3. Radio and audio 0

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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% 89.5% 89.8% 90.6% 90.8% 89.6% Average weekly hours per head BBC share of listening 55.0% 55.7% 55.3% 55.2% 54.7% 54.8% Total industry revenue 1,175m 1,147m 1,098m 1,135m 1,161m 1,193m Commercial revenue 523m 498m 438m 450m 455m 472m BBC expenditure 652m 649m 660m 685m 706m 721m Community radio revenue - 7.5m 9.0m 10.0m 10.5m 10.8m Radio share of advertising spend 2.9% 2.8% 2.8% 2.7% 2.7% 2.6% DAB digital radio take-up (households) 27.3% 32.1% 34.5% 38.2% 42.6% 44.0% 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.

3 Figure 3.2 Radio industry revenue and spending million ,175 1,147 1,098 1,135 1,161 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. Does not include community radio revenue.

4 Figure 3.3 Commercial revenue percentage change Percentage change in revenue 10% 7.2% 5% 3.9% 5.3% 1.0% 0% 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 - 15% 0% 10% BBC Radio 4 Extra BBC 6Music BBC Asian Network BBC Radio 2 BBC Radio 3 BBC Local/National BBC Radio 4 BBC Radio 5 Live Sports Extra 1Xtra from the BBC BBC Radio 1 BBC Radio 5 Live -12.0% -1.0% 0.0% 2.6% 3.4% 4.0% 5.3% 5.7% 6.0% 7.1% 9.7% 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 Figure 3.5 National commercial radio reach Local commercial radio reach UK reach = 31.0% UK reach = 50.9% Colours indicate reach within BBC TSA indexed by UK reach: > /-10 Source: RAJAR, year ending Q <90 (N.B. Figures within the BBC Solent TSA are for year ending Q

7 Figure 3.6 BBC network radio reach BBC local radio reach UK reach = 60.5% UK reach = 17.6% Colours indicate reach within BBC TSA indexed by UK reach: > /-10 Source: RAJAR, year ending Q <90 (N.B. Figures within the BBC Solent TSA are for year ending Q UK reach = 31.0% 6

8 7 Figure 3.7 Cardiff Pop. 1,002,300 Birmingham Pop. 2,134,800 Share Rank (last year) Station Operator Share Rank (last year) Station Operator (1) Radio 2 BBC (3) Real R & S Ltd (5) Radio 1 BBC (4) Radio Wales BBC (2) Radio 4 BBC (6) Capital Global Radio (9) Radio 5 Live BBC (10) Gold Global Radio (8) Kiss Bauer Radio (7) Classic FM Global Radio Market Share: BBC 57.9% Commercial Radio 38.9% (1) Radio 2 BBC (2) Heart Global Radio (4) Radio 4 BBC (6) Smooth R&S Ltd (5) Radio 1 BBC (3) Capital Global Radio (10) Free Radio FM Orion (7) BBC WM BBC (8) Radio 5 Live BBC (9) Classic FM Global Radio Market Share: BBC 42.5% Commercial Radio 49.7% See also London overleaf

9 8 Figure 3.7 London Pop. 11,249,500 Share Rank (last year) Station Operator (1) Radio 4 BBC (2) Radio 2 BBC (3) Magic Bauer Radio (5) Radio 1 BBC (4) Capital Global Radio (7) Kiss 100 FM Bauer Radio (6) Heart Global Radio (8) Radio 5 Live BBC (9) LBC 97.3 Global Radio (10) Classic FM Global Radio Market Share: BBC 47.2% Commercial Radio 49.0%

