TV streaming services overtake pay TV for first time
19/07/2018
18 July 2018
There are now more UK subscriptions to Netflix, Amazon and NOW TV than to traditional' pay TV services
Pay TV revenues decline for first time, after a period of sustained growth
Broadcast TV remains popular, but viewing among 16 to 34-year-olds is moving online
In music, streaming revenues now outstrip physical sales
The number of UK subscriptions to television streaming services like Netflix has overtaken those to traditional pay television for the first time, marking a major shift in the UK's viewing habits.
The amount of revenue generated from pay TV has also fallen for the first time, after a period of sustained growth, new research from Ofcom finds.[1]
Spending by the BBC, ITV, Channel 4 and Channel 5, on new UK-made television programmes fell to a 20-year low.[2] At the same time, people are spending less time watching television: average daily broadcast viewing on the television set fell by nine minutes in 2017 and is down 38 minutes since 2012.
The findings are part of Ofcom's Media Nations report, a comprehensive study of major trends in the UK's television, radio and audio sectors, published today.[3]
The report highlights a competitive shift within the UK television industry, driven by the rise of the major global internet companies and the changing habits and preferences of UK audiences. With more choice for viewers than ever before, UK broadcasters are competing for viewers in an increasingly fragmented landscape.
Key findings include:
Streaming overtakes established pay TV. The total number of UK subscriptions to the three most popular online streaming services Netflix, Amazon Prime and Sky's Now TV reached 15.4 million[4] in Q1 2018, overtaking, for the first time, the number of pay TV subscriptions, at 15.1 million; and
Pay TV revenue declines for first time Following a period of sustained growth, the UK's pay TV providers saw a 2.7% decrease in total revenue last year to £6.4bn.[5] In contrast, the increasing number of streaming subscriptions[6] contributed to a 25% growth in online audio-visual revenues, to £2.3bn in 2017. Meanwhile, television advertising income fell by 7%, to £3.9bn;
PSB spending down. The BBC, ITV Channel 4 and Channel 5's £2.5bn combined network spending on original UK-made programmes in 2017 represents a record low and is £1bn (28%) less than the 2004 peak of £3.4bn. An increase in funding from third parties towards the cost of programme-making (from £147m in 2008 to £338m in 2017 across the BBC, Channel 4 and Channel 5) has partly helped to mitigate this decline.[7]
Broadcast TV viewing declines The amount of time spent watching broadcast television on the TV set has continued to decline and, in 2017, stood at an average of 3 hours 22 minutes a day, down nine minutes (4.2%) on 2016, and 38 minutes (15.7%) since 2012. Among children and viewers aged 16 to 34, declines were steeper, leading to the over-65s watching four times as much broadcast television as children in 2017.[8]
As viewing habits shift online. Total daily viewing time across all devices stands at 5 hours one minute, of which two-thirds (three hours 33 minutes or 71%) was to broadcast content, and 1 hour 28 minutes to non-broadcast content. However, among 16 to 34-year-olds, total daily viewing time in 2017 was 4 hours 48 minutes, of which less than half (two hours 11 minutes or 46%) was to broadcast content, while just under an hour per day was spent watching content on YouTube.
Sharon White, Ofcom's Chief Executive, said: Today's research finds that what we watch and how we watch it are changing rapidly, which has profound implications for UK television.
We have seen a decline in revenues for pay TV, a fall in spending on new programmes by our public service broadcasters, and the growth of global video streaming giants. These challenges cannot be underestimated.
But UK broadcasters have a history of adapting to change. By making the best British programmes and working together to reach people who are turning away from TV, our broadcasters can compete in the digital age.
Television and online video revenues in 2017
Average minutes of daily broadcast TV viewing on the TV set, by age
How people are watching TVThe Media Nations report also shows how increased take-up of superfast broadband and connected televisions is driving changes in how people watch TV.
Across all devices, the UK's total television and audio-visual daily viewing in 2017 reached five hours and one minute.
