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

19th November 2015

Figure 1

1

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

Estimated DAB coverage

Existing DAB coverage Aggregate of local multiplexes BBC national1 Commercial national (Digital One) Households 77.8% 96.4% 89.8% Roads 70.7% 86.3% c.75%

Figure 2

2

Source: Ofcom, September 2015 Note: ‘Variable’ indicates that reception may be less than perfect quality; some artefacts will be present

• n the audio signal or there may be occasional short drop-outs.

Existing FM coverage

Existing FM coverage Aggregate of local coverage BBC national (BBC Radios 1 to 4) Commercial national (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%

Figure 3

3

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.

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

Figure 4

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Source: Ofcom, September 2015

Number of UK radio stations broadcasting on DAB: September 2015

Type of station Relation to analogue area Number of stations Local commercial DAB in analogue area 131 DAB extends analogue area 9 DAB only 74 UK-wide commercial 14 BBC UK-wide networks 11 BBC local and nations 44 TOTAL 283

Figure 5

5

Number of services available on UK DAB, UK map

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.

No. services BBC national Commercial national

• No. local

multiplexes

• 11
• 25

 

• 26-35

  1 36-44   2

(see note)

45+   3

Figure 6

6

Source: Ofcom Technology Tracker H2 2015; RAJAR Q3 2015

Take-up of equipment capable of receiving digital radio: 2015

Fixed or mobile broadband 80

96 54 70 57

0% 20% 40% 60% 80% 100% Internet Television DAB radio Smartphone Tablet +2 +5 Share of households Year-on-year increase (pp) +7 +11

Figure 7

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5.2 4.7 3.8 3.4 3.0 2.8 1.9 1.9 1.9 1.8 1.7 1.6 2 4 6 8 10 Year to Q3 2010 Year to Q3 2011 Year to Q3 2012 Year to Q3 2013 Year to Q3 2014 Year to Q3 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.

Number of analogue and digital radio sets sold: year to Q3 2010-2015

Radio set sales (millions) 7.1 million 6.6 million 5.7 million 5.2 million 4.7 million 26.8% 28.8% 33.3% 34.6% 36.2% Digital share

• f sales:

Total annual sales: 4.4 million 36..4%

8

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?

Figure 8

Proportion of drivers and passengers who use a vehicle with a digital radio

7 21 27 30 0% 10% 20% 30% Any digital radio in vehicles

Q2 2012 Q2 2013 Q2 2014 H2 2015 Proportion of drivers/passengers who use a vehicle that has a digital radio

Figure 9

9

22.5 25.9 25.5 33.3 35.4 38.3 40.9 42.8 50.4 54.8 57.0 61.2 64.2 70.0 73.4 24.4 27.4 26.0 21.1 19.6 20.9 19.4 18.9 16.5 15.5 14.7 14.0 11.3 7.6 7.2

0% 15% 30% 45% 60% 75% 90% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2012 2013 2014 2015 Standard Cost Option Source: CAP/SMMT

Status of digital radio availability in newly registered cars

Proportion of newly registered cars (%)

10

Figure 10

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? 31 34 28 5 1 38 34 23 3 1 1 39 35 22 2 1 42 33 22 2 1 0% 10% 20% 30% 40% 50% None 1 2-3 4-5 6-10 Don't know

Q2 2012 Q2 2013 Q2 2014 H2 2015

Proportion of households %

Number of radios listened to at home ‘in most weeks’

11

Source: Ofcom Technology Tracker, H2 2015 Base: All respondents, n=2863

• Question. In which of these rooms at home do you have any radios?

Figure 11

34 27 23 5 3 2 2 2 2 1 1 3 0% 5% 10% 15% 20% 25% 30% 35% 40% Proportion of respondents %

The location of radio sets in the home

Figure 12

12

21.7 28.7 32.3 35.4 39.4 41.9 45.2 48.7 53.7 0% 10% 20% 30% 40% 50% 60% Q3 2007 Q3 2008 Q3 2009 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Source: RAJAR / Ipsos MORI / RSMB

Proportion of individuals claiming to own a DAB set in the home

Proportion of adults (15+)

Figure 13

13

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.

