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2 Figure 3.1 UK radio industry key metrics UK radio industry Weekly reach of radio (% of population) 89.8% 89.8% 89.5% 89.8% 90.6% 90.8% Average weekly hours per head BBC share of listening 54.7% 55.0% 55.7% 55.3% 55.2% 54.7% Total industry revenue 1,126m 1,174m 1,137m 1,092m 1,123m 1,162m Commercial revenue 512m 522m 488m 432m 438m 456m BBC expenditure 614m 652m 649m 660m 685m 706m Community radio revenue m 9m 10m 10.5m Radio share of advertising spend 3.0% 2.9% 2.8% 2.8% 2.7% 2.7% DAB digital radio take-up (households) 19.5% 27.3%% 32.1% 34.5% 38.2% 42.6% Source: RAJAR (all adults age 15+), Ofcom calculations based on figures in BBC Annual Report and Accounts note 2c ( AA/Warc, broadcasters. Revenue figures are nominal.
3 Figure 3.2 Radio industry revenue and spending million Total commercial BBC expenditure (estimated) Source: Broadcasters Note: BBC expenditure figures are estimated by Ofcom based on figures in Note 2c of the BBC Annual Report ( figures in the chart are rounded and are nominal. Does not include community radio revenue.
4 Figure 3.3 Commercial revenue percentage change Percentage change in revenue 5% 4% 3% 2% 1% 0% -1% -2% -3% -4% -5% All commercial radio National advertising Local advertising Sponsorship 4.1% 4.0% 2.8% -4.3% Source: Ofcom / operator data
5 Figure 3.4 BBC station expenditure percentage change to Annual % change of BBC radio -10% station expenditure 0% 10% BBC Radio 5 Live -4.9% BBC Radio 4-3.3% BBC Local/National 1Xtra from the BBC 0.5% 0.9% BBC Radio 2 BBC Asian Network BBC Radio 3 2.2% 3.2% 3.6% BBC Radio 1 5.2% BBC Radio 5 Live Sports Extra BBC 6 Music 8.2% 8.3% BBC Radio 4 Extra 0.0% BBC network average 0.0% Source: BBC Annual Report Note that these are financial year figures, excluding BBC-wide overheads, and are therefore not directly comparable to those set out in Section Figures are nominal. It should be noted that the percentage changes are based on operating expenditure for individual stations based on financial years and they do not include BBC-wide overheads; as such they are not comparable with the calendar year figures that are set out in Section
6 5 Figure: 3.5 Listening hours by age group, Average hours listened per week All Adults Source: RAJAR, average weekly listening per listener,
7 Figure: 3.6 Radio s share of ear , by all adults and 15-18s Share of audio listening % 18% 80 38% 44% 60 Other audio listening % 82% 62% 56% Radio All adults 15-18s Source: BBC (A&M Audiences)/Brand Driver, Share of Ear research 2009,
8 Figure 3.7 Digital radio s share of radio listening, Q Digital radio platforms share of all radio hours 35% 30% 25% 20% 15% 10% 5% 0% 28.2% 29.1% 29.2% 26.5% 26.9% 3.4% 24.6% 24.8% 25.0% 1.8% 1.7% 1.8% 1.8% 2.9% 2.8% 3.1% 3.6% 3.2% 3.7% 3.9% 1.8% 2.2% 1.8% 2.0% 4.5% 4.4% 4.1% 4.4% 4.3% 4.1% 4.8% 4.7% 15.8% 15.3% 15.8% 16.7% 17.2% 18.0% 19.4% 19.1% Q Q Q Q Q Q Q Q Internet Digital unspecified DTV DAB Source: RAJAR Note: Digital unspecified relates to listening to digital-only stations where the survey respondent has not specified the listening platform used. From Q Internet has been reclassified as Online/Apps
9 8 Figure 3.8 Ownership of DAB set, Q Percentage of adults who claim to own a DAB set / have a DAB set in the home 45% 30% 15% 0% 42.6% 38.2% 32.1% 34.5% 27.3% 19.5% 13.6% 8.1% Q Q Q Q Q Q Q Q Source: RAJAR / Ipsos MORI / RSMB Q
10 9 Figure 3.9 Take-up of equipment capable of receiving digital radio, Q Year-on-year increase (pp) Share of households 100% 80% 60% 40% 80% 98% 20% 43% 39% 0% Internet Digital TV DAB radio Smartphone Source: Research from: Ofcom, RAJAR Q1 2012
11 Figure 3.10 UK commercial radio revenue and BBC radio spending million 1, Total 1, BBC expenditure (estimated) Total commercial National commercial Local commercial Commercial sponsorship Source: Ofcom / operator data / BBC Annual Report Note: BBC expenditure figures are estimated by Ofcom based on figures in Note 2c of the BBC Annual Report ( figures in the chart are rounded and are nominal.
