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1、Media nations:UK 2022Published 17 August 2022 Contents Overview.1 TV and video consumption trends.4 TV industry trends and dynamics.29 Public service broadcasting.49 Radio and audio.82 Media Nations 2022 1 Overview This is Ofcoms fifth annual Media Nations report,a research report for industry,polic

2、ymakers,academics and consumers.The main objectives of the report are to review key trends in the media sector and set out how audiences are served in the UK.We adopt a cross-platform perspective,including broadcast TV and radio,as well as digital delivery including online video and audio streaming.

3、As in previous years,this report is accompanied by an interactive report containing an extensive range of data.We also publish separate reports for Northern Ireland,Scotland and Wales covering specific themes and issues relevant to those nations.Rapid change continues to characterise the TV and onli

4、ne video sectors and the radio and audio sectors.We focus on evolving consumer behaviour,and the key industry trends and dynamics shaping this,drawing on a range of relevant evidence.Another central focus of this years report is public service broadcasting(PSB).This follows the conclusion last year

5、of Ofcoms Small Screen:Big Debate review of the sector,which made recommendations to Government for new legislation,and the publication in April of the Governments Broadcasting White Paper.In our dedicated chapter on PSB,we provide data and commentary on public service broadcasters performance and s

6、trategies to continue to inform the debate about the future of the sector.Ofcoms Media Nations report addresses the requirement to undertake and make public our consumer research(as set out in Sections 14 and 15 of the Communications Act 2003).It also meets the requirements on Ofcom under Section 35

7、8 of the Communications Act 2003 to publish an annual factual and statistical report on the TV and radio sector.Media Nations 2022 2 What we have found,in brief Overall viewing of TV and video has fallen from its pandemic peak,with broadcasters losing share despite improved performance for their on-

8、demand services The average amount of time people spent watching TV and video content in 2021,across all devices,was 5 hours 16 minutes per person per day,down 25 minutes on 2020,which was more heavily influenced by Covid-19 restrictions,but up on 2019.Time spent watching TV from broadcasters across

9、 linear channels,recordings and on-demand fell by 9%compared to 2020 and 4%compared to 2019,illustrating that the long-term trend of decline in overall viewing of broadcasters content,seen over the past decade,has resumed.Broadcasters viewing share fell to 59%in 2021,down from 61%in 2020 and 67%in 2

10、019.Broadcaster video-on-demand(BVoD)bucked the trend of post-pandemic declines in viewing time,with time spent watching services such as BBC iPlayer,ITV Hub and All 4 increasing by an average of three minutes per person per day to 15 minutes,partially offsetting the declines for other forms of broa

11、dcast TV viewing.Subscription video-on-demand(SVoD)services like Netflix and Disney+were used by 67%of UK households by Q2 2022,declining from a peak of 68%in Q1.Collectively,these services have broadly retained their share of viewing after achieving a surge in take-up in 2020,accounting for 18%of t

12、otal TV viewing in 2021(19%in 2020),or an average of 58 minutes viewing per person per day.YouTube and Facebook remain the largest social video platforms in the UK,respectively reaching 92%and 95%of UK internet users aged 15+in Q1 2022.TikTok continues to grow,reaching 35%of adult internet users and

13、 66%of online 15-24-year-olds.A resurgent TV advertising market helped commercial public service broadcasters achieve their highest revenues in five years in 2021 Total audio-visual revenues increased to 19bn in 2021,up 16.9%on 2020.This significant rise reflected a return to growth for some sectors

14、 of the industry,but also a surge in online video advertising and SVoD revenue,which together accounted for 58%of the 2.7bn increase.Commercial broadcast revenues,which were adversely affected by the impact of Covid-19 in 2020,rebounded strongly in 2021,rising by 10.6%to 11.3bn,which was also 4.5%hi

15、gher than the 2019 total.Despite a 13%decline in live TV viewing in 2021,TV advertising returned to growth after six consecutive years of contraction,with revenue rising to 4.7bn in the year,boosted by the return of major live sporting events like Euro 2020.This helped the commercial public service

16、broadcasters(PSBs)ITV,Channel 4 and Channel 5 to collectively generate their highest revenues since 2016,at 2.4bn.However,an anticipated economic slowdown could restrict future growth.The SVoD market is maturing,with providers evolving their business models as they seek to maintain revenue growth A

17、combination of price rises and increases in subscriber numbers drove strong revenue growth for the SVoD sector in 2021,with the 27%year-on-year increase,to 2.7bn,almost matching the bumper 28%growth in 2020.Media Nations 2022 3 However,the number of households yet to try SVoD is becoming smaller and

18、 harder to convert,resulting in slower subscriber growth;meanwhile,the cost-of-living crisis is making customer retention more challenging.Less-established services such as Apple TV+,Discovery+and Paramount+face strong competition to be one of several services used in households that already take on

19、e or more of Netflix,Amazon Prime Video or Disney+.In anticipation of slower subscriber growth,most SVoD providers are incorporating advertising into their offerings,typically as part of lower-cost tiers,although Amazons Freevee is free to use.Streaming services with hybrid business models may becom

20、e more common,with SVoD players tiered offerings representing competition to BVoD services such as ITVs planned ITVX,a streaming revamp that will combine ITV Hub,ITV Hub+and BritBox into a single service.There is broad satisfaction with public service broadcasting among those who watch it,as PSBs ev

21、olve in a bid to arrest declining viewing In line with the long-term decline in viewing of broadcast TV,PSBs have seen both audiences and levels of viewing continue to fall.The weekly reach of PSB channels fell to 76%of all individuals in 2021,down from 80%in 2019,with less than half(47%)of 16-24-ye

22、ar-olds watching at least 15 consecutive minutes of the PSB channels in an average week.The remaining audiences are broadly satisfied with PSB,with two-thirds(67%)of those watching PSB channels in the past six months saying so,and only 12%saying that they are dissatisfied,figures that are broadly co

23、nsistent across age groups.Trusted and accurate UK news is considered by audiences to be one of the most important attributes of PSB.Following production challenges at the height of the pandemic,PSB spend on first-run UK originated content returned to growth in 2021 and reached its highest level sin

24、ce 2017,at 2.6bn.Such investment,along with that from multichannel broadcasters and international SVoD providers,looks set to continue boosting the production sector,with the number of high-end TV productions(big-budget programmes)made in the UK in 2021 reaching a historic high of 211.The ways in wh

25、ich people access and listen to radio and audio content continue to evolve,as radio broadcasters recover from the pandemic to varying degrees The proportion of audio listening time accounted for by live radio has fallen from 75%in 2017 to 63%in 2022,while the share of music streaming services such a

26、s Spotify or Apple Music has more than doubled,from 8%to 20%.About nine in ten adults listen to live radio each week,with commercial radio attracting more listeners than BBC radio.Radio sets(including both DAB and analogue)continue to be the main way to listen to the radio,accounting for 73%of liste

27、ning hours in Q1 2022,while 10%were via smart speakers,12%were via other online means and a further 5%were through digital TV.For young adults(aged 15-34),listening to online music via a streaming service accounted for the greatest amount of time spent listening to audio in Q1 2022,at 47%of weekly a

28、udio listening,representing a substantial increase from 22%in 2017.Radio revenues totalled 638m in 2021,up 20%year on year,and 4%higher than 2019,with growth driven by national adverting revenues.While advertising,sponsorship and other revenue increased across the sector as a whole,the strength and

29、nature of the recovery since 2020 has varied across stations and broadcasters,with some continuing to note difficult trading conditions.Media Nations 2022 4 TV and video consumption trends Introduction:audiences continue to shift their viewing from linear TV to on-demand Following 2020,when TV and v

30、ideo viewing habits were significantly impacted by Covid-19-related restrictions,trends in 2021 and early 2022 have pointed both to the resumption of long-term,pre-pandemic trends,and to the lasting impact of the long periods of lockdown.While most types of viewing have fallen from the unprecedented

31、 levels of 2020,people are spending an increasing proportion of their viewing time watching on-demand content,including on services provided on a subscription basis(e.g.Netflix)and free-to-view from broadcasters(e.g.BBC iPlayer)and social video platforms(e.g.YouTube).This chapter draws on data from

32、audience-measurement and ratings agencies,as well as consumer surveys,to evidence and provide commentary on continuing shifts in audiences TV and video viewing habits and preferences.Total video viewing Viewing time trends Overall viewing of TV and video has fallen from its pandemic peak The average

33、 amount of time people spent watching TV and video content across all devices in 2021 was 5 hours 16 minutes per person per day,25 minutes less than in 2020(which was more heavily influenced by Covid-19 restrictions than 2021,with longer periods of lockdown)but up on 2019.Media Nations 2022 5 Figure

34、 1:Average minutes of viewing per day,all individuals,all devices:2021 Source:Ofcom estimates of total video viewing.Modelled from BARB,Comscore and TouchPoints.Many forms of viewing decreased in 2021,but BVoD has continued to grow Viewing of SVoD services was inflated in 2020 due to people being at

35、 home more because of pandemic-related restrictions.In 2021,SVoD viewing time across all devices decreased by 6%,to 58 minutes a day on average.However,this only slightly decreased the SVoD share of all video viewing,from 19%to 18%.The average amount of time spent watching content from TV broadcaste

36、rs in 2021 across live TV,recordings,and on-demand,on all devices was 3 hours 7 minutes per person per day.This was down by 19 minutes(9%)on 2020,which had,like SVoD,experienced a pandemic-related increase.It was also lower than in 2019,showing that the long-term trend of declines in overall broadca

37、ster TV viewing,seen over the past decade,has resumed.This decline in broadcaster viewing was driven by people watching less live and recorded broadcast TV,although viewing on BVoD services did not follow this trend;it increased by an average of three minutes per person per day compared to 2020.This

38、 resulted in BVoDs share of overall viewing increasing by 2 percentage points to 8%.But this only partially compensated for the decline in other forms of broadcast TV viewing;broadcasters overall viewing share fell to 59%,down from 61%in 2020.Media Nations 2022 6 Figure 2:Change in average daily vie

39、wing minutes from annual average,all individuals,all devices:2020-2021 Source:Ofcom estimates of total video viewing.Modelled from BARB,Comscore and TouchPoints.Note:Slight changes in methodology since the publication of Media Nations 2021 have resulted in the re-calculation of figures for 2020.SVoD

40、 and YouTube together accounted for more than half of young peoples viewing Young adults aged 16-34 reduced their viewing of video content by more than half an hour a day on average between 2020 and 2021,as they spent less time under Covid-related restrictions.Most forms of video were subject to thi

41、s decline,following the trends observed for all viewers,outlined above.In fact,for 16-34s,2021 was the first year since 2017 in which their viewing on SVoD and YouTube reduced.Their SVoD viewing decreased by 11 minutes a day on average(a small reduction in share of video viewing,from 29%to 28%),perh

42、aps reflecting the limited scope for growth via new subscriptions,compared to older cohorts.Viewing of YouTube(not on a TV set)also declined slightly,by two minutes.Despite the decline in viewing minutes since 2020,SVoD and YouTube together accounted for just over half(53%)of all viewing among 16-34

43、s in 2021,as it did in 2020(51%).The main exception to the general reduction in viewing time was BVoD,viewing of which increased by an average of three minutes per day.However,this only partially mitigated the 21-minute decline in live and recorded viewing,and consequently broadcasters overall viewi

44、ng share declined from 32%in 2020 to 30%in 2021.-25-22-6-2-1123BVoD0Other videoYouTube(not TV set)DVD/Blu-RayGames consoleSVoDLive TV and recorded playback Total viewing2020:5 hours 41 minutes2021:5 hours 16 minutesTotal TV and videoMedia Nations 2022 7 Figure 3:Average minutes of viewing per day,al

