3. Radio and audio 0

Transcription

1 3. Radio and audio 0

2 Figure 3.1 UK radio industry key metrics UK radio industry Weekly reach of radio (% of population) 89.8% 90.6% 90.8% 89.5% 90.4% 89.5% Average weekly hours per head BBC share of listening 55.3% 55.2% 54.7% 54.7% 54.6% 53.8% Total industry revenue 1,101m 1,137m 1,164m 1,203m 1,177m 1,220m Commercial revenue 439m 452m 457m 475m 461m 483m BBC expenditure 653m 675m 697m 717m 705m 725m Community radio revenue 9.0m 10.0m 10.5m 10.8m 10.9m 11.5m Radio share of advertising spend 3.5% 3.3% 3.3% 3.3% 3.1% 3.2% DAB digital radio take-up (households) 34.5% 38.2% 42.6% 44.3% 47.9% 49.0% 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. DAB take up - Q1 of the following year.

3 Figure 3.2 Radio industry revenue and spending million ,101 1,137 1,164 1,203 1,177 1, 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. Community radio revenue is included in the total, but not shown on the chart.

4 Figure 3.3 Commercial revenue percentage change Percentage change in revenue 20% 15% 17.3% 10% 5% 4.9% 0% -5% -10% -6.6% -6.2% All commercial radio National advertising Local advertising Sponsorship Source: Ofcom / operator data

5 Figure 3.4 BBC station expenditure percentage change to Annual % change of BBC radio station expenditure BBC 1Xtra BBC Radio 5 Live Sports Extra BBC 6Music BBC Radio 1 BBC 4 Extra BBC Local/National BBC Radio 5 Live BBC Radio 2 BBC Asian Network BBC Radio 3 BBC Radio 4-0.6% -0.7% -0.9% -2.8% -4.1% 4.2% 2.8% 1.4% 0.5% 9.6% 13.3% -10% -5% 0% 5% 10% 15% 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.

6 Figure 3.5 Use of streaming services and radio stations among regular music listeners, by age: 2014 Proportion of regular music listeners (%) 80% 74% 60% 63% 40% 20% 39% 42% 42% 28% 18% 13% 0% Internet streaming services Radio stations Source: YouGov, New Generations and the Future of Radio 2014, fieldwork August Base: Regular music listeners (663). Q: Thinking about how you listen to music, which of the following do you use regularly? Please choose all that apply. 5

7 6 Figure 3.6 Use of streamed audio services among internet users, by age: Q Proportion of each age group (%) All adults Any service Free services Subscription services Source: Ofcom research, Q Base: All internet users (2298). Q: Which, if any, of these do you use the internet for?

8 7 Figure 3.7 Methods of paying for music services, 2014 Proportion of respondents (%) Type of payment Subscription Part of a contract Per use Other/don't know Source: YouGov, Audiovisual consumption 2015, fieldwork May Base: those that pay for a music service (266) Q. How do you pay for your music, [ ] service?

9 8 Figure 3.8 Proportion of listening time spent with each activity Proportion of listening time (%) All adults Radio Own digital music Streaming Source: Ofcom Digital Day 7-Day Diary, Q Base: All listening activity records for adults 16+, (17290), (999), (2342), (4113), (4334), (3284), 65+ (2218)

10 9 Figure 3.9 Volume of tracks streamed online and revenue from subscription streaming: Number of tracks streamed (million) Revenue from subscription streaming ( m) 175m 200m m m 14, ,471 3, Number of tracks streamed Revenue from subscription streaming Year on year growth: 97.6% 65.0% 150m 100m 50m 0m Source: Entertainment Retailers Association / Official Charts Note: Subscription revenue is a BPI estimate. The number of tracks streamed includes subscription and ad-funded streams and excludes video streams.

