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1、Media NationsUK 2023Published 3 August 2023 Contents Section Overview.3 TV and video consumption trends.6 Introduction:viewing to linear broadcast TV has continued its long-term decline.6 Total video viewing.6 Broadcast TV viewing.8 Most-watched programmes and events.12 Subscription video-on-demand.
2、15 TV viewer journeys.17 Social video.21 Audience attitudes and sentiments.25 TV and video industry trends.30 Introduction:the post-pandemic bounce-back has given way to new challenges across the industry.30 Industry revenues.30 Advertising market trends.32 Broadcasters output and spend.35 Online vi
3、deo market developments.40 Radio and audio.47 Industry trends:continued growth in local advertising and sponsorships fuels commercial radio.47 Revenues and spend.47 Availability and distribution of radio services.50 Market developments.52 Audience trends:overall reach of live radio stays high as lis
4、tening continues to shift to online 55 Audio listening.55 Live radio listening.58 Music streaming.64 Podcasts.66 Smart speakers and voice assistants.69 In-car listening.70 3 Overview This is Ofcoms sixth annual Media Nations report,a research report for industry,policymakers,academics and consumers.
5、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.As with previous editions,this r
6、eport 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,online video,radio and audio sector
7、s.We focus on evolving consumer behaviours and the key industry trends and dynamics shaping them,drawing on a range of relevant evidence.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
8、 2003).It also meets the requirements on Ofcom under Section 358 of the Communications Act 2003 to publish an annual factual and statistical report on the TV and radio sector.What we have found in brief Overall viewing of TV and video continued to fall in 2022,although broadcasters maintained their
9、share due in part to growth in viewing to their on-demand platforms The average amount of time spent watching TV and video content across all devices in 2022 was 4 hours 28 minutes per person per day.We estimate that this was about 12%lower than in 2021,when time spent was partly boosted by Covid-19
10、 restrictions.Broadcasters platforms linear TV channels,TV recordings and their on-demand services maintained their 60%share of total video viewing from 2021 to 2022,while use of broadcaster video-on-demand(BVoD)services continued to grow.There was a slowing in the take-up of subscription video-on-d
11、emand(SVoD)services such as Netflix and Disney+,and there are indications that SVoD viewing declined in 2022(along with most other forms of viewing as total viewing fell).Two-thirds(66%)of UK households reported using an SVoD service in Q1 2023,down from a peak of 68%in Q1 2022.YouTube and Facebook
12、remain the largest social video platforms in the UK,each reaching 91%of UK internet users aged 15+in Q1 2023.Use of TikTok remains high among users aged 15-24,at an hour per day,but take-up among children has slowed.Both reach and viewing of broadcast TV fell by significant margins in 2022,and the n
13、umber of broadcast programmes attracting mass audiences is in steep decline Broadcast TVs weekly reach fell from 83%in 2021 to 79%in 2022,the biggest-ever annual drop.The long-term decline in viewing of broadcast TV also continued it fell by 12%year on year and was 16%lower than pre-pandemic levels.
14、4 For the first time there is evidence of a significant decline in broadcast TV viewing among older audiences.Over-64s watched 8%less broadcast TV in 2022 than in 2021 and viewing was 6%lower than in 2019(the last pre-pandemic year).Older viewers are increasingly using streaming services,with take-u
15、p of Disney+among online over-64s rising from 7%in 2022 to 12%in 2023.Among younger audiences,broadcast TV viewing continued to decline rapidly,falling by 21%year on year among those aged 4-34.Although PSB channels still dominate the list of most-watched programmes,the number of transmissions achiev
16、ing mass audiences is in steep decline.In 2014,2,490 transmissions attracted more than four million TV viewers,but in 2022 there were only 1,184 a 52%drop.Transmissions attracting more than six million TV viewers fell by 82%over the same period,from 1,172 to 213.Following a strong 2021 rebound,reven
17、ues for commercial broadcasters fell slightly in 2022 in a difficult economic environment Total commercial TV and online video revenue increased by 4.5%in 2022 to 17.3bn,driven by online video services,whose market share rose to 36%,compared to 15%in 2017.Combined revenues for the commercial PSBs,di
18、gital multichannels and pay-TV platform operators declined by 1.8%to 11.1bn.There was a small decline in the combined revenues of ITV,Channel 4 and Channel 5,but at 2.3bn this was still the second-highest annual total since 2017.Mixed performances in different sectors of the advertising market resul
19、ted in overall advertising expenditure increasing by 8.8%to 34.8bn.This was primarily driven by online,which rose by 2.6bn(11.1%),accounting for nearly all the total 2.8bn increase.The TV advertising market suffered a small decline in 2022,with spend falling by 1.4%to 5.4bn,reflecting the difficult
20、economic environment and post-pandemic recalibration.A 15%increase in BVoD spend was not enough to offset a 4%decrease for linear TV.Broadcasters generally returned to full production schedules in 2022,with an increase in first-run PSB originations,although some lasting pandemic impacts remain PSBs
21、spend on first-run originations totalled 2.9bn in 2022,up 10.3%year on year and 14.2%higher than in 2019.First-run originated hours reached their highest total since 2016,partly because some programming,delayed by Covid-19,aired later than originally planned.Although output was up,the increase in sp
22、end reflected PSBs increased costs,including lingering Covid-related production protocol costs and inflationary pressure affecting production-related expenses.Overall,audiences continue to be broadly satisfied with public service broadcasting,and in a year of the FIFA World Cup,the Platinum Jubilee
23、and the state funeral of HM Queen Elizabeth II,there was an increase in 2022 in how PSBs were seen to deliver on broadcast events that bring the nation together for a shared viewing experience.5 The SVoD market is maturing,with household take-up seemingly approaching a plateau and providers seeking
24、to maintain revenue growth by evolving their business models The SVoD sector generated an estimated 3.3bn in 2022,up 21.5%year on year,driven by a combination of price rises and overall growth in subscriptions.But the indications are that overall SVoD household penetration has plateaued.In a bid to
25、sustain subscriber growth and boost customer retention,and to create a new source of revenue,some SVoD providers are incorporating advertising into their services.Netflixs new ad-supported tier appears to have reasonably strong early appeal,with 13%of UK online adults and teens surveyed in February
26、2023 claiming to take it.Streaming content investments remain high but are becoming more prudent,as SVoD providers shift their focus to profitability.As part of this,content licensing has re-emerged as a revenue opportunity,while Netflix is leading on password-sharing crackdowns in a bid to maximise