The majority of this daily viewing (three hours 33 minutes or 71%) was to broadcast television, with the remainder (one hour 28 minutes or 29%) to non-broadcast content, such as YouTube and subscription on-demand services, such as Netflix and Amazon Prime Video.
Younger viewers (age 16-34), however, watched more non-broadcast than broadcast content an average of 2 hours 37 minutes a day (54%) across all devices, compared with 2 hours 11 minutes (46%) respectively.
Total audiovisual viewing time spent, all individuals vs. 16-34s[9]
Risks to public service broadcasting, but satisfaction remains highViewers' confidence in public service broadcasting remains high. Of those people who watch channels from the public service broadcasters, three-quarters (75%) say they are satisfied, and 84% of people considered trusted news to be the most important feature of their output.
But the report also underlines the challenges facing the UK's public service broadcasters from changing technology, audience fragmentation and global competition.
It reinforces Ofcom's call, earlier this year, for UK broadcasters to collaborate to compete to match online competitors growing scale. That means UK broadcasters joining forces with each other, or with third parties, to share i
LINK: | https://www.ofcom.org.uk/__search/s/redirect?collection=web&url=https:... |
See more stories from ofcom |
More from OFCOM
31/03/2021
Melissa Tatton appointed to lead Corporate Group
Melissa Tatton appointed to lead Corporate Group Add to Your Pages 30 March 2021 Melissa Tatton joined Ofcom last September as Interim Corporate Group D...
24/03/2021
One in three video-sharing users find hate speech
One in three video-sharing users find hate speech Add to Your Pages 24 March 2021 Ofcom sets out guidance to help services protect against harmful onlin...
19/03/2021
Ofcom spectrum auction: principal stage results
Ofcom spectrum auction: principal stage results Add to Your Pages 17 March 2021 Principal bidding stage for spectrum auction has ended The UK's fou...
19/03/2021
Ramping up the rollout of full-fibre broadband
Ramping up the rollout of full-fibre broadband Add to Your Pages 18 March 2021 Ofcom creates conditions for networks to ramp up the rollout of full-fibr...
14/03/2021
Ofcom appoints new Chair and new member to its Advisory Committee for Scotland
Ofcom appoints new Chair and new member to its Advisory Committee for Scotland Add to Your Pages 12 March 2021 Ofcom has today announced the appointment...
11/03/2021
A joined-up approach to digital regulation
A joined-up approach to digital regulation Add to Your Pages 10 March 2021 Digital Regulation Cooperation Forum publishes its first annual plan of work ...
12/02/2021
Ofcom fines O2 10.5m for overcharging customers
Ofcom fines O2 £10.5m for overcharging customers Add to Your Pages 12 February 2021 O2 broke Ofcom's rules by failing to provide customers with accu...
04/02/2021
Ofcom revokes CGTN's licence to broadcast in the UK
Ofcom revokes CGTNs licence to broadcast in the UK Add to Your Pages 04 February 2021 London, 10:15 GMT, 4 February 2021: Ofcom has today withdrawn the ...
03/02/2021
New plans for seamless broadband switching
New plans for seamless broadband switching Add to Your Pages 03 February 2021 Proposals for a new one touch' process to cut out the hassle of broad...
17/12/2020
Gigabit broadband reaches four in ten Scottish homes
Gigabit broadband reaches four in ten Scottish homes Add to Your Pages 17 December 2020 New Ofcom figures reveal broadband and mobile coverage across Sc...
17/12/2020
Gigabit broadband reaches one in four homes
Gigabit broadband reaches one in four homes Add to Your Pages 17 December 2020 New figures reveal broadband and mobile coverage across the UK 8m homes ...
15/12/2020
Maggie Carver appointed Ofcom interim Chair from January
Maggie Carver appointed Ofcom interim Chair from January Add to Your Pages 15 December 2020 The Government has appointed Maggie Carver as Ofcom's in...