12 11 Revenue m Revenue m Share of all advertising Share of all advertising Figure 3.11 UK radio advertising spend and share of display advertising, Revenue m Share of all advertising 1000m Radio advertising expenditure Radio share of all media advertising 4% 800m 2.7% 2.8% 2.7% 2.7% 3% 600m 400m % 200m 1% 0m % Source: AA/Warc Expenditure Report. Figures are nominal.
13 Figure 3.12 Commercial radio revenue per listener per listener Source: Broadcaster returns and RAJAR, Figures are nominal.
14 Figure 3.13 Number of commercial analogue licences owned, by group UKRD 6.1% Guardian Media 5.8% UTV 3.8% Lincs FM 3.8% 6-10 stations in group 16.4% 2-5 stations in group 5.8% Bauer Radio 14.0% Independent 15.7% Global Radio 24.2% Source: Ofcom, April 2012
15 Figure 3.14 Share of all radio listening hours, Q Percentage share of listening hours Orion, 0.9% Other, 7.9% Absolute, 2.0% UTV, 3.2% GMG, 4.4% BBC network, 45.9% Bauer, 10.9% Global, 15.7% BBC local/regional, 9.4% Source: RAJAR, all adults (15+), year ending Q1 2012, does not include community radio listening
16 Figure 3.15 Commercial radio by weekly audience reach: Q Weekly UK audience reach Annual change in reach 37.1% 25.9% 11.0% 8.8% 5.7% 2.5% 1.3% -1.7pp -0.8pp +0.2pp -0.3pp +1.1pp -0.4pp 0 20,000 40% Weekly reach (thousands) 15,000 10,000 5, ,279 13,473 5,718 4,585 2,978 1, Global Bauer GMG UTV Absolute Orion Lincs FM 35% 30% 25% 20% 15% 10% 5% 0% Source: RAJAR, all adults (15+), Q1 2012, does not include community radio listening
17 Figure 3.16 Weekly reach of BBC stations: Q Average weekly listening (% UK adults), and year on year change BBC Radio % BBC Radio % BBC Radio % BBC Local/Regional 19.0% BBC Radio FIVE LIVE 12.3% BBC Radio 3 3.7% BBC Radio 4 Extra 2.9% BBC 6 Music 2.8% BBC World Service 2.5% 1Xtra from the BBC 1.8% BBC Asian Network UK 1.0% 0% 10% 20% 30% Year on year percentage point change Source: RAJAR, all adults (15+), Q1 2012
18 Figure 3.17 BBC radio stations: spend on radio content, Cost ( m), (and % change year on year) BBC English Local Radio BBC Radio 4 BBC Radio 5 Live BBC Radio 2 BBC Radio 3 BBC Radio 1 BBC Radio Scotland BBC Radio Ulster / Foyle BBC Radio Wales BBC Radio Cymru BBC Asian Network BBC 1 Xtra BBC Radio 6 Music BBC Radio 4 Extra BBC Radio nan Gàidheal BBC Radio 5 Live Sports Extra (-3.4%) (-1.2%) (+2.7%) (+6.8%) (+5.7%) (-5.3%) (+4%) (-2.5%) (+6.8%) (no change) (+1.3%) 38.4 (+4.6%) (+1.1%) (-7.8%) 88.1 (-5.1%) (-1.8%) Source: BBC Annual Report
19 Figure 3.18 UK radio stations broadcasting on analogue, DAB digital radio, and community radio, May 2012 Type of station AM FM AM/FM total Local commercial UK-wide commercial BBC UK-wide networks BBC local and nations Community radio TOTAL Source: Ofcom, May 2012 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.