27、 the value of its users.Continued growth in local advertising and sponsorships is fuelling commercial radio,with AM switch-offs and a shift to DAB providing additional cost savings and greater access to audiences Radio advertising continues to grow,with commercial radio revenues up 3%in 2022,while d
28、igital audio ad spend rose 13%overall,driven by a 41%rise in podcast advertising.Despite a 4%decline in expenditure on physical formats,consumer spend on recorded music continues to grow,reaching almost 2bn in 2022,with subscriptions to the likes of Spotify and Apple Music accounting for 83%of the t
29、otal.The availability of AM medium wave(MW)radio is shrinking as broadcasters switch off ageing and power-hungry transmission equipment.But the number of services available on DAB has increased,with 654 services now available on local multiplexes.Overall reach of live radio remains high as listening
30、 continues to shift to online,while other forms of audio like music streaming and podcasts are more popular with younger listeners Live radio continues to be the most popular form of audio,with 88%of adults tuning in for an average of 20 hours each week,but under-35s are more likely to stream music
31、than tune in to radio.Music streaming accounts for half of young peoples total audio listening and a fifth for adults overall,but the reach of these services has plateaued in the last two years at 47%.Spotify continues to be the most popular platform for music streaming and podcasts,and it accounted
32、 for the majority of time spent music streaming in Q1 2023.Commercial radio has consolidated its position as market leader,taking a 51.4%share of listening in Q1 2023,five percentage points clear of the BBC.Radio listening continues to shift to online,with smart speakers now accounting for a fifth o
33、f in-home radio listening.Four in ten households have at least one smart speaker,although overall take-up appears to be plateauing.A third of adults listen to speech radio each week,and a fifth listen to podcasts.While most podcast listeners say that podcasts offer them something they cant get on ra
34、dio,the key factor is being able to listen whenever its convenient.6 TV and video consumption trends Introduction:viewing to linear broadcast TV has continued its long-term decline This section draws on data from research agencies measuring audience viewing,as well as Ofcoms own audience research an
35、d other third-party research,to evidence and provide commentary on continuing shifts in audiences TV and video viewing habits and preferences.Total video viewing Where our data comes from Our total video viewing analysis refers to audio-visual content both inside and outside the home.It uses data fr
36、om Barb Audiences Ltd(Barb)as much as possible see the Broadcast TV viewing section on page 8 for more information about Barbs methodology.Since November 2021,Barbs measurement extension has included more detail for some video-on-demand(VoD)platforms and video sharing platforms(VSPs),both across TV
37、sets and other devices connected to a homes WiFi network.Barb does not measure out-of-home viewing,so we estimate this based on IPA TouchPoints data and include it in our total video viewing figures.In some cases,direct year-on-year comparisons are not yet possible,since Barbs measurement enhancemen
38、t does not cover the whole of 2021.Therefore,we note directional trends where calculations are similar to 2021 or where there are other sources to back this up.Viewing broadcasters content accounts for the largest proportion of all time spent watching TV and video The average amount of time individu
39、als(aged 4+)spent watching any video content across all devices in 2022 was 4 hours 28 minutes per person per day.The TV set remains the most-used device for watching video content,accounting for 82%of total video viewing,with live broadcast TV making up the largest proportion of this time.Across al
40、l devices,live TV accounted for 44%of total video viewing in 2022,and,together with recorded playback and broadcaster video-on-demand(BVoD),all content from broadcasters accounted for 60%of total video viewing.We are confident that total video viewing decreased from 2021 to 2022.Taking the aforement
41、ioned methodology changes into consideration,we estimate that the decrease was about 12%(39 minutes per person per day)across all individuals 4+.We note that some Covid-19 restrictions were still in place for parts of 2021,which may have inflated TV and video consumption that year.7 Figure 1:Average
42、 daily minutes of video viewing across all devices,by all individuals:2022 Source:Ofcom estimates from Barb,IPA TouchPoints.Broadcaster content includes live TV,recorded playback and BVoD.Other TV set usage includes viewing to some SVoD/AVoD/VSP that cannot be definitively measured.This category als
43、o includes some unmeasured broadcast channels,non-catch-up DVD/DVR viewing,some EPG/menu browsing,viewing when the audio is muted,piracy,unmeasured box-sets/pay-per-view content,and non-video internet activity through a PC or other device connected to the TV.SVoD excludes viewing of NOW,which is cap
44、tured within BVoD along with Sky Go/Sky TV On Demand(these two services stream the same content,so measured viewing cannot be separated out).Broadcaster VoD and video sharing platforms were the only forms of viewing where time spent increased in 2022 Given the change in measurement methodology outli
45、ned above,we are unable to make many direct year-on-year comparisons apart from linear TV viewing.However,the figures we do have indicate that BVoD was one of the few forms of viewing to have increased,and this is corroborated by other sources.1 While this increase was not enough to compensate for t
46、he decrease in live TV and recorded playback viewing in absolute terms,we estimate that overall viewing of broadcaster content(i.e.across the three categories of live,recorded and on demand)remained stable at about 60%of total video viewing.While we do not have like-for-like comparisons for previous
47、 years,there are indications that SVoD viewing declined in 2022 and that it did not increase its share of total video viewing.2 This might have been due to increased viewing in 2021 because of the Covid-19-related restrictions that were in place at the beginning of the year,resulting in some people
48、being at home more.Another likely contributor is that overall SVoD penetration is reaching saturation and so increased time spent 1 IPA TouchPoints diary data shows that,comparing the 2023 SuperHub with the 2022 SuperHub,time spent watching BVoD services increased.Data from Ofcoms VoD Survey shows t
49、hat the number of people using BVoD services increased from 2022 to 2023,and the number watching at least once a day also increased.This includes results from the total sample(online and CATI).2 IPA TouchPoints diary data shows that comparing the 2023 SuperHub with the 2022 SuperHub,time spent watch
50、ing SVoD services decreased.Data from Ofcoms VoD Survey also shows a decrease in the number of SVoD users from 2022 to 2023,as well a decrease in the numbers claiming to use SVoD at least once a week and in those watching at least once a day.This includes results from the total sample(online and CAT