12/12/2020
BT fined for breaking Ofcom rules in Northern Ireland tender
BT fined for breaking Ofcom rules in Northern Ireland tender Add to Your Pages 11 December 2020 BT failed to meet regulatory obligations during procurem...
09/12/2020
Traditional UK broadcasting at risk without radical shakeup, Ofcom warns
Traditional UK broadcasting at risk without radical shakeup, Ofcom warns Add to Your Pages 08 December 2020 New laws and rules needed for public service...
26/11/2020
Delivering postal users' needs in a digital age
Delivering postal users' needs in a digital age Add to Your Pages 26 November 2020 Royal Mail needs to become more efficient and modernise its parce...
25/11/2020
Broadcasters must look beyond London and reach the whole UK
Broadcasters must look beyond London and reach the whole UK Add to Your Pages 25 November 2020 Ofcom calls on industry to reflect wider range of geograp...
25/11/2020
Ofcom appoints six new Content Board members
Ofcom appoints six new Content Board members Add to Your Pages 24 November 2020 Ofcom has appointed six new members to its Content Board. Ofcoms Conte...
07/11/2020
Vulnerable customers must be treated fairly
Vulnerable customers must be treated fairly Add to Your Pages 23 July 2020 Ofcom sets out how phone, broadband and pay-TV companies should treat those w...
28/10/2020
Mobile firms to be banned from selling locked' handsets
Mobile firms to be banned from selling locked' handsets Add to Your Pages 27 October 2020 New rules to help customers put off from switching becaus...
16/10/2020
Reappointment of Mairi Kidd to MG ALBA board
Reappointment of Mairi Kidd to MG ALBA board Add to Your Pages 30 April 2020 Ofcom has today announced the reappointment of Mairi Kidd to the board of M...
16/10/2020
Ofcom awards six new community radio licences (May 2020)
Ofcom awards six new community radio licences (May 2020) Add to Your Pages 12 May 2020 Ofcom has today announced the award of six new community radio li...
16/10/2020
Broadband networks stand firm during pandemic
Broadband networks stand firm during pandemic Add to Your Pages 13 May 2020 Ofcom analysis shows UK broadband speeds have withstood a surge in demand du...
16/10/2020
Jonathan Oxley to step down
Jonathan Oxley to step down Add to Your Pages 13 May 2020 Ofcom has today announced that Jonathan Oxley, Group Director for Competition and Board member...
16/10/2020
Ofcom appoints Alison Marsden as Director of Content Standards, Licensing and Enforcement
Ofcom appoints Alison Marsden as Director of Content Standards, Licensing and En...
16/10/2020
New Board appointment for Channel 4
New Board appointment for Channel 4 Add to Your Pages 29 May 2020 Ofcom has today announced the appointment of a new non-executive director to the Board...
16/10/2020
Ofcom's General Counsel Polly Weitzman to move on
Ofcoms General Counsel Polly Weitzman to move on Add to Your Pages 01 June 2020 Ofcom has today announced that Polly Weitzman, Ofcom's General Couns...
16/10/2020
UK's internet use surges to record levels
UK's internet use surges to record levels Add to Your Pages 24 June 2020 Adults spending record 4 hours a day online on average, as coronavirus chan...
16/10/2020
Royal Mail fined 1.5m for missing 2018/19 delivery target
Royal Mail fined £1.5m for missing 2018/19 delivery target Add to Your Pages 10 July 2020 91.5% of first-class post was delivered next working day in 20...
16/10/2020
Ofcom awards three new community radio licences in Northampton
Ofcom awards three new community radio licences in Northampton Add to Your Pages 22 July 2020 Ofcom has today announced the award of three new community...
16/10/2020
Broadband customers to save millions following Ofcom review
Broadband customers to save millions following Ofcom review Add to Your Pages 28 July 2020 Out-of-contract customers could save over £270m a year in tot...
16/10/2020
Ofcom confirms plans for spectrum auction early next year
Ofcom confirms plans for spectrum auction early next year Add to Your Pages 03 August 2020 January auction for important airwaves to boost mobile capaci...
