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Page 1: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

3. Television and audio-visual

Page 2: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

1

UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL BRA RUS IND CHN

TV revenue (£bn) 11.7 9.6 11.0 6.7 103.6 4.5 32.7 5.5 4.4 2.6 1.8 0.8 2.4 12.7 3.9 4.8 15.5

Revs change (%, YOY) 1 0 2 -10 4 2 4 2 -8 -1 4 -4 6 18 10 11 9

Revenue per cap (£) 185 145 136 108 329 130 257 249 93 152 200 169 61 63 27 4 12

from advertising 56 41 41 52 125 63 116 117 33 46 62 32 18 35 20 1 7

from subscription 86 74 47 34 203 48 97 95 25 67 96 100 42 27 7 3 4

From public funds 44 33 51 24 1 18 42 34 39 40 41 34 1 1 0 0 0

TV licence fee¹ 145 102 176 91 n/a n/a 108 n/a n/a n/a 194 130 43 n/a n/a n/a n/a

Largest TV platform

Platform

% of homes

Dsat IPTV Dsat DTT DCab DCab Dcab DTT DTT Dcab Acab Dsat DSat DSat ACab Acab Dcab

47% 32% 41% 51% 40% 58% 32% 61% 71% 53% 32% 53% 46% 38% 34% 55% 34%

TV viewing (mins/day)² 241 230 222 255 293 238 n/a 186 246 196 164 203 243 216 238 n/a 164

No.1 channel share (%) 21 23 13 18 7 9 n/a 17 14 21 24 20 15 40 14 n/a 6

DTV take-up (%) 100 97 75 100 91 94 80 93 100 85 68 96 82 64 48 37 52

Pay TV take-up (%) 54 64 64 33 87 95 66 31 24 99 95 73 80 30 69 85 59

DSO date 2012 2011 2008 2012 2009 2011 2011 2013 2010 2006 2007 2012 2013 2020 2015 2013 2015

Source: IDATE / industry data / Ofcom / Mediametrie, Eurodata TV Worldwide. Figures have been converted to GBP using IMF 2012 average exchange rates. ¹The Japanese licence fee costs £108 in terrestrial households or £191 to receive a larger number of channels via satellite.²Refers to average TV viewing per head, per day.

Figure 3.1

TV industry metrics 2012 Figure 3.1

Page 3: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

Source: Ofcom analysis based on data taken from PwC Global Entertainment and Media Outlook: 2013-2017 @ www.pwc.com/outlook. IDATE / industry data / Ofcom for US and UK revenues. Notes: Interpretation and manipulation of data are solely Ofcom’s responsibility. Ofcom has used an exchange rate of $1.580 to the GBP, representing the IMF average for 2012.

£212bn £212bn £226bn £242bn £252bn

0

50

100

150

200

250

300

2008 2009 2010 2011 2012

Revenue (£bn)

Figure 3.2

Global TV revenues

CAGR (4yr) YOY 4.4% 4.1%

Figure 3.2

Page 4: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

£98bn £104bn £108bn £121bn £127bn

£22bn £23bn £23bn £23bn £23bn

£92bn £85bn £94bn £98bn £102bn

0%

20%

40%

60%

80%

100%

2008 2009 2010 2011 2012

Advertising

Public funds

Subscriptions

£212bn £212bn

2.6%

1.1%

6.7%

CAGR (4yr) £252bn £242bn £226bn

YOY

4.6%

0.3%

4.4%

4.4% 4.1%

Prop

ortio

n of

reve

nues

Figure 3.3

Global TV industry revenues, by source

Source: Ofcom analysis based on data taken from PwC Global Entertainment and Media Outlook: 2013-2017 @ www.pwc.com/outlook. IDATE / industry data / Ofcom for US and UK revenues. Notes: Interpretation and manipulation of data are solely Ofcom’s responsibility. Ofcom has used an exchange rate of $1.580 to the GBP, representing the IMF average for 2012.

