public service broadcasting in the uk...and in scotland, this trend is becoming more pronounced...

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM

Public Service Broadcasting in the UK

PROMOTING CHOICE • SECURING STANDARDS • PREVENTING HARM 2

How has the TV landscape changed since 2014?


Time spent watching broadcast TV is still large, but falling and centred around older people

Average minutes of viewing per day across the UK

346349

336 333

298277

245

216221

192199

156169

122139

85

118

77

2014 2015 2016 2017 2018

75+

65-74

55-64

45-54

All individuals (4+)

35-44

25-34

16-24

Children (4-15)

Source: BARB. All individuals (4+), network.


However in Northern Ireland, the downward trend is evident across all age groups

Average minutes of viewing per day (Northern Ireland)

Source: BARB. BBC areas all individuals (4+).

327

304291

244227

185

226

151172

125125

78

129

73

2014 2015 2016 2017 2018

55+

45-54


35-44

25-34

16-24

All children 4-15


And in Scotland, this trend is becoming more pronounced

Average minutes of viewing per day (Scotland)


354

336

278

255240

213220

164166

137134

89110

72

2014 2015 2016 2017 2018

55+

45-54


35-44

25-34

16-24

All children 4-15


This downward trend is evident in Wales also

Average daily minutes spent viewing (Wales)


366350

261

223

251

213

235

163186

139131

81

151

75

2014 2015 2016 2017 2018

55+

45-54


35-44

25-34

All children 4-15

16-24


However, despite the decline in broadcast TV, watching video as a whole is not shrinking

Source: Ofcom total AV modelling using BARB, TouchPoints and Comscore data

Young adults watch a similar amount of video, but broadcast TV is less than half of viewing


But there are big differences between the 16-24s and the 25-34s

93

69

28

14

11

9

57

47

13

11

58

73

5

4

22

27

Adults 25-34

Adults 16-24

Live TV Recorded playback BVOD SVOD Other video on TV set

YouTube (not TV set) Other video (not TV set) DVD Games console

Total: 4 hrs 48 mins

Total: 4 hrs 15 mins



Over 2018, YouTube and online subscription video were the key beneficiaries of falling broadcast viewing

4h50m

4h54m

Change in average minutes per day 2017-2018– all individuals, all devices



Online growth is also presenting a threat to PSB revenue

£6.1bn £6.2bn £6.2bn £6.1bn£5.7bn

£5.5bn

£0.7bn£1.0bn

£1.3bn£1.7bn

£2.2bn£2.6bn

2013 2014 2015 2016 2017 2018

Publicly funded channels

Commercial PSB portfoliochannels

Commercial PSB channels

Online video

Source: Ofcom/broadcasters, Ampere Analysis

Broadcast TV revenue (£bn)


3.83m

5.43m

7.24m

8.92m

11.16m

13.33m

2.79m

4.37m

5.94m

6.89m

9.11m

11.47m

1.22m 1.15m1.65m

3.64m

4.83m

5.96m

0.24m 0.52m 0.85m1.08m

1.46m 1.62m

0.09m 0.12m 0.09m

Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Q1 2019

Any SVoD

Netflix

Amazon Prime Video

NOW TV

DisneyLife

This year began with almost half of households having an SVoD service

Source: BARB Establishment Survey Q1 2014-2019.

Number of households that subscribe to SVoD


TV spend and production trends


£889m £855m

£343m £308m

£828m £802m

£582m £547m

£224m £211m

£360m £331m

£1,221m£1,217m

£3,045m £3,262m

£7,685m £7,695m

2016 2018

Sports channels

Other multichannels

Commercial PSB portfolio channels

BBC portfolio channels

Channel 5

Channel 4

ITV ITV/Breakfast

BBC Two

BBC One

39%42%

PSBs continue to be significant contributors to broadcast content spend for UK audiences

Total TV content spend (including acquired content) [£m]