51、I).8 watching SVoD content can no longer be driven by increased take-up,as it has been in previous years.Video viewing varies greatly by age Time spent watching video is much lower for younger age groups and this is particularly the case for live TV viewing.Broadcasters accounted for 23%of childrens
52、 total video viewing in 2022,while 38%went to VSPs and 19%went to SVoD/AVoD services.By comparison,16-34-year-olds spent 28%of their video time with broadcasters and,of all the age groups,allocated the highest proportion to SVoD/AVoD(24%).At the other end of the spectrum,among adults aged 75+,live T
53、V alone accounted for 79%of their total video viewing,with all broadcaster content accounting for 91%,showing the enduring importance of linear TV to older audiences.Figure 2:Average daily minutes of video viewing,by age:2022 Source:Ofcom estimates from Barb,IPA TouchPoints.*Children figures exclude
54、 viewing to BVoD,VSPs and SVoD outside the home,whereas the other age groups include these.For context,among all adults(16+),1%of total viewing was outside the home.See notes for Figure 1 for more information about the Other TV set usage group.Broadcast TV viewing Where our data comes from Most of t
55、he viewing data comes from Barb Audiences Ltd(Barb),the industrys standard for understanding what people watch.This includes viewing of broadcast TV through TV sets and via devices attached to TV sets,such as computers,streaming devices and set-top boxes.It also includes some viewing for online stre
56、aming services and for devices not connected to the TV being watched at home via WiFi.Barb does not capture out-of-home viewing to SVoD services or video sharing platforms.Unless otherwise stated,Barb figures quoted for broadcast TV are for 28-day consolidated viewing on a TV set.Consolidated viewin
57、g includes viewing of programmes at the time they were broadcast(live viewing)as well as from recordings on digital video recorders(DVRs)and through online BVoD services(e.g.BBC iPlayer,ITVX and Sky Go/Sky TV On Demand)up to 28 days after the first broadcast(time-shifted).It does not include viewing
58、 to non-linear programming on BVoD services,including box-sets and archive content.5854233936196226361All individuals 4+Children 4-15*Adults 16-34Adults 75+DVD/Blu-ray/VHSVideo sharing platformsOther TV set usageSVoD/AVoDBVoDRecorded playbackLive TV 9 Broadcast TV vi
59、ewing continued its long-term decline,with viewing among over-64s now also decreasing steadily All individuals(4+)watched on average about 16%less broadcast TV between 2019(the most recent year in which viewing was not affected by the pandemic)and 2022.However,broadcast TV viewing has declined at a
60、much faster rate among younger viewers for example,decreasing by 47%over the same period for those aged 16-24.Older viewers,who had maintained relatively consistent average viewing times before the pandemic,have now started to follow these downwards trends.In 2022,viewers aged 65-74 watched about 10
61、%less broadcast TV year on year,and while the effects of the Covid-19 pandemic may have boosted viewing figures in 2021,2022s figure was 6%lower than 2019s.Likewise,broadcast TV viewing by those aged 75+was down 6%compared to 2021 and down 7%compared to 2019.3 Older viewers may be becoming more like
62、ly to take up streaming services alongside broadcast TV services.For example,data from Ofcoms VoD Survey indicates that the proportion of online over-64s using Disney+increased from 7%in early 2022 to 12%in early 2023;43%said they used Netflix and 37%said they used Amazon Prime Video(both stable com
63、pared to 2022).4 Figure 3:Average daily minutes of broadcast TV viewing,by age group:2012-2022 Source:Barb 28-day consolidated,TV sets only.Viewers aged 55-64 also watched 10%less broadcast TV in 2022 than in the previous year.However,45-54-year-olds showed the biggest year-on-year percentage decrea
64、se in broadcast TV viewing,from 3 hours 28 minutes in 2021 down to 3 hours in 2022(-13%).And,looking at longer-term trends,average viewing by adults aged 25-34 and 35-44 has decreased by just over two hours per day over the past ten years by approximately 63%and 53%respectively.For the first time,16
65、-24-year-olds watched less broadcast TV on average than children aged 4-15,although only by a couple of minutes(39 minutes compared to 41).Children and young adults under 25 have collectively decreased their average daily viewing by 73%since 2012.Evidence suggests that 16-24-year-olds are likely to
66、be tuning in to broadcast TV for only one or two programmes per day;they still have a level of interest in broadcast TV,mainly for genres such as sport and popular 3 Barb 28-day consolidated.4 Ofcom VoD Survey:A bespoke survey of online adults and teens which looks at VoD service use and VoD provide
67、r perceptions.Fieldwork conducted 22-28 February 2022 for 2022 and 22-27 February 2023 for 2023.39329300035040020000212022Average daily TV viewing minutes 75+65-7455-6445-54All individuals(4+)35-4425-3416-24Children(4-15)10 entertainm
68、ent/reality programming such as Love Island.BVoD services account for an ever-greater share of broadcasters viewing,but the majority is still to linear broadcast channels.Viewing to BVoD services such as BBC iPlayer has steadily increased over the last few years,growing from 4%of total broadcaster v
69、iewing in 2017 to 10%in 2022.5 As mentioned earlier,this growth has not been enough to compensate for the larger decline in viewing to broadcasters linear channels,and it is these linear channels which continue to account for the majority(90%)of broadcasters total viewing.That said,these proportions
70、 vary by broadcaster.Sky6 and the BBC capture a greater proportion of their audiences on BVoD(16%and 14%respectively),whereas Channel 5 remains predominantly linear-based,with 96%of all its viewing going to its broadcast linear channels and 4%to its BVoD service,My5.ITV relaunched and rebranded its
71、BVoD service from ITV Hub to ITVX in December 2022 to place a greater emphasis on streaming,but since Figure 4 covers 2022 as a whole it predominantly reflects ITV Hubs performance.Barb data for the first half of 2023 shows that BBC and ITV are continuing to adapt to changing viewing habits.ITVX acc
72、ounted for 10%of ITVs total viewing,up from the 7%figure across 2022.For context,over the same time periods,BBC iPlayer rose from 14%of the BBCs total viewing to 18%.See the TV and video industry trends section for further detail on BVoD strategies and recent industry developments in this sector.Fig
73、ure 4:Average daily minutes viewed of linear*and BVoD,by broadcaster:2022 Source:Barb as-viewed across TV sets and all devices using the home WiFi,all individuals(4+).*Linear refers to viewing across all the broadcast channels owned by each broadcaster(watched live and recorded within the year).BVoD
74、 includes all content watched via the on-demand services owned by each broadcaster including non-linear programming.Skys BVoD figure includes viewing to Skys SVoD service,NOW,because Barbs measurement is unable to separate this from Sky Go/Sky TV On Demand.5 Ofcom estimates using Barb and IPA TouchP