Figure 3.3

Page 5: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

100% 97%

75%

100% 91% 94%

80%

93% 100%

85%

68%

96%

82%

64%

48% 37%

52%

0% 3%

25%

0% 9% 6%

20%

7% 0%

15%

32%

4%

18%

36%

52% 63%

48%

0%

20%

40%

60%

80%

100%

UK FRA GER ITA US CAN JPN AUS ESP NED SWE IRE POL BRA RUS IND CHI

Analogue

Digital

4

Proportion of TV homes (%)

Figure 3.4

Source: IDATE / industry data / Ofcom

Take-up of digital and analogue television, 2012

+1 +1 +8 +7 +2 +6 +3 +6 0 +8 +1 +6 +13 +9 +9 +6 +10

Year-on-year change (pp)

Figure 3.4

Page 6: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

2006 2007 2008 2009 2010 2011 2012 2013 2014

NED SWE GER USA

Switchover complete

ESP

FRA

JPN CAN

IRL

UK ITA

POL

AUS IND

2015

RUS

2020

BRA CHN

Figure 3.5

Source: IDATE / industry data / Ofcom

Timeline for digital switchover, by country and date

Switchover deadline

Figure 3.5

Page 7: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

6

2

4

6

1

2

10

4

11

2

9

4

8

13

11

9

5

9

1 1

8 7

2

6

3

6

0

8

1

6

13

9 9

6

10

0%

4%

8%

12%

16%

UK FRA GER ITA US CAN JPN AUS ESP NED SWE IRE POL BRA RUS IND CHI

Perc

enta

ge p

oint

cha

nge

2011 2012

2 year change

+3 +5 +14 +8 +4 +16 +7 +17 +2 +17 +5 +14 +26 +20 +18 +11 +19

Figure 3.6

Source: IDATE / industry data / Ofcom

Percentage point change in the take-up of DTV, 2011 and 2012

Figure 3.6

Page 8: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

Figure 3.7

7

68 60

52 59

67

30

74

60

44 48

29

18

30

50

11

48

25 34

0%

20%

40%

60%

80%

UK FRA GER ITA USA JPN AUS ESP CHN

Take-up of HD TV HD TV service

Source: Ofcom consumer research September 2013 Base: All respondents, UK=1000, FRA=1007, GER=1010, ITA=1010, USA=1004, JPN=1005, AUS=1007, ESP=1020, CHN=1007. Q3a. Which of the following devices do you have in your home? Q3b. Which of the following services do you have in your home?

Household ownership of high definition TV set and HD TV services All respondents – take-up (%)

Page 9: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

Source: IDATE / industry data / Ofcom. Notes: paying and FTA HD homes.

21.3 23.1

10.0

24.6

8.7

0.7

2.2

7.7

1.1

11.4

14.0

9.5

59.5

53.5

21.3

0

10

20

30

40

50

60

70

US UK, FRA, GER, ITA JPN

DTT

IPTV

Cable

Satellite

Subs

crib

ers

(m)

Number of HD homes, by platform and country: end 2012

Figure 3.9

Figure 3.8

Page 10: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

Figure 3.9

9

41

17

28 33

38

24

35

27

21

0% 5%

10% 15% 20% 25% 30% 35% 40% 45%

UK FRA GER ITA USA JPN AUS ESP CHN

Source: Ofcom consumer research September 2013 Base: All respondents, UK=1000, FRA=1007, GER=1010, ITA=1010, USA=1004, JPN=1005, AUS=1007, ESP=1020, CHN=1007. Q3a. Which of the following devices do you have in your home?

Household ownership of DVR All respondents – take-up (%)

Page 11: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

Figure 3.10

10

17% 12%

19% 18%

12% 15%

21% 16%

39%

9% 9%

16% 15%

7% 6%

13% 10%

17%

0%

10%

20%

30%

40%

50%

UK FRA GER ITA USA JPN AUS ESP CHN

Smart TV 3D-ready TV

Source: Ofcom consumer research September 2013 Base: All respondents, UK=1000, FRA=1007, GER=1010, ITA=1010, USA=1004, JPN=1005, AUS=1007, ESP=1020, CHN=1007. Q3a. Which of the following devices do you have in your home?

Household ownership of smart and 3D-ready television sets All respondents – take-up (%)

Page 12: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

Figure 3.11

11

Source: Ofcom consumer research September 2013 Base: All respondents with a Smart TV, UK=165, FRA=117, GER=188, ITA=183, USA=123, JPN=146, AUS=209, ESP=161, CHN=393. Q.4a(i) Which of the following comes closest to your use of the internet connection on your Smart TV? I have...

Personal internet use on a Smart TV All respondents with a Smart TV

78 67 76 81

69 59 61

76 77

7 17

9 9 18

13 16

11 16 13 16 14 9 12

27 20 12 6 2 1 2 2 1 3 2 1

0%

20%

40%

60%

80%

100%

UK FRA GER ITA USA JPN AUS ESP CHN

Don't know

Not connected or used the internet connection on the smart TV Connected but never used the internet connection on the smart TV Connected and used the internet connection on the smart TV

Page 13: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

Figure 3.12

12

32 24 30

427

82 10

104

22 18 9 2 10 4 7 30 28 32

475

79 11

103

19 13 9 3 11 6 12 0

100

200

300

400

500

FRA GER ITA US CAN JPN AUS* ESP NED POL BRA RUS IND CHI

2011 2012

Source: PACT. UK Television Exports Survey 2012. *Note: AUS in this section is Australasia and includes Australia, New Zealand, the island of New Guinea and neighbouring islands in the Pacific Ocean.