10 9 Figure 3.8 Belfast Pop. 986,600 Edinburgh Pop. 1,119,200 Share Rank (last year) Station Operator Share Rank (last year) Station Operator (1) Radio Ulster BBC (2) Cool FM Bauer Radio (3) U105 UTV Radio (4) Radio 1 BBC (5) Radio 2 BBC (6) Downtown R. Bauer Radio (9) Radio 5 Live BBC (7) Radio 4 BBC (8) Citybeat CN Group (10) Classic FM Global Radio Market Share: BBC 44.3% Commercial Radio 49.0% (1) ForthOne Bauer Radio (2) Radio 2 BBC (3) Real R & S Ltd (4) Radio 4 BBC (5) R.Scotland BBC (6) Capital Global Radio (7) Radio 1 BBC (8) Classic FM Global Radio (9) Kingdom FM Kingdom FM (10) Forth2 Bauer Radio Market Share: BBC 41.0% Commercial Radio 57.4% See also Glasgow overleaf

11 10 Figure 3.8 Pop. 1, Market Share: BBC 38.0% Commercial Radio 60.2%

12 11 Figure 3.9 Pop. 688,900 Manchester Pop. 2,446,600 Share Rank (last year) Station Operator (1) Radio 2 BBC (2) Radio 4 BBC (3) Key 103 Bauer Radio (4) Radio 1 BBC (6) Capital Global Radio (7) Radio 5 Live BBC (5) Smooth R & Ltd (8) Classic FM Global Radio Market Share: BBC 54.1% Commercial Radio 43.2% (9) R. Manchester BBC (10) Real XS R & S Ltd Market Share: BBC 47.1% Commercial Radio 47.7% See also Newcastle overleaf

13 12 Figure 3.9 Newcastle Pop: 1,508,300 Share Rank (last year) Station Operator (1) Radio 2 BBC (3) Metro Radio Bauer Radio (5) R. Newcastle BBC (4) Radio 4 BBC (6) Smooth R&S Ltd (2) Capital Global Radio (7) Radio 1 BBC (8) Magic 1152 Bauer Radio (9) Real R&S Ltd (10) Radio 5 Live BBC Market Share: BBC 43.8% Commercial Radio 53.4%

14 13 Figure 3.10 Key factors in local radio listening Content valued by listeners to local radio Proportion of listeners (%) Music Local news Weather Traffic & travel Entertaining presenters Local events information Discussion of local issues Local presenters UK / international news Sport Opinions on local issues Local commercial BBC local Source: Ipsos-MORI Q9: Which, if any, of the following do you particularly value on <local radio station>? Base: All who listen each month (first or second most often): local commercial radio (1972); BBC local radio (1100) 13

15 Figure 3.11 Devices used to listen to the radio Car radio 68% Portable radio set 43% Television Radio as part of hi-fi equipment Desktop or laptop computer Clock radio 31% 29% 29% 24% Smartphone 14% MP3 player (e.g. ipod) WiFi/Internet radio Mobile phone (not smartphone) Games console 7% 5% 4% 1% Source: YouGov research, May 2013 Base: All adults aged 16+ who regularly listen to the radio (n = 866) Q15. Which of the following devices do you currently listen to the radio on? Please choose all that apply. 14

16 Figure 3.12 Reasons for listening to radio more now compared to five years ago It fits in better with my routines now than in the past 61% There are so many new ways of listening (internet, smartphones etc.) I ve discovered a station/programme I really like Digital radio has improved the quality of radio listening I spend more time in the car than in the past 27% 26% 23% 23% Radio programmes have got better 23% There are more available stations now than in the past 17% I prefer radio to other media 8% I ve started listening to radio more because my partner does 5% Source: YouGov research, May Base: All adults aged 16+ who say they listen to the radio more compared to five years ago(n = 242). Q27. You have said you listen to the radio more now than in the past. Which, if any, of the following would you say are the reasons why your radio listening has gone up? Please choose all that apply. 15

17 16 Figure 3.13 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% 25% 15% 23% 10% 25% 16% 22% 10% 27% 14% 23% 10% 27% 16% 25% 13% 27% 22% 25% 20% 0% UK 2009 UK 2010 UK 2011 UK 2012 UK 2013 Source: Ofcom research, Quarter Base: All adults aged 16+ (n = 6090 UK 2009, 9013 UK 2010, 3474 UK 2011, 3772 UK 2012, 3750 UK 2013) QP3. How often, if at all, do you access the radio via Digital radio via: TV, Internet, DAB radio, mobile phone? *NB 2013 measures for internet combine responses across radio listeners and internet users, 2013 measures for mobile phone combine responses across radio listeners and mobile phone users

