2
About
this document
This is Ofcom’s first annual Media Nations report. The report reviews key trends in the television and
audiovisual sector as well as the radio and audio sector. Accompanying it is a data report which
provides interactive access to an extensive range of data. In these reports we provide data and
analysis on traditional broadcast television and radio services, and look at the take-up and impact of
subscription on-demand and streaming services.
The Media Nations report is a reference publication for industry, stakeholders, academics and
consumers. It provides context to the work Ofcom undertakes in looking after the interests of people
in the markets we regulate.
In addition to the UK-wide report and the interactive report, there are separate reports for Northern
Ireland, Scotland and Wales.Contents
Aboutthis document .... 2
Executivesummary ....... 4
Introduction ....... 9
TV servicesand devices ........... 11
TV and AV consumption ........... 20
TV and AV revenues ..... 33
TV and AV output and spend ... 39
Satisfaction with and perceptions of TV ........... 52
The local TV sector ....... 61
The UK radio landscape ........... 66
Consumption and use of radio and audio services ....... 70
Radio revenues79Executive
summary
Take-up of superfast broadband and connected televisions is
changing how people watch television programmes
Across all devices, people’s total TV and audiovisual daily viewing in 2017 was 5 hours 1
minute. Broadcast TV made up 71% of this; the remaining 29% was non-broadcast content
such as YouTube and subscription on-demand services such as Netflix and Amazon Prime
Video.
Viewing of broadcast television on the TV set fell by nine minutes (4.2%) in 2017 to an
average 3 hours 22 minutes per day. This means there has been a total decline of 38 minutes
(15.7%) since 2012.
However, time spent using the TV set overall remains constant as viewing of non-
broadcast content increases. Non-broadcast content (including subscription on-demand
services such as Netflix, and YouTube viewing) makes up 42 mins (17%) of the 4 hours 9
minutes of total TV and AV content watched per day on a TV set - enabled by superfast
broadband and an increase in use of connected televisions.
The change in viewing habits is driven by younger viewers, who watch more non-
broadcast than broadcast content. In 2017, 16-34s watched an average of 2 hours 37
minutes of non-broadcast content a day, across all devices (including 59 mins of YouTube on
PCs/phones/tablets), and 2 hrs 11 mins of broadcast content.
The profile of broadcast TV viewers continues to get older; older consumers’ broadcast
viewing on the TV set has remained steady and over-54s now contribute more than half of
all broadcast television viewing in the UK.
The rise of online video is changing the picture for the TV industry
The rapid take-up of subscription on-demand services means there are now more
subscriptions to Netflix, Amazon and NOW TV than there are to ‘traditional’ pay-TV
services. According to BARB Establishment Survey data, the number of pay-TV subscriptions
in the UK in Q1 2018 totalled 15.1 million, whereas the total number of subscriptions to
Netflix, Amazon and NOW TV was 15.4 million. However, this figure includes subscriptions to
multiple on-demand services within one household: 11.1 million households (39.3%) have at
least one of either Netflix, Amazon or NOW TV.