45、l aged 16-34,all devices:2021 Source:Ofcom estimates of total video viewing.Modelled from BARB,Comscore and TouchPoints.Most-watched TV programmes and events Strong performances for the mens and womens England football teams attracted large audiences High-profile sporting events topped the list of m

46、ost-watched programmes on broadcast TV channels and services in 2021.The final of Euro 2020 between England and Italy had a combined audience of more than 22 million on BBC One(18 million)and ITV(4.4 million),while the semi-final between England and Denmark drew the highest audience for any single c

47、hannel,with 18.4 million tuning in on ITV.The most-watched scripted programme of the year(third overall)was the finale of BBC police drama Line of Duty,which attracted 16.5 million viewers,while Oprah Winfreys interview with the Duke and Duchess of Sussex was the fourth-most watched programme in 202

48、1(14.9 million viewers).Media Nations 2022 8 Figure 4:Top programmes by channel:2021 Rank Title Channel Date Share(%)*Average audience(millions)*1 EURO 2020 England vs Denmark ITV 07/07/2021 69.5 18.4 2 UEFA European Football Championship Final England vs Italy BBC One 11/07/2021 64.0 18.0 3 Line of

49、 Duty BBC One 02/05/2021 60.2 16.5 4 Oprah with Meghan and Harry ITV 08/03/2021 55.6 14.9 5 Prime Ministerial Statement BBC One 04/01/2021 43.1 14.3 6 Vigil BBC One 29/08/2021 43.8 12.7 7 Strictly Come Dancing BBC One 18/12/2021 55.2 12.3 8 Time BBC One 06/06/2021 46.9 11.3 9 Im a Celebrity Get Me O

50、ut of Here!ITV 21/11/2021 47.7 11.1 10 BBC News Special BBC One 04/01/2021 37.1 11.1 Source:BARB.TV and online consolidated up to 28 days and including pre-broadcast.Channels include+1 channels where applicable.*All individuals aged 4+.The final of Womens Euro 2022 between England and Germany was on

51、e of the most-watched TV programmes in the first seven months of 2022,attracting an average audience of 11.2 million on BBC Ones broadcast TV channel1 and a further 5.9 million programme requests on BBC iPlayer and the BBC Sport website and app.2 More sporting events are likely to feature in the top

52、 ten programmes for full-year 2022,with scheduled events in the second half of the year including the FIFA World Cup 2022,due to take place in November and December.The most-watched programmes in the first six months of 2022 were mainly dramas,with the genre accounting for eight of the top ten.BBC O

53、nes The Tourist was the most popular,watched by 11.4 million people.Other drama programmes high in the top ten included ITVs crime thriller Trigger Point and BBC Ones The Responder.BBC One had the most programmes in the top ten(six),while the remaining four programmes all aired on ITV.The single mos

54、t-watched event in the first half of the year was BBC Ones coverage of The Queens Platinum Jubilee,which drew 13.2 million viewers.1 BARB,viewing consolidated up to 8 August 2022.2 BBC Sport,Euro 2022:England win over Germany watched by record television audience of 17.4m,1 August 2022.Media Nations

55、 2022 9 Figure 5:Top programmes by channel:H1 2022 Rank Title Channel Date Share(%)*Average audience(millions)*1 The Queens Platinum Jubilee BBC One 04/06/2022 66 13.2 2 The Tourist BBC One 01/01/2022 42 11.4 3 Trigger Point ITV 23/01/2022 44 10.9 4 The Thief,his Wife and the Canoe ITV 17/04/2022 42

56、 10.1 5 The Responder BBC One 24/01/2022 40 9.5 6 Eurovision Song Contest BBC One 14/05/2022 51 9.4 7 Death in Paradise BBC One 07/01/2022 43 9.1 8 Britains got Talent ITV 16/04/2022 47 8.9 9 Call the Midwife BBC One 09/01/2022 34 8.7 10 Sherwood BBC One 13/06/2022 36 8.6 Source:BARB.TV and online c

57、onsolidated up to 28 days and including pre-broadcast.Channels include+1 channels where applicable.*All individuals aged 4+.SVoD audiences are drawn to UK-produced titles,the most-popular of which are on Netflix Viewing habits on SVoD services suggest a strong appetite for new and original UK-produc

58、ed programming.The top nine most-watched titles on Netflix were all commissioned by,or exclusively available on,the SVoD service,and half of the top ten were produced in the UK.These included the series Stay Close,After Life and Bridgerton,and the documentary The Tinder Swindler.In addition,an incre

59、asing proportion of time on UK Netflix is being spent watching originals and exclusives3 in Q1 2022,an average UK account streamed 45 minutes of content first available on Netflix per day,an increase of nine minutes compared to Q1 2021(36 minutes).4 The second season of Bridgerton saw even more bing

60、e-watching behaviour than the first.At its release on 25 March 2022,876,000 UK Netflix accounts binged all eight episodes on the shows opening weekend,570,000 more than for season ones opening weekend(306,000).By the end of May 2022,6.9 million households had watched the second season in full,giving

61、 it the fourth highest UK reach of any title on Netflix in the first five months of the year.Mini-series Stay Close achieved similar levels of viewing and bingeing,reaching 6.9 million households in Q1 2022,with 835,000 UK Netflix accounts watching all eight episodes in the shows opening weekend and

62、 2.1 million bingeing on it across the opening week.More recently,the first seven episodes of season four of Stranger Things,released on 27 May 2022,were binged by 1.2 million UK households in its opening weekend(Friday to Sunday),with 2.2 3 Originals are programmes produced or commissioned by an SV

63、oD provider for their service;exclusives are programmes licensed on an exclusive basis(having not been produced or commissioned specifically for the service).4 Digital-i UK.Netflix UK account holders aged 18-64.Based on at least two minutes viewing of content.Media Nations 2022 10 million UK househo

64、lds watching them within five days of release.By the end of June 2022,the new season had been watched on almost half(49%)of UK Netflix accounts,or 7.6 million accounts.5 Figure 6:Top ten titles on Netflix,by reach to UK Netflix households:Q1 2022 Rank Title Type Country of origin Netflix account rea

65、ch(million)UK Netflix household reach Total streams(million)1 Stay Close Series 1 UK 6.9 46%61.9 2 The Tinder Swindler Movie UK 6.6 44%8.8 3 The Adam Project Movie USA 6.1 40%7.9 4 Inventing Anna Series 1 USA 5.3 36%41.4 5 After Life Series 3 UK 5.1 34%42.0 6 The Woman in the House Series 1 USA 4.6

66、31%33.1 7 Pieces of Her Series 1 USA 4.1 27%26.0 8 Dont Look Up Movie USA 4.1 27%6.4 9 Bridgerton Series 2 UK 3.8 25%22.5 10 The Gentlemen Movie UK 3.2 22%4.7 Source:Digital-i UK.Netflix UK account holders aged 18-64.Based on at least two minutes of viewing of content.Findings from Ofcoms VoD Survey

67、 of online adults and teens aged 13+indicate a stronger preference among UK audiences for programmes made in the UK over those made in the US 38%stated this preference,while only 8%said they preferred US-made programmes.Older people were more likely to say they preferred UK-made content(55%of over-6

68、4s said this,compared to only 17%of 13-17-year-olds),while younger adults were more likely to say they preferred US-made content(18%of 13-17-year-olds said this,compared to 2%of over-64s).However,just over half(52%)of adults and teens said they liked UK-and US-made programme equally.6 5 Digital-i UK

69、.Netflix UK account holders aged 18-64.Based on at least two minutes viewing of content.6 Ofcom VoD Survey 2022.Media Nations 2022 11 Figure 7:Preference for UK vs USA programmes Source:Ofcom VoD Survey 2022.Online adults/teens aged 13+.Question:Q4.Now,thinking about the type of programmes you like

70、to watch,do you prefer UK or USA made programmes/series?Base:2,123.Fieldwork conducted 22-28 February 2022.Dont know not shown.Genre preferences differed by age.Netflix UK account holders aged 18-24 had a wider range of genres in their top ten most-watched programmes,ranging from adult animation(Ric

71、k and Morty,reaching 35%of Netflix accounts),foreign-language drama(All of Us are Dead,31%)and fantasy/drama(The Witcher,29%).Those aged 25-34 had more of a non-fiction focus,with The Tinder Swindler(popular among all age groups)the most-watched title,and true crime documentary Worst Roommate Ever(3

72、2%)and reality show Love is Blind(30%)also in the top ten for the age group.7 Viewing figures for the most popular titles on Amazon Prime Video and Disney+are also in the millions,but lower than Netflixs top programmes The most-watched programmes on Amazon Prime Video and Disney+rank below Netflixs

73、top titles,largely explained by the platforms lower subscriber bases(see video-on-demand section below),but they still attract significant audiences.Like-for-like data,ranking Netflix and Amazon Prime Video titles in H1 2022,puts Amazons most-watched programme in 27th place:the thriller series Reach

74、er was watched in 3.3 million UK households.8 Disney+had success with series in the Star Wars and Marvel franchises.Its Book of Boba Fett(series one,episode two,released on 5 January)was the SVoD providers most-watched programme in the first quarter of 2022,with an aggregated average audience of 3.6

75、 million across the period.In second place was Marvel Studios Moon Knight(series 1,episode 1,released 30 March)with 1.2 million viewers,while stand-alone limited series Pam and Tommy(series 1 episode 1,released 2 February)was third,with 1.1 million.9 7 Digital-i UK,Q1 2022.Netflix UK account holders

76、 aged 18-64.Based on at least two minutes of viewing of content.8 Digital-i UK,H1 2022.Netflix and Amazon Prime Video UK account holders aged 18-64.Based on at least two minutes of viewing of content.9 BARB.Highest occurring episode.The average figures are from when the programme was first released

77、until the end of the Q1 2022 this means that each programme had been available to watch for a different amount of time.Media Nations 2022 12 Broadcast TV and catch-up viewing The decline in TV viewing has accelerated since mid-2021 This section sets out trends for broadcast TV viewing in 2021 and ea

78、rly 2022,in the context of longer-term trends across age demographics.More detailed analysis of public service broadcasters viewing performance can be found in the public service broadcasting chapter.The average amount of time spent watching broadcast TV on the TV set(including catch-up,on-demand an

79、d recorded viewing up to 28 days after live broadcast)was 2 hours 59 minutes per person per day in in 2021.This was 20 minutes(11%)lower than in 2020 and 10 minutes(5%)lower than 2019,illustrating the resumption of the long-term trend of decline following the pandemic-driven boost.This trend re-esta

80、blished in April 2021(following the conclusion of the third national lockdown),when the average amount of time spent viewing broadcast TV started to decline below 2019 levels.Since then,each month has consistently been lower than in previous years.There are also signs that the decline in viewing has

81、 begun to accelerate.Contrary to the typical trend in previous years,in 2021 there was no uptick in viewing after the summer,with a decline of four minutes a day on average between August and September(compared to 2019,for example,which increased by eight minutes).So far,2022 has had notably lower l

82、evels of viewing over the first six months of the year,average daily viewing in each month fell by an average of 33 minutes compared to the same month in 2021.Figure 8:Average daily TV viewing minutes,by month:2017-2022 Source:BARB.Total TV,all individuals aged 4+,consolidated up to 28 days.People a

83、ged 65 and over watch,on average,nearly seven times as much broadcast TV as children and young adults TV viewing decreased across all age groups in 2021 compared to 2020,with every cohort seeing a drop in the number of minutes watched,ranging from 5%(65-74-year-olds)to 23%(16-24s).However,65-74-year

