DRAFT ICMR 2012: Radio and Audio Steven Cape
1 Fig. 4.1 Key radio market indicators: 2011 UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL BRA RUS IND CHN Total industry revenue ( bn) Revenue change (%, YOY) Revenues per capita ( ) % income from public licence fee 1.2 1.5 2.9 0.5 11.5 1.2 2.8 0.6 0.5 0.3 0.3 0.1 0.2 0.4 0.2 0.2 1.0 +3.5 +1.2-0.5-3 +1.0 +6.8-0.2 +1.3-3.8 +0.9 +1.5-7.7-4.7 +12.2 +11.7 +24.7 +10.0 18.5 22.4 36.5 8.2 36.6 33.8 22.1 29.6 9.8 16.8 38.3 25.6 4.3 2.2 1.7 0.2 0.7 60.8 55.5 79.4 18.2 n/a n/a 65.3 n/a n/a 28.9 80.7 25.9 30.8 n/a n/a n/a n/a 2011. Note that the UK radio industry figure is sourced from broadcaster returns made to Ofcom
2 Fig. 4.2 Total radio industry revenues for the 17 comparator countries: 2007-2011 Revenue ( bn) 30bn 27.1bn 26.3bn 1.3bn 23.8bn 25.0bn 25.4bn 25bn 1.5bn 1.6bn 1.8bn 6.0bn 6.0bn 1.5bn 20bn 6.2bn 6.2bn 6.3bn 15bn 10bn 5bn 0bn 19.9bn 18.8bn 16.1bn 17.1bn 17.3bn 2007 2008 2009 2010 2011 Satellite radio subscription Public radio licence fees Commercial revenue
3 Fig. 4.3 Changes in radio revenue by country between 2010 and 2011 Change in revenue ( m) 25,600 73m 25,200 47m 24,990m - 18m - 24m 26m 36m 39m 24,800 89m 109m 25,366m 24,400 24,000 2010 revenue ESP Others RUS IND UK BRA CAN CHI USA 2011 revenue
4 Fig. 4.4 Absolute increases in advertising revenue, by country: 2010-2011 100m Change in revenue ( m) (%age change above bars) 10.0% 75m 50m 25m 0m 5.3% 12.2% 88.5m 24.7% 11.7% 4.1% 51.1m 46.8m 35.5m 1.4% 1.9% 1.3% 0.9% 2.9% 5.1% 18.0m 25.6m 9.4m 11.2m 8.1m 1.9m 1.9m 5.6m UK FRA GER CAN AUS NED SWE POL BRA RUS IND CHN
5 Fig. 4.5 The most substantial changes in radio revenue, by component: 2010-2011 Advertising Licence Fee Subscriptions Year on year growth (%) UK USA CAN BRA RUS IND CHN - 3.7m 18.0m 21.0m 51.1m 46.8m 25.6m 35.5m 88.5m 112.9m 21.8m 3.5% 1.0% 6.7% 12.2% 11.7% 24.7% 10.0% - 20m 0m 20m 40m 60m 80m 100m 120m
6 Fig. 4.6 UK FRA GER ITA JPN NED SWE IRL POL Changes in radio revenue among comparator countries with licence fees, by component: 2010-2011 - 37m - 26m - 2m - 1m Advertising 2m 2m - 9m - 14m 9m 2m 2m 6m Licence fees 1m 3m - 40m - 20m 0m 20m 40m 18m 8m 31m 21m Year on year total change (%) 3.5 1.2-0.5-3.4-0.2 0.9 1.5-7.7-4.7
Fig. 4.7 Ownership and use of analogue and digital radio sets UK FRA GER ITA USA JPN AUS ESP CHN 100% 50% 0% 50% 0% 63 65 76 73 66 76 56 71 44 31 8 8 16 9 4 Any radio Digital radio 36 9 8 9 11 11 14 4 8 13 6 3 6 5 1 Internet / WiFi radio Satellite radio 12 2 13 5 26 14 Source: Ofcom consumer research, September 2012 Base: All respondents, UK=1065, France=1016, Germany=1024, Italy=1015, USA=1010, Japan=1004, Spain=1001, Australia=1007, China=1010 Q: Which of the following services / devices do you own and personally use? Note: Radio audience measurement data for the UK from RAJAR shows that 90.8% of the UK population listened to radio in an average week in 2011. The low claimed ownership of any radio sets among UK respondents to our survey does not take account of radios in cars and other devices which are capable of receiving radio where this is not the device s primary function. 7
8 Fig. 4.8 DAB/DAB+/DMB digital radio coverage UK FRA GER ITA USA JPN AUS ESP CHN Digital radio coverage 94% Note 1 47% 60% Note 2 Note 3 60% 20% 2% Source: World DMB, Global Digital Broadcasting Update, September 2012 Note 1 Trials of four regional digital radio multiplexes are taking place in France. Since April 2011 two multiplexes have been operational in Lyon, covering 85% of the population in this area, and trial services are also on air in Paris, Marseille and Nantes. Note 2 Digital radio services are broadcast on the same wavelength as FM services in the US using the IBOC standard, where it is known as HD Radio. This type of digital radio uses a different technology to that in the UK. Ibiquity, the company who have developed and licensed HD radio, state that 2,055 stations across the US are broadcasting 3,458 services on HD radio. Note 3 Digital television and radio services in Japan are broadcast on the ISDB standard, which allows multiple devices to receive signals from the same transmission. Analogue TV broadcasting was switched off in July 2011 and nationwide deployment of digital radio broadcasting will follow.