11 10 Figure 3.10 Number of different songs in the top 100 on each platform: Q Number of songs Percentage of different songs on each platform: Radio only Streaming only Shared songs 42% 26% 32% Source: Ofcom analysis of RadioMonitor and The Official Charts Company data, Q4 2014

12 11 Figure 3.11 Origin of songs in the top 100 on each platform: Q Number of songs % 20% 40% 60% 80% 100% Radio only Radio first Streaming only Streaming first Entered both together Source: Ofcom analysis of RadioMonitor and The Official Charts Company data, Q4 2014

13 Figure 3.12 Most popular sources for the discovery of new music, 2014 Proportion of respondents (%) Radio Word of mouth Seeing live music Music TV Online streaming sites Music TV shows Social media All adults Source: YouGov, Music Consumption 2014, fieldwork August Base: Those that strive to discover new music, all adults (684), (118), (198), ((185), 55+ (183) Q. How do you typically discover music you have not heard previously? Please choose all that apply. 12

14 13 Figure 3.13 Radio industry revenue Revenue ( m) ,101 1,137 1,164 1,203 1,177 1, Total 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. Total includes community radio, but community radio is not shown on the chart. Total commercial includes all sources of revenue - national, local, sponsorship and other, but other is not shown on the chart.

15 14 Figure 3.14 UK radio advertising spend and share of total advertising: Revenue ( m) Share of total advertising revenue % 3.3% 3.3% 3.3% 3.1% 3.2% 4% 3% % 1% Radio advertising expenditure Share of total advertising expenditure 0% Source: AA/Warc Advertising Expenditure report. Figures are nominal.

16 Figure 3.15 Commercial radio revenue per listener per listener Source: Broadcaster returns and RAJAR, Figures are nominal.

17 16 Figure 3.16 Commercial radio revenue by source of revenue and type of station: 2014 million Source of revenue Type of revenue National advertising Local advertising Sponsorship Other Analogue only Simulcast Digital only Source: Broadcaster returns

18 Figure 3.17 Proportion of analogue commercial radio licences owned, by group UKRD 6.5% Bauer Radio 14.7% Celador Radio UTV 6.9% 6.2% 6-10 stations in group 21.2% 2-5 stations in group 4.1% Independent 15.8% Global Radio 24.7% Source: Ofcom, May 2015

19 Figure 3.18 Share of all radio listening hours: to Q Percentage share of listening hours Orion, 0.9% Other, 8.7% UTV, 3.4% Communicorp UK, 2.4 BBC network, 46.0% Bauer, 13.3% Global, 18.2% BBC local/regional, 7.1% Source: RAJAR, all adults (15+), twelve months to Q Base: National Total Survey Area

20 Figure 3.19 Commercial radio by weekly audience reach: Q Weekly UK audience reach Annual change in reach* 39.1% 30.6% 8.7% 6.1% 2.3% 2.0% 1.6% -0.7pp +0.7pp +0.1pp +0.1pp +0.1pp pp Weekly reach (thousands) 20,000 15,000 10,000 5, ,902 16,360 4,636 3,274 1,233 1, Global Bauer UTV Communicorp Orion UKRD Celador 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Source: RAJAR, all adults (15+), Q Base: National Total Survey Area * Q1 14 and Q1 15 UKRD figures include The Local Radio Company

21 Figure 3.20 Weekly reach of BBC stations: Q Average weekly listening (% UK adults), and year on year change BBC Radio 2 BBC Radio 4 BBC Radio 1 BBC Local/Regional 15.4% BBC Radio 5 live 10.9% BBC 6 Music 3.8% BBC Radio 3 3.7% BBC Radio 4 Extra 3.3% BBC World Service 2.6% 20.1% 19.4% 28.4% Year on year percentage point change Xtra from the BBC BBC 5 live Sports Extra BBC Asian Network UK 1.9% 1.9% 1.1% % 10% 20% 30% Source: RAJAR, all adults (15+), year ending Q1 2015

22 Figure 3.21 BBC radio stations: spend on radio content, Cost ( m) BBC Local Radio BBC Radio 4 BBC Radio 5 Live BBC Radio 2 BBC Radio 1 BBC Radio 3 BBC Radio Scotland BBC Radio Ulster/BBC Radio Foyle BBC Radio Wales BBC Radio Cymru BBC 6Music BBC Asian Network BBC 1Xtra BBC 4 Extra BBC Radio nan Gàidhael BBC Radio 5 Live Sports Extra % % % % % % 1.3% -6.1% 10.7% % % % -0.2% -3.3% % Source: BBC Annual Report Year-on-year change shown in red text to the right of the absolute value. 0.2%