84、-olds continued to watch more TV on average than they had done before the 050100150200250JanFebMarAprMayJunJulAugSepOctNovDecAverage daily TV viewing minutes201720182019202020212022Media Nations 2022 13 pandemic:5 hours 50 minutes in 2021,compared to 5 hours 35 minutes in 2019.For this group,the fig

85、ure was higher than in 2011.Figure 9:Average minutes of TV watched,by age group:2011-2021 Source:BARB.Total TV,consolidated up to 28 days.Looking at longer-term trends,TV viewing has declined much faster for younger people than for older people,with changes ranging from slight growth among the oldes

86、t cohorts to successively greater declines for each younger cohort.For example,since 2011,16-24-year-olds have watched 1 hour 52 minutes less(68%)on average,while 55-64-year-olds have watched only 39 minutes less(12%).But recent figures from the first half of 2022,have shown signs of a switch in thi

87、s long-term trend;average year-on-year declines in monthly broadcast TV viewing minutes for younger demographics have been exceeded by the declines among older viewers a 27-minute drop for 16-34-year-olds,compared to 35 minutes for 35-54s and 43 minutes for over-54s.10 This is partly because the lev

88、els of viewing among older people have come down from higher levels during the initial peaks of Covid-19.But it could also be a sign that the use of streaming services,particularly SVoD,is starting to affect older peoples viewing habits in similar ways to younger people.For 16-34-year-olds,meanwhile

89、,the 2022 indicators suggest that broadcast TV viewing declines may be beginning to level out.Average daily viewing in this age demographic fell to below an hour a day in March 2022 and,so far,has continued to be lower than this this reduces the scope for further significant declines if young people

90、 continue to retain at least some level of reliance on broadcast TV,for genres such as news and current affairs,and popular entertainment/reality programming like Love Island.10 BARB consolidated up to 28 days.H1 2022 compared to H1 2021.35027720817912790535105010015020025030035040020112012201320142

91、015201620172018201920202021Average daily TV viewing minutes75+65-7455-6445-54All individuals(4+)35-4425-3416-24Children(4-15)Media Nations 2022 14 Video on demand Take-up and subscription habits Growth in SVoD households slowed following a surge in 2020,and there was a decline in Q2 2022 After years

92、 of strong growth in the number of households using SVoD services,take-up began to slow in 2021,before declining in Q2 2022,as the rising cost of living put pressure on consumer spend.The proportion of households subscribing to at least one SVoD service fell to 67%,or 19.2 million households,down on

93、e percentage point compared to Q1 2022,a drop of more than 350,000 households.11 Over the preceding nine months,SVoD penetration had increased by three percentage points to a peak of 68%,or 19.5 million households.This was a smaller increase than in the corresponding nine-month period in previous ye

94、ars,including before the initial Covid-19 period,which boosted consumer demand for SVoD during lockdowns.Netflix remains the largest SVoD provider in the UK,with 17.1 million households(60%)subscribing,followed by Amazon Prime Video(46%)and Disney+(23%).Netflix and Amazon Prime Video both saw their

95、base of subscribing households decline in Q2 2022 Netflix by around 210,000 and Amazon Prime Video by around 590,000 though each still had more subscribers than they did in Q2 2021.Although the market slowdown affected third-placed Disney+,it still added subscribers in Q2 2022,but at a much slower p

96、ace than in previous quarters its subscriber base increased by 1.8 million(to 6.6 million)in the 12 months to Q2 2022,with Q2 accounting for just 5%(around 90,000)of these.Skys NOW,which has consistently struggled to achieve growth as a flanker brand to Sky TV,saw its subscriber base decline over th

97、e 12-month period,falling by around 220,000 to 2.1 million,or 7%household penetration.Apple TV+was in 6%of homes in Q2 2022,having seen its subscriber base decline in the second half of 2021 and then return to growth in the first half of 2022.11 BARB Establishment Survey.Media Nations 2022 15 Figure

98、 10:SVoD penetration of UK households,by provider:Q1 2015 Q2 2022 Source:BARB Establishment Survey/Ofcom estimates.Includes paid-for subscriptions and free trials.Estimates are represented by dotted lines for periods when fieldwork for the survey was not conducted due to Covid-19 restrictions.Other

99、includes Hayu,Discovery+and BritBox.Data for Other for Q2 2022 was not available at the time of publication.Netflix customers most commonly subscribe to the Standard tier of the service,with 39%taking it in February 2022,according to Ofcoms VoD Survey.This compares to 25%for the Premium tier and 32%

100、for the Basic tier,which is the most popular tier among older subscribers(those aged 45 and above).Upgrades between tiers were more common than downgrades in the 12 months to February 2022,with 17%of subscribers switching to a higher-priced plan over this period,compared to 7%switching down.12 Howev

101、er,this was before Netflix implemented another round of price rises in March 2022,when the monthly cost of each tier increased by 1,taking the price of the Standard tier to 10.99 and the Premium tier to 15.99.Take-up of multiple subscriptions within SVoD households has become increasingly common The

102、 launch of several new SVoD services over the past few years and the successful roll-out of Disney+,in particular has resulted in more households using multiple SVoD services.The average number of SVoD subscriptions per SVoD home increased to two in Q1 2022,compared to 1.6 two years earlier,before t

103、he Covid-19-related lockdowns.13 This figure does not include free trials and account sharing,which if accounted for would increase the average.The proportion of households accessing two or more services was 46%in Q1 2022,or 13.2 million households.14 Overlap between the three most popular services(

104、Netflix,Amazon Prime Video and Disney+)is significant,with 5.2 million households subscribing to all three.The majority of Disney+subscribers(80%)take the service in combination with both Netflix and Amazon Prime Video,with only 2%taking it without either of those two services.12 Ofcom VoD Survey 20

105、22.13 Ampere Analysis Markets.14 BARB Establishment Survey.24%30%36%43%51%60%65%68%67%19%23%29%36%44%54%59%60%60%6%11%15%19%25%36%44%47%46%14%17%23%23%4%5%6%6%8%8%7%7%6%6%0%10%20%30%40%50%60%70%Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q220152016201720182

106、019202020212022Household penetrationAny SVoDNetflixAmazon Prime VideoDisney+NOWApple TV+OtherMedia Nations 2022 16 Figure 11:Households subscribing to one or more of Netflix,Amazon Prime Video and Disney+,and overlaps between them(millions):Q1 2022 Source:BARB Establishment Survey.Cost is a key driv

107、er of SVoD cancellations,but most of those dropping services thought they would probably resubscribe in the future Among those using subscription services in the three months leading up to our VoD Survey,2%of Netflix users had cancelled their subscription in the past three months,while 4%of Amazon P

108、rime Video users had cancelled,as had 4%of Disney+users.Other SVoD services saw cancellation rates ranging between 2%and 16%,although data for these smaller services is based on smaller sample sizes and is therefore less precise as an indicator of broader subscriber trends within these customer base

109、s.15 According to Ofcoms PSM Tracker,cost featured in peoples reasons not using an SVoD service.Among those who had not used specific services in the past six months,16 a quarter(26%)cited not wanting to pay/it was too expensive as reasons for not using online streaming services.About one in ten(9%)

110、mentioned not wanting to pay for more services than they already had or preferring another paid service.Apart from cost,respondents mentioned the content as the key reason why they did not subscribe to certain streaming services.15 Ofcom VoD Survey 2022.16 Ofcom PSM Tracker 2021.4.90.141.70.96.20.23

111、5.217.313.36.5Media Nations 2022 17 People said:“We had to cancel our Netflix subscription because we could not afford to keep it going.”Man,55-64“Waste of money,plenty of channels to watch free.”Woman,25-34“I had a subscription to Amazon Prime but had this solely for free delivery on Amazon orders.

112、I found it extremely difficult to find out when live sports games were on Amazon and have never renewed it.”Man,75+Among those cancelling services,their reasons for doing so did not necessarily represent barriers to taking them again in the future our VoD Survey found that almost three-quarters(73%)

113、of people who cancelled in the three months prior thought they would resubscribe.This reflects the flexibility of the SVoD consumer proposition;some customers pick up and drop subscriptions depending on specific content availability and/or periodic changes in needs and circumstances.17 There is evid

114、ence of SVoD account sharing,although most users subscribe by paying the provider directly According to our VoD Survey,most users of the three leading SVoD services(Netflix,Amazon Prime Video and Disney+)paid subscriptions directly to the provider,with Amazon Prime Video(84%)having the highest propo

115、rtion of direct subscribers.However,there is some level of account sharing among SVoD users.Disney+users were most likely to share a login from someone who they did not live with(17%).18 Relaxed policies on account sharing have helped SVoD services grow in popularity,but with subscriber growth set t

116、o slow for the larger services,curbing this behaviour and better monetising all users is becoming more of a priority for some certainly for Netflix(see next chapter for further analysis).Amazon Prime Video users are most likely to have their own subscription rather than share someone elses account,p

117、artly because a high proportion of users(48%)19 take up Amazon Prime for the unlimited express shipping of retail purchases,which makes tying a subscription to a home address necessary.Amazon also has few subscriber management agreements with its distribution partners,preferring to own the billing r

118、elationship itself.This means that users on platforms such as Sky and Virgin Media cannot pay for the Amazon service as part of their pay-TV bill,as they can for Netflix.17 Ofcom VoD Survey 2022.18 Ofcom VoD Survey 2022.19 Of all adult respondents who had used Amazon Prime Video in the past three mo

119、nths.Media Nations 2022 18 Figure 12:How the top three SVoD services in the UK are subscribed to/accessed by households Source:Ofcom VoD Survey 2022.Online adults.Question 11a/12a/13a:Now thinking specifically about Netflix/Amazon Prime Video/Disney+,how is this service paid for in your household?Ba

120、se:all adult respondents who have used specific service in the past three months.Fieldwork conducted 22-28 February 2022.Dont know not shown.BVoD has comparable levels of reach to SVoD,with most consumers using multiple streaming services High levels of take-up for SVoD services are matched by use o

121、f BVoD services,although the levels of viewing are not comparable,as discussed above.According to Ofcoms VoD Survey,more than nine in ten online adults and teens(93%)used a free-to-view service(any streaming service not behind a paywall,including YouTube).The proportion of total respondents who said

122、 they used at least one SVoD service(83%)was roughly equal to the proportion(82%)who said they used a public service broadcasters VoD service(such as BBC iPlayer or ITV Hub).This illustrates the high levels of overlap between these services;more than half(52%)of online adults and teens said they use

123、d both BBC iPlayer and Netflix,for example.20 Beyond the most popular SVoD services,there are a number of small services in the UK that collectively have significant reach.This includes services such as ITVs paid tier,ITV Hub+,and genre specialist services Hayu(reality)and Crunchyroll(anime).Among a

124、ll the streaming services,our VoD Survey found that BBC iPlayer was the most popular for watching“programmes,films and other video”used by 74%of online adults and teens ahead of both Netflix and YouTube.YouTubes lower reach in this context may be explained by its large volume of short-form content a

125、nd creator videos,which survey respondents may not have considered21 higher proportions of users said they used it to watch short-form video(see social video section below).The four PSBs BVoD services along with YouTube were the top five free streaming services;the others were used by 10%or less of

126、online adults and teens.22 20 Ofcom VoD Survey 2022.21 In September 2021,YouTube reached 92%of online adults in the UK(Ipsos iris Online Audience Measurement service,see Ofcom Online Nation 2022(p32).22 Ofcom VoD Survey 2022.8%10%17%63%2%4%7%84%4%12%14%68%The subscription is part of a bundle with an