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

Figure 14

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56.4 56.2 54.3 53.7 50.4 5.8 5.9 6.2 6.3 7.7 37.8 37.9 39.6 39.9 41.9

0% 20% 40% 60% 80% 100%

Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015

Digital Unspecified Analogue Source: RAJAR. All adults (15+) Note: ‘Unspecified’ relates to listening where the radio platform was not confirmed by the listener.

Distribution of listening hours across analogue and digital platforms, by quarter: Q3 2014- Q3 2015

Share of total listening hours

Figure 15

15

24.5 25.2 25.9 26.7 27.7 5.0 4.7 4.8 4.7 5.0 6.4 6.1 6.8 6.4 6.9 1.8 1.9 2.1 2.1 2.3

0% 10% 20% 30% 40% 50% 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.

Distribution of listening hours across digital platforms, by quarter: Q3 2014 to Q3 2015

% share of listening hours

37.8% 37.9% 39.6% 39.9% 41.9% Total digital share of listening hours

Figure 16

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65.5 62.5 60.4 57.3 53.9 7.8 7.2 4.7 5.8 6.5 26.7 30.3 34.9 36.8 39.6

0% 20% 40% 60% 80% 100%

Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015

Digital Unspecified Analogue Source: RAJAR. All adults (15+) Note: ‘Unspecified’ relates to listening where the radio platform was not confirmed by the listener

Distribution of listening hours across analogue and digital platforms, 12 months to Q3: 2011 - 2015

Share of total listening

Figure 17

17

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

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% n/a 45.0 - 49.9% > 50.0%

Figure 18

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39.6 26.3 4.7 6.9 2.1

0% 10% 20% 30% 40% 50%

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.

Digital radio’s share of total radio listening hours, by platform

Share of total listening hours Year ending Q3 year-on-year change (percentage points) +4.1 +3.1 +0.5 +0.5

Figure 19

19

Source: RAJAR / Ipsos MORI / RSMB Note: As of Q1 2014 the figures include listening via a tablet

Proportion of individuals who claim to listen to radio on a mobile phone or tablet at least once per month

Proportion of individuals (%)

14.8 15.9 18.4 22.4 21.3 21.8 22.0 25.4 25.8 25.9 30.0 32.3 36.2 32.7 36.4 33.9 36.3 40.7 12.8 13.2 15.9 19.9 19.3 19.1 19.8 23.4 23.2

0% 10% 20% 30% 40% 50% Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 All adults (15+) 15-24 25+

Figure 20

20

53.9 23.6 5.2 4.5 19.3 6.5 2.4 0.7 39.6 19.9 8.9 8.0 0% 25% 50% 75% 100% All radio BBC Network BBC local/nations National commercial Local commercial Digital Unspecified Analogue Source: RAJAR, All adults (15+), 12 months to Q3 2015

Distribution of listening hours, by service provider, analogue and digital platforms: year to Q3 2015

Share of total listening hours Year-on-year change in digital share of listening (percentage points) +2.8 +1.2 0.0 +1.0 +0.7

Figure 21

21

1.1 1.9 1.6 4.2 6.5 10.4 0.6 1.1 0.8 1.4 1.7 2.0 5.0 6.2 0% 5% 10% 15% 20% talkSPORT Classic FM BBC Radio 5 live BBC Radio 1 BBC Radio 4 BBC Radio 2 Analogue Unspecified Digital Source: RAJAR, All adults (15+), 12 months to Q3 2015

Distribution of listening hours, by service, analogue and digital platforms: year to Q3 2015

Share of total listening hours +0.4 +0.5 +0.1

• 0.2

+0.2 0.0 Year-on-year change in digital listening (pp)

Figure 22

22

492 538 598 655 855 914 1,024 1,234 1,460 2,009 2,047 500 1000 1500 2000 Jazz FM Absolute Radio Classic Rock Absolute Radio 90s The Hits Kerrang! Heat 1Xtra from the BBC Kisstory Absolute 80s BBC Radio 4 Extra BBC 6 Music Source: RAJAR, All adults (15+), 12 months to Q3 2015

Digital-only stations, by average weekly reach

Average weekly reach (thousands) Radio groups BBC Bauer Other +7.4% +21.4% +18.7% +23.6%