20 Figure 3.19 Average income for community radio stations, 2008 to 2011 Income Average (mean) income 84,000 75,500 (-10.2%) 65,750 (-12.9%) 60,250 (-8.3%) Median income 53,750 46,750 (-15.0%) 42,500 (-7.14%) 40,500 (-4.8%) Source: Ofcom analysis of community broadcasters returns Note: The data collection period changed from the financial year to the calendar year as of Data from previous years has been adjusted to reflect this.
21 20 Figure: Distribution of total income levels across the community radio sector Source: Ofcom analysis of community broadcasters returns
22 Figure 3.21 Community radio income, by source Community radio stations income 2011 Income by type The average community radio station income was around 60,250 Other 18% Donations 13% On-air advertising and sponsorship 26% SLAs 10% Grants 33% Source: Ofcom analysis of community broadcasters returns
23 22 Figure: ,000 Average income by type of community served 80,000 60,000 40,000 60,250 18% 13% 10% 43,000 16% 8% 76,500 77,000 14% 12% 5% 10% 13% 5% 45% 29% 51,000 39% 70,250 24% 36% 39,500 15% Other Donations SLAs Grants 20, % 36% 26% 36% 24% Sector average (176 stations) Geographic - town/rural (72) Geographic - urban (29) 43% Minority ethnic (25) 23% 37% 11% 38% 15% 26% 8% 18% Military (9) Religious (13) Youth (16) On air advertising and sponsorship Source: Ofcom analysis of community broadcasters returns
24 Figure 3.23 Average expenditure for community radio stations, 2008 to 2011 Expenditure Average (mean) expenditure 86,500 76,500 (-11.4%) 67,000 (-12.3%) 64,250 (-4.1%) Median expenditure 55,000 52,250 (-5.3%) 43,000 (-17.5%) 41,000 (-4.9%) Source: Ofcom analysis of community broadcasters returns Note: The data collection period changed from the financial year to the calendar year as of Data from previous years has been adjusted to reflect this.
25 Figure 3.24 Community radio expenditure, by source Community radio stations expenditure 2011 Expenditure by type The average community radio station income was around 64,250 Other 21% Technical 9% Staff 47% Admin and marketing 11% Premises 12% Source: Ofcom analysis of community broadcasters returns
26 25 Figure: ,000 Average expenditure by type of community served 80,000 60,000 40,000 20,000 64,250 21% 9% 11% 12% 47% 46,500 19% 12% 15% 12% 42% 83,250 18% 6% 7% 12% 56% 73,000 16% 8% 13% 17% 46% 54,500 39% 14% 10% 33% 67,000 23% 7% 9% 14% 47% 60,000 48% 9% 7% 31% Other Technical costs Admin and marketing Premises Staff 0 Sector average (176 stations) Geographic - town/rural (72) Geographic - urban (29) Minority ethnic (25) Military (9) Religious (13) Youth (16) Source: Ofcom analysis of community broadcasters returns
27 Figure 3.26 Community radio hours and volunteers Sector average Total live hours per week 84 Total original hours per week 91 Speech output as a percentage of total daytime output 31% Number of volunteers 68 Source: Ofcom analysis of community broadcasters returns
28 27 Figure 3.27 Recorded music retail revenues: Revenues ( bn) CAGR (%) 1 year 3 year Total Music videos Singles Albums Source: Entertainment Retailers Association yearbook, Figures are nominal.