UK television sales 2011 and 2012 £million -8 14 4 11 -3 10 -1 -14 -29 4 21 5 42 90 YOY

change %

Page 14: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

Figure 3.13

13

617

155

18 21 44

191 134

612

153

27 33 41

198 160

0

100

200

300

400

500

600

700

Television DVD Digital Rights Co-production Format Licensing/Misc. Productions (New

Comissions)

2011 2012

Source: PACT. UK Television Exports Survey 2012.

UK television sales by type 2011 and 2012

£million -1 -1 51 60 -5 4 20 YOY change %

Page 15: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

Source: IDATE / industry data / Ofcom. Notes: Ofcom has used an exchange rate of $1.580 to the GBP, representing the IMF average for 2012. Revenues include advertising, subscriptions and sources of public funding only. Europe includes the European countries in this analysis – UK, France, Germany, Italy, Spain, Netherlands, Sweden, Republic of Ireland and Poland. BRIC is Brazil, Russia, India and China.

Figure 3.15

TV industry revenues among comparator countries

71 77

84 87 87 91

100 104

46 48 51 51 51 55 56 55

34 35 35 35 34 36 37 38

15 17 19 22 23 28 33

37

0

10

20

30

40

50

60

70

80

90

100

110

2005 2006 2007 2008 2009 2010 2011 2012

USA

Europe / Canada

Japan / Australia

BRIC

3.3%

-0.9%

3.6%

1.6%

1.8%

4.2%

12.4% 14.2%

Total revenues (£bn) £166bn £176bn £189bn £196bn £195bn £209bn CAGR (5 yr) YOY

Growth (%)

3.7% 4.3% £226bn £234bn

Figure 3.14

Page 16: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

Figure 3.16

Fi 3 15TV industry revenues among European countries and Canada

Growth (%)£46bn £48bn £51bn £51bn £51bn £55bn £56bn £55bn

Figure 3.15

10 3 10 4 10 410.4 11.0 11.5 11.7

11

12GER2.2%

YOY CAGR (5 yr)Growth (%)£46bn £48bn £51bn £51bn £51bn £55bn

Total revenues (£bn)

1.2%

£56bn £55bn

10.2 10.3 10.4

10.3 10.210.6 10.8 11.0

9.8 9.810.3

10.4

8 6 8 4 8 69.3 9.6 9.6

8

9

10

11UK

FRA0.0%

1.4% 2.7%

2.3%

7.5 7.7

8.6 8.4 8.6

6.4 6.7 7.07.4 7.2 7.5 7.4

6.7

4 5 4.7 4.6 4 2

5.0 4.85

6

7

8 ITA

ESP

CAN

-10.3%

1.6%

-7.8%

-1.0%

-1.1%

3.5%3.8

4.5 4.24.4

3.3 3.6 3.7 3.7 4.0 4.2 4.44.5

1.9 2.0 2.1 2.2 2.3 2.5 2.6 2.6

1 6 1 8 1 8 2.0 2.2 2.41 42

3

4

5

NED

POL

-0.8%

5.7%

1.6% 3.5%

3.6%

8.3%

1.3

1.6 1.8 1.8 2.01.41.4 1.5 1.6 1.5 1.7 1.7 1.8

0.6 0.7 0.8 0.8 0.8 0.8 0.8 0.80

1

2

2005 2006 2007 2008 2009 2010 2011 2012

SWE

IRE

4.2%

-3.7% 0.3%

4.0%

Source: IDATE / industry data / Ofcom. Notes: Ofcom has used an exchange rate of $1.580 to the GBP, representing the IMF average for 2012. Revenues include advertising, subscriptions and sources of public funding only. Europe includes the European countries in this analysis – UK, France, Germany, Italy, Spain, Netherlands, Sweden, Republic of Ireland and Poland.

Page 17: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

Source: IDATE / industry data / Ofcom. Notes: Ofcom has used an exchange rate of $1.580 to the GBP, representing the IMF average for 2012. Revenues include advertising, subscriptions and sources of public funding only. BRIC is Brazil, Russia, India and China.