127、other servicePart of household pay-TV service billI/Household use a login from someone I/we dont live withPaid for directly to the platformNetflixAmazon Prime VideoDisney+Media Nations 2022 19 Figure 13:VoD services used to watch programmes,films or other video content Source:Ofcom VoD Survey 2022.O

128、nline adults/teens aged 13+.Services used in the past three months:Fieldwork conducted 22-28 February 2022.Question:Q1a.Can you tell us which of the following services you have personally used to watch programmes,films or other video content in the past three months?Base:2,123.Data shown for platfor

129、ms where 50+respondents selected platform.*Payment of licence fee required to use BBC iPlayer.NOW includes NOW Entertainment,NOW Cinema and NOW Sports.Among children,the major SVoD services achieved notable increases in reach Among children aged 3-12,the leading SVoD platforms saw strong user growth

130、 in Q1 2022.Netflix increased its reach by 5 percentage points year on year,to 62%,becoming the most popular service by overtaking YouTube/YouTube Kids,whose reach declined from 61%to 59%.But in terms of levels of use,47%of 3-12-year-olds said they watched more YouTube than other platforms in genera

131、l.23 The loss of Disney childrens content on Netflix over the years since Disneys own SVoD service launch does not appear to have slowed Netflixs popularity among children.But Disney+is gaining momentum quickly,achieving the biggest increase of any service over the year,up from 31%of 3-12-year-olds

132、in Q1 2021 to 37%in Q1 2022,beating BBC iPlayer to fourth place in popularity.While BBC iPlayers reach declined slightly,there were gains for the other PSB BVoD services(All 4,ITV Hub and My5),although they all still have relatively small user bases among children,at 10%reach(ITV Hub)or less.24 23 T

133、he Insights Family UK.Question:What have you watched more of this week?Answers to choose from:Netflix,YouTube,Amazon Prime Video or normal TV.Age 3-12.Q1 2022:1,721.24 The Insights Family UK.Age 3-12.SVoDFree-to-view services*2%4%4%4%5%5%6%7%8%12%12%25%35%55%69%CrunchyrollHayuITV Hub+/STV Player VIP

134、STARZPLAYYouTube PremiumAll 4+BritBoxApple TV+Discovery+NOWVirgin TV catch-up/Virgin Media GoSky on Demand/Sky GoDisney+Amazon Prime VideoNetflix4%4%4%5%8%10%26%41%45%56%74%Pluto TVIMDb TV(now Freevee)Rakuten TVTED TalkFacebook WatchUKTV PlayMy5All 4ITV Hub/STV PlayerYouTubeBBC iPlayerMedia Nations

135、2022 20 Figure 14:Proportion of 3-12-year-olds who use selected online video services Source:The Insights Family UK.Age 3-12.Multi-choice question:Which of these TV platforms do you use?Q1 Base:2022:1,721;2021:1,670.Viewing habits and audience satisfaction People are increasingly likely to turn to S

136、VoD rather than TV channels when looking for something to watch SVoD has dramatically changed how viewers find something to watch.Forty per cent of online adults and teens say they normally go to SVoD first when looking for something to watch but do not have a specific programme in mind,compared to

137、37%who say they try TV channels first.Only 7%choose BVoD,less than those turning to YouTube first(11%).25 Younger viewers limited reliance on TV channels is even more stark,with nine in ten 18-24-year-old online adults bypassing TV channels when looking for something to watch.More than half of inter

138、net users aged between 13 and 44 turn to SVoD first,with Netflix the most common destination(ranging between 44%and 46%for 13-17s,18-24s and 25-34s).Conversely,older adults were most likely to turn to TV channels first 59%of 55-64-year-olds and 76%of those aged 65+.BVoDs popularity in this context a

139、lso peaked among older users,with 11%of 55-64-year-olds turning to it first.26 25 Ofcom VoD Survey 2022.26 Ofcom VoD Survey 2022.56%61%42%31%38%16%8%8%4%5%6%4%4%62%59%45%37%36%19%10%6%6%6%5%4%4%Q1 2021Q1 2022Media Nations 2022 21 Figure 15:First place people normally go to watch something when they

140、do not have a specific programme in mind Source:Ofcom VoD Survey 2022.Online adults/teens aged 13+.Base:2,123.Fieldwork conducted 22-28 February 2022.BVoD includes BBC iPlayer,ITV Hub/STV Player,All 4,My5 and UKTV Play.The leading SVoD services have high rates of satisfaction When asked an open ques

141、tion on what they liked about the specific streaming services they had used in the past six months,respondents to our PSM Tracker survey mentioned the variety and range of programmes,the quality of the content,or specific genres they liked on different services.In addition to commenting on content,a

142、 much smaller proportion of respondents mentioned the services ease of use,watching when convenient,or the lack of ad breaks.People said:“Vast array of films and series on Netflix.YouTube is brilliant for videos that allow me to follow my hobbies,i.e.model railways.”Man,75+“They have a range of show

143、s I like watching and theyre easy to use and navigate.”Woman,16-24“They have a good range of films and TV programmes not available on the main channels.”Woman,45-54 When asked about individual services,86%of UK adults who had used the service in the past six months said they were satisfied with Netf

144、lix,while 81%said the same of Amazon Prime Video and Disney+.Three-quarters said they were satisfied with BritBox(74%),while seven in ten(71%)said the same of NOW.37%13%10%16%24%39%59%73%81%40%58%57%58%52%38%21%15%8%7%4%7%4%8%9%11%6%4%11%19%26%15%10%9%5%2%2%13+13-1718-2425-3435-4445-5455-6465-7475+%

145、respondentsTV channelsSVoDBVoDYouTubeMedia Nations 2022 22 Figure 16:Audience satisfaction with selected VoD/streaming services Source:Ofcom PSM Tracker 2021.Question 39.Satisfied summary Overall,how satisfied or dissatisfied are you with these TV catch-up,on-demand or streaming services?Base:all th

146、ose who have watched platform in last six months.Netflix and Disney+were seen as easy to use and wide-ranging in their content.Netflix was seen to be delivering well on attributes such as provides services that are easy to find my way around(82%)and easy to find something I want to watch(80%)by thos

147、e who had watched it in the past six months.It also delivered well on appeals to a wide range of different audiences(82%)and programmes that are relevant to me(75%).For Disney+,attributes related to ease of use received high scores among those who had used it in the past six months:provides service

148、that are easy to find my way around(78%)and easy to find something I want to watch(74%).It also performed well on appeals to a wide range of different audiences(73%)and programmes that I can watch and talk about with people I know(70%).BritBox was seen to be delivering well in offering relatable,dis

149、tinctive UK content,among other areas.Seven in ten(72%)thought it delivered programmes made for UK audiences well,and two-thirds(65%)said it delivered well on programmes that feature people like me.In addition,it was seen to be delivering well on distinctive content,with two-thirds(67%)saying it did

150、 well on programmes that are different in their approach to other providers.Sport,traditionally a genre more likely to be watched on linear broadcast channels,is increasingly being streamed by viewers BBC iPlayer is the most popular online video service,by some margin,for watching live or catch-up s

151、ports content;it is used by 25%of online adults and teens for this purpose.Amazon Prime Video comes second,at 18%.27 Netflix and Disney+s sports programming on their respective UK platforms is currently limited to documentaries as opposed to live or catch-up events,explaining their absence from the

152、list.However,Netflix has expressed interest in acquiring premium sports content,reportedly failing in a bid to acquire live rights to Formula 1 racing in the US.28 27 Ofcom VoD Survey 2022.28 Whats On Netflix,Netflix Reportedly Bids for Formula 1 Rights But Loses to Disneys ESPN,27 June 2022.86%81%8

153、1%76%74%71%Netflix(2,155)Amazon Prime Video(1,818)Disney+(1,057)Sky on Demand or Sky Go(899)BritBox(339)NOW(679)Media Nations 2022 23 SVoD services,including those from tech companies(e.g.Amazon Prime Video,Apple TV+)and those from traditional media companies(Discovery+),are increasingly focusing on

154、 sport as part of their streaming offerings,something that we analyse in greater detail in the next chapter.Figure 17:Top ten online video services used by UK adults and teenagers who watch live or catch-up sports Source:Ofcom VoD Survey 2022.Online adults/teens aged 13+.Watched in the past three mo

155、nths:fieldwork conducted 22-28 February 2022.Base:2,123.Foreign-language programming on VoD services is widely watched by UK viewers Alongside UK audiences appetite for UK productions and drama,there is significant interest in non-English language content on VoD services.According to our VoD Survey,

156、42%of online adults and teens had watched this type of content in the past year,with 18-24-year-olds the most likely to have watched it(66%),and those aged 75+least likely(18%).Internet users from a minority ethnic group were more likely than white audiences to watch foreign-language content on VoD(

157、60%versus 40%),with Black teens and adults most likely(67%)compared to Asian(58%)and mixed ethnicity(58%).Most viewers of non-English-language content on VoD used English subtitles,although dubbing was also popular.29 29 Ofcom VoD Survey 2022.Media Nations 2022 24 Figure 18:Method(s)used to view non

158、-English language content on VoD services by UK adults and teenagers Source:Ofcom VoD Survey 2022.Online adults/teens aged 13+.Question:How did you watch the films/programmes?Base:all respondents who have watched non-English language films/programmes in the last 12 months,939.Fieldwork conducted 22-

159、28 February 2022.Netflix,in particular,is driving the push for programming produced around the world that is intended to reach international audiences.It achieved new global viewing records in 2021 with Korean series Squid Game,which was watched(at least in part)in 142 million households in 94 count

160、ries in the first month of release.The dystopian drama was also Netflixs most popular title among UK subscribers,watched by more than 10 million households(69%of Netflix homes)in 2021.30 French detective drama Lupin was the second most-watched non-English-language programme on Netflix,with a reach o

161、f 5 million households(33%),followed by Spanish thriller Money Heist,watched by 3.7 million households(25%).Social video A third of online adults in Britain watch short-form content daily Short-form video was watched by a third(32%)of online adults in Great Britain31 aged 15+daily in Q1 2022,with vi

162、ewing skewing more to younger audiences;69%of 15-17-year-olds and 65%of 18-24-year-olds watched short-form videos daily,compared to 12%of those aged 65+.32 YouTube remains the most popular social video platform in Britain for watching videos of less than ten minutes,used by 70%of internet users aged

163、 15+for this purpose,followed by Facebook(47%)30 Digital-i UK,2021.Netflix UK account holders aged 18-64.Based on at least two minutes of viewing content.31 The use of a mixture of data sources in this section mean that some survey samples are from Great Britain only(England,Scotland and Wales)while

164、 other are for the UK as a whole(all four nations,including Northern Ireland).32 TouchPoints wave 1(January March)2022,GB adults 15+.Question:How often do you watch short video or online content of less than ten minutes on any device?Note that this does not include full-length TV programmes or films

165、 but could be content from TV players,YouTube,Facebook or other social media and messaging or news sites,etc.Base:all adults aged 15+who have been online in past 12 months.See interactive report for data by age group.76%43%6%5%4%1%I watched withEnglish subtitlesI watched withEnglish dubbingI underst

166、ood thenon-English languageI watched with non-English subtitlesI watched with non-English dubbingOther%respondentsMedia Nations 2022 25 and Instagram(29%).The popularity of some services skews heavily towards younger viewers.Instagram was the second-most popular platform among 15-17-year-olds(90%)fo

167、llowed by TikTok(73%)and Snapchat(64%).33 The growth of social video service TikTok has diversified consumers viewing habits.As discussed in our Online Nation report,TikTok is continuing to grow,reaching 36%of adult internet users in the UK in March 2022.It is particularly popular among younger adul

168、t users,with 67%of UK online 1524-year-olds visiting the platform.34 Figure 19:Proportion of British online adults who watch short videos on selected social media platforms,by age:January March 2022 Source:TouchPoints 2022(wave 1 January to March).Question:Which platforms or social media/news/messag

169、ing sites do you use to watch short video or online content of less than ten minutes on any device?Note this does not include full-length TV programmes or films.Any social media includes YouTube,Facebook,Instagram,TikTok,Snapchat or Twitter.Base:all adults(15+)who have gone online in last 12 months.