29 28 Figure 3.28 Distribution of recorded music retail revenues: Revenue share (%) 100% 80% 60% 40% 20% 0% 13% 87% Total recorded music revenues 1.27bn 1.17bn 1.07bn 1.02bn 20% 80% 26% 74% 33% 67% Albums 54% Singles 46% Single/album split in 2011 Albums Singles Digital share Physical share Source: Entertainment Retailers Association yearbook 2012 Note: This chart does not include revenues from music videos.
30 29 Figure 3.29 Recorded music sales by volume: Sales volumes (million units) Albums Singles Digital Physical Source: Entertainment Retailers Association yearbook 2012
31 30 Figure Consumer spending on digital music: Revenues ( m) CAGR (%) 1 year 5 year Source: Screen Digest Note: Due to different data sources this chart is not directly comparable with previous charts. Figures are nominal. Total Subscription Mobile purchases Online purchases
32 31 Figure 3.31 Reach of radio, by sector Percent of population 100% 90.0% 89.8% 89.9% 89.4% 89.8% 90.6% 90.8% 89.8% 66.7% 66.0% 66.2% 66.2% 66.0% 67.1% 67.6% 66.6% 80% 62.7% 61.9% 62.3% 61.5% 61.5% 63.7% 64.9% 63.9% All radio All BBC All commercial 60% 40% 20% 0% 58.5% 57.9% 58.4% 58.9% 59.4% 60.6% 61.3% 60.0% 51.0% 50.3% 50.1% 49.5% 49.7% 51.5% 52.0% 51.1% 26.4% 26.8% 27.8% 27.4% 26.2% 28.5% 30.5% 30.6% 20.5% 20.2% 19.7% 19.0% 17.7% 18.4% 18.7% 19.0% 5.6% 6.4% 6.0% 6.1% 6.7% 6.3% 6.0% 6.0% Q BBC network Local commercial National commercial BBC nations / local Other Source: RAJAR, All adults (15+), calendar years , Q1 2012
33 32 Figure 3.32 Share of listening hours, by sector 60% 40% Percent of listening hours 54.8% 54.9% 55.1% 55.7% 55.3% 55.2% 54.7% 55.4% 43.9% 44.4% 45.2% 46.1% 46.6% 46.3% 46.0% 45.9% 43.2% 42.8% 42.7% 42.2% 42.3% 42.6% 43.0% 42.3% 33.0% 32.3% 31.6% 31.3% 31.7% 31.5% 31.2% 30.3% All BBC Radio BBC network All commercial 20% 0% 10.9% 11.1% 10.9% 10.6% 11.1% 11.8% 12.0% 10.4% 10.2% 10.5% 9.9% 9.5% 8.7% 8.9% 8.7% 9.4% 2.0% 2.3% 2.1% 2.1% 2.4% 2.2% 2.3% 2.4% Q Local commercial National commercial BBC nations/local Other Source: RAJAR, All adults (15+), calendar years , Q1 2012
34 Figure 3.33 Changes in listening hours by sector: Percentage change in listening hours All Radio All BBC All Commercial BBC network radio BBC local / national National commercial Local commercial 10% 0% 2.5% 1.9% 2.9% 4.7% 7.7% 1.2% -10% -10.8% -20% Source: RAJAR, all adults (15+), data based on calendar years 2007 and 2011
35 Figure 3.34 Changes in listening hours by age: Percentage change in listening hours All % 10% 11.1% 10.5% 10.1% 5% 0% 2.5% 1.4% 3.4% -5% -10% -8.8% -6.5% Source: RAJAR, all adults (15+), data based on calendar years 2007 and 2011
36 30 25 Figure 3.35 Average weekly listening by demographic, year ending Q Weekly listening hours Average listening per week 22.6 hours Adult Men Adult Women ABC1 Adults C2DE Adults Source: RAJAR, all adults (15+), year ending Q1 2012, average weekly listening hours per listener
37 36 Figure 3.36 Most popular radio stations, year ending Q Average weekly reach (millions) % change year on year Radio group BBC 9 Global UTV Bauer Absolute BBC Radio 2 BBC Radio 1 BBC Radio 4 All Local BBC Radio BBC Radio Five Live (inc Sports Extra) Classic FM talksport BBC Radio 3 Magic Capital London Heart London Kiss 100 FM BBC World Service BBC Radio 4 Extra BBC 6 Music Absolute Radio The Hits Source: RAJAR, all adults (15+), year ending Q1 2012
38 Figure 3.37 Share of listening hours across analogue and digital platforms 100% 80% 60% 40% 20% Radio listening share by digital and analogue listening 17.8% 20.1% 24.0% 26.5% 29.2% 9.5% 12.5% 9.3% 8.1% 7.7% 72.7% 67.5% 66.7% 65.4% 63.1% Digital Unspecified Analogue 0% Q Q Q Q Q Source: RAJAR Ipsos MORI/ RSMB. All adults (15+), data relates to corresponding year ending each date shown Note: Unspecified relates to listening where the radio platform was not confirmed by the listener.