75、oints for 2022.The comparison with 2017 was with Ofcom estimates modelled from Barb,Comscore and IPA TouchPoints.6 Includes viewing to Skys SVoD service,NOW,because Barbs measurement is unable to separate this from Sky Go/Sky TV On Demand.29222800OthersSkyChannel 5Channel 4ITVB
76、BCAverage daily minutes per personLinear*BVoD%of broadcasters content that is BVoDBBC:14%ITV:7%Channel 4:12%Channel 5:4%Sky:16%Others:4%11 Broadcast TVs weekly reach fell steeply in 2022 BBC One was the only channel to reach more than half of individuals In addition to the decline in the amount of b
77、roadcast TV watched,the weekly reach7 of broadcast TV among all individuals has steadily declined,from 91%in 2017 to 79%in 2022.The four-percentage-point drop from 2021 to 2022 was the largest-ever annual decrease.The largest declines in weekly reach have been among 16-24-year-olds(from 82%in 2017 t
78、o 54%in 2022,with a six-percentage-point decrease last year),and children aged 4-15(from 87%in 2017 to 60%in 2022,down five percentage points year on year).Conversely,weekly reach among those aged 65+has remained consistently high;at 96%in 2022,there has been just a one-percentage-point decline over
79、 the last five years.As per the overall decline for broadcast TV,weekly reach of the five main PSB channels also fell in 2022.Although BBC One continues to have the highest weekly reach of all TV channels(58%),this is 12 percentage points lower than in 2017.Additionally,both BBC Two and the combined
80、 BBC portfolio channels8 have experienced a steady decline,reaching less than half of all individuals in 2022(at 44%and 43%respectively).Figure 5:Weekly reach,by TV channel:2017-2022 Source:Barb 28-day consolidated,all individuals(4+),TV sets only.Weekly reach is defined as the percentage of all ind
81、ividuals aged 4+watching 15 consecutive minutes or more in an average week.The PSBs have increased their share of broadcast TV viewing over the last few years In recent years,PSB channels the five main PSB channels and the BBC portfolio channels have increased their share of broadcast TV viewing acr
82、oss the UK,from 55%in 2019 to 58%in 2022,while commercial PSB portfolio channels(such as ITV2,E4,or 5Action)have held their share relatively steady over the same timeframe.As a result,multichannels(such as those from Sky,UKTV,7 Weekly reach defined as the percentage of all individuals aged 4+watchin
83、g 15 consecutive minutes or more in an average week.8 BBC portfolio channels include BBC Three,BBC Four,BBC News,CBBC,CBeebies,BBC Parliament and BBC Scotland.79%58%44%43%37%34%27%25%0%10%20%30%40%50%60%70%80%90%100%2002020212022Total TV viewingBBC OneITV1Commercial PSB portfolio channels
84、BBC TwoChannel 4Channel 5BBC portfolio channels 12 Paramount and Warner Bros.Discovery)have declined in terms of their share of broadcast TV,from 30%in 2019 to 28%in 2022.However,it should be noted that competition for peoples attention has increasingly arisen outside broadcast TV over the last 10 t
85、o 15 years,either from online-only streaming services,often with large content budgets(such as Netflix,Amazon Prime,and Disney+),video sharing and social media platforms(such as YouTube,Facebook and TikTok),or even gaming platforms.Figure 6:Broadcast viewing share,by channel group,for all individual
86、s(4+):2017-2022 Source:Barb 28-day consolidated,all individuals(4+),TV sets only.PSB+1 channels are included in their portfolio groups.PSB channels includes the five main PSB channels(excluding+1s)and all BBC channels.Most-watched programmes and events PSBs still dominate the list of most-watched pr
87、ogrammes,but the number with over 4 million viewers has halved since 2014 Despite the continuing decline of linear TV viewing,PSB channels still dominate the list of most-watched programmes,especially when covering events of national significance such as high-profile sport,royal events and entertain
88、ment shows.Our research into public service broadcasting9 highlights that audiences continue to say that PSBs deliver well on broadcast events that bring the nation together,and this is explored later in this section.However,the number of transmissions achieving mass audiences is in steep decline.In
89、 2014,2,490 broadcast transmissions attracted more than four million TV viewers,but in 2022 there were only 1,184 a 52%decline.The decline was across most genres,but news(down 72%,from 537 to 148 programmes)and soaps(down 42%,from 754 to 438 programmes),which are the most prominent genres in terms o
90、f large audience titles,contributed the most to this drop,followed by other dramas(non-soaps).These declines reflect changing news consumption habits,with fewer people watching the main early and late evening TV news bulletins,as well as a steady decline in viewing figures for the three most-watched
91、 soaps Coronation Street,EastEnders and Emmerdale.Overall,there was 9 Ofcoms Public Service Media Tracker 2022.54.655.255.055.556.757.715.415.215.014.113.913.929.929.730.030.429.028.00%10%20%30%40%50%60%70%80%90%100%2002020212022PSB channelsCommercial PSB portfolio channelsMultichannels 1
92、3 an even sharper drop(82%)in the number of broadcast transmissions generating more than six million TV viewers,from 1,172 in 2014 to 213 in 2022.An additional 48 programmes attracted more than four million TV viewers on SVoD/AVoD platforms in 2022,with Netflix accounting for the vast majority.This
93、relatively small number for SVoD/AVoD 4%of the broadcast TV figure illustrates how fragmented the viewing landscape has become,with the considerable levels of SVoD/AVoD viewing spread over the tens of thousands of episodes available across multiple platforms.10 Figure 7:Number of broadcast TV transm
94、issions with average audience above 4 million:2014-2022 Source:Barb 28-day consolidated,all individuals(4+),TV sets only.Transmissions with a six-minute minimum duration averaging at least 4 million viewers on broadcast TV.Includes+1 channels where applicable.No combination of simultaneous broadcast
95、s across channels.The FIFA World Cup,Platinum Jubilee and HM Queen Elizabeth II state funeral were the most-watched TV events of 2022 The list of most-watched programmes in 2022 was topped by coverage of Englands quarter-final against France in the FIFA World Cup in Qatar,with an average of 16.1 mil
96、lion viewers.The second most-watched programme was the coverage of one of Englands earlier World Cup matches,against Senegal,with 14.4 million viewers.11 Royal events also appeared among the list of most-watched programmes in 2022.The second part of BBC Ones coverage of the state funeral of HM Queen
97、 Elizabeth II was watched by an average of 13.2 million viewers and The Queens Platinum Jubilee averaged slightly less.An average of 12 million viewers watched the coronation of King Charles III on BBC One on 6 May 2023.12 10 According to Barbs programme viewing measurement of SVoD/AVoD services,whi
98、ch includes Netflix,Disney+,Amazon Prime,Paramount+and Apple TV+.11 Barb,28-day consolidated,including+1 channels where appropriate.Individuals 4+,all devices,in-home only.12 The second transmission between 10:18 and 13:03 that day.None of the figures referenced in this paragraph include combined vi
