MediaNations UK2023 Published3August2023 Contents Section Overview3 TVandvideoconsumptiontrends6 Introduction:viewingtolinearbroadcastTVhascontinueditslong-termdecline6 Totalvideoviewing6 BroadcastTVviewing8 Most-watchedprogrammesandevents12 Subscriptionvideo-on-demand15 TVviewerjourneys17 Socialvideo21 Audienceattitudesandsentiments25 TVandvideoindustrytrends30 Introduction:thepost-pandemicbounce-backhasgivenwaytonewchallengesacrosstheindustry30 Industryrevenues30 Advertisingmarkettrends32 Broadcasters’outputandspend35 Onlinevideomarketdevelopments40 Radioandaudio47 Industrytrends:continuedgrowthinlocaladvertisingandsponsorshipsfuelscommercialradio ......................................................................................................................................................47 Revenuesandspend47 Availabilityanddistributionofradioservices50 Marketdevelopments52 Audiencetrends:overallreachofliveradiostayshighaslisteningcontinuestoshifttoonline55Audiolistening55 Liveradiolistening58 Musicstreaming64 Podcasts66 Smartspeakersandvoiceassistants69 In-carlistening70 Overview ThisisOfcom’ssixthannualMediaNationsreport,aresearchreportforindustry,policymakers,academicsandconsumers.ThemainobjectivesofthereportaretoreviewkeytrendsinthemediasectorandsetouthowaudiencesareservedintheUK.Weadoptacross-platformperspective,includingbroadcastTVandradio,aswellasdigitaldeliveryincludingonlinevideoandaudiostreaming. Aswithpreviouseditions,thisreportisaccompaniedbyaninteractivereportcontaininganextensiverangeofdata.WealsopublishseparatereportsforNorthernIreland,ScotlandandWalescoveringspecificthemesandissuesrelevanttothosenations. RapidchangecontinuestocharacterisetheTV,onlinevideo,radioandaudiosectors.Wefocusonevolvingconsumerbehavioursandthekeyindustrytrendsanddynamicsshapingthem,drawingonarangeofrelevantevidence. Ofcom’sMediaNationsreportaddressestherequirementtoundertakeandmakepublicourconsumerresearch(assetoutinSections14and15oftheCommunicationsAct2003).ItalsomeetstherequirementsonOfcomunderSection358oftheCommunicationsAct2003topublishanannualfactualandstatisticalreportontheTVandradiosector. Whatwehavefound–inbrief OverallviewingofTVandvideocontinuedtofallin2022,althoughbroadcastersmaintainedtheirsharedueinparttogrowthinviewingtotheiron-demandplatforms TheaverageamountoftimespentwatchingTVandvideocontentacrossalldevicesin2022was4hours28minutesperpersonperday.Weestimatethatthiswasabout12%lowerthanin2021,whentimespentwaspartlyboostedbyCovid-19restrictions. Broadcasters’platforms–linearTVchannels,TVrecordingsandtheiron-demandservices–maintainedtheir60%shareoftotalvideoviewingfrom2021to2022,whileuseofbroadcastervideo-on-demand(BVoD)servicescontinuedtogrow. Therewasaslowinginthetake-upofsubscriptionvideo-on-demand(SVoD)servicessuchasNetflixandDisney+,andthereareindicationsthatSVoDviewingdeclinedin2022(alongwithmostotherformsofviewingastotalviewingfell).Two-thirds(66%)ofUKhouseholdsreportedusinganSVoDserviceinQ12023,downfromapeakof68%inQ12022. YouTubeandFacebookremainthelargestsocialvideoplatformsintheUK,eachreaching91%ofUKinternetusersaged15+inQ12023.UseofTikTokremainshighamongusersaged15-24,atanhourperday,buttake-upamongchildrenhasslowed. BothreachandviewingofbroadcastTVfellbysignificantmarginsin2022,andthenumberofbroadcastprogrammesattractingmassaudiencesisinsteepdecline BroadcastTV’sweeklyreachfellfrom83%in2021to79%in2022,thebiggest-everannualdrop.Thelong-termdeclineinviewingofbroadcastTValsocontinued–itfellby12%yearonyearandwas16%lowerthanpre-pandemiclevels. ForthefirsttimethereisevidenceofasignificantdeclineinbroadcastTVviewingamongolderaudiences.Over-64swatched8%lessbroadcastTVin2022thanin2021andviewingwas6%lowerthanin2019(thelastpre-pandemicyear).Olderviewersareincreasinglyusingstreamingservices,withtake-upofDisney+amongonlineover-64srisingfrom7%in2022to12%in2023. Amongyoungeraudiences,broadcastTVviewingcontinuedtodeclinerapidly,fallingby21%yearonyearamongthoseaged4-34. AlthoughPSBchannelsstilldominatethelistofmost-watchedprogrammes,thenumberoftransmissionsachieving‘massaudiences’isinsteepdecline.In2014,2,490transmissionsattractedmorethanfourmillionTVviewers,butin2022therewereonly1,184–a52%drop.TransmissionsattractingmorethansixmillionTVviewersfellby82%overthesameperiod,from1,172to213. Followingastrong2021rebound,revenuesforcommercialbroadcastersfellslightlyin2022inadifficulteconomicenvironment TotalcommercialTVandonlinevideorevenueincreasedby4.5%in2022to£17.3bn,drivenbyonlinevideoservices,whosemarketshareroseto36%,comparedto15%in2017. CombinedrevenuesforthecommercialPSBs,digitalmultichannelsandpay-TVplatformoperatorsdeclinedby1.8%to£11.1bn.TherewasasmalldeclineinthecombinedrevenuesofITV,Channel4andChannel5,butat£2.3bnthiswasstillthesecond-highestannualtotalsince2017. Mixedperformancesindifferentsectorsoftheadvertisingmarketresultedinoveralladvertisingexpenditureincreasingby8.8%to£34.8bn.Thiswasprimarilydrivenbyonline,whichroseby £2.6bn(11.1%),accountingfornearlyallthetotal£2.8bnincrease.