23 22 Figure 3.22 Digital Audio Broadcasting UK radio services broadcasting May 2015 Commercial UK-wide BBC UK-wide Local Commercial Total Multiplexes Services * 425* * Includes simulcast services (201 unique services). Excludes BBC local radio services Source: Ofcom, May 2015

24 Figure 3.23 Analogue UK radio stations broadcasting May 2015 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 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. * Includes simulcasts.

25 Figure 3.24 Average income for community radio stations: 2009 to 2014 Income Average (mean) income 75,500 (-10.2%) 65,750 (-12.9%) 60,250 (-8.3%) 57,000 (-5.4%) 55,500 (-2.7%) 55,750 (+0.8%) Median income 46,750 (-15.0%) 42,500 (-7.14%) 40,500 (-4.8%) 35,250 (-13.1%) 33,250 (-5.6%) 35,750 (+6.9%) 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.

26 25 Figure 3.25 Distribution of total income levels across the community radio sector Proportion of stations (%) Source: Ofcom analysis of community broadcasters returns. Figures rounded.

27 Figure 3.26 Community radio income, by source Income by source (%) 100% 80% 60% 40% 20% 0% Other income Donations SLAs Grants On air advertising and sponsorship Source: Ofcom analysis of community broadcasters returns

28 27 Figure: 3.27 Average income by type of community served 100,000 80,000 60,000 40,000 20, ,750 28% 15% 26% 26% Sector average (206 stations) 65,250 18% 12% 21% 45% Minority ethnic (29) 38,000 24% 9% 30% 60,250 28% 6% 42% 33% 19% Geographic Geographic - town/rural - urban (29) (93) 52, % Military (9) 0 67,000 21% 44% 27% Religious (13) 63,000 49% 27% 16% Youth (22) Other Donations SLAs Grants On-air ads Source: Ofcom analysis of community broadcasters returns

29 Figure 3.28 Average expenditure for community radio stations: 2009 to 2014 Expenditure Average (mean) expenditure 76,500 (-11.4%) 67,000 (-12.3%) 64,250 (-4.1%) 58,000 (-9.7%) 55,000 (-5.0%) 53,500 (-2.7%) Median expenditure 52,250 (5.3%) 43,000 (-17.5%) 41,000 (-4.9%) 35,500 (-15.4%) 35,750 (2.7%) 33,250 (-6.8%) 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.

30 Figure 3.29 Community radio expenditure, by type Expenditure by source (%) 100% 80% 60% 40% 20% 0% Other Technical Admin and marketing Premises Staff Source: Ofcom analysis of community broadcasters returns

31 30 Figure: ,000 Average expenditure by type of community served 80,000 60,000 40,000 20, ,500 15% 12% 12% 13% 49% Sector average (206 stations) 62,250 19% 9% 20% 19% 33% Minority ethnic (29) 37,500 19% 13% 13% 15% 39% 66,500 62,250 18% 52,750 21% 7% 13% 17% 5% 9% 6% 11% 0 14% 53% 73% Geographic Geographic Military (9) - town/rural - urban (29) (93) 47,750 13% 10% 7% 13% 49% 57% Religious (13) Youth (22) Other Technical costs Admin and marketing Premises Staff Source: Ofcom analysis of community broadcasters returns

32 Figure 3.31 Community radio hours and volunteers Sector average Total original hours per week 93 Number of volunteers 87 Total volunteer hours per week 209 Number of volunteers trained 60 Source: Ofcom analysis of community broadcasters returns

33 32 Figure 3.32 Recorded music retail revenues: Revenue ( m) 1,013 1,047 1, Year on year change -1.6% 65.1% -15.3% -7.8% Total Subscription streaming Singles Albums Source: Entertainment Retailers Association / Official Charts. Figures are nominal.