170、Each age cohort had different tastes in the genres of short-form content they liked to watch.Videos uploaded by friends/family(94%)and videos/vlogs by social media influencers(92%)were the most-popular genres among the 15-17-year-olds in Britain who watch short online video content monthly.Among 18-

171、24-year-olds,videos uploaded by the general public were most popular(74%),while how to videos were most popular for 25-34-year-olds(69%)and for 35-44s(64%).35 Among all adults,how-to videos(64%)and videos uploaded by the general public(60%)overtook news(59%)as the most popular genres to watch in 202

172、2,with news losing the increase it had gained as a result of interest in Covid-related news and information.Clips of TV content were also widely viewed,with 45%saying they liked to watch clips from comedy programmes,39%entertainment and 34%chat shows.36 33 TouchPoints wave 1(January March)2022,GB ad

173、ults 15+.Base:all adults aged 15+who have been online in past 12 months.See interactive report for data by age group.34 Ipsos,Ipsos iris Online Audience Measurement Service,(BG)TikTok,1 March 31 March 2022,adults aged 15+,UK.Note:TV set and smart display use not included.35 TouchPoints wave 1(Januar

174、y March)2022,GB adults aged 15+.Base:all adults who watch short video or online content of less than ten minutes on any device at least monthly.36 TouchPoints wave 1(January March)2022,GB adults aged 15+.Base:all adults(15+)who have been online in past 12 months.See interactive report for data by ag

175、e group.82%70%47%29%19%14%9%100%93%39%90%73%29%64%98%85%57%65%49%23%37%92%77%56%48%28%17%14%90%79%53%26%16%17%3%86%72%52%22%16%13%2%71%61%41%11%8%11%1%59%52%27%7%2%3%0%Any social videoYouTubeFacebookInstagramTikTokTwitterSnapchat15+15-1718-2425-3435-4445-5455-6465+Media Nations 2022 26 Figure 20:Gen

176、res viewed at least monthly by British adults who watch short video content online monthly:January March 2022 Source:TouchPoints 2022(wave 1 January to March)GB adults 15+.Question:How often do you watch these different types of short video/online content/clips(on any device).Base:all adults who wat

177、ch short video or online content of less than ten minutes on any device at least monthly.Young adults spend almost an hour on TikTok per day UK adult TikTok visitors spent an average of about 29 minutes per day on the platform in March 2022,almost as much as Facebook and Messenger visitors spent on

178、those apps(about 34 minutes).There were clear demographic differences in the time spent on social video platforms older adult visitors to Facebook and Messenger spent more time than 15-24-year-olds on the platform,while 15-24-year-old visitors to TikTok,Instagram and Snapchat spent more time on thes

179、e platforms than older visitors.In March 2022,nearly 5 million UK 15-24-year-old TikTok visitors spent an average of about 57 minutes on TikTok per day,while the 5 million 15-24-year-old Snapchat visitors spent 46 minutes per day.By comparison,15-24-year-old visitors to Facebook(including Messenger)

180、and Instagram spent 25 and 20 minutes per day respectively.37 In July 2021,TikTok increased the maximum video length from one minute to three minutes,and by October the average video length was two minutes,which may be contributing to the increased time spent on TikTok.38 37 Ipsos,Ipsos iris Online

181、Audience Measurement Service,1 March 31 March 2022,UK adults aged 15+.Note:TV set and smart display use not included.38 TikTok newsroom,Discover more ways to create,connect and be entertained with longer videos on TikTok,October 2021.28%32%34%36%39%43%45%48%55%56%59%60%64%Videos from drama programme

182、sClips from video gamesVideos from chat showsSports including interviewsVideos from entertainment programmesVideos/vlogs from companies followedVideos from comedy programmesVideos/vlogs uploaded by social media influencers followedVideos uploaded by friends/familyMusicNewsVideos uploaded by the gene

183、ral publicHow to(e.g.recipes,DIY)Media Nations 2022 27 Figure 21:Time(minutes)spent per day by UK online adult visitors to selected social-video-capable platforms,by age:March 2022 Source:Ipsos,Ipsos iris Online Audience Measurement Service,1 March 31 March 2022,adults aged 15+,UK.TV set and smart d

184、isplay use not included.Custom-defined list by Ofcom.Time spent can include viewing video,communicating,scrolling or any other activity on the platform.At present,YouTube time spent is not measurable using Ipsos iris.TikToks boom prompted a rush to bring rival short-form video features to market In

185、2020 the popularity of TikTok prompted social-video-capable platforms to introduce similar short-form orientated features Instagram with Reels and YouTube with Shorts.As discussed in our Online Nation report,Instagram and Facebooks parent company Meta(previously known as Facebook)said in its Q1 2022

186、 earnings calls that Reels would be core to its business strategy and future growth.The company highlighted that 20%of the time spent on Instagram globally was spent on Reels,and that video overall makes up 50%of the time that people spend on Facebook.39 Meanwhile,YouTube announced in June 2022 that

187、 1.5 billion global users log into YouTube Shorts monthly.40 Alphabet,the parent company of YouTube,announced in its Q1 2022 earnings call that YouTube Shorts was averaging over 30 billion daily views four times as many as a year earlier.41 Twitter is set to follow this trend in 2022,preparing to ro

188、ll out a new test feature that invites users to post video reactions to tweets.Other popular social video platforms are continuing to adapt their business models.TikTok introduced Live Subscription in May 2022,a monthly subscription for creators of live TikTok content.TikTok intends this new initiat

189、ive to further diversify creator monetisation opportunities.A feature of the subscription is that it offers Subscriber-Only Chat,where creators can chat directly with one another.42 Snap is also developing its service through investing in UK originals.It plans to release two series,one featuring Rap

190、per Aitch titled What the Aitch,and another featuring diver Tom Daley titled Secret Superpowers with Tom Daley.The company has released more than 150 Snap Original 39 Meta,27 April 2022.40 Variety,YouTube Shorts Has More Than 1.5 Billion Monthly Video Viewers,Google Claims,15 June 2022.41 Alphabet,E

191、arnings call transcript,Q1 2022,26 April 2022.42 TikTok newsroom,Exploring new ways for creators to build their community and be rewarded with LIVE Subscription,23 May 2022.34291027425572046437271417538189743616673348443314230Facebook&MessengerTikTokInstagramSnapchatTwitchMinutes15+15-2425-3435-4445

192、-5455-6465+Media Nations 2022 28 series to date,created with more than 70 partners however,only 4%of teenagers aged 13-17 said that they watched Snap Originals.43 43 Ofcom VoD Survey 2022.Media Nations 2022 29 TV industry trends and dynamics Introduction:a significant financial bounce-back for broad

193、casters following pandemic challenges The shock to the TV industry caused by Covid-19 in 2020 was followed in 2021 by a significant recovery for those worst affected,with commercial broadcasters benefiting from renewed interest and investment in TV advertising.For providers of online TV and video se

194、rvices relying on either advertising(e.g.YouTube)or subscription revenue(e.g.Netflix),the pandemic did not halt revenue growth in 2020,and 2021 brought significant increases that outstripped those achieved by commercial broadcasters and pay-TV platforms.This chapter quantifies the revenue generated

195、across different sectors of the TV and online video market,and examines some of the underlying industry trends,across advertising,SVoD and pay TV.It also provides a summary of current dynamics in the TV production sector.Industry revenue overview TV and online video see record growth Commercial TV a

196、nd online video revenues grew by 18%in 2021 to 16.6bn,a rise that far exceeded any year-on-year change over the past ten years.Online videos surge brought it to a total value of 5bn in 2021;this was driven by an 80%year-on-year increase in online video advertising revenue,to 2.3bn,while SVoD revenue

197、 increased by 27%to 2.7bn.Looking at the longer-term trend,online video advertising and SVoD subscription revenue are the two sectors which are seeing long-term growth over and above the 2021 recovery;compared to 2019,they grew by 107%and 62%respectively.Figure 22:Commercial PSB revenue growth,2021

198、vs 2019 Source:Ofcom/broadcasters.For some broadcasters,2021 represented a recovery from the declines of 2020,with improved performances compared to recent pre-Covid-19 years.For instance,commercial PSB channel groups ITV,Channel 4 and Channel 5 collectively generated revenue of 2.4bn,their highest

199、total since Media Nations 2022 30 2016,about 180m(8%)more than what they generated in 2019.Digital multichannel groups such as Discovery Networks and UKTV,meanwhile,recovered to 2.4bn,2%more than in 2019.These sectors had been in decline,or flat,for several years,and the improvement was driven by ad

200、vertisers renewed investment in TV as part of the economic recovery from the pandemic.Further analysis of the PSBs financial performance in both commercial and publicly-funded channels can be found in the next chapter.Pay-TV platform operators such as Sky,Virgin Media and BT,which make up the larges

201、t single sector,recovered to generate 6.5bn in revenue.Like the PSBs and digital multichannels,this was an increase on 2019(of 4%).Figure 23:Commercial TV broadcast and online revenue:2016-2021 Source:Ofcom/broadcasters(broadcast data),Ampere Analysis/IAB UK and PwC Digital Adspend Study(online data

202、).Figures are presented in nominal terms and replace previous Ofcom revenue data for the TV and online video industry,owing to restatements and improvements in methodologies.Values for Platform operators include Ofcoms estimates of pay-TV revenues.This does not include NOW,which is within subscripti

203、on VoD.Platform operators data prior to 2019 is not comparable to subsequent years,owing to a change in methodology in Sky reporting coinciding with its change in ownership to Comcast.Digital multichannels includes non-PSB channels and commercial PSB portfolio channels.Commercial PSB channels compri

204、se the following:ITV,STV,UTV,ITV Breakfast,Channel 4,Channel 5 and S4C.Online video advertising does not include outstream video advertising delivered on non-video services.Totals may not equal the sum of the components due to rounding.TotalTotalYoY2020-2021CAGR 2016-202118.3%5.5%-29.4%0.1%80.4%38.5

205、%26.8%26.5%22.4%-0.1%15.9%-0.7%5.2%0.9%6.3bn6.1bn6.3bn6.3bn6.2bn6.5bn2.5bn2.5bn2.5bn2.4bn2.1bn2.4bn2.4bn2.2bn2.2bn2.2bn2.0bn2.4bn0.8bn1.0bn1.2bn1.7bn2.1bn2.7bn0.5bn0.7bn0.8bn1.1bn1.3bn2.3bn0.3bn0.3bn0.3bn0.3bn0.4bn0.3bn12.7bn12.9bn13.5bn14.0bn14.0bn16.6bn024681012141618201620172018201920202021Revenu

206、e(bn)Digital transactionalOnline video advertisingSubscription VoDCommercial PSB channelsDigital multichannelsPlatform operatorsGrowthMedia Nations 2022 31 How we present financial data Financial data quoted in this report is presented in nominal terms,meaning that historical data has not been adjus