Figure 3.17

Total TV industry revenues among BRIC countries

6.5 7.2 7.7 8.7

9.4

11.3

14.2 15.5

4.7 5.3 6.0

7.2 8.0

9.6 10.8

12.7

2.2 2.3 2.7 3.2 3.6 4.1 4.3 4.8

1.5 2.0 2.7 2.9 2.5 3.0

3.5 3.9

0

2

4

6

8

10

12

14

16

2005 2006 2007 2008 2009 2010 2011 2012

CHI

BRA

IND

RUS

17.6%

10.4%

10.6%

9.5%

YOY CAGR (5 yr)

Growth (%) £15bn £17bn £19bn £22bn £23bn £28bn

Total revenues (£bn)

15.2%

16.1%

7.6%

12.4%

12.4% 14.2% £33bn £37bn

Figure 3.16

Page 18: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

1

Figure 3.17 TV revenues among comparator countries by source, 2007 and 2012

9.92 4.26

1.49 0.88

2.91 2.32

7.01 3.85

0.68 0.69

0.56 0.44 0.78 0.69

1.57 2.69

2.60 2.46

2.17 2.15

3.19 3.78

3.30 3.38

2.71 2.86

3.53 3.58

0.00 0.00

0.15 0.00

0.01 0.01

0.25 0.00

0.04 0.10

0.39 0.35

0.65 0.59

1.64 0.83 0.82

0.65 0.63 0.50

1.38 1.27

3.93 3.71

1.99 1.53

2.77 2.62

5.62 3.40

3.12 1.78

0.95

5.46 2.17

1.63 0.79

0.87 0.71

1.13 0.86

1.19 1.13

2.10 1.47

1.66 1.10

2.09 1.94

3.80 3.27

4.86 4.17

5.42 4.08

0 2 4 6 8 10 12 14 16 18

2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007

CH

I IN

D R

US

BR

A P

OL

IRE

SW

E N

ED

ES

P A

US

CA

N I

TA G

ER

FR

A

UK

Advertising Public funding Subs

Revenues (£bn)

14.81 15.85

39.33 35.83

5.59 5.01

12.32 9.91

63.96 48.16

0 10 20 30 40 50 60 70 80 90 100 110 120 130

2012 2007 2012 2007

JAP

US

Source: IDATE / industry data / Ofcom. Notes: Ofcom has used an exchange rate of $1.580 to the GBP, representing the IMF average for 2012. Revenues include advertising, subscriptions and sources of public funding only. Different scale used for the US and Japan due to larger size of those markets.

Page 19: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

Source: IDATE / industry data / Ofcom. Notes: Ofcom has used an exchange rate of $1.580 to the GBP, representing the IMF average for 2012. Revenues include advertising, subscriptions and sources of public funding only; figures inside the bars represent industry revenue per head by source.

£56 £41 £41

£52 £125

£63 £116 £117 £33 £46 £62

£32 £18

£35

£20

£1

£7

£86 £74 £47

£34 £203 £48

£97 £95

£25 £67 £96

£100

£42

£27

£7

£3

£4 £44 £30

£48 £22

£1 £18 £44 £37

£35 £39 £42 £37

£1 £1 £0.2

0%

20%

40%

60%

80%

100%

UK FRA GER ITA US CAN JAP AUS ESP NED SWE IRE POL BRA RUS IND CHI

Public funding

Subscription

Advertising

4

0.3 Revs per cap (£) Change YOY (£)

27

1.9

12

0.9

185

1.6

145

-0.7

136

3.2

108

-13.0

130

1.0

61

2.0

257

9.0

329

8.7

152

-1.9

93

-8.3

63

9.0

249

-8.5

169

3.3

200

7.7

Figure 3.19

TV revenue per head, by revenue source, 2012

Done

Figure 3.18

Page 20: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

Source: IDATE / industry data / Ofcom. Notes: Ofcom has used an exchange rate of $1.580 to the GBP, representing the IMF average for 2012. Revenues include advertising, subscriptions and sources of public funding only; the bars represent changes in industry revenue per head, by source.