34 33 Figure 3.33 Distribution of recorded music retail revenues: % 80% 60% 40% 20% 0% Total recorded music revenues 1.01bn 1.05bn 1.03bn 42% 48% 50% 58% 52% 50% Streaming 34% Albums 39% Singles 27% Digital format split in 2014 Streaming Albums Singles Digital share Physical share Source: Entertainment Retailers Association / Official Charts

35 Figure 3.34 Recorded music sales, by volume: Sales volumes (million units) Digital Physical Albums Singles Source: Entertainment Retailers Association / Official Charts 34

36 35 Figure 3.35 Reach of radio, by sector Percent of population 100% 90.6% 90.8% 89.5% 90.4% 89.5% 89.3% All radio 80% 60% 40% 20% 0% 67.1% 67.6% 66.4% 67.1% 65.6% 65.2% 63.7% 64.9% 63.5% 64.9% 63.9% 63.4% 60.6% 61.3% 60.3% 61.1% 59.9% 59.2% 51.5% 52.0% 50.5% 51.4% 50.8% 50.0% 28.5% 30.5% 30.9% 32.5% 31.6% 32.0% 18.4% 18.7% 17.8% 17.8% 16.8% 16.5% 6.3% 6.0% 6.2% 6.2% 7.6% 6.9% Q All BBC All commercial BBC network Local commercial National commercial BBC nations / local Other Source: RAJAR, All adults (15+), calendar years , Q1 2015

37 36 Figure 3.36 Share of listening hours, by sector Percent of listening hours 60% 55.2% 54.7% 54.7% 54.6% 53.8% 54.4% 46.3% 46.0% 46.3% 46.2% 46.0% 46.9% All BBC Radio BBC network 40% 20% 0% 42.6% 43.0% 42.8% 42.8% 43.1% 42.8% 31.5% 31.2% 30.2% 29.7% 30.1% 28.6% 11.1% 11.8% 12.5% 13.1% 13.0% 14.2% 8.9% 8.7% 8.4% 8.4% 7.8% 7.6% 2.2% 2.3% 2.5% 2.6% 3.1% 2.8% Q All commercial Local commercial National commercial BBC nations/local Other Source: RAJAR, All adults (15+), calendar years , Q1 2015

38 37 Figure 3.37 Weekly listening hours by age group, Average hours listened per week All adults Source: RAJAR, average weekly listening per listener, calendar years

39 Figure 3.38 Change in time spent listening, by age group: Percentage change in average weekly listening hours 3.0% 1.0% -1.0% -3.0% -5.0% -7.0% -9.0% -3.2% -8.0% -7.8% -5.0% -0.8% -5.0% -0.4% Minutes difference: 42min 78min 90min 66min 12min 78min 6min Source: RAJAR, all adults 15+. Calendar years 2010 and 2014 average hours difference, by age group

40 Figure 3.39 Change in time spent listening, by sector: Percentage change in average listening hours 5.0% 1.3% 0.0% -5.0% -3.2% -4.9% -3.9% -3.7% -10.0% -8.3% -8.1% Minutes difference: 18min 48min 36min 48min 30min 6min 60min (Actual) All radio All BBC BBC network BBC local/nations All commercial National commercial Local commercial Source: RAJAR, all adults 15+. Calendar years 2010 and 2014 average hours difference, by sector

41 Figure 3.40 Average weekly listening by demographic, year ending Q Weekly listening hours 30 Average listening per week 21.3 hours Adult Men Adult Women ABC1 Adults C2DE Adults Source: RAJAR, all adults (15+), year ending Q1 2015, average weekly listening hours per listener

42 41 Figure 3.41 Devices currently used for radio listening % of respondents Car radio Portable radio set Television Clock radio Desktop or laptop computer Radio as part of hi-fi equipment Smartphone WiFi/Internet radio Tablet computer MP3 player (e.g. ipod) A whole home audio system Other Mobile phone (not smartphone) Games console Don't know 5% 7% 5% 7% 5% 1% 4% 1% 3% 4% 2% 1% 1% 29% 31% 24% 24% 23% 29% 22% 29% 19% 14% 12% 12% 36% 43% 65% 68% % 20% 40% 60% 80% Source: YouGov, YouGov SixthSense New Generations and the Future of Radio surveys (3rd-9th May 2013) and YouGov New Generations and the Future of Radio Survey (29th August th September 2014) Base: 863 UK radio listeners aged 16+ (2013) and 868 UK radio listeners aged 16+ (2014) Q15. Which of the following devices do you currently listen to the radio on?