18 Figure 3.14 Ways used to listen to the radio through a mobile device BBC iplayer Radio app 28% Tunein Radio app Via the radio tuner on my MP3 23% 22% BBC iplayer Radio via internet browser 19% Specific radio station via internet browser 14% Radioplayer app Other 9% 10% Radioplayer via internet browser Tunein Radio via internet browser Podcast via internet browser 6% 5% 7% WunderRadio app 1% Source: YouGov research, May 2013 Base: All adults aged 16+ who regularly listen to the radio via Mobile phone, Smartphone, Tablet computer MP3 player (e.g. ipod) (n = 205) Q16. Which of the following do you use to listen to the radio on your mobile device? Please choose all that apply.. 17

19 Figure 3.15 Discovering new music or information about live events Recommendations from friends/family 59% Radio stations (e.g. BBC Radio 1, 2, Heart, Artist/band websites Social networking sites (e.g. Facebook, Twitter) 36% 42% 45% Online video (e.g. YouTube) Online shopping sites (e.g. Amazon) Reviews in newspapers Online reviews on music websites 29% 28% 27% 26% TV music channels/programmes (e.g. MTV) Reviews in music magazines Internet streaming services (e.g. Spotify, /text alert system/newsfeed (e.g. 15% 15% 13% 13% Source: YouGov research, May 2013 Base: All adults aged 16+ who say they buy new music or attend concerts on a regular basis(n= 178) 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? Please choose all that apply. 18

20 Figure 3.16 Methods used to listen to music Radio stations (e.g. BBC Radio 1, 2, Heart, Capital, Classic FM etc.) Personal music installed on an MP3 player (e.g. ipod) Personal music via a Hi-Fi system (CDs, vinyl etc.) Online video (e.g. YouTube) Personal music installed on a mobile phone/smartphone TV music channels/programmes (e.g. MTV) Internet streaming services (where you choose the music you listen to, e.g. Spotify, Last.fm) Online personalised radio services (where the music is chosen for you according to personal 78% 71% 64% 48% 52% 65% 29% 49% 52% 56% 74% 49% 44% 44% 40% 35% 27% 39% 15% 26% 34% 33% 77% 34% 13% 23% 35% 38% 45% 29% 16% 26% 24% 30% 23% 23% 14% 8% 19% 25% 33% 19% 2% 0% 2% 4% 3% 2% Source: YouGov research, May 2013 Base: All adults aged 16+ who say they listen music regularly (n= 640) Q36. Thinking about how you listen to music, which of the following do you use regularly? Please choose all that apply

21 20 Figure 3.17 Music services accessed in the last three months Adults aged 16+ Children aged 8-15 YouTube 40% 55% itunes 29% 37% Spotify 11% 12% Amazon Cloud player 5% 3% LastFM 4% 1% Google Play 4% 6% SoundCloud 3% 2% MySpace 2% 2% Vevo 2% 3% Nokia Music 1% 1% Source: YouGov research, March 2013 Base: All adults aged 16+ (n=2,069), children aged 8-15 years (542) Q7. Which of the following music services have you accessed in the last 3 months? Please tick all that apply.

22 21 Figure 3.18 Digital radio s share of radio listening, Q Digital radio platforms share of all radio hours 35% 30% 25% 20% 15% 10% 5% 0% 24.6% 24.8% 25.0% 2.9% 2.8% 3.1% 1.8% 2.2% 1.8% 4.1% 4.4% 4.3% 3.6% 2.0% 3.2% 1.7% 4.1% 4.8% 3.7% 1.8% 4.7% 15.8% 15.3% 15.8% 16.7% 17.2% 18.0% Q Q Q % 26.9% Q Q % Q % 29.2% 3.4% 3.9% 1.8% 1.8% 4.5% 4.4% 31.5% 31.3% 4.6% 4.2% 2.1% 1.9% 4.7% 4.8% 33.0% 4.9% 1.9% 5.1% 19.4% 19.1% 20.1% 20.4% 21.1% Q Q Q Q Q % 5.0% 1.8% 5.0% 22.5% 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. From Q Internet has been reclassified as Online/Apps DTV DAB