207、ted to account for inflation.In our interactive report,users can view financial data in either nominal or real(CPI-adjusted)terms,with users able to easily switch between the two.Our use of nominal data in the written reports provides a straightforward view of the market in terms commonly used.For t

208、hose who wish to analyse how inflation has historically affected the value of the industry,the CPI-adjusted series in our interactive report provide an indicative measure.Advertising market trends Advertising spend rebounded in 2021,with strong TV and online sectors A broad recovery in the advertisi

209、ng market in 2021 saw expenditure increase to 31.9bn,a year-on-year increase of 34%.The contraction in 2020,the first since 2012,hit cinema and out-of-home advertising hardest,with drops of 82%and 46%respectively.Cinemas were closed for much of 2020 due to lockdowns,and stay-at-home restrictions mea

210、nt the market for outdoor advertising was much affected.Linear TV advertising spend also suffered,falling 13%.44 The 2021 recovery picture was mixed:some sectors rebounded fully,with higher spend even than 2019;others appear to have a longer road to recovery.Cinema spend rose but was still significa

211、ntly less than in 2019(103m compared to 299m);similarly,the badly affected out-of-home sector was worth 901m in 2021 compared to 1.3bn in 2019.The numbers reflect the continued Covid-19-related restrictions during the first half of 2021,with people less able or less inclined to go out for entertainm

212、ent and leisure purposes.44 This excludes BVoD services like ITV Hub and All 4,but includes spots(advertising in commercial breaks),sponsorship,product placement and ad-funded content.Media Nations 2022 32 Figure 24:UK advertising expenditure:2016-2021 Source:AA/WARC Advertising Expenditure report f

213、or TV,newspapers,magazines,radio,out of home,cinema and direct mail;IAB UK for online advertising(search,display excluding video,video and other).Figures are presented in nominal terms.All digital ad expenditure(e.g.broadcaster video advertising and publisher display and classifieds)has been removed

214、 from TV,newspapers and magazines to avoid double-counting between these categories and online.TV includes spot advertising,sponsorship,and placement.Only two of the eight advertising sectors are healthier than they were in 2019:TV and online.Online proved the most resilient in 2020,with expenditure

215、 rising by 7%.In 2021,it grew 41%to 23.5bn,driving the rise in overall advertising spend across all sectors and accounting for 83%of the total market growth.Excluding search and social in-feed advertising,45 online expenditure amounted to 8.7bn in 2021,40%higher in 2020.TV ad spend,at 4.7bn,also inc

216、reased significantly from 2020s 3.9bn,up by 22%.But TVs share of the overall advertising market continues to decline,reducing to 15%in 2021 compared to 16%in 2020 and 26%in 2011.Spot advertising(commercial breaks between TV programmes)is the largest component of TV spend and drove this recovery.45 S

217、ocial in-feed advertising is advertising that sits outside a stream of video content,including on news websites and on social video services such as TikTok or Instagram.5.1bn4.8bn4.7bn4.5bn3.9bn4.7bn10.2bn11.8bn13.6bn15.7bn16.7bn23.5bn1.8bn1.7bn1.6bn1.4bn0.9bn1.1bn1.1bn1.1bn1.2bn1.3bn0.7bn0.9bn1.7bn

218、1.4bn1.3bn1.2bn0.7bn0.7bn0.6bn0.6bn0.7bn0.7bn0.5bn0.6bn21.3bn22.3bn23.7bn25.3bn23.8bn31.9bn05101520253035201620172018201920202021Expenditure(bn)CinemaRadioMagazines(print)Newspapers(print)Out of homeDirect mailOnlineTV(excluding VoD)Media Nations 2022 33 Figure 25:UK advertising expenditure for sele

219、cted segments:2016-2021 Source:WARC/IAB.Figures are presented in nominal terms.The growth in TV advertising was partly the result of advertisers being prepared to spend more to target hard-to-reach younger audiences.As linear TV viewing has declined for this demographic,the remaining advertising inv

220、entory which can deliver younger audiences has inflated in cost,with the price of CPMs(cost per 1,000 views)for younger viewers increasing steeply.It remains to be seen whether CPMs could become prohibitively expensive for advertisers,particularly those targeting younger audiences,or if,because TVs

221、reach is still the highest available on any platform,even higher CPMs are viable.Additional uncertainty for TV advertising comes with the prospect of a potential economic slowdown or recession in late 2022 or 2023,which would leave commercial broadcasters vulnerable to reductions in ad spend,in turn

222、 putting revenue growth at risk.46 Advertising spend on BVoD has continued to rise.Although still relatively small compared to advertising for TV,BVoD advertising,such as that on ITV Hub and All 4,has grown consistently,even throughout the pandemic,reaching 733m in 2021.As a result,it is growing in

223、importance for the TV advertising market.However,it is also operating in a competitive environment BVoD providers are seeking to attract viewers who are also likely to be users of SVoD services like Netflix and ad-supported social video services like YouTube.This competition will soon intensify furt

224、her;several SVoD services are moving into ad-supported tiers(see Figure 27 in the next section),meaning that advertisers will have even more options for reaching TV and video audiences.The significant growth in online advertising spend in 2021 was largely driven by growth for social in-feed video,sp

225、end on which increased by 45%to 3.2bn.Meanwhile,spend on in-stream video(advertising within video,such as the skippable advertising before YouTube content)grew by 75%to 2.2bn.The growth for both in-stream and in-feed video reflects the still-increasing popularity of social video,but also the increas

226、ing unit price of advertising on these services.Advertisers have reported soaring CPMs on services such as Facebook and particularly TikTok,whose newness on the 46 BBC News,Bank of England warns the UK will fall into recession this year,5 August 2022.Prior to the Bank of Englands warning,respective

227、notes by investment banks Berenberg and Morgan Stanley released in July 2022 each highlighted the prospect of a recession in 2023 and note the potential negative impacts on commercial broadcasters.5.1bn4.8bn4.7bn4.5bn3.9bn4.7bn4.6bn5.0bn5.5bn6.1bn6.1bn8.7bn201620172018201920202021TV(excluding VoD)On

228、line(minus search and social in-feed)Media Nations 2022 34 market and boom in use during the pandemic has led to significant fluctuations in advertising prices.47 Subscription TV and video Subscription video on-demand strategies and business models Another strong year of revenue growth for SVoD Foll

229、owing a bumper 2020,the SVoD sector sustained strong revenue growth in 2021,generating an estimated 2.7bn in the year,with year-on-year growth of 27%only marginally lower than in 2020(28%).The top three services Netflix,Amazon Prime Video and Disney+had a market share of 89%and accounted for 87%of t

230、he 566m increase in the year.Market leader Netflix,which raised prices in January 2021,increased its revenue by 21%to 1.4bn,about double the amount Amazon Prime Video was estimated to have generated(713m).Third-placed Disney+,which also raised its prices in early 2021,generated 277m in revenue in it

231、s second year of operation,compared to a little less than half that figure in just over nine months of operation in 2020.48 Skys NOW saw more modest growth of 2%,to 214m.Figure 26:UK SVoD revenues,by service:2016-2021 Source:Ampere Analysis.Figures are presented in nominal terms.Amazon Prime Video r

232、evenue is estimated based on users of the service revenue is not ascribed to Amazon Prime customers who do not use Prime Video(e.g.only subscribe for the unlimited express shipping).Although revenue growth has been healthy,achieving subscriber growth is becoming increasingly challenging,putting pres

233、sure on providers to maximise the value of their users Increasing numbers of subscribers,as well as price rises,drove SVoD revenue growth in 2021.However,as discussed in the previous chapter,SVoD household growth slowed in 2021 and there was a decline in Q2 2022,signalling a maturation of the market

234、 that was compounded by sharp increases in the cost of living.Netflix reported two consecutive quarters of customer losses in its 47 Business Insider,Heres exactly what it costs to advertise on Google,Facebook,Amazon and TikTok,16 May 2022.48 Disney+launched in the UK on 24 March 2020.435m535m698m94

235、8m1,147m1,387m257m303m355m474m606m713m129m275m116m138m172m207m204m218m826m992m1,247m1,656m2,114m2,680m05001,0001,5002,0002,5003,000201620172018201920202021Revenue(m)Discovery+ITV Hub+BritBoxNow TVDisney+AmazonNetflixMedia Nations 2022 35 global subscriber base in the first half of 2022 down by 1.2 m

236、illion over the period,to 220.7 million.This was in part a result of Netflixs exit from Russia,following Russias invasion of Ukraine,resulting in the loss of about 700,000 subscribers in Q1 and an overall decline of 203,000;but the decline of 969,000 in Q2 was the result of slow customer acquisition

237、 and the impact of price changes,as well as some typical seasonality.The company forecasted a return to growth in Q3 2022.49 In the UK,as the number of households yet to try SVoD becomes smaller and harder to convert,a slowdown in growth is natural,particularly for Netflix,which has already achieved

238、 significant penetration.Newer entrants seeking subscription growth in what is a highly competitive market are primarily relying on appealing to households that already use other SVoD services.Disney+has been the most successful,firmly establishing itself in a significant number of homes that subscr

239、ibe to Netflix and/or Amazon Prime Video.The likes of Apple TV+,Discovery+and now Paramount+,which launched in the UK in June 2022 with original series including Star Trek,Yellowstone and Halo,are also vying to be one of several services used in SVoD households.Bundling has been a key strategy for a

240、chieving scale quickly for these services,50 with Paramount+following the trend by launching in partnership with Sky and making its 6.99-a-month service available to Sky Cinema customers at no extra cost.In a bid to drive continued revenue growth in the face of fewer subscriber additions and growing

241、 competition,one strategy has been to raise prices.In April 2022,Netflix increased the monthly price of its Basic and Standard tiers each by 1(to 6.99 and 10.99,respectively)and its Premium tier by 2(to 15.99).Amazon,meanwhile,announced in July 2022 that it would raise the monthly price of Prime(the

242、 service that includes a Prime Video subscription)by 1 to 8.99 in September 2022,having implemented an increase in the US(of$2,or about 1.65)earlier in the year.Sky raised the price of its NOW Boost add-on51 by 2 in July 2021.Price increases run the risk of increasing customer churn,particularly as

243、the cost of living increases and household spend becomes tighter but such customer losses may be more than offset by the increased revenue from those who continue to subscribe,as indicated by Netflixs increase in global revenue in both Q1 and Q2 2022 despite reduced subscriber numbers.52 Advertising

244、 is set to become a key component of SVoD services,as business models shift from pure subscription The maturing market has prompted SVoD providers to look at new ways of generating revenue.In a significant step-change from the original ad-free SVoD proposition,an increasing number of services are st

245、arting to incorporate advertising into their offerings.Meanwhile,one of the major advertising-led services,ITV Hub,is being integrated with ITVs subscription services ITV Hub+and BritBox to form a new service,ITVX.The result of these developments is an increasing number of streaming providers adopti

246、ng hybrid business models for either freemium or tiered propositions.49 Netflix Q2 2022 Quarterly Earnings,Letter to Shareholders.50 Discovery partnered with Sky to offer Sky Q customers 12 months free access to Discovery+;Apple TV+trials(initially 12 months in length,reduced to three month in July

247、2021)are offered to customers purchasing eligible Apple devices.51 NOW Boost is effectively an ad-free subscription tier that also enables enhanced picture and audio quality.52 Netflix Q2 2022 Quarterly Earnings,Letter to Shareholders.Media Nations 2022 36 Figure 27:Selected streaming services new/p

248、lanned advertising-supported services/tiers Source:Ofcom.Gaming,release-schedule experimentation,and account-sharing crackdowns are focus areas In other revenue diversification moves,mobile games are providing an expansion opportunity for tech companies operating in adjacent sectors.Gaming rose in p