43 42 Figure 3.42 Location of listening year to Q1, % share of listening hours Q Q At home Q Car/van/lorry Q Work/elsewhere Q Not stated Source: RAJAR, year ending Q all adults 15+

44 43 Figure 3.43 Types of radio content listened to, top 10 responses % of respondents Music 69% UK/ international news headlines 37% Local news headlines Weather Sport 25% 30% 29% Comedy (incl. comedy quizzes) Transport news Phone-ins Other current affairs programmes Local affairs 18% 17% 15% 14% 14% 0% 20% 40% 60% 80% Source: YouGov New Generations and the Future of Radio Survey (29th August th September 2014) Base: 868 UK radio listeners aged 16+ Q23. What type of content do you listen to on the radio? Please choose all that apply.

45 44 Figure 3.44 Importance of local radio station service Not important Neither/ don't know Fairly important Very important All ABC1 C2DE Male Female Source: Ofcom Media Tracker Base: All who listen to a local radio station (769); (105); (124); (130); (136); (109); 65+ (165); ABC1 (419); C2DE (349); Male (383); Female (386). Prompted, single code. Significance testing shows any difference between any age group and all adults and any difference between socio-economic groups and by gender. Q59 How important to you is the service that local radio stations provide?

46 45 Figure 3.45 Reliance on BBC local/ local commercial radio stations for local issues and events 40% 30% % 10% 0% Local news Local travel/weather Local emergencies (e.g. snow, floods) Info about local events/the community BBC local radio listeners Local commercial radio listeners Source: Ofcom Media tracker Base: All who listen to BBC local radio stations (551); All who listen to local commercial radio stations (562). Q55/ Q56 - To what extent do you personally rely on BBC local / local commercial radio stations for coverage of the following local issues and events? % rely on - a score of 1 or 2 on a scale of 1 to 5 where 1 is completely rely on

47 Figure 3.46 Importance that local radio station is based locally Not important Neither/ don't know Fairly important Very important All ABC1 C2DE Male Female Source: Ofcom Media Tracker Base: All who listen to a local radio station (769); (105); (124); (130); (136); (109); 65+ (165); ABC1 (419); C2DE (349); Male (383); Female (386). Prompted, single code. Significance testing shows any difference between any age group and all adults and any difference between socio-economic groups and by gender. Q60 How important is to you that your local radio station is based in your local area? 46

48 Figure 3.47 Satisfaction with local radio station Dissatisfied Neither/ don't know Satisfied All ABC1 C2DE Male Female Source: Ofcom Media Tracker Base: All who listen to a local radio station (769); (105); (124); (130); (136); (109); 65+ (165); ABC1 (419); C2DE (349); Male (383); Female (386). Prompted, single code. Significance testing shows any difference between any age group and all adults and any difference between socio-economic groups and by gender. Q58 How satisfied are you with what you hear on your local radio station? 47

49 48 Figure 3.48 Listening to music; 2013 and 2014 % of respondents Radio stations 56% 65% Personal music installed on an MP3 player Online video (e.g. YouTube) 34% 34% 38% 49% Personal music via a Hi-Fi system 33% 39% Personal music installed on a mobile phone/smartphone Internet streaming services (e.g. Spotify) 23% 19% 29% 29% TV music channels/programmes 21% 23% Online personalised radio services Other 3% 2% 4% 4% 0% 20% 40% 60% 80% Source: YouGov, YouGov SixthSense New Generations and the Future of Radio surveys (3rd-9th May 2013) and YouGov New Generations and the Future of Radio Survey (29th August th September 2014) Base: 863 UK radio listeners aged 16+ (2013) and 868 UK radio listeners aged 16+ (2014) Q36. Thinking about how you listen to music, which of the following do you use regularly?