23 22 Figure 3.19 Ownership of DAB sets: Q Percentage of adults who claim to own a DAB set / have a DAB set in the home 45% 30% 15% 0% 42.6% 44.3% 38.2% 32.1% 34.5% 27.3% 19.5% 13.6% 8.1% Q Q Q Q Q Q Q Q Q Source: RAJAR / Ipsos MORI / RSMB Q

24 23 Figure 3.20 Take-up of equipment capable of receiving digital radio: Q Year-on-year increase (pp) +/-0 +/ Share of households 100% 80% 60% 40% 80% 98% 20% 44% 51% 0% Internet Digital TV DAB radio Smartphone Source: Research from: Ofcom, RAJAR Q1 2013

25 24 Figure 3.21 UK commercial radio revenue and BBC radio spending: Revenue ( m) 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.

26 25 Figure 3.22 UK radio ad-spend and share of total display advertising: Revenue ( m) Share of total advertising revenue % 3.4% 3.5% 3.3% 3.3% 3.3% 4% 600 3% 400 2% % Radio advertising expenditure Share of total advertising expenditure 0% Source: AA/Warc Advertising Expenditure report. Figures are nominal.

27 Figure 3.23 Commercial radio revenue per listener per listener Source: Broadcaster returns and RAJAR, Figures are nominal.

28 Figure 3.24 Number of commercial analogue licences owned, by group UKRD 6.7% Bauer Radio 13.9% Celador Radio UTV 5.4% 6.1% 6-10 stations in group 17.3% 2-5 stations in group 8.8% Global Radio 27.5% Independent 14.2% Source: Ofcom, May 2013 Global Radio includes licences held by Real & Smooth Ltd.

29 Figure 3.25 Share of all radio listening hours, Q UTV, 3.1% Real & Smooth Ltd., 4.8% Percentage share of listening hours Orion, 0.9% Absolute, 2.3% Other, 3.8% BBC network, 46.5% Bauer, 11.5% Global, 15.7% BBC local/regional, 7.8% Source: RAJAR, all adults (15+), year ending Q1 2013

30 Figure 3.26 Commercial radio by weekly audience reach: year ending Q Weekly UK audience reach Annual change in reach 36.8% 26.4% 10.9% 8.1% 6.0% 2.1% 1.2% -1.1pp +0.4pp 0-0.5pp +0.7pp -0.4pp 0 Weekly reach (thousands) 20,000 15,000 10,000 5, ,280 13,838 5,707 Global Bauer Real & Smooth Ltd. Source: RAJAR, all adults (15+), year ending Q ,232 3,156 1, UTV Absolute Orion Lincs FM 40% 35% 30% 25% 20% 15% 10% 5% 0%

31 Figure 3.27 Weekly reach of BBC stations: Q Average weekly listening (% UK adults), and year on year change BBC Radio 2 BBC Radio % BBC Radio % BBC Local/Regional 17.6% BBC Radio 5 live 11.8% BBC Radio 3 4.0% BBC 6 Music 3.2% BBC Radio 4 Extra 3.2% BBC World Service 2.6% 1Xtra from the BBC 2.0% BBC 5 live Sports Extra 1.8% BBC Asian Network UK 1.0% 28.0% Year on year percentage point change % 10% 20% 30% Source: RAJAR, all adults (15+), year ending Q1 2013

32 Figure 3.28 BBC radio stations: spend on radio content, BBC English Local Radio BBC Radio 4 BBC Radio 5 Live BBC Radio 2 BBC Radio 1 BBC Radio 3 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 Cost ( m) Source: BBC Annual Report % 4.2% -5.1% -20% 5.6% 3.9% -1.7% 6.9% 9.6% % % % % 0.0% % 1.8%

33 Figure 3.29 Analogue UK radio stations broadcasting May 2013 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.

34 Figure 3.30 Average income for community radio stations: 2008 to 2012 Income Average (mean) income 84,000 75,500 (-10.2%) 65,750 (-12.9%) 60,250 (-8.3%) 57,000 (-5.4%) Median income 53,750 46,750 (-15.0%) 42,500 (-7.14%) 40,500 (-4.8%) 35,250 (-13.1%) 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.