Source: Ofcom/broadcasters


However, total first-run network spend by PSBs is showing signs of decline

815 762 852 748 815

302 308 319

299 285

819 828 788

745 755

399 427 463

450 440

107 119 136

136 143

226 205 175

140 147

2,670 2,647 2,735

2,524 2,594

2014 2015 2016* 2017 2018

PSB Onlineoriginations

BBC Portfolio

Channel 5

Channel 4

ITV

BBC Two

BBC One

PSB spend on first-run UK originations (£m)

Source: Ofcom/broadcasters*Closure of BBC Three linear channel


The share of PSB network spend outside London is less than 50%

22.5 20.3 21.5 20.2 20.7

13.314

7.8 9.7 10.1

5.24.3

5.7 5.6 5.1

3.23.5

3.2 3.4 3.4

1.20.9

1.5 1.2 1.7

1.61.1

1.9 1.5 1.4

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2014 2015 2016 2017 2018

Other

Midlands & East

Northern Ireland

Wales

Scotland

Southern England

Northern England

Proportion of qualifying spend by macro-region (%)


50%


BBC drama production has driven increased network spend in Northern Ireland

1.2

0.9

1.5

1.2

1.7

0.80.9

10.9

1.2

2014 2015 2016 2017 2018

Spend

Hours

Proportion of qualifying spend and hours (%)



The proportion of PSB network spend is highest in Scotland

5.24.3

5.7 5.65.1

7.5 7.2

8.6 8.57.9

2014 2015 2016 2017 2018

Spend

Hours




Long-running series have maintained the proportion of network spend in Wales

3.23.5

3.2 3.4 3.4

1.8

2.7 2.5 2.42.7

2014 2015 2016 2017 2018

Spend

Hours




PSBs account for most of the commissions in the nations

Northern Ireland Scotland Wales

Spending PSB network - £26m Other - £39m

PSB network - £123m Other - £100m

PSB network - £76m Other - £98m

Key genres Factual entertainment (42%), General factual (20%), Drama (13%)

Sport (31%), Entertainment (27%), General Factual (20%)

Factual entertainment (34%), General factual (25%), Drama (18%)

No. of producers 6 20 13

Source: O&O, Regionality trends within the UK production sector, September 2018


PSB spend across genres continues to be diverse

12% 12% 12% 13% 13%

19% 21% 22% 23% 21%

22% 18% 20% 14% 19%

4% 4%4%

4%4%

16% 16% 15%17% 16%

9% 10% 9% 10% 10%

3% 3% 3% 3% 3%

11% 12% 12% 12% 10%

3% 3% 3% 4% 4%

2014 2015 2016 2017 2018

Other

Drama

Children's

Soaps

Entertainment

Comedy

Sports

Factual

News & Current Affairs

PSB network spend on first-run originations (£000s)



Drama remains the most expensive programming for PSBs

£18 £18

£95 £94

£764 £771

£352 £353

£178 £189 £176 £167

2016 2018 2016 2018 2016 2018 2016 2018 2016 2018 2016 2018

News & Current Affairs Factual Drama Soaps Entertainment Sports

Average PSB network spend per hour on first run UK-originated content, by selected genre (£k)


25%

14%

14%

29%

37%

54%

56%

5%

9%

4%

11%

12%

11%

16%

15%

17%

14%

1% 37% 16%

NOW TV

Amazon Prime

Netflix

Five main PSBs

Factual Drama Entertainment Comedy Children's News & Current Affairs Other

High spend levels by international SVoD players have resulted in more drama-centric offerings than PSBs

PSB first-run UK originated hours vs SVoD hours

SVoD 623

hours*

PSB

channels

32,188

hours

But PSBs outstrip them in terms of volume of first-run UK originations

Source: Ofcom/broadcasters, Ampere Analysis (Dec 2018)

*Netflix, Amazon and Sky Originals where primary production country is the UK


So what do people think about PSB?