50 49 Figure 3.49 Sources used for finding out about new music or concerts % of respondents Artist/band websites Radio stations Recommendations from friends/family Social networking sites Online shopping sites (e.g. Amazon) Online video (e.g. YouTube) Reviews in newspapers TV music channels/programmes Online reviews on music websites Internet streaming services /text alert system/newsfeed Reviews in music magazines Other 6% 13% 12% 12% 9% Source: YouGov, YouGov SixthSense New Generations and the Future of Radio surveys (3rd-9th May 2013) and YouGov New Generations and the Future of Radio Survey (29th August th September 2014) Base: 863 UK radio listeners aged 16+ (2013) and 868 UK radio listeners aged 16+ (2014) Q38. In terms of how you find out about the new music you buy or concerts you attend, which of the following sources do you regularly use? 35% 33% 36% 31% 31% 26% 39% 22% 29% 19% 22% 19% 24% 18% 19% 17% 43% 42% 41% 46% 54% 0% 10% 20% 30% 40% 50% 60%

51 50 Figure 3.50 Digital radio s share of radio listening, Q Digital radio platforms share of all radio hours 50% 40% 30% 20% 10% 0% Q Q Q Q Q Q Q Q Q Q Q Q Internet Digital unspecified Source: RAJAR Note: Digital unspecified relates to listening to digital-only stations where the survey respondent has not specified the listening platform used. Internet is classified as Online/Apps TV DAB

52 Figure 3.51 Share of listening hours across analogue and digital platforms 100% 80% 17.8% 20.1% 24.0% 26.5% 29.2% 34.3% 36.6% 39.6% 9.5% 12.5% 9.3% 8.1% 7.7% Digital 60% 5.1% 5.6% 6.2% Unspecified 40% 20% 72.7% 67.5% 66.7% 65.4% 63.1% 60.5% 57.8% 54.3% Analogue 0% Q Q Q Q Q Q Q Q Source: RAJAR, all adults (15+), data relates to Q1 results as shown Note: Unspecified relates to listening where the radio platform was not confirmed by the listener

53 52 Figure 3.52 Listening to radio via TV, internet and mobile phone Proportion of respondents (%) who have listened to radio via digital television, internet or mobile phone 30% % % % TV Internet Mobile Phone Source: Ofcom Technology Tracker. Data from Quarter 1 of each year , then Wave Base: All adults aged 16+ (n = 6090 UK 2009, 9013 UK 2010, 3474 UK 2011, 3772 UK 2012, 3750 UK 2013, 3740 UK 2014, 3756 UK 2015) QP11. How often, if at all, do you access the radio via Digital radio via: TV, Internet, DAB radio, mobile phone? *NB measures for internet combine responses across radio listeners and internet users, measures for mobile phone combine responses across radio listeners and mobile phone users

54 53 Figure 3.53 Ownership of DAB sets: Q Percentage of adults who claim to own a DAB set / have a DAB set in the home 60% 45% 30% 15% 27.3% 32.1% 34.5% 38.2% 42.6% 44.3% 47.9% 49.0% 0% Q Q Q Q Q Q Q Q Source: RAJAR / Ipsos MORI / RSMB Q

55 54 Figure 3.54 Take-up of equipment capable of receiving radio: Q Year-on-year increase (pp) Share of households 100% 80% 60% 40% 20% % Internet TV DAB radio Smartphone Tablet Source: Research from: Ofcom, RAJAR Q1 2015

56 Figure 3.55 Platform split by sector and station: year ending Q Share of radio listening 100% 80% 60% Overall radio sector National commercial BBC network 100% 46% 8% 13% 30% 4% 2% 1% 7% 18% 1% 12% 4% 6% 5% 9% 4% 7% 5% 6% 4% 5% 6% 5% 4% 5% 21% 26% 36% 30% 38% 42% 34% 41% 42% 39% 47% 62% 73% Not Stated Digital 40% 20% 0% 56% 53% 70% 34% 67% 58% 52% 23% 65% 60% 54% 56% 48% Analogue Source: RAJAR, year ending Q1 2015, adults 15+