35 34 Figure 3.31 Distribution of total income levels across the community radio sector Proportion of stations (%) Source: Ofcom analysis of community broadcasters returns

36 Figure 3.32 Community radio income, by source Community radio stations income 2012 Income by type The average community radio station income was around 57,000 Other 20% Donations 14% On-air advertising and sponsorship 29% SLAs 7% Grants 29% Source: Ofcom analysis of community broadcasters returns

37 36 Figure: ,000 Average income by type of community served 80,000 60,000 40,000 20,000 57,000 20% 14% 7% 29% 4,000 23% 9% 31% 43% 29% 32% 23% 0 Sector Geographic average town/rural (190 stations) (78) 73,250 69,500 16% 17% 9% 11% 9% 4% Geographic urban (29) 25% 43% Minority ethnic (25) 51,500 40% 38% 14% 7% Military (9) 66,250 21% 36% 8% 31% Religious (13) 46,000 32% 6% 28% 28% Youth (20) Other Donations SLAs Grants On air advertising and sponsorship Source: Ofcom analysis of community broadcaster s returns

38 Figure 3.34 Average expenditure for community radio stations: 2008 to 2012 Expenditure Average (mean) expenditure 86, ,500 (-11.4%) 67,000 (-12.3%) 64,250 (-4.1%) 58,000 (-9.7%) Median expenditure 55, ,250 (5.3%) 43,000 (-17.5%) 41,000 (-4.9%) 35,750 (-15.4%) 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.

39 Figure 3.35 Community radio station expenditure, by type Community radio station expenditure 2012 Expenditure by type The average community radio station income was around 58,000 Other 17% Technical 9% Admin and marketing 12% Staff 49% Premises 13% Source: Ofcom analysis of community broadcaster s returns

40 39 Figure: ,000 Average expenditure by type of community served 80,000 60,000 40,000 20, ,000 17% 9% 12% 13% 49% 39,750 19% 11% 12% 10% 48% Sector average Geographic town/rural (190 stations) (78) 83,000 15% 7% 8% 12% 59% Geographic urban (29) 65,500 59,500 16% 54,750 51,000 9% 21% 18% 6% 14% 38% 11% 11% 18% 15% 16% 16% 11% 38% Minority ethnic (25) 33% Military (9) 46% 53% Religious (13) Youth (20) Other Technical costs Admin and marketing Premises Staff Source: Ofcom analysis of community broadcaster s returns

41 Figure 3.37 Community radio hours and volunteers Sector average Total live hours per week 79 Total original hours per week 90 Speech output as a percentage of total daytime output 31% Number of volunteers 85 Source: Ofcom analysis of community broadcasters returns

42 41 Figure 3.38 Recorded music retail revenues: Revenues ( bn) Year on year change (%) -5.5 Total Music videos 9.2 Singles -7.1 Albums Source: Entertainment Retailers Association / Official Charts. Figures are nominal.

43 42 Figure 3.39 Distribution of recorded music retail revenues: % 80% 60% 40% 20% 0% Total recorded music revenues 1.27bn 1.17bn 1.07bn 1.02bn 0.97bn 13% 87% 20% 26% 33% 39% 80% 74% 67% 61% Albums 56% Singles 44% Single/album split in 2012 Albums Singles Digital share Physical share Source: Entertainment Retailers Association / Official Charts Note: This chart does not include revenues from music videos.