99、ewing across the various channels which covered the same individual events.05001,0001,5002,0002,5003,000200020202120224-6 million6-8 million8-10 millionOver 10 million 14 Figure 8:Top 10 most-watched programmes in the UK,highest performing episode per title:2022 Rank Title Chan
100、nel Date Share(%)Average audience(millions)1 FIFA World Cup:England vs France(QF)ITV1 10/12/2022 68.4 16.1 2 The State Funeral of HM Queen Elizabeth II(part 2)BBC One 19/09/2022 61.1 13.2 3 The Queens Platinum Jubilee BBC One 04/06/2022 66.2 13.2 4 Im a Celebrity.Get Me Out of Here!ITV1 06/11/2022 5
101、2.9 12.5 5 The Tourist BBC One 01/01/2022 42.1 11.4 6 Happy New Year Live!BBC One 31/12/2022 55.8 11.3 7 Womens Euro 2022:England vs Germany(F)BBC One 31/07/2022 64.1 11.2 8 Trigger Point ITV1 23/01/2022 43.8 10.9 9 Strictly Come Dancing BBC One 17/12/2022 55.0 10.7 10 The Thief,His Wife and The Can
102、oe ITV1 17/04/2022 41.9 10.1 Source:Barb 28-day consolidated including pre-broadcast,individuals(4+),all devices.Highest performing episode of each title only,so does not include the second most-watched FIFA World Cup match(England vs Senegal on BBC One),for example.Includes+1 channels where applica
103、ble.A few of the most-watched programmes in 2022 attracted proportionally larger audiences through BVoD services Even though BVoD services accounted for just 10%of viewing to broadcaster content overall,the proportion was higher for a few of the most-watched programmes of 2022(see Figure 9).For exam
104、ple,57%of all viewing to 2022s top drama series The Tourist came via BBC iPlayer;the series was released in full on iPlayer after the first broadcast on BBC One.Of all the viewing to BBC Ones The Queens Platinum Jubilee,12%was via iPlayer,on par with ITV1s Im A Celebrity Get Me Out Of Here!,which re
105、corded 12%of its viewership via BVoD.13 By comparison,ITV2s youth-skewing and therefore relatively highly online-skewing Love Island series 8 registered 39%of its audience via BVoD.Typically,younger audiences help drive BVoD viewing,and for these two ITV shows,BVoD viewing by those aged 16-34 accoun
106、ted for 24%and 46%of their totals respectively.13 ITVX replaced ITV Hub as ITVs BVoD service in December 2022.15 Figure 9:Proportion of viewing to selected programmes,linear and BVoD:2022 Source:Barb,28-day consolidated,all individuals(4+),all devices.*Linear refers to viewing across all the broadca
107、st channels owned by each broadcaster(watched live and recorded within 28 days).BVoD includes all content watched via the on-demand services owned by each broadcaster include non-linear programming.Subscription video-on-demand Take-up of SVoD services stalled in 2022 as economic pressure on househol
108、ds increased and growing competition took effect This section discusses changes in the take-up and consumption of SVoD services,including Netflix,Amazon Prime and Disney+.Further detail on industry developments within the SVoD sector is provided in the TV and video industry trends section of this re
109、port.The growth of SVoD household penetration slowed in 2022,and this continued into early 2023 as the rising cost of living,combined with SVoD service price rises,put greater strain on household budgets.As discussed in the TV and video industry trends section of this report,Netflix began to incorpo
110、rate ad-supported tiers and the competitive landscape continued to expand.Following the accelerated adoption of SVoD during the pandemic,when the number of UK households subscribing to at least one service reached 68%in Q1 2022,this figure has since come down slightly and plateaued at about two-thir
111、ds of households(66%,or 19 million)in Q1 2023.93%43%88%88%95%91%7%57%12%12%5%9%5.310.211.013.213.216.41618Coronation Street(ITV1)2022 averageThe Tourist(BBC One)series averageIm a Celebrity.Get Me Out of Here!(ITV1)2022 series averageThe Queens Platinum Jubilee(BBC One)4th JunThe State Fu
112、neral of HM Queen Elizabeth II Part 2(BBC One)19th SepFIFA World Cup QF England vs France(ITV1)10th DecAverage audience(millions)Linear*BVoD 16 Figure 10:SVoD penetration of UK households,by provider:Q1 2015 to Q1 2023 Source:Barb Establishment Survey.Includes paid-for subscriptions and free trials.
113、No data for Q2 2020,Q4 2020,and Q1 2021 due to the suspension of fieldwork due to the Covid-19 pandemic.Any other includes Hayu,Discovery+,Paramount+and BritBox.Netflix has maintained its position as the largest SVoD provider in the UK,with 59%of households subscribing.Disney+(25%)added an additiona
114、l 746,000 households between the first and fourth quarters of 2022,taking its subscription base up to 7.1 million households,but alongside Netflix and Amazon Prime Video,it fell in Q1 2023.Apple TV+bucked this trend and increased its volume of subscriber homes by two percentage points compared to th
115、e same quarter in 2022.With subscriptions to Apple TV+provided as a free trial with new Apple device purchases,18%of total Apple TV+subscriptions were free in Q1 2023(Q1 2022:14%),compared with just 2%of Netflix and 3%of Amazon Prime Video subscriptions.The average number of SVoD subscriptions per U
116、K household taking at least one SVoD service remained stable between Q1 2022 and Q1 2023,at just over two per household.14 According to research from The Insights Family,use of the leading SVoD platforms among children aged 3-12 continued to grow in Q1 2023.Netflix remained the most popular service
117、among children,with its quarterly reach increasing by four percentage points year on year to 66%.YouTube(including YouTube Kids)was still the second most popular online video service among this audience,with 45%of 3-12-year-olds stating they used the service.However,the proportion of children saying
118、 that they used the service declined by 14 percentage points.15 That said,in terms of levels of use,over half said they watched more YouTube than other platforms,rising from 47%to 51%year on year.16 Amazon Prime Video maintained its reach of 45%,but Amazon Kids+,a standalone service costing 6.99 per
119、 month,or 3.99 for existing Prime customers,achieved the biggest increase in reach of any service over the year,up from 0.2%in Q1 2022 to 8.5%in Q1 2023,having rebranded in the UK in April 2021 and rolling out to other platforms since then.Disney+continued to gain momentum,and its reach increased ye
120、ar on year by three percentage points,from 37%to 40%.BBC iPlayer 14 Barb Establishment Survey.Includes paid-for subscriptions and free trials.15 The Insights Family UK.Age 3-12.16 The Insights Family UK.Question:What have you watched more of this week?Answers to choose from:Netflix,YouTube,Amazon Pr
121、ime Video or normal TV.Age 3-12.1 January 31 March 2023:1,696.20%26%32%39%47%53%65%68%66%16%22%25%32%40%46%59%60%59%4%6%13%17%21%28%44%47%45%17%23%25%4%5%6%6%8%7%7%6%9%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 Q2 Q3 Q4 Q1
122、72002120222023Household penetrationAny SVoDNetflixAmazon PrimeVideoDisney+NOWApple TV+Any other 17(including iPlayer Kids)remained in the top five most-used services but had a year-on-year decline of six percentage points,down to 30%.17 Figure 11:Use of selected online video services,by 3