The majority of audiences highlighted that PSB programmes continue to inform their understanding of the world

59%

62%

60%

56%

58%

47%

49%

57%

55%

News programmes are trustworthy

Helps me understand what's going on in world

Regional news programmes provide good qualitynews

Interesting programmes abouthistory/science/arts

High-quality soaps/dramas made in UK

Portrays my region/nation fairly to rest of UK

It shows high-quality comedy made in the UK

Shows different kinds of cultures within UK

It shows different parts of the UK, includingEngland, Northern Ireland, Scotland, Wales

Purpose 1 - Informing our understanding of the world

Purpose 2 - Stimulating knowledge and learning

Purpose 3 - Reflecting UK cultural identity

Purpose 4 - Representing diversity and alternative viewpoints

Delivery of PSB purposes: 2018 (7-10 ratings)

Source: Ofcom PSB Tracker 2018


Although among 16-24s who watch PSB channels, this falls to just over half

54%

52%

53%

43%

55%

44%

47%

53%

52%

News programmes are trustworthy

Helps me understand what's going on in world

Regional news programmes provide good qualitynews

Interesting programmes abouthistory/science/arts

High-quality soaps/dramas made in UK

Portrays my region/nation fairly to rest of UK

It shows high-quality comedy made in the UK

Shows different kinds of cultures within UK

It shows different parts of the UK, includingEngland, Northern Ireland, Scotland, Wales

Purpose 1 - Informing our understanding of the world

Purpose 2 - Stimulating knowledge and learning

Purpose 3 - Reflecting UK cultural identity

Purpose 4 - Representing diversity and alternative viewpoints

Delivery of PSB purposes: 2018 (7-10 ratings)



Six in ten adults in Northern Ireland use UTV or BBC One for news

Source: Ofcom News Consumption survey 2019

59%

58%

24%

16%

16%

8%

8%

13%

12%

8%

7%

25%

21%

15%

35%

13%

11%

6%

10%

8%

UTVBBC One

FacebookBBC Radio…Sky News…

Cool FMBBC News…Channel 4

BBC Radio 1Daily…

TwitterBelfast…

WhatsAppBBC…

Channel 5Google…

Daily/Sunda…RTE…

The Sun/on…Instagram

2018

63%

52%

35%

22%

21%

18%

11%

12%

12%

11%

11%

13%

9%

15%

5%

10%

5%

8%

11%

6%

TV Channel

Newspaper (print or website/app)

Radio station

Social media

Website/app

54%

51%

19%

16%

14%

10%

8%

12%

9%

9%

10%

8%

7%

34%

17%

11%

9%

7%

15%

13%

BBC One

Facebook

Twitter

BBC…

Google (search…

WhatsApp

BBC Two

Instagram

BBC Radio…

Snapchat

2018

64%

54%

33%

24%

11%

17%

14%

13%

7%

10%

7%

10%

10%

8%

6%

9%

8%

8%

4%

4%

Top 20 sources of news in general in Scotland

2018

68%

45%

35%

26%

15%

22%

8%

14%

19%

10%

2%

12%

13%

14%

5%

4%

8%

8%

7%

6%

57%

45%

28%

14%

11%

20%

15%

11%

8%

8%

15%

8%

8%

38%

11%

8%

8%

18%

13%

8%

BBC OneITV WALES

FacebookSky News Channel

Daily Mail/on…BBC website/app

The Sun/on…BBC Radio 2

BBC News ChannelGoogle (search…

South Wales EchoChannel 4

TwitterBBC Radio 4

Wales based news…Snapchat

BBC Radio 1Daily/Sunday…

Guardian/Observe…Instagram

Top 20 sources of news in general in Wales

NEWS

Top 20 sources of news in general in Northern Ireland

In Wales, BBC One remained the top news source in 2018In Scotland, BBC One remained the top news source in 2018


And audiences largely believe that regional news provision is of high quality

% Delivery rating %: 2018 (7-10 ratings)

65%

73%

60%

BBC One

STV

All channels combined

Scotland

70%

66%

60%

BBC One

ITV


England

70%

67%

60%

BBC One

ITV/STV/ITVWales/UTV


UK

64%

63%

57%

BBC One

ITV Wales


Wales

75%

80%

65%

BBC One

UTV


Northern Ireland


public service broadcasting in the uk...and in scotland, this trend is becoming more pronounced...

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