0.60 0.15

0.81 -9.59

7.24 -2.78

-0.88 -7.09

-3.18 3.38

-2.78 -1.18

3.65 1.08

0.65

2.31 1.82 1.72

-3.44 1.38

3.58 4.77

0.36 0.20

0.86 2.07

-4.57 4.56

5.34 0.85

0.18

0.30

0.24 0.81

2.52 -1.62

0.38 2.25

0.03

-£14.00 -£12.00 -£10.00 -£8.00 -£6.00 -£4.00 -£2.00 £0.00 £2.00 £4.00 £6.00 £8.00 £10.00

UK FRA GER

ITA US

CAN JAP AUS ESP

NED SWE

IRE POL BRA

RUS IND CHI

Advertising Subscription Public funding

-£0.70 £3.20 -£12.96 £8.67 £1.04

-£8.35

£1.94 £7.70

£3.35

-£8.50

£9.03 £2.00

Change (£)

£1.61

-£9.02 £1.94 £0.33

£0.95

Figure 3.20

Changes in components of TV revenues per head: 2011 to 2012 Figure 3.19

Page 21: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

Source: IDATE / industry data / Ofcom. Notes: Ofcom has used an exchange rate of $1.580 to the GBP, representing the IMF average for 2012; Prices as of end 2012. Note: The Japanese licence fee costs £191 in terrestrial households or £200 (rounded) to receive a larger number of channels via satellite

Cos

t per

ann

um (£

)

£145 £102

£176

£91 £108

£194

£130

£43

0

50

100

150

200

UK FRA GER ITA US CAN JAP ESP NED SWE IRE POL AUS BRA RUS IND CHI

Cost of standard TV licence fee (£) Increment for DTH TV licence (£)

No

fee

No

fee

No

fee

No

fee

No

fee

No

fee

No

fee

No

fee

No

fee

Figure 3.21

£211

No

fee

Cost of a TV licence fee

Figure 3.20

Page 22: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

Source: IDATE / industry data / Ofcom. Notes: Ofcom has used an exchange rate of $1.580 to the GBP, representing the IMF average for 2012; Comparisons should be regarded as indicative only due to the possibility of differences in financial reporting between broadcasters. RTL figure includes its key European markets; Mediaset includes Italian FTA and pay TV business (year ending Dec 31) BBC represents its income allocated to TV; RAI figures include licence fee (split between radio and TV unknown), TV advertising and sponsorship; ProSieben, group revenues (years ended Dec 31); France Televisions is licence fee and advertising; TF1 includes French channels (years ended Dec 31); PBS and the ABC are total revenue to year ending June 30; Fuji TV is broadcasting and production, year ending March 31; RTVE is advertising and public funding (as of year ending Dec 31).

5.14 4.88

3.20 2.70 2.31 2.20 2.04 1.97 1.92 1.70

0.81 0.77 0.32 0

1

2

3

4

5

NHK RTL Fuji BBC FT ITV Mediaset RAI P7S1 TF1 RTVE ABC PBS

Annual revenue for latest available period (£bn)

YoY change

JPN UK UK ITA AUS FRA ITA GER FRA JPN

-4.5% 1.0% 1.0% -3.5% -13.2% 2.6% 3.8% -6.5% -2.3% 7.1%

EUR

4.0%

ESP

-16.7%

USA

6.5%

Territory

Figure 3.22

Latest reported revenues for selected free-to-view TV operators, 2012 Figure 3.21

Page 23: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

Source: IDATE / industry data / Ofcom. Notes: Ofcom has used an exchange rate of $1.580 to the GBP, representing the IMF average for 2012; where possible we have reported revenues related to the TV services only (including advertising). Comcast includes video and advertising revenues and inclusive of NBC Universal; Time Warner Cable includes video and advertising revenues; BSkyB include retail, wholesale and advertising revenues; KDG includes cable access and TV/radio revenues; Virgin Media revenues refers to both Cable TV & broadband access; Sky Italia revenue based on IDATE's estimate from News Corporation's annual report; Canal+ represents Canal Plus Group pay-TV revenues; Sogecable’s platform is Digital Plus.

Revenues (£bn)

YoY change

Territory

£27bn

£15bn

£8bn £6bn

£4bn £3bn £3bn £1bn £1bn £1bn

0 2 4 6 8

10 12 14 16 18 20 22 24 26 28 30

Comcast DirectTV Dish BSkyB Canal+ Sky Italia Virgin Media Sky Perfect PRISA (formerly

Sogecable)

Sky Deutschland

USA USA FRA UK ITA ESP UK USA GER

2.7% 6.2% 0.7% 2.1% 0.0% 3.0% -2.4% 2.8% 1.5%

Cable

Satellite

JPN

18.1%

Figure 3.23

Latest reported revenues from selected pay-TV operators, 2012

Figure 3.22

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2

333 390

316 271

133 157

404 264

498 634

102 138

383 365

718 810

285 294

122 156

166 195

294 455 100

148 406

337 18 26 22

24 22 25

0 100 200 300 400 500 600 700 800

2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012 2007 2012

UK

FRA

GER

IT

A U

S C

AN

JAP

AUS

ESP

NED

SW

E IR

E PO

L BR

A R

US

IND

C

HI

ARPU (£)

Source: IDATE / industry data / Ofcom. Notes: Ofcom has used an exchange rate of $1.580 to the GBP, representing the IMF average for 2012. ARPU is average revenue per user, representing the average revenue generated per pay TV subscriber.