16/10/2020
UK talks for longer during lockdown
UK talks for longer during lockdown Add to Your Pages 08 October 2020 Callers spent around 50% longer on their mobiles during early stages of the corona...
08/04/2020
Ofcom sets out licensing plans for small-scale DAB
Ofcom sets out licensing plans for small-scale DAB Add to Your Pages 07 April 2020 Local radio listeners will be able to tune into new digital stations ...
03/04/2020
Changing attitudes of viewers and listeners revealed
Changing attitudes of viewers and listeners revealed Add to Your Pages 03 April 2020 TV and radio programmes that are unsuitable for children, or which ...
25/03/2020
Helping broadband and mobile users stay connected
Helping broadband and mobile users stay connected Add to Your Pages 25 March 2020 As families work and learn at home, Ofcom launches practical tips to g...
25/03/2020
Ofcom awards six new community radio licences (March 2020)
Ofcom awards six new community radio licences (March 2020) Add to Your Pages 25 March 2020 Ofcom has today announced the award of six new community radi...
13/03/2020
Ofcom finalises rules for mobile airwaves auction
Ofcom finalises rules for mobile airwaves auction Add to Your Pages 13 March 2020 New airwaves will boost mobile capacity and enhance 5G services Airwa...
10/03/2020
Ofcom welcomes shared rural network' agreement to improve mobile coverage
Ofcom welcomes shared rural network' agreement to improve mobile coverage Add to Your Pages 09 March 2020 The Government has announced it has reach...
03/03/2020
Ofcom awards four new community radio licences (February 2020)
Ofcom awards four new community radio licences (February 2020) Add to Your Pages 03 March 2020 Ofcom has today announced the award of three new communit...
15/02/2020
Companies must tell customers about their best deals
Companies must tell customers about their best deals Add to Your Pages 14 February 2020 Providers must now tell you when your contract's up, and wha...
12/02/2020
Ofcom Board appoints Dame Melanie Dawes as Chief Executive
Ofcom Board appoints Dame Melanie Dawes as Chief Executive Add to Your Pages 12 February 2020 The Ofcom Board has today announced the appointment of Dam...
12/02/2020
Ofcom response to Government announcement on online harms regulation
Ofcom response to Government announcement on online harms regulation Add to Your Pages 12 February 2020 Jonathan Oxley, interim Chief Executive: We sha...
04/02/2020
Parents' rising concern over children online (Wales)
Parents rising concern over children online (Wales) Add to Your Pages 04 February 2020 Gaming and self-harm among biggest concerns Half of older childr...
04/02/2020
Parents' rising concern over children online
Parents' rising concern over children online Add to Your Pages 04 February 2020 Gaming and self-harm among biggest concerns Half of older children ...
30/01/2020
Ofcom awards four new community radio licences (January 2020)
Ofcom awards four new community radio licences (January 2020) Add to Your Pages 30 January 2020 Ofcom has today announced the award of four new communit...
21/01/2020
Ofcom response to the CMA's super-complaint update
Ofcom response to the CMA's super-complaint update Add to Your Pages 21 January 2020 Lindsey Fussell, Ofcom's Consumer Group Director, said: We...
09/01/2020
Helping customers get fair treatment and fair prices
Helping customers get fair treatment and fair prices Add to Your Pages 09 January 2020 New scorecards help customers compare phone and broadband firms ...
08/01/2020
Supercharging investment in fibre broadband
Supercharging investment in fibre broadband Add to Your Pages 08 January 2020 Ofcom sets out conditions to help bring full fibre nationwide Improving t...
20/12/2019
Latest Scottish broadband and mobile coverage revealed
Latest Scottish broadband and mobile coverage revealed Add to Your Pages 20 December 2019 Number of homes with access to superfast broadband increased b...
20/12/2019
Latest UK broadband and mobile coverage revealed
Latest UK broadband and mobile coverage revealed Add to Your Pages 20 December 2019 Full-fibre broadband now available to around three million homes So...