• 5.2%

+7.6%

• 6.9%
• 28.2%
• 3.4%

+22.9%

• 15.0%

Year-on-year change

Figure 23

23

51.2 55.4 53.3 57.7 55.8 51.7 37.9 56.1 59.3 58.3 60.0 62.0 56.8 44.2 0% 20% 40% 60% 80% All 15+ 15-24 25-34 35-44 45-54 55-64 65+ 12 months to Q3 2014 12 months to Q3 2015 Source: RAJAR, All adults (15+), 12 months to Q3 2015

Weekly listening to radio through a digital platform, by age group

Radio listeners (%)

Figure 24

24

Weekly listening to radio through a digital platform, by socio-economic group

62.2 55.2 47.2 38.7 67.2 59.7 50.5 45.6 0% 20% 40% 60% 80% AB C1 C2 DE 12 months to Q3 2014 12 months to Q3 2015 Source: RAJAR, All adults (15+), 12 months to Q3 2015 Radio listeners (%)

25

96 86 70 35 49 74 70 67 53 40 18 0% 20% 40% 60% 80% 100% DTV Internet-connected computer Smartphone MP3 player* Games console* None of these

Take-up of device Awareness can be used to receive radio

Figure 25

Source: Ofcom Technology Tracker 2015, *Take-up measures from H1 2015 Base: All respondents (H2 2015 n=2863), (H1 2015 n=3756)

• QP14. Before today, were you aware that you can listen to radio programmes as they are broadcast in these ways?

Awareness of devices capable of receiving radio services

26

Source: Ofcom Technology Tracker Base: All adults (Q2 2012 n=2893), (Q2 2013 n=2879), (Q2 2014 n=2877), (H2 2015 n=2863)

• Question. Before today, had you heard of digital radios?

Figure 26

86% 86% 87% 81% 12% 12% 10% 17% 2% 2% 2% 2% H2 2015 Q2 2014 Q2 2013 Q2 2012 Yes No Dont know

Before today, had you heard of digital radios, sometimes called D-A-B radios?

Awareness of digital radios sometimes called ‘DAB radios’

27

61 57 34 24 23 14 22 72 68 45 33 33 20 12 76 71 50 35 36 22 9 53 50 26 19 16 10 29 0% 20% 40% 60% 80% 100% Clear and high quality sound Wider choice of stations Ease of use Extra features Scrolling text information Future proof/ready for switchover None of these All aware of digital radio All digital Radio listeners (via any device) DAB radio owners Non-DAB radio owners

Figure 27

Source: Ofcom Technology Tracker, H2 2015 Base: All aware of digital radio, with experience of listening, or aware of way of listening, (n=2615); all digital radio listeners (n=1272); DAB radio owners (n=860); non-DAB radio owners (n=1742)

• Question. Which if any of these features did you associate with digital radio?

Associations of digital radio, among those with and without DAB

28

64 59 40 29 24 20 0% 20% 40% 60% 80% Clear and high quality sound Wider choice of stations Ease of use Scrolling text information Extra features None of these

Figure 28

Source: Ofcom Technology Tracker, H2 2015 Base: All with any type of DAB digital radio (in home or vehicle) (n=1125)

• QP16. As a digital radio listener which, if any, of these features of digital radio have you experienced?

Features of digital radio that listeners have experienced

29

Source: Ofcom Technology Tracker, H2 2015 Base: Those who listen to the radio but have no DAB sets in the home (n=726) Question: How likely is it that your household will get a DAB radio in the next 12 months?

Figure 29

Percentage of respondents who listen to the radio but have no DAB set in the home: How likely is it that your household will get a DAB radio in the next 12 months?

2 3 9 13 21 25 26 0% 20% 40% 60% 80% 100% Certain to Very likely Likely Unlikely Very unlikely Certain not to Don't know

Likelihood of purchasing a DAB set

LIKELY UNLIKELY DON’T KNOW

30

Source: Ofcom Technology Tracker, H2 2015 Base: Those unlikely to get a DAB radio in the next 12 months (n=456) Question: Why are you unlikely to get a DAB radio in the next 12 months?

Figure 30

1 1 2 3 3 4 4 6 6 45 63 Haven't heard of it/ don't understand it Will get it when have to/ when switchover Don't know why I should Can receive via DTV Poor reception in area Can't afford it Would never listen Too expensive Happy to use analogue radio Happy to use existing service No need

Reasons radio listeners gave for not acquiring a DAB radio set