Figure 3.23 Pay-TV ARPU, by country: 2007-2012

Page 25: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

24

87

48 48 8 77

166

66 70 18

126

234

157

82

33

202

345

173

100

56

299

0

100

200

300

400

UK France Germany Italy Japan

2009 2010 2011 2012

Online TV and video revenue for selected ICMR countries

Online TV video revenue (£m)

Source: IDATE / industry data / Ofcom. Notes: Ofcom has used an exchange rate of $1.580 to the GBP, representing the IMF average for 2012. Different scale used for USA due to larger size. “Online TV and video revenue” refers to either advertising revenue, subscription revenue as well as retail and rental on demand revenue derived from online services delivering TV and video content. Typically, it includes services such as catch-up TV services, Netflix, Lovefilm, Hulu and Hulu Plus, iTunes and YouTube.

1.20

2.34

3.82

5.43

0

1

2

3

4

5

6

United States

Online TV video revenue (£bn)

Figure 3.24

Page 26: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

25

Source: IDATE / industry data / Ofcom

Figure 3.25

Take-up of digital television – top nine comparator countries

40%

50%

60%

70%

80%

90%

100%

2007 2008 2009 2010 2011 2012

Prop

ortio

n of

hom

es (%

)

UK

FRA

ITA

USA

CAN

AUS

ESP

NED

IRE

100% 1% 3%

97% 3% 11%

100% 8% 14%

91% 3% 6%

94% 8% 13%

93% 9% 18%

100% 0% 15%

85% 11% 17%

96% 4% 11%

Take-up 2012 1 yr 5 yr

CAGR

Growth

Figure 3.25

Page 27: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

26

0%

20%

40%

60%

80%

100%

2007 2008 2009 2010 2011 2012

Prop

ortio

n of

hom

es (%

)

GER

JPN

SWE

POL

BRA

RUS

IND

CHI

Take-up 2012 1 yr 5 yr

CAGR

Growth

Source: IDATE / industry data / Ofcom

Figure 3.26

Take-up of digital television – the next eight comparator countries

75% 12% 20%

80% 4% 8%

68% 3% 8%

82% 20% 25%

64% 19% 35%

48% 23% 33%

37% 26% 38%

52% 23% 44%

Figure 3.26

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Page 29: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0
Page 30: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

29

Figure 3.29

Year on year changes in platform take-up (pp) by country and technical platform

Source: IDATE / industry data / Ofcom

UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRE POL BRA RUS IND CHI

Digital terrestrial 0 -4 1 8 0 -2 -2 7 1 0 -3 5 9 1 2 2 1

Digital satellite 1 0 4 1 0 0 0 -1 0 0 0 0 0 7 4 1 2

Digital cable 0 0 2 0 1 6 4 0 -1 6 2 1 3 1 1 3 6

IPTV 0 4 1 -2 1 2 2 1 -1 2 2 0 0 0 1 0 1

Total digital 1 1 8 7 2 6 3 6 0 8 1 6 13 9 9 6 10

Analogue terrestrial -1 0 0 -6 0 0 0 -6 0 0 0 -5 -9 -7 -8 -2 -5

Analogue satellite 0 0 -4 -1 0 0 0 0 0 0 0 0 0 -2 0 0 0

Analogue cable 0 -1 -4 0 -2 -6 -3 0 0 -8 -1 -1 -4 1 0 -5 -5

Total analogue -1 -1 -8 -7 -2 -6 -3 -6 0 -8 -1 -6 -13 -9 -9 -6 -10

Figure 3.29

Page 31: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

Source: IDATE / industry data / Ofcom. Notes: Only countries where IPTV take-up exceeded 5% of television homes in 2012 are shown in the chart. “IPTV households” refers to all TV households receiving only or mainly linear television channels using ADSL or optic fibre access networks. It does not include hybrid services, i.e. services combining an aerial broadcast access (either terrestrial or satellite) for linear services and a broadband access for on-demand content.