39 38 Figure 3.38 Digital radio listening by age group, (monthly) Digital radio listening by age group (at least monthly) 60% 40% 20% 58% 50% 53% 52% 59% 53% 53% 56% 50% 53% 42% 44% 36% 25% Q Q % All Source: Ofcom research, Base: All who listen to the radio, Q (n=2963), Q (n=2811) Q:Use digital radio at least monthly (includes digital listening via DTV, DAB set and online)
40 Figure 3.39 Audience profiles and platform split, by sector and station, year ending Q Share of radio listening 100% 80% 60% 40% 20% 0% All Radio / BBC / commercial National commercial BBC stations 100% 46% 9% 12% 30% 4% 2% 1% 8% 17% 1% 12% 4% Not Stated Digital Analogue Source: RAJAR, year ending Q1 2012, adults 15+
41 Figure 3.40 Most popular digital-only stations, Q Average weekly reach Q (millions) % change year on year % +12.1% BBC Radio 4 Extra BBC 6 Music -5.3% -9.5%+19.1%+2.7% +8.1%+14.4% +37.4% +14.0% %+20.0% % -26.2% % The Hits Smash Hits Radio Five Live Sports Extra 1Xtra from the BBC Planet Rock Absolute Radio 80s Heat Jazz FM Absolute Radio Classic Rock Absolute Radio 90s Chill Q Absolute Radio 00s Radio group Bauer BBC Independent / other Absolute Global Source: RAJAR, Q1 2012, adults 15+
42 41 Figure 3.41 Average weekly reach and share of listening hours by nation: 2011 Listening hours share 100% 2% 2% 1% 8% 2% 25% 80% 31% 31% 40% 38% 13% 60% 12% 12% 12% 9% 13% 9% 9% 40% 8% 22% 20% 47% 49% 46% 37% 24% 0% England Scotland Wales Northern Ireland UK TOTAL Other Local/Nations Commercial UK Commercial BBC Local/Nations BBC Network Average weekly listening Reach 22.5 hours 91.1% 21.4 hours 87.3% Source: RAJAR, All adults (15+), calendar year hours 93.2% 22.0 hours 90.1% 22.5 hours 91.0%
43 Figure 3.42 Location of listening year to Q In-vehicle 20% Work/Elsewhere 15% Home 65% Source: RAJAR, year ending Q1 2012, all adults 15+
44 43 Figure 3.43 Listening to radio via internet, digital television, DAB set and mobile phone Proportion of respondents (%) who have listened to radio via digital television, internet, DAB set or mobile phone 50% Digital TV Internet DAB Mobile Phone 40% 30% 20% 10% 27% 25% 16% 13% 28% 26% 17% 14% 27% 18% 10% 6% 24% 21% 11% 11% 17% 7% 12% 10% 28% 25% 16% 14% 24% 12% 25% 7% 24% 14% 21% 11% 25% 23% 15% 10% 25% 16% 22% 10% 27% 23% 14% 10% 27% 25% 16% 13% 0% UK 2012 England 2012 Scotland 2012 Wales 2012 N Ireland 2012 UK urban 2012 UK rural 2012 UK 2008 UK 2009 UK 2010 UK 2011 UK 2012 Source: Ofcom research, Quarter Base: All adults aged 16+ (n = 3772 UK, 2251 England, 500 Scotland, 513 Wales, 508 Northern Ireland, 2731 UK urban, 1041 UK rural, 5812 UK 2008, 6090 UK 2009, 9013 UK 2010, 3474 UK 2011, 3772 UK 2012) QP3. How often, if at all, do you access the radio via Digital radio via: TV, Internet, DAB radio, mobile phone?