249、opularity during the pandemic and sustained this into 2021,with 60%of UK adults aged 16+and 91%of 3-15-year-olds stating that they played games on consoles,desktops or smartphone devices,either on or offline.53 In November 2021,Netflix became the largest gaming subscription service when it made seve

250、ral mobile games accessible to all customers at no extra cost.This model differs to Apples direct monetisation of its(more comprehensive)Apple Arcade subscription service,launched in 2019.53 Ofcom,Adults Media Literacy Tracker 2021:Online Behaviours and Attitudes survey and Childrens and Parents Med

251、ia Literacy Tracker 2021:Online Behaviours and Attitudes survey.For further exploration of gamings increased popularity,see Ofcoms Online Nation 2022 report.Media Nations 2022 37 Figure 28:Mobile video games produced by Netflix Source:Netflix.Netflixs gaming expansion has been supported by its acqui

252、sition of three small gaming studios,54 and by August 2022 it had produced 26 mobile games,with a target of a total of 50 games to be available by the end of 2022.Some titles are intended as tie-ins with popular Netflix series Stranger Things:1984,for example,is one of two games made for the franchi

253、se,and features the series characters in a nostalgic design reminiscent of vintage arcade games.Exploding Kittens,based on a popular card game,was released in April 2022,and a TV series will follow.Netflix has also made standalone casual games Card Blast and Teeter Up.Ofcoms VoD Survey,conducted in

254、February 2022,found that 54%of people aged 13+who had used Netflix in the past three months were aware that Netflix offers games,while 8%had played a Netflix game,and 5%said they had played one of the Stranger Things games.55 While use of these games is low,the awareness of Netflixs entry into casua

255、l games,among more than half of Netflix users,indicates that the company has achieved some success in promoting them,and this could lead to more users playing them.Experimenting with release schedules as a customer retention strategy has become a feature of several streaming services.Disney+now rele

256、ases new original series in the manner of a linear broadcaster,with weekly episodes,rather than making all of them available at once.Amazon has announced that its marquee,big-budget series Lord of the Rings:Rings of Power will also be released episode-by-episode,following its use of the same strateg

257、y for dark superhero-themed original series The Boys.Netflix,the founder of the binge watch release model,has also experimented with this format.Original programmes with weekly releases included feature film series Fear St and season four of 54 Washington Post,Amid losses,Netflix bets on a bold stra

258、tegy around video games,22 April 2022.55 Ofcom VoD Survey 2022.Media Nations 2022 38 reality show The Circle,while marquee original series Ozark(season four)and Stranger Things(season four)were released in two parts(Ozark three months apart and Stranger Things five weeks apart).Netflix has also been

259、 varying the day of release for its most anticipated films,from the usual Friday(just as a film would be released in cinemas)to Wednesdays.Originated feature films such as Enola Holmes,The Boys In The Band and Operation Mincemeat all had midweek releases.As highlighted in the previous chapter,some u

260、sers of the three most popular SVoD services access them through logins belonging to someone they do not live with,representing a potential source of untapped revenue.Netflix is seeking to address this,claiming that there are more than 100 million households worldwide that are using its service but

261、not paying directly for it.It has been experimenting with solutions in some of its Latin America markets add an extra member,56 add a home,57 and transfer profile to a new account all with additional fees.According to our VoD Survey,14%of households using Netflix in the UK access the service via an

262、account registered at a different address(see previous chapter for additional commentary on SVoD account sharing).58 If all these users were converted to paying members,that could equate to a UK subscriber increase of more than two million but a proportion of these users would probably choose to los

263、e access rather than start paying to keep using Netflix.Originals are more important than ever,but require significant and potentially risky levels of investment There are other knock-on effects of the maturing SVoD market that could affect broadcasters and producers.As commissioners,there is pressu

264、re on SVoD providers to be more creative and innovative than ever,striving for must-see originals that drive customers to keep subscribing.The volume of originals and exclusives available on major SVoD services has continued to rise,up 22%in the year to April 2022 to a total of 22,685 hours.Netflix,

265、by far the largest contributor to originated hours,increased its volume of originations by 33%(or 2,613 hours)over this period,with every other major platform also increasing their originals output.People in the UK tend to prefer watching UK originals,as shown by these programmes prevalence in the t

266、op-ten most-watched lists.59 SVoD providers continue to cater to this,with the volume of UK-produced original series and films on the service rising to 1,398 hours in April 2022,a 20%year-on-year increase.60 56 Netflix,Paying to Share Netflix Outside Your Household,16 March 2022.57 Netflix,An Update

267、 to Paid Sharing,18 July 2022.58 Ofcom VoD Survey 2022.59 For the full top ten,see the section on most-watched programmes in the previous chapter.60 Ampere Analysis Analytics SVoD.Media Nations 2022 39 Figure 29:Selected SVoD originals and exclusives content hours:April 2017 April 2022 Source:Ampere

268、 Analysis.Ramping up production will need to come with tightly-controlled costs if services are to be profitable in a more competitive market.Netflix has said that the rate of growth in its content spend will reduce in the years to come.61 Investor concern over high levels of content spend is becomi

269、ng more evident and was seen as a driver for Paramount Globals recent stock price slide.62 Pressure on budgets also has the potential to hit production firms commissioned to make originals.The role of licensed content in SVoD providers catalogues has the potential to change.Desirable acquisitions ar

270、e becoming less available,as studios/broadcasters reclaim exclusivity of their intellectual property for their own services(e.g.Disney+and Paramount+).Licensed content particularly non-exclusive acquisitions that are carried on multiple SVoD services could also be less appealing,given the increasing

271、 focus on originals,which are the primary focus of budgets.There are some indications of diminishing volumes of licensed content in SVoD providers catalogues;following years of growth,the size of Amazon Prime Videos catalogue fell from 47,000 hours to 30,000 between April 2021 and April 2022,while N

272、etflixs total hours has fallen slightly(down 2%year on year).Despite increases for some other services(including Disney+,NOW and BritBox),overall content hours available across the seven leading services63 fell from 130,000 to 119,000 over the period.61 Hollywood Reporter,Despite Netflixs Stumble,Ho

273、llywoods Streaming Content Spend May Increase in Near-Term,28 April 2022.62 Variety,Paramount Stock Slides on Stepped-Up Streaming Plans,Analyst Downgrade,16 February 2022.63 Ampere Analysis Analytics SVoD.Services included are Netflix,Amazon Prime Video,Disney+,NOW,Apple TV+,BritBox and Discovery+.

274、1,2992,3343,9976,1367,95410,5678821,5903,1114,6665,6196,3565468241,1551,5092,0636207487007305519036898069901,1281,2401,4244783,5855,7879,71114,23917,91622,685Apr-17Apr-18Apr-19Apr-20Apr-21Apr-22Apple TV+ExclusiveApple TV+OriginalSky OriginalDisney+ExclusiveDisney+OriginalAmazon ExclusiveAmazon Origi

275、nalNetflix ExclusiveNetflix OriginalMedia Nations 2022 40 Pay TV and connected TV Pay-TV operators are advancing their content aggregation strategies with new connected-TV products Despite a good recovery following 2020s revenue declines,growth in traditional pay-TV revenue has been relatively flat

276、for the past five years(see Figure 23 above).The sector continues to come under pressure from the rise of SVoD services,available on a flexible basis:pay-TV households fell to just under 12.7 million in Q1 2022,having declined by 2.2 million since 2016.More than three-quarters(78%)of pay-TV homes al

277、so have a subscription to at least one SVoD service,with this significant overlap prompting operators to integrate SVoD services into their offerings in a bid to preserve their traditional position as aggregators of all the most popular content and services.Figure 30:UK subscription TV and free-to-a

278、ir households(millions):Q1 2016 Q1 2022 Source:BARB Establishment Survey.Digital terrestrial only refers to homes that receive TV through an aerial only and not through an internet connection.All other households refers to those using other free TV platforms/services(e.g.Freesat or through an intern

279、et connection)without pay TV or SVoD,as well as households with no TV reception and no SVoD.Fieldwork for the BARB Establishment Survey was not conducted in Q1 2021 due to Covid-19 restrictions,which is why Q2 2021 data has been used instead.The most recent evidence of this is the launch of new conn

280、ected-TV products by Sky and Virgin Media,both designed to better integrate pay-TV channels with on-demand programming from both SVoD providers and broadcasters.Sky,building on an SVoD aggregation model that has seen it secure carriage of all the major streaming services,64 launched its own smart TV

281、 set,Sky Glass,in October 2021.Positioned as a no fuss option for premium TV,it provides access to almost the full Sky TV offering over IP,alongside SVoD and BVoD content,without the need for a satellite dish,set-top box or long-term service contract.To appeal to those who do not want to buy a new T

282、V set,Sky is also planning to sell standalone versions of its Sky Stream pucks small streaming boxes initially sold as part of a Sky 64 Netflix,Amazon Prime Video,Disney+,Discovery+,Apple TV+,Peacock(the branded on-demand library of Sky sister company NBCUniversal)and Paramount+are all available on

283、Sky TV.10.19.17.56.15.13.32.84.85.66.77.98.59.59.82.53.34.55.56.58.99.77.47.57.06.75.84.94.42.92.52.72.42.31.81.827.628.028.328.628.328.428.6051015202530Q1Q1Q1Q1Q1Q2Q12016201720182019202020212022Households(millions)All other householdsDigital terrestrial only/no pay TV or SVoDSVoD,no pay TVPay TV an

284、d SVoDPay TV,no SVoDMedia Nations 2022 41 Glass setup for use on secondary TV sets that will allow users to access the Sky Glass interface on other TVs.65 Virgin Media,meanwhile,launched its own new streaming box,Stream,in April 2022.Available to Virgin Media broadband customers,the device provides

285、flexible,integrated access to pay-TV,SVoD and BVoD content,with discounts on SVoD subscriptions offered in the form of 10%credit back.By seeking to reassert themselves as one-stop shops for pay and free linear and on-demand content that can be accessed in intuitive ways and via a single bill,the ope

286、rators may improve their prospects of creating a virtuous circle of customer satisfaction,strong relationships and advantageous carriage deals with third-party apps,and better user interfaces with ever-growing options.The use of connected-TV devices is commonplace,creating opportunities for other co

287、mpanies seeking to play the role of content aggregator Pay-TV operators pursuit of connected-TV strategies comes against the backdrop of widespread consumer use of devices other than their set-top boxes to watch online content on TV sets.More than half of adults(52%)surveyed in February 2022 said th

288、at they used apps or services on a smart TV for this purpose,while 28%said they used a streaming box.This compares to a third(33%)who said they used a set-top box.66 Among streaming box or stick users,Amazon Fire TV was the most popular product,used by 68%.This was followed by Google Chromecast,used

289、 by 17%.67 Figure 31:Proportion of UK adults who use their TV set to watch online content,by means Source:Ofcom VoD Survey 2022.Online adults.Question:21.Which of these ways,if any,do you use to watch online content on your TV set(s)?Base:all adult respondents.Fieldwork conducted 22-28 February 2022

290、.Other and Dont know not shown.Smart TVs and streaming devices,and the major tech and consumer-electronics companies behind them,represent intensifying competition for the TV user interface,with the likes of Samsung,65 TechRadar,Sky to launch standalone streaming puck that does(almost)everything Sky

291、 Glass does,12 April 2022.66 Ofcom VoD Survey 2022.67 Ofcom VoD Survey 2022.5%9%10%15%28%33%52%A tablet computer connected to your TVA games console connected to your TVA smartphone connected to your TVA laptop/computer connected to your TVA streaming box or stick connected to your TVA set-top box c