16%

20%

24%

27%

32%

2% 3%

4% 5% 3%

4% 6% 7% 8%

2% 2% 3%

5% 7%

1% 2%

4% 5% 7% 3% 4%

7%

11%

13%

8% 9% 10%

11%

14%

0%

5%

10%

15%

20%

25%

30%

35%

2007 2008 2009 2010 2011 2012

FRA

GER

USA

CAN

JPN

NED

SWE

Take-up (% of TV homes)

IPTV take-up on main TV sets in countries where take-up exceeded 5% in 2012

Figure 3.7

Figure 3.30

Page 32: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

Source: IDATE / industry data / Ofcom. Note: BT Vision is not included in IPTV figures for the UK; these figures are reported within the digital terrestrial numbers because Freeview channels are, in part, delivered through a TV aerial.

67 56

71

50

190

121

37 40 39

0

43

0

48

29

0

180

76

4 11

0 5 6 6

0

50

100

150

200

UK FRA GER ITA USA JPN

Satellite Cable IPTV DTT

205

Num

ber o

f HD

cha

nnel

s

Number of HDTV channels, end 2012

Figure 3.31

Figure 3.31

Page 33: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

Figure 3.32

32

31%

13%

22% 21%

33%

18%

24%

16% 12% 13%

9%

15% 15%

10% 9%

17%

11%

31%

8% 7%

13% 11%

5% 4%

10% 9%

13%

0%

5%

10%

15%

20%

25%

30%

35%

UK FRA GER ITA USA JPN AUS ESP CHN

DVR Smart TV 3D-ready TV

Source: Ofcom consumer research September 2013 Base: All respondents, UK=1000, FRA=1007, GER=1010, ITA=1010, USA=1004, JPN=1005, AUS=1007, ESP=1020, CHN=1007. Q4a Which of the following devices do you personally use?

Personal use of digital video recorders, smart TVs, and 3D-ready TVs All respondents – own and personally use (%)

Page 34: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

51% 64% 66%

48% 54% 54% 52% 58% 57% 44%

61% 64%

86% 88% 88%

49% 36% 34%

52% 46% 46% 48% 42% 43% 56%

39% 36%

14% 12% 12%

0%

20%

40%

60%

80%

100%

2007 2011 2012 2007 2011 2012 2007 2011 2012 2007 2011 2012 2007 2011 2012

Total UK Europe BRIC N.America

Free

Pay

33

Source: IDATE / industry data / Ofcom.Note: ‘Europe’ in this context means those European countries within our comparator set. ‘Total’ in this context means the 17 countries in this report’s comparator set.

Proportion of TV households (%)

Take-up of pay television among groups of comparator countries

Figure 3.33

Figure 3.33

Page 35: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

54% 64% 64%

33%

87% 95%

66%

31% 24%

95%

73% 80%

30%

69%

85%

59%

46% 36% 36%

67%

13% 5%

34%

69% 76%

1% 5%

27% 20%

70%

31%

15%

41%

0%

20%

40%

60%

80%

100%

UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRE POL BRA RUS IND CHI

Free TV

Pay TV

34 Source: IDATE / industry data / Ofcom

Proportion of TV households (%)

Take-up of pay and free-to-air television, end 2012

Figure 3.34

Figure 3.34

Page 36: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

3

Figure 3.35

12.2

13.2

24.5

4.8

10.8

25.9

2.0

4.0

7.1

4.3

1.1

7.8

13.9

17.9

24.2

7.9

12.1

33.8

2.6

4.1

7.2

4.5

1.0

11.0

0 10 20 30

UK

FRA

GER

ITA

CAN

JPN

AUS

ESP

NED

SWE

IRE

POL

2007

2012

Pay television take-up in 2007 and 2012, millions of homes

Source: IDATE / industry data / Ofcom

100.9

16.2

36.0

131.6

227.1

96.8

5.3

19.2

81.8

151.8

0 40 80 120 160 200 240

USA

BRA

RUS

IND

CHI

Homes (millions)

Lower than average Higher than average

5yr CAGR

3%

6%

0%

10%

2%

5%

5%

0%

0%

1%

-1%

7%

8%

10%

13%

25%

1%

Homes (millions)

Page 37: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

Figure 3.36

36

26,324

16,028

1,387 2,203

29,959

13,436

2,478 1,580 0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

NETFLIX.COM HULU NETFLIX.COM LOVEFILM.COM

US US UK UK

Aug-2012 Aug-2013

Source: comScore MMX, August 2012 to August 2013, UK and US work and home panel. Note: This is the unique audience for laptop and desktop computers only.