123、-12-year-olds:Q1 2021 Q1 2023 Source:The Insights Family UK.Age 3-12.Multi-choice question:Which of these TV platforms do you use?Q1:1 January-31 March.Base:2023:1696;2022:1721;2021:1670.TV viewer journeys Audiences have different viewer journeys from when they turn on the TV to when they turn it of
124、f,with variations in switching behaviour between different channels and services to find the content they want to watch.Ofcom commissioned TRP Research to carry out bespoke analysis of the Barb database to provide quantitative insight into these different viewer journeys during a portion of 2022.A s
125、ummary of our analysis is outlined below.Using Barbs new measurement extension we segmented 8,560 panellists into five distinct groups,with the main differentiating variable being the amount of linear TV watched,as illustrated in Figure 12 below.17 The Insights Family UK,Age 3-12,Q1:1 January 31 Mar
126、ch 2023.56%61%42%31%38%16%8%8%4%5%4%6%4%62%59%45%37%36%19%10%0%6%6%6%4%5%4%66%45%45%40%30%10%10%9%7%4%4%4%3%3%Q1 2021Q1 2022Q1 2023 18 Figure 12:Definitions and characteristics of the five segments Source:Ofcom/TRP.We then looked at how viewer journeys(or viewing sessions)varied by each of the segme
127、nts.A viewing session includes all the activity from when an individual turns on the TV to when they turn it off,and includes all switching between different services,such as linear TV channels,BVoD and SVoD services,and VSPs such as YouTube.An example of a viewer journey is shown below.In total we
128、analysed approximately 500,000 viewing sessions on the TV set,containing a total of 3.7 million switch events.18 Figure 13:Example of a viewer journey Source:Ofcom/TRP.18 Each switch(or channel/platform viewed)must last a minute or longer to be counted.The entire journey must exceed at least five mi
129、nutes to be included in the analysis.If a viewer watches the channel which is automatically on,when they switch on the TV for more than one minute,then this will be counted as their first switch.19 Linear Heavy viewers have longer TV viewing sessions and make more switches per session Linear Heavy v
130、iewers watch more than 5 hours of linear TV per day and are the largest segment,representing 30%of the total audience but making up more than half(52%)of all TV and AV viewing in the home via the TV set.This segment has a high proportion of viewers aged 55+(77%)as well as single-person households(30
131、%).They have on average three viewer journeys(viewing sessions from TV on to TV off)per day,compared to only two for Linear Light viewers.In addition,Linear Heavy viewers have longer viewer journey lengths(159 minutes per journey,versus 83 minutes for Linear Light).Linear Heavy viewers also have the
132、 highest volume of switches per journey(8)as they navigate between predominately linear channels looking for content that appeals,compared to only six switches per journey for Linear Light viewers.Linear Medium viewers are the second largest segment,representing 28%of the TV viewer universe.On avera
133、ge they watch one to two hours of TV per viewing session,three times a day,and make seven switches per session.Most of their viewing(62%)is to linear TV,while SVoD/AVoD services account for 14%of their viewing time.Linear Light viewers have the largest proportion of journeys starting with BVoD,but a
134、re more likely to select SVoD as a first destination Linear Light viewers watch 34 minutes of linear TV per viewing session.However,they spend the same amount of time on SVoD/AVoD services and unmatched viewing combined.19 They are potentially floating voters,some of whom may transition to becoming
135、Linear Rejectors.However,they also watch the most BVoD(11 minutes per viewing session)of all the segments.Very few journeys(2%among all individuals)are unique to BVoD i.e.BVoD is typically watched in conjunction with linear or SVoD/AVoD in the same viewing session(72%of BVoD viewing is in conjunctio
136、n with linear,while 24%is in conjunction with SVoD/AVoD).BVoD services represent only a small proportion of first destinations(5%among all individuals).Although Linear Light viewers are the most likely segment to begin their viewing session with BVoD,they are twice as likely to select SVoD/AVoD over
137、 BVoD.Linear Rejectors watch the most SVoD/AVoD in a typical journey and switch the least between channels and services;42%of all Linear Rejectors journeys are made up of only one or two switches,suggesting that SVoD/AVoD/VSPs are stickier and hold viewers attention for longer,perhaps due to feature
138、s such as play next episode and watch entire series.Linear Rejectors not only reject linear TV channels but also BVoD,with only a small amount of BVoD featuring in their viewer journeys(4 minutes,compared to 39 minutes of SVoD/AVoD and 17 minutes of VSPs watched in the home via the TV set).19 Unmatc
139、hed is unidentified viewing.It includes viewing of linear content via DVR 29+days following recording,watching DVDs,viewing of unreferenced channels,gaming through the TV(e.g.PlayStation/Xbox/Switch),as well as viewing of some SVoD/AVoD services or VSPs that cannot be measured definitively.20 Figure
140、 14:Viewing session length and switching behaviour,by segment,2022 Source:Ofcom/TRP.After BBC One and ITV1,Netflix is the next most popular first destination among all individuals Netflix is the third most popular first destination among all individuals aged 4+,behind BBC One and ITV1 but ahead of a
141、ll other linear channels and BVoD services.BBC One is the first destination20 for 20%of all individuals,followed by ITV1(13%)and Netflix(6%).For each of the five segments,the top destination channels are shown in Figure 15 as an index relative to all individuals(see the notes below the chart for mor
142、e detail).For example,Linear Heavy viewers are more likely to select ITV3 as a first destination compared to all individuals.Netflix is also the third most popular final destination among all individuals.Almost a quarter(23%)of all switches among Linear Rejectors are between Netflix and another SVoD
143、/AVoD service or a VSP such as YouTube,or vice versa.Children(aged 4-15)have shorter journeys with fewer switches compared to adults.This is driven by children having a higher proportion of viewer journeys unique to SVoD/AVoD or VSPs.Adults are more likely to select SVoD/AVoD as a first destination
144、if they are viewing with children(18%when viewing with children,6%without).20 If a viewer watches the channel that is automatically on when they switch on the TV for more than a minute,this will be counted as their first destination(or switch).21 Figure 15:First destinations indexed versus all indiv
145、iduals,by segment Source:Ofcom/TRP.Index=%of first destination for each segment versus%of first destination for all individuals aged 4+.A figure of 100 is an exact match compared to all individuals,whereas a figure of 200 means the channel is twice as likely to be a first destination compared to all
146、 individuals.Social video Young adults continue to spend an hour per day on TikTok Time spent per visitor to social video platforms covering all activities including viewing video,listening to audio,communicating,and scrolling was broadly stable across the major platforms year on year.UK visitors ag