292、onnected to your TVTV apps or services on your smart TVMedia Nations 2022 42 Amazon and Google which provides its Android TV software to many smart TV manufacturers well-placed to compete with pay-TV operators to play the role of content aggregators themselves.If they can succeed in this,they will b

293、e better-placed to forge direct customer relationships with TV viewers,thereby supporting adjacent businesses such as subscription services or advertising.Premium sport remains a cornerstone of pay-TV offerings The rise of SVoD has,as discussed,put pressure on both linear TV viewing and pay-TV subsc

294、riptions.Dedicated sports channels,which have long been a key component of pay TV,have proved more resilient than TV overall to declines in audiences.Between 2011 and 2021,average reach for total broadcast TV declined from 95%to 86%,while sports channels reach stayed flat,at 19%.But among 16-34-year

295、-olds,who are abandoning broadcast TV faster than average,sports channels reach fell from 20%to 15%over the ten-year period.Figure 32:Average weekly reach(%)of total broadcast TV and dedicated sports TV channels:2011-2021 Source:BARB,Seven-day consolidated.Reach criteria:3+consecutive minutes.But fo

296、r many audiences,marquee sporting events are still appointment viewing.Sky Sports recorded its highest-ever daily viewing figures on a day in October 2021 when it aired Premier League football(Manchester United vs Liverpool),Formula One motor racing(the USA Grand Prix)and T20 World Cup cricket(India

297、 vs Pakistan).It had an average of 1.2 million viewers across the day,peaking at 4.5 million,with overall reach exceeding 8 million.68 Sports rights,therefore,remain highly valuable,particularly to pay-TV providers,which have retained the majority of the most desirable rights in the face of emerging

298、 competition from the likes of Amazon and DAZN.Although still expensive following an escalation in the cost of rights when BT entered the sports broadcasting market in 2012,programming costs have stayed broadly static for 68 Sky Sports,Sky Sports records highest-ever day of viewing thanks to Premier

299、 League,Formula One and ICC Mens T20 World Cup,26 October 2021.95.0%88.5%86.3%91.4%78.5%74.5%19.1%18.0%19.0%19.5%15.0%15.0%20112012201320142015201620172018201920202021Total TV-all programming(all individuals)Total TV-all programming (16-34s)Sports channels(all individuals)Sports channels(16-34s)Medi

300、a Nations 2022 43 the past few years.Although spending dropped steeply in 2020(-17%),caused by the widespread shutdown of sporting events and live broadcasts,it recovered(by 26%)in 2021.Spend on the single most valuable sports commodity,FA Premier League rights,will remain flat for three years from

301、the 2022-23 season,following an agreement between the Premier League and its existing rights holders,Sky,BT and Amazon,to roll over the preceding 4.7bn rights deal.The move,which required approval by the Government,was made amid uncertainty caused by Covid-19 and to ensure stable funding from rights

302、 for football clubs suffering financially as a result of the pandemic.Figure 33:UK sports programming spend by service/channel type:2016-2021 Source:Ofcom/broadcasters(multichannel and PSB);Ampere Analysis(subscription VoD).*Subscription VoD data excludes production costs and represents only rights

303、costs,which account for the majority of sports programming spend;multichannel and PSB data does include production costs.Figures are presented in nominal terms.BT Sport and Eurosport have combined for a renewed premium sports push Sustaining heavy investment in sports broadcasting can be challenging

304、 for operators.BT,seeking a renewed growth strategy for BT Sport,began speaking to companies interested in the asset in 2021.In May 2022,these discussions resulted in the formation of a strategic partnership with Warner Bros.Discovery,owner of Eurosport,to create a 50:50 joint venture combining the

305、two companies respective sports businesses.69 Retaining their separate brands initially,BT Sport and Eurosport will ultimately be brought together under a single brand.In the meantime,BT Sport subscribers will gain access to streaming service Discovery+,which includes access to Eurosport and its cov

306、erage of events including the Olympic Games,Grand Slam tennis(Australian Open and French Open)and cycling Grand Tours.Subscribers to the joint offering will also have access to most live Champions League football matches until at least 2027,with BT securing a new rights deal in July 2022.70 The join

307、t venture generates revenue for BT an initial 93m from Warner Bros.Discovery and up to approximately 540m if performance targets are met while spreading future rights and production 69 BT Newsroom,BT Group and Warner Bros.Discovery agree to form new premium sports joint venture for the UK and Irelan

308、d,12 May 2022.70 BT,BT remains home of UEFA Champions League,Europa League and Europa Conference League until 2027,1 July 2022.2,895m3,269m3,262m3,314m2,790m3,249m532m371m504m424m261m602m8m33m61m75m3,427m3,640m3,774m3,771m3,113m3,926m05001,0001,5002,0002,5003,0003,5004,000201620172018201920202021Spe

309、nd(m)Subscription VoD*PSBMultichannelMedia Nations 2022 44 costs.The deal was investigated by CMA,which considered whether it would create a“substantial lessening of competition”,but cleared it for completion in July 2022.The partnership between BT and Warner Bros.Discovery serves to strengthen the

310、two companies market position,as streaming players emerge as new competitors for sports rights.SVoD spending on UK sports rights remains small,at 75m in 2021(2%of total UK sports-rights spend),but various streaming players are increasing their foothold in sports.For instance,Amazon Prime Video has a

311、 presence in the market with a small amount of Premier League football rights,which it has held since 2019,as well as regular tennis coverage,including rights to the US Open.It will also,in a significant expansion of its football offering,begin airing weekly Champions League football,having secured

312、a share of the rights for the 2024-27 period.71 Meanwhile,sports specialist SVoD service DAZN,which has acquired mainstream sports rights in some major international markets but currently offers a niche,boxing-led service in the UK,had been one of the potential buyers for BT Sport,before talks broke

313、 down and BT entered into exclusive negotiations with Warner Bros.Discovery.The acquisition would have supported DAZNs ambitions to become a significant player in the UK sports landscape.Elsewhere,Apple TV+has made significant inroads into US sports with Major League Baseball Friday night matches an

314、d a global deal to show Major League Soccer.While these sports are less popular in the UK,the move signals the ambition and capability of another streaming service to compete for sports rights.Another new player is set to enter the sports streaming market in late 2022;Viaplay is preparing to launch

315、in the UK,having boosted its prospects with the acquisition of Premier Sports in July 2022.72 Multichannel spending rebounded from 2020,but remains lower than pre-pandemic Overall multichannel spending on sports and other genres recovered in 2021 compared to 2020,rising 8%to 4.8bn.However,spending w

316、as still down compared to 2019,at 4%less than that years total(just under 5bn).The three highest-spend genres all reduced over the two-year period;sports and entertainment fell by 2%and 3%respectively,while the larger drop in films spend was in part due to Disney ending its supply deal with Sky Cine

317、ma as part of the switch to the Disney+SVoD strategy.Only factual and news programming saw growth in 2021 compared to 2019.Factual spend is now at its highest level in ten years,at 112m,partially due to new Sky channel launches(Sky Documentaries and Sky Nature).Factual programming,with its lower per

318、-hour cost compared to entertainment and its fast turnaround to air,may be becoming a more viable option for multichannel schedules as they continue to recover from pandemic losses.71 Deadline,Amazon Prime Video Scores Rights To UK Champions League Football From 2024,Shared With BT,1 July 2022.72 Vi

319、aplay Group,Viaplay Group acquires Premier Sports and accelerates entry into UK,21 July 2022.Media Nations 2022 45 Figure 34:Multichannel programming spend by genre:2016-2021 Source:Ofcom/broadcasters.Figures are presented in nominal terms.Production sector trends Financial challenges amid productio

320、n boom The independent production sector has shown signs of recovery from the disruption caused by the pandemic.According to producers association Pact,producer revenues rose to 3.25bn in 2021;this was close to 2019 levels,when revenues totalled 3.33bn,and represents 7%growth compared to 2020.The se

321、ctor appears to be recovering at a slightly slower pace than,for instance,the advertising market(as discussed above),and there are signs of a slowdown in some of its composite parts.For instance,there was a further decline in international TV revenue,a segment that covers commissions to UK productio

322、n companies by foreign broadcasters and streaming services as well as licensing of finished programmes.This segment had been growing steadily since 2011,but its value declined by 13%in 2021,to 952m.Production has stayed slow as the Covid-19 recovery continues,and the conclusion or absence of some ma

323、jor UK productions,such as Netflixs big-budget series The Crown(which took an extended filming break after season four)has also been a factor.Meanwhile,UK TV revenues,missions and sales from UK broadcasters,rebounded by 30%to a record 2.2bn.2,895m3,269m3,262m3,314m2,790m3,249m904m930m918m955m938m930

324、m340m332m346m405m423m287m116m101m124m123m121m134m4,399m4,789m4,810m4,952m4,419m4,773m05001,0001,5002,0002,5003,0003,5004,0004,5005,000201620172018201920202021Spend(m)MusicLeisureChildrensFactualNewsMoviesEntertainmentSportMedia Nations 2022 46 Figure 35:Total production sector revenues by income sou

325、rce:2016-2021 Source:Pact Census 2021.Figures are presented in nominal terms.The broader production sector is facing a series of challenges.Although business from UK broadcasters is booming,there are still cost pressures.Broadcasts 2022 Indie Survey respondents continued to find that their productio

326、n budgets were being affected by Covid-19;92%of indies reported that their costs were higher,by between 10%and 25%of their pre-pandemic levels,even though restrictions on filming had been relaxed by the end of 2021.Close to half of respondents reported that their production costs were higher than in

327、 2020.73 National price inflation,Covid-19 prevention measures and a shortage of skilled crew pose significant challenges.Inflation is likely to lead to real-term price increases in everything from camera hire to catering.Hiring skilled crew has been a major issue since the pandemic,as freelancers h

328、ave left the industry and there is a slower pipeline of skilled new starters.74 Covid-19 management,including safety measures and increased backup should talent or crew fall ill,is also a significant cost.Having formerly been supported by the Governments Film&TV Production Restart Scheme,75 more of

329、these costs will now be shouldered by broadcasters and production companies.The result is additional price pressures on production companies,which could result in significant financial challenges for the smallest and most vulnerable of them.As well as potentially reducing the number of small compani

330、es in existence,this could accelerate the trend towards production company consolidation,with conglomerates of production companies or large broadcaster-content producers buying up struggling firms.Foreign and domestic investment boost production in the high-end TV sector More than two years since t

331、he beginning of the Covid-19 pandemic,the high-end TV76 production sector is more active than ever.A strong Q3 and Q4 bounce-back in 2020 led to a historic high across 73 Broadcast,Indie Survey 2022.74 The Guardian,Acute skills shortage threatens British film studios production boom,19 February 2022

332、.75 GOV.UK,Film&TV Production Restart Scheme.76 The BFI defines high-end TV as a drama,comedy or documentary programme,with episodes over 30 minutes in length and a budget over 1m per episode.1,503m1,552m1,592m1,685m1,391m1,897m276m276m291m258m296m299m468m549m704m988m835m671m257m253m258m263m254m281m

333、82m110m159m136m100m104m2,586m2,740m3,004m3,330m2,875m3,251m05001,0001,5002,0002,5003,0003,500201620172018201920202021Revenue(m)Non-TV revenueInternational-secondary rights and other TVInternational-primary commissionsUK-Secondary rights and other TVUK-Primary commissionsMedia Nations 2022 47 all types of high-end TV production in 2021.There were 211 productions,up from 116 in 2020 and the highest