Total unique visitors to selected TV and film streaming sites in the US and the UK

Total Unique Visitors (000)

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241 230 222

255

293

238

186

246

196

164

203

243 216

238

164

0

50

100

150

200

250

300

UK FRA GER ITA USA CAN AUS ESP NED SWE IRL POL BRA RUS CHN

37

Daily TV viewing per head, 2011 - 2012

Source: Médiamétrie, Eurodata TV Worldwide. The figure for Canada relates to Canada National which was introduced in 2011. Previous data related to viewing in non-Quebec households. Viewing in Australia relates to 5 Metro Cities and Network for France.

37

Change in minutes of viewing per person per day, 2011 - 2012

-0.4% 1.3% -3.9% 0.8% 0.0% -0.4% -1.6% 2.9% 2.6% 1.2% -1.0% 0.4% -4.0% 8.2% 0.6%

Min

utes

per

per

son

per d

ay

2012 average 222 mins

Figure 3.36

Figure 3.37

Page 39: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

4

6 7

14 17

40 40

15 17

20 23 24

23 21

19 14 15 17 16

9 9

7 7

18 19

13 14

23 24

21 21

8 8

26 30

28 29

28 30

20 22

26 27

22 25

25 26

25 26

11 12

12 12

23 25

25 25

26 26

21 23

6 6

14 15

7 7

16 18

7 8

8 13

11 13

11 12

12 11

7 8

6 8

15 17

22 16

13 13

10 10

21 21

54 62

74 77

60 48

48 52

58 63

54 57

50 52

54 54

27 25

25 27

56 61

59 55

62 63

52 54

0 20 40 60 80

2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011

CH

N

RU

S

BR

A

PO

L IR

L S

WE

N

ED

E

SP

A

US

C

AN

U

SA

IT

A

GE

R

FRA

U

K

Top channel Second and third most popular Fourth and fifth most popular

Source: Médiamétrie, Eurodata TV Worldwide. The figure for Canada relates to Canada National which was introduced in 2011. Previous data related to viewing in non-Quebec households. Viewing in Australia relates to 5 Metro Cities and Network for France.

-0.5%

-1.6%

+4.20%

-4.3%

-1.6%

-2.5%

= 0.0%

-2.5%

-2.5%

-5.3%

-4.0%

-4.7%

-2.3%

-7.8%

-0.4%

Change in share of top

five channels 2011 - 2012

Figure 3.38 Patterns of viewing among the top five TV channels

Page 40: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

44%

33%

55%

40%

1%

12%

17%

32% 34% 36% 41%

37%

1%

41% 44%

34%

56%

40%

2%

10%

18%

29%

40% 38%

41% 35%

2%

35%

0%

20%

40%

60%

UK FRA GER ITA USA CAN AUS ESP NED SWE IRL POL BRA RUS

2011 2012

View

ing

shar

e (%

) 200

9 - 2

011

Change in viewing share between 2011 and 2012 (percentage points) 0 +1

+1

0

0

-3 +1 -4

+2 0

-2 0

-6

39

Viewing of publicly owned channels

Source: Médiamétrie, Eurodata TV Worldwide. Uses the ‘Status’ flag attributed to each channel by country which relates to state ownership. Includes public, domestic public and mixed. Domestic public refers to public channels that broadcast locally. Public refers to international public channels that broadcast in a country. Mixed refers to channels that have hybrid status (mix of public and private funding). The figure for Canada relates to Canada National which was introduced in 2011. Data prior to 2011 referred to viewing in non-Quebec households. Australia is based on 5 Metro Cities, France is based on Network.

Figure 3.38

+6

Figure 3.39

Page 41: 3. Television and audio-visual - Ofcom · TV industry revenues among European countries and Canada £46bn 48bn £51bn 51bn 55bn56bn Growth (%) Figure 3.15 10 3 10 4 10 4 10.4 11.0

40

Terrestrial versus multi-channel share

Source: Médiamétrie, Eurodata TV Worldwide. Terrestrial channels are based on MediaMetrie’s definition of channels considered to be ‘historical leaders’ . UK=BBC One, BBC Two, ITV, Channel 4, Channel 5 (inc HD variants, exc +1s) Germany = ARD1, ARD3, ZDF, RTL, Sat1, Pro7 France = TF1, France2, France3, M6, France5/Arte, Canal+ Italy= Rai Uno, Canale5, Italia 1, Rai Due, Rai Tre, Rete4, La Sette (La7)

52% 65% 65% 66%

48% 35% 35% 34%

0%

20%

40%

60%

80%

100%

UK FRA GER ITA

Multi-channel

Terrestrial

-2.8% -0.5%

-3.6%

-7.3%

Proportionate change in terrestrial share, 2012 - 2011 (%)

View

ing

shar

e (%

) 201

2 Figure 3.39

Figure 3.40