44 43 Figure 3.40 Recorded music sales, by volume: Sales volumes (million units) Digital Physical Albums Singles Source: Entertainment Retailers Association / Official Charts

45 44 Figure 3.41 Reach of radio, by sector Percent of population 100% 89.9% 89.4% 89.8% 90.6% 90.8% 89.5% 90.3% All radio 80% 60% 40% 20% 0% 66.2% 66.2% 66.0% 67.1% 67.6% 66.4% 67.0% 62.3% 61.5% 61.5% 63.7% 64.9% 63.5% 64.0% 58.4% 58.9% 59.4% 60.6% 61.3% 60.3% 60.9% 50.1% 49.5% 49.7% 51.5% 52.0% 50.5% 50.9% 27.8% 27.4% 26.2% 28.5% 30.5% 30.9% 31.3% 19.7% 19.0% 17.7% 18.4% 18.7% 17.8% 18.2% 6.0% 6.1% 6.7% 6.3% 6.0% 6.2% 5.8% Q All BBC All commercial BBC network Local commercial National commercial BBC nations / local Other Source: RAJAR, All adults (15+), calendar years , Q1 2013

46 45 Figure 3.42 % change in total radio listening hours from Percentage change in total hours 10% Total listening hours ,013,899 = 100% 5% 3.2% 4.6% 1.7% 0% -0.6% -5% Source: RAJAR, All adults (15+), calendar years to Q1, 2010 to 2013

47 46 Figure 3.43 Share of listening hours, by sector Percent of listening hours 60% 55.1% 55.7% 55.3% 55.2% 54.7% 54.7% 55.7% 45.2% 46.1% 46.6% 46.3% 46.0% 46.3% 46.7% All BBC Radio BBC network 40% 42.7% 42.2% 42.3% 42.6% 43.0% 42.8% 41.9% 31.6% 31.3% 31.7% 31.5% 31.2% 30.2% 29.2% All commercial Local commercial 20% 0% 10.6% 11.1% 11.8% 12.5% 13.0% 9.9% 9.5% 11.1% 10.9% 8.7% 8.9% 8.7% 8.4% 9.0% 2.1% 2.1% 2.4% 2.2% 2.3% 2.5% 2.4% Q Source: RAJAR, All adults (15+), calendar years , Q National commercial BBC nations/local Other

48 47 Figure 3.44 Listening hours by age group, Average hours listened per week Source: RAJAR, average weekly listening per listener,

49 Figure 3.45 Percentage change in time spent listening, by age group: Percentage change in average listening hours 5.0% 0.0% 0.8% 0.4% 4.4% -5.0% -10.0% -3.1% -8.3% -4.8% -1.9% -15.0% -12.8% Source: RAJAR, all adults 15+. Calendar years 2007 and 2012

50 Figure 3.46 Percentage change in time spent listening, by sector: Percentage change in average listening hours 5.0% 0.0% -5.0% -3.1% -4.7% -4.4% -5.0% -2.4% -10.0% -8.7% -8.5% All radio All BBC BBC network BBC local/nations All commercial National commercial Local commercial Source: RAJAR, all adults 15+. Calendar years 2007 and 2012

51 30 25 Figure 3.47 Average weekly listening by demographic, year ending Q Weekly listening hours Average listening per week 22.0 hours Adult Men Adult Women ABC1 Adults C2DE Adults Source: RAJAR, all adults (15+), year ending Q1 2013, average weekly listening hours per listener

52 Figure 3.48 Share of listening hours across analogue and digital platforms 100% 80% 60% 40% 20% 17.8% 20.1% 24.0% 26.5% 29.2% 32.5% 9.5% 12.5% 9.3% 8.1% 7.7% 6.9% 72.7% 67.5% 66.7% 65.4% 63.1% 60.5% Digital Unspecified Analogue 0% 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 3.49 Digital radio listening by age group, (at least monthly) 60% Digital radio listening by age group (at least monthly) 40% Q % 58% 58% 59% 59% 56% 57% 53% 54% 56% 53% 53% 50% 52% 53% 50% 42% 44% 46% 36% 30% 25% Q Q % All Source: Ofcom research, Base: All who listen to the radio, Q (n=2910), Q (n=2963), Q (n=2811) Q:Use digital radio at least monthly (includes digital listening via DTV, DAB set and online)