147、ed 15+to Facebook(including Messenger)spent 37 minutes per day in March 2023(March 2022:34 minutes),and those to YouTube spent 23 minutes per day(March 2022:22 minutes).Facebook and YouTube continue to be the social video platforms with the highest reach,both with 91%(45.6 million)of UK online adult
148、s,and they remain the platforms accounting for the most time spent overall.While average time spent on TikTok was also relatively stable at 28 minutes per visitor per day(March 2022:29 minutes),the number of visitors grew to 45%(22.3 million)of UK internet users aged 15+,up from 36%(18 million)in Ma
149、rch 2022.Most of this growth was driven by visitors aged over 25.21 Among children,14%of 3-12-year-olds said they used TikTok in Q1 2023 a two-percentage-point decrease year on year while the figure for 13-14-year-olds was 40%(Q1 2022:39%).This suggests that growth in TikTok reach among young people
150、 has slowed.22 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 those platforms,while 15-24-year-old visitors to YouTube,TikTok,Instagram and Snapchat spent more time than older
151、 visitors on these platforms.In March 2023 5.2 million 15-24-year-olds visited TikTok,spending an average of 58 minutes per day;stable since March 2022(57 minutes).Similarly,5.4 million 15-24-year-olds visited Snapchat,spending an average of 52 minutes per day.By comparison,15-24-year-21 Ipsos,Ipsos
152、 iris Online Audience Measurement Service,1-31 March 2022 and 2023,adults aged 15+,UK.22 The Insights Family UK,Age 3-12,Q1 2022 and 2023:1 January 31 March.Question:Which of these sites and social networks do you use?22 olds who visited Facebook and Instagram spent 18 minutes and 25 minutes on thos
153、e platforms respectively.Figure 16:Time spent per day on selected social video platforms,by age:March 2023(minutes)Source:Ipsos,Ipsos iris Online Audience Measurement Service,1-31 March 2023,adults aged 15+,UK.TV set and smart display use not included.Custom-defined list by Ofcom.Time spent includes
154、 viewing video,communicating,scrolling and any other activity on the platform.Time spent per day represents average minutes per visitor per month divided by total days within month.Four in five UK teens and adults say they watch content on YouTube Ofcoms VoD Survey found that 81%of UK teens and adul
155、ts said that they watched content on YouTube across a three-month period.Videos up to 15 minutes long were the most popular form of content on YouTube(53%),followed by videos longer than 15 minutes(45%).23 The survey also found that 7%of teens and adults used Facebook Watch and 1%watched Snapchat Or
156、iginals.Snapchat announced the closure of its Snap Originals division in August 2022,and similarly,in May 2023,Meta announced that it would shut down its Facebook Watch Originals,as both companies sought to cut spend following a reduction in their advertising revenues.23 Ofcom VoD Survey 2023:A besp
157、oke survey of 2203 online adults and teens which looks at VoD service use and VoD provider perceptions.Fieldwork conducted 22-27 February 2023.Three-month period refers to December 2022 February 2023.372552585483920823444208Facebook&MessengerInstagramSnapc
158、hatTikTokTwitchYouTube15+15-2425-3435-4445-5455-6465+23 Figure 17:Forms of content viewed on YouTube,by UK teens and adults:December 2022 February 2023 Source:Ofcom VoD Survey 2023.Question:What form of content have you watched on YouTube in the past 3 months December 2022 February 2023 Base:all res
159、pondents.Fieldwork conducted 22-27 February 2023.I have not used YouTube in the past 3 months and Dont know not shown.Note:Full-length programmes or films does not include clips;YouTube videos longer than 15 minutes does not include full length programmes or films;and YouTube videos up to 15 minutes
160、 long does not include YouTube Shorts.A third of online adults in Britain report watching short-form content daily Short-form video(videos shorter than ten minutes)was watched daily by more than a third(38%)of online adults in Great Britain24 aged 15+,from late 2022 to early 2023,with viewing skewin
161、g more to younger audiences;68%of 15-24-year-olds claimed to watch short-form videos daily,compared to 14%of those aged 65+.YouTube remains the most popular short-form social video platform.It was used by 68%of internet users aged 15+for watching videos lasting less than ten minutes.Facebook(49%)and
162、 Instagram(31%)are also used by many for watching short-form video.The popularity of Instagram and TikTok skews heavily towards younger viewers.Instagram(63%)was second in use only to YouTube among 15-17-year-olds,followed by TikTok(50%).25 News and how-to content dominate short-form video viewing A
163、mong adults who watched short-form content at least once a month,the most popular genre was how-to videos(64%),followed by news(63%)and videos uploaded by the general public(59%).Preferences varied by age group.For example,videos uploaded by the general public were most popular among 15-34-year-olds
164、(72%),probably helped by the popularity of TikTok.How-to videos 24 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 other are for the UK as a whole(all four nations,including Northern Ireland).25 IPA Touch
165、Points 2023 SuperHub.Base:all GB adults aged 15+who have been online in past 12 months.20%45%53%36%32%57%63%60%28%68%65%40%23%56%58%37%23%49%52%35%20%44%59%32%15%33%44%30%11%25%36%32%6%19%36%35%Programmes or films(full lengthnot clips/highlights)YouTube videos longer than 15minutes(but not full leng
166、thprogrammes or films)YouTube videos up to 15minutes long(but not YouTubeShorts)YouTube Shorts13+13-1718-2425-3435-4445-5455-6465-7475+24 were most popular with 35-44-year-olds(68%)and women(66%),but news was the most-viewed content among all viewers aged 45+(65%).26 Figure 18:Genres viewed at least
167、 monthly by adults who watch short video content online Source:IPA TouchPoints 2023 SuperHub(September November 2022 and January March 2023).GB adults 15+.Base:all adults who watch short video or online content of less than ten minutes on any device at least monthly.Funny clips remain the most popul
168、ar type of content viewed on YouTube by children aged 3-12,with 49%claiming to view these,a seven-percentage-point increase year on year.YouTubers(such as Mr Beast and PewDiePie)were the second most popular category,at 44%,while music videos came in third at 36%.Unlike among older age groups,how-to
169、or tutorial videos were much less popular among 3-12-year-olds,with only 14%of them choosing to watch this content.27 Figure 19:Types of videos viewed on YouTube by 3-12-year-olds:Q1 2023 Source:The Insights Family UK.Age 3-12.Multi-choice question:What type of videos do you watch on YouTube?Q1:1 Ja
170、nuary 31 March 2023.Base:1696.26 IPA TouchPoints 2023 SuperHub.Base:all GB adults who watch short-form video or online content of less than ten minutes on any device at least monthly.27 The Insights Family UK,Age 3-12,Q1:1 January 31 March 2023.64%63%59%54%54%48%45%41%39%37%36%30%28%How to(e.g.recip
171、es,DIY)NewsVideos uploaded by the general publicVideos uploaded by friends/familyMusicVideos/vlogs uploaded by social media influencers followedVideos from comedy programmesVideos from entertainment programmesVideos/vlogs uploaded by companies followedSports including interviewsVideos from chat show