45 Figure 3.44 Number of analogue and digital radio sets sold 2006 to 2011 Total annual sales 9.4 million 10.4 million 9.3 million 9.2 million 8.5 million 6.8 million Digital share of sales Radio set sales (millions) % 20.1% 22.5% 20.9% 22.3% 27.4% Year to Q Year to Q Year to Q Year to Q Year to Q Year to Q Analogue sets DAB sets Source: GfK sales data, Note: Figures cover GB only, GfK Panelmarket data represent 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.
46 45 Figure 3.45 Have you heard of the term DAB digital radio? No 16% Don't know 2% Yes 82% Source: Ofcom research 2012
47 46 Figure 3.46 Likelihood to buy a DAB radio within the next 12 months Percentage of respondents who listen to the radio but have no DAB set in the home 70% 60% 50% 40% 30% 20% 10% 0% 65% 19% 16% Likely to buy Unlikely to buy Don't know Source: Ofcom research, Q Base: Those who listen to the radio but have no DAB sets in the home (n=1855) QP12: How likely is it that your household will get a DAB radio in the next 12 months?
48 47 Figure 3.47 Unique audience of selected music streaming sites Unique audience (m) Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Spotify Soundcloud Last.fm Radio Player Hypster.com Grooveshark We7.com Yahoo! Music Napster Jango.com Source: UKOM / Nielsen. Month of April 2012, home and work panel. Applications included. Radio player data starts Apr 11
49 48 Figure 3.48 Audio internet usage % of respondents 20% 19% 16% 18% 16% % 8% 8% 7% 7% 4% 3% 2% 2% 0% Listening to radio Streamed audio services (free) Streamed audio services (subscription based) Source: Ofcom research, Q Base: Those with access to the internet at home (n= 2823) QE5A. Which, if any, of these do you or members of your household use the internet for whilst at home?
50 49 Figure 3.49 BBC iplayer quarterly radio requests Radio requests (millions) On-demand Simulcast 0 Q Q Q Q Q Q Q Q Q Source: Ofcom calculations based on BBC istats
51 50 Figure 3.50 Time spent using selected music services and media players Time per person (hours) 2:00:00 1:45:00 1:30:00 1:15:00 1:00:00 0:45:00 0:30:00 0:15:00 0:00:00 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Spotify (App) itunes (App) Windows Media Player (App) Hypster We7.com Last.fm Soundcloud Grooveshark Napster Radioplayer Source: UKOM/Nielsen. Month of April Home and work panel. Applications included. No radio player data for March 2011
52 51 Figure 3.51 MP3 player/ipod ownership and personal use % of respondents Personal use 50% 43% 44% 40% 31% 31% 29% 30% Ownership 37% 35% 26% 27% 41% 20% 10% 0% UK England Scotland Wales Northern Ireland Source: Ofcom research, Quarter Base: All adults aged 16+ (n = 3772 UK, 2251 England, 500 Scotland, 513 Wales, 508 Northern Ireland) QB1: Which of the following do you, or does anyone in your household, have in your home at the moment? QB2. Do you personally use: MP3 player/ ipod? Please note data not comparable to 2010 figures
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