54 Figure 3.50 Platform split by sector and station: year ending Q Share Overall radio sector National commercial BBC network of radio listening 100% 47% 8% 13% 30% 4% 2% 1% 8% 17% 1% 13% 4% 100% 6% 5% 7% 5% 7% 6% 6% 4% 6% 6% 6% 5% 5% 80% 60% 40% 20% 0% 33% 35% 62% 59% 18% 75% 57% 38% 21% 31% 72% 32% 63% 62% 71% 25% 23% 27% 70% 67% 36% 35% 58% 60% 42% 53% Not Stated Digital Analogue Source: RAJAR, year ending Q1 2013, adults 15+

55 Figure 3.51 Most popular digital-only stations - UK, Q Average weekly reach Q (millions) % +7% % % 1.1-3% +1% +6% -15% +7% % change year on year 0% +3% Radio group Bauer BBC Independent Absolute R&SL +8% +24% +5% -2% % 0.2 Source: RAJAR, year ending Q adults 15+

56 55 Figure 3.52 Share of listening hours, by nation Listening hours share 100% 2% 2% 1% 10% 3% 30% 25% 80% 38% 30% 36% 12% 60% 13% 13% 10% 8% 15% 8% 8% 40% 9% 22% 20% 47% 51% 46% 38% 24% 0% England Scotland Wales Northern Ireland UK TOTAL Other Local/Nations Commercial UK Commercial BBC Local/Nations BBC Network Average weekly listening Reach 22.2 hours 89.6% 21.6 hours 86.7% Source: RAJAR, All adults (15+), calendar year hours 93.1% 21.4hours 87.1% 22.2 hours 89.5%

57 Figure 3.53 Location of listening year to Q % 21% 64% Home In-vehicle Work/elsewhere Source: RAJAR, year ending Q all adults 15+

58 Figure 3.54 Number of analogue and digital radio sets sold Digital share of sales: 18.5% 20.1% 22.5% 20.9% 22.3% 27.4% 33.0% Retail set sales (millions) Analogue sets DAB sets Year to Q 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 3.55 Awareness of digital radio Have you heard of the term DAB digital radio? No 14% Don't know 2% Yes 84% Source: Ofcom research 2013

60 59 Figure 3.56 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% 64% 19% 17% 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=1798) QP12: How likely is it that your household will get a DAB radio in the next 12 months?

61 60 Figure 3.57 Unique audiences of selected music streaming sites Unique audience (thousands) 5,000 4,000 3,000 2,000 1,000 0 Jun-2010 Dec-2010 Jun-2011 Dec-2011 Jun-2012 Dec-2012 Spotify [P] SOUNDCLOUD.COM [P] Last.fm Ltd [C] Myspace Music [M] Grooveshark [P] MIXCLOUD.COM [M] TuneIn [P] DATPIFF.COM [M] JANGO.COM [C] Rhapsody [P] Source: comscore MMX, UK, home and work panel, March 2013

62 61 Figure 3.58 Number of subscriptions to online music services: Number of subscriptions (thousands) 2,000 1,500 1,529 1, On-demand music Book-club Online radio 713 Source: IHS Screen Digest

63 62 Figure 3.59 Audio internet use % of respondents 20% 16% 16% 12% 8% 8% 4% 0% Listening to radio Streamed audio services (free) Streamed audio services (subscription based) 3% Source: Ofcom research, Q Base: Those with access to the internet at home (n= 2918) QE5A. Which, if any, of these do you use the internet for?

64 63 Figure 3.60 BBC iplayer quarterly radio requests Radio requests (millions) On-demand Simulcast Q 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.

65 64 Figure 3.61 MP3 player/ipod ownership and personal use % of respondents 50% Personal use Ownership 40% 38% 39% 33% 36% 40% 30% 20% 26% 27% 22% 26% 24% 10% 0% UK England Scotland Wales Northern Ireland Source: Ofcom research, Quarter Base: All adults aged 16+ (n = 3750 UK, 2250 England, 501 Scotland, 492 Wales, 507 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?