57 Figure 3.56 Most popular digital-only stations - UK, Q Average weekly reach year ending Q (millions) % change year on year % % % % -12% 0 +22% -12% % 0.7 Radio group Bauer BBC +13% -23% -21% Independent +21% % 0.2 Source: RAJAR, year ending Q adults 15+

58 Figure 3.57 Number of analogue and digital radio sets sold Digital share of sales: 26.1% 27.2% 31.6% 35.7% 35.7% 36.5% Retail set sales (millions) DAB sets Analogue sets 0 Year to Q Year to Q Year to Q Year to Q Year to Q Year to Q 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. 57

59 58 Figure 3.58 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 Likely to buy Unlikely to buy Don't know 14% 67% 19% 0% 20% 40% 60% 80% 100% Source: Ofcom Technology Tracker, W Base: Those who listen to the radio but have no DAB sets in the home (n=1690) QP6(QP12): How likely is it that your household will get a DAB radio in the next 12 months?

60 59 Figure 3.59 Unique audiences of selected music streaming sites Unique audience (thousands) Spotify ,089 6,799 5,243 5,346 7,313 9,570 6,329 6,215 SOUNDCLOUD.COM TuneIn Audible, Inc. DEEZER.COM ,174 2,140 2,258 1, Jan-2015 Feb-2015 Mar-2015 Apr-2015 LAST.FM MIXCLOUD.COM Grooveshark RADIOPLAYER.CO.UK Source: comscore MMX Multiplatform UK, total digital population 15+, April 2015

61 60 Figure 3.60 Audio internet use % of respondents 40% 33% 30% 20% 10% 20% 11% 6% 0% Downloading music files Listening to radio Streamed audio services (free) Streamed audio services (subscription based) Source: Ofcom Technology Tracker, W Base: Those with access to the internet at home or elsewhere (n= 3095) QE20(QE5A): Which, if any, of these do you use the internet for?

62 61 Figure 3.61 Platforms currently used for mobile radio listening % of respondents BBC iplayer Radio app Tunein Radio app BBC iplayer Radio via internet browser Specific radio station app Specific radio station via internet browser Via the radio tuner on MP3/ smartphone etc. Radioplayer app Radioplayer via internet browser Tunein Radio via internet browser Other radio apps Podcast via app Podcast via internet browser WunderRadio app Other Don't know 5% 4% 5% 1% 2% 4% 10% 12% 7% 8% 6% 8% 6% 9% 8% 19% 19% 16% 14% 18% 13% 23% 23% 23% 22% 28% 32% % 10% 20% 30% 40% Source: YouGov, YouGov SixthSense New Generations and the Future of Radio surveys (3rd-9th May 2013) and YouGov New Generations and the Future of Radio Survey (29th August th September 2014) Base: 863 UK radio listeners aged 16+ (2013) and 868 UK radio listeners aged 16+ (2014) Q16. Which of the following do you use to listen to the radio on your mobile device?

63 62 Figure 3.62 BBC iplayer quarterly radio requests Radio requests (millions) On-demand Simulcast 50 0 Q Q Q Q Q Q Q Q Source: Ofcom calculations based on BBC istats Note: A change in methodology means that Q is not comparable to previous data.

64 63 Figure 3.63 Share of listening hours, by nation Listening hours share 100% 80% 60% 40% 20% 0% 3% 4% 2% 12% 5% 30% 33% 26% 29% 35% 13% 13% 13% 14% 7% 10% 9% 7% 8% 20% 47% 40% 49% 46% 24% England Scotland Wales Northern Ireland UK TOTAL Other Local Commercial UK Commercial BBC Local/Nations BBC Network Average weekly listening Reach 21.5 hours 89.4% 19.9 hours 86.9% Source: RAJAR, All adults (15+), calendar year hours 94.5% 21.6 hours 88.9% 21.4 hours 89.5%