good quality news Interesting programmes about history/science/arts High-quality soaps/dramas made in UK Portrays my region/nation fairly to rest of UK It shows high-quality comedy made in the UK Shows different kinds of cultures within UK It shows different parts of the UK, including England, Northern Ireland, Scotland, Wales Purpose 1 - Informing our understanding of the world Purpose 2 - Stimulating knowledge and learning Purpose 3 - Reflecting UK cultural identity Purpose 4 - Representing diversity and alternative viewpoints

Delivery of PSB purposes: 2018 (7-10 ratings) Source: Ofcom PSB Tracker 2018

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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Six in ten adults in Northern Ireland use UTV or BBC One for news Source: Ofcom News Consumption survey 2019

59% 58% 24% 16% 16% 8% 8% 13% 12% 8% 7% 25% 21% 15% 35% 13% 11% 6% 10% 8%

UTV BBC One Facebook BBC Radio… Sky News… Cool FM BBC News… Channel 4 BBC Radio 1 Daily… Twitter Belfast… WhatsApp BBC… Channel 5 Google… Daily/Sunda… RTE… The Sun/on… Instagram 2018

63% 52% 35% 22% 21% 18% 11% 12% 12% 11% 11% 13% 9% 15% 5% 10% 5% 8% 11% 6%

TV Channel Newspaper

(print or website/app)

Radio station Social media Website/app

54% 51% 19% 16% 14% 10% 8% 12% 9% 9% 10% 8% 7% 34% 17% 11% 9% 7% 15% 13%

BBC One Facebook Twitter BBC… Google (search… WhatsApp BBC Two Instagram BBC Radio… Snapchat 2018

64% 54% 33% 24% 11% 17% 14% 13% 7% 10% 7% 10% 10% 8% 6% 9% 8% 8% 4% 4%

Top 20 sources of news in general in Scotland

2018

68% 45% 35% 26% 15% 22% 8% 14% 19% 10% 2% 12% 13% 14% 5% 4% 8% 8% 7% 6% 57% 45% 28% 14% 11% 20% 15% 11% 8% 8% 15% 8% 8% 38% 11% 8% 8% 18% 13% 8%

BBC One ITV WALES Facebook Sky News Channel Daily Mail/on… BBC website/app The Sun/on… BBC Radio 2 BBC News Channel Google (search… South Wales Echo Channel 4 Twitter BBC Radio 4 Wales based news… Snapchat BBC Radio 1 Daily/Sunday… Guardian/Observe… Instagram

Top 20 sources of news in general in Wales

NEWS

Top 20 sources of news in general in Northern Ireland In Wales, BBC One remained the top news source in 2018 In Scotland, BBC One remained the top news source in 2018

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

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And audiences largely believe that regional news provision is of high quality

% Delivery rating %: 2018 (7-10 ratings)

65% 73% 60% BBC One STV All channels combined

Scotland

70% 66% 60% BBC One ITV All channels combined

England

70% 67% 60% BBC One ITV/STV/ITVWales/UTV All channels combined

UK

64% 63% 57% BBC One ITV Wales All channels combined

Wales

75% 80% 65% BBC One UTV All channels combined

Northern Ireland

Source: Ofcom PSB Tracker 2018