9 Fig. 4.9 Global industry revenues: 2007-2011 Revenue ( bn) 35bn 30bn 30.9bn 30.2bn 27.6bn 29.0bn 29.5bn 25bn 22.3bn 21.3bn 20bn 18.5bn 19.7bn 20.0bn 15bn 10bn 7.3bn 7.4bn 7.6bn 7.7bn 7.7bn 5bn 1.3bn 1.5bn 1.5bn 1.6bn 1.8bn 0bn 2007 2008 2009 2010 2011 Total Commercial revenue Public radio licence fees Satellite radio subscription
10 Fig. 4.10 Radio industry revenues: 2011 Year on year change: 39m 17m - 14m - 17m 109m 73m - 7m 8m - 18m 2m 5m - 10m - 8m 47m 26m 36m 89m 3.5% 1.2% -0.5% -3.4% 1.0% 6.7% -0.2% 1.3% -3.8% 0.9% 1.5% -7.7% -4.7% 12.2% 11.7% 24.7% 10.0% 3bn 3.0bn 11.5bn 2.8bn 2bn 1bn 0bn 1.5bn 1.2bn 0.5bn 1.2bn 0.6bn 0.5bn 0.3bn 0.3bn 0.1bn 0.2bn 0.4bn 0.2bn 0.2bn 1.0bn UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL BRA RUS IND CHN
11 Fig. 4.11-10% Radio industry average annual growth: 2010-2011 Annual growth 25% 20% 15% 10% 5% 0% -5% 3.5% 1.2% -0.5% -3.4% 1.0% 6.7% -0.2% 1.3% -3.8% -0.2% 1.5% -7.7% -4.7% 12.2% 11.7% 24.7% UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL BRA RUS IND CHN 10.0%
12 Fig. 4.12 Proportion of radio revenue, by source Proportion of total revenue 100% 80% 18.2% 14.2% 12.8% 28.9% 25.9% 30.8% 60% 40% 60.8% 55.5% 79.4% 81.8% 85.8% 87.2% 65.3% 100% 100% 71.1% 80.7% 74.1% 69.2% 100% 100% 100% 100% 20% 0% 39.2% 44.5% 34.7% 20.6% 19.3% UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL BRA RUS IND CHN Radio advertising Public radio licence fees Satellite radio subscription
Fig. 4.13 Radio industry revenues, per head of population: 2011 per head (totals above bars) 40 30 20 10 0 18.5 22.4 36.5 29.0 11.2 12.4 8.2 7.3 10.0 1.5 7.5 6.7 Advertising Licence fees Satellite radio subscriptions 36.6 33.8 5.2 4.3 31.4 29.5 22.1 14.4 29.6 9.8 4.9 7.7 29.6 38.3 25.6 30.9 6.6 16.8 9.8 12.0 7.4 19.0 4.3 1.3 3.0 2.2 1.7 0.2 0.7 UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL BRA RUS IND CHN Population data from US Census Bureau (end of year estimates from mid-year values). 13
14 Fig. 4.14 Proportion of adults who claim regularly to consume audio content UK FRA GER ITA USA JPN AUS ESP CHN 100% 69 78 79 76 74 69 76 50% 37 44 36 45 49 49 31 32 33 34 30 33 28 22 29 21 10 25 32 18 0% Listen to the radio Listen to music on a portable media player Listen to music on a hi-fi Source: Ofcom consumer research, September 2012 Base: All respondents, UK=1065, France=1016, Germany=1024, Italy=1015, USA=1010, Japan=1004, Spain=1001, Australia=1007, China=1010 Q: Which of the following do you regularly do (at least once a week)?
15 Fig. 4.15 Use of home internet connection to consume audio content 60% 50% 40% 30% 20% 10% 0% Listen to/download audio content Listen to the radio online 51 45 37 33 33 33 28 30 24 26 26 27 27 25 23 17 22 13 UK FRA GER ITA USA JPN AUS ESP CHN Source: Ofcom consumer research, September 2012 Base: All respondents, UK=1065, France=1016, Germany=1024, Italy=1015, USA=1010, Japan=1004, Spain=1001, Australia=1007, China=1010 Q: Which, if any, of the following activities do you use your home internet connection for?
16 Fig. 4.16 Use of a smartphone / mobile phone to consume audio content 60% 50% 40% 30% 20% 10% 0% 28 Listening to music using MP3 function Listening to FM radio Listening to podcasts 53 15 32 30 28 21 23 23 22 21 16 14 11 13 11 12 4 3 3 5 8 5 3 2 5 5 UK FRA GER ITA USA JPN AUS ESP CHN Source: Ofcom consumer research, September 2012 Base: All respondents with a smartphone/mobile phone, UK=960, France=893, Germany=937, Italy=932, USA=831, Japan=879, Spain=923, Australia=895, China=961 Q: Which, if any, of the following activities do you use your smartphone / mobile phone for?
Fig. 4.17 Proportion of adults using radio as a source of news, by country News about the world News about your country News about your region/locality UK FRA GER ITA USA JPN AUS ESP CHN UK FRA GER ITA USA JPN AUS ESP CHN UK FRA GER ITA USA JPN AUS ESP CHN 0% 0% 1% 1% 1% 2% 2% 2% 2% 2% 3% 3% 3% 3% 3% 0% 2% 4% 6% 8% 10% Source: Ofcom consumer research, September 2012 Base: All respondents, UK=1065, France=1016, Germany=1024, Italy=1015, USA=1010, Japan=1004, Spain=1001, Australia=1007, China=1010 Q: Which, if any, is your main source for the following information? 4% 4% 5% 5% 5% 6% 6% 6% 6% 7% 7% 10% 17