172、sVideos from drama programmesClips from video games49%44%36%28%26%15%15%14%9%8%7%6%6%5%4%2%25 Audience attitudes and sentiments Overall,audiences continue to be broadly satisfied with public service broadcasting When asked to think about PSB channels overall,about seven in ten(69%)28 PSB viewers29 s
173、aid they were satisfied with them.Since 2021 there has been a slight reduction in those stating they are dissatisfied with PSBs(down from 12%to 10%),driven largely by 16-34-year-olds(11%to 7%).Looking at demographic differences in 2022,those aged 75+(76%),in socio-economic group ABC1(73%),with white
174、 ethnic backgrounds(70%)and women(73%)were more likely to be satisfied with PSBs overall,compared to the UK total(69%).Figure 20:Satisfaction with PSBs overall and by age:2022 Source:Ofcoms Public Service Media Tracker 2022.Question 28:And now,if you think about ALL the public service broadcaster ch
175、annels combined,how satisfied are you that combined they provide the different elements asked about in the previous question?Base:All who have watched PSB channel/service in last six months:UK total(2,826),16-24(279),25-34(420),35-44(454),45-54(495),55-64(506),65-74(402),75+(270).Across the individu
176、al PSB channels,Channel 4(79%)continued to have the highest levels of satisfaction among its viewers,followed by ITV30(76%),BBC One(75%)and Channel 5(70%),all largely consistent with 2021 figures.In 2022,public service broadcasters were seen to bring the nation together Overall,PSB viewers continue
177、to say that PSBs deliver well across a range of attributes.Among those who had used a PSB service in the past six months,PSBs were seen to deliver well on programmes 28 Ofcoms Public Service Media Tracker 2022.29 PSB viewers are defined as all who have watched a PSB channel/service in the last six m
178、onths.30 At the time of fieldwork for the PSM Tracker,ITVs PSB channel was called ITV.It rebranded in late 2022 to ITV1.26 made for UK audiences(69%),a wide range of different types of programmes(67%)and programmes that help me understand what is going on in the world today(65%);findings consistent
179、with 2021.There was also an increase in how PSBs were seen to deliver on broadcast events that bring the nation together for a shared viewing experience compared to 2021(increasing from 61%to 65%).This may be linked to viewing of large-scale national events,such as the FIFA World Cup,the Platinum Ju
180、bilee and the state funeral of HM Queen Elizabeth II.31 Looking at individual broadcasters,the BBC and ITV TV channels continue to deliver well across PSB attributes,and attitudes are broadly stable year on year.However,viewers perceptions of the delivery of PSB attributes by Channel 4 and Channel 5
181、 TV channels improved compared to 2021.For example,viewers of Channel 4 TV channels were more likely to say that these delivered well in providing programmes which feature people from different backgrounds(increasing from 57%to 60%),programmes that appeals to a wide range of audiences(increasing fro
182、m 54%to 58%)and programmes that help me understand what is going on in the world(increasing from 51%to 56%),among others.Channel 5 TV channels were seen to deliver programmes that are different in their approach to other providers(increasing from 41%to 44%)and programmes I can watch and talk about w
183、ith people I know(increasing from 40%to 43%),among others.Figure 21:Proportion of PSB viewers who rated the delivery of different attributes of PSBs well(NET 7-10):2022 Source:Ofcoms Public Service Media Tracker 2022.Question 24.“Thinking about each broadcaster individually on a scale of 1 to 10,whe
184、re 1 means extremely badly and 10 means extremely well,how well or badly does it provide?”Base:All who have watched in last six months:BBC TV channels(2,666),ITV/STV/UTV and ITV channels(2,611),Channel 4 TV channels(2,599),Channel 5 TV channels(2,313).Please note,this is a selection of attributes,ra
185、ther than the top-rated attributes for each PSB.31 Barb.27 A lack of interest in the available content is the main reason people do not watch PSB channels Those who said they had not watched any PSB channels in the last six months were asked an open question about why they had not,for individual PSB
186、 channels.The top two reasons cited across all channels were the available programmes not being of interest,and not watching live TV and preferring to record/watch online or use other streaming services.People said:“I often cant find programmes that I want to watch.Its easier to find the things you
187、want on Netflix or Prime Video”(Man,28 years old ITV)“I dont watch normal TV and havent for quite some time.My go-to is Netflix and my daughter goes straight for YouTube”(Woman,31 years old Channel 5)BVoD is still most commonly used as a catch-up service A majority of UK audiences(74%)said it was im
188、portant that public service broadcasters provide catch up,on-demand or streaming services.Four in five(82%)of those who had viewed the service in the last six months said they were satisfied with BBC iPlayer,followed by 75%for All 4,73%for ITV Hub32 and 68%for My5.The most common reason given by BVo
189、D viewers33 for using services was to to catch up on programmes I missed on TV(66%),followed by being able to watch what I want,when I want(51%)and to watch specific programmes or box-sets(40%).A third(33%)said they used them because it doesnt require a subscription,a six-percentage-point increase f
190、rom 2021 to 2022.Although not a main reason cited for using BVoD services(18%),three-quarters of respondents(75%)said they were aware that they could watch live TV on these services.About half(55%)said they used this function on BBC iPlayer,41%saying the same for ITV Hub,33%for All 4 and 30%for My5.
191、Overall,each of the PSB VoDs were perceived as delivering well across the key attributes.Some of the highest performing statements included a wide range of different types of programmes,such as drama,comedy,entertainment or sport,programmes made for UK audiences,provides services that are easy to fi
192、nd my way around and easy to find something I want to watch.However,there were some differences between the services.32 At the time of fieldwork for the Public Service Media Tracker,Channel 4s BVoD service was called All 4 or All 4+and ITVs BVoD was ITV Hub or ITV Hub+.33 BVoD viewers are defined as
193、 those who have watched at least one BVoD service in the last six months.28 Figure 22:Proportion of BVoD viewers who rated the delivery of different attributes of BVoD services well(NET 7-10):2022 Source:Ofcoms Public Service Media Tracker 2022.Question 35.Thinking about each broadcaster TV catch-up
194、,on-demand or streaming service individually on a scale of 1 to 10,where 1 means extremely badly and 10 means extremely well,how well or badly does it provide?Base:All who have watched in last six months:BBC iPlayer(2,204),ITV Hub or ITV Hub+(1,738),All 4 or All 4+(1,475),My5(1,127).Please note,this
195、 is a selection of attributes,rather than the top-rated attributes for each BVoD service.Year on year,there have been improvements on several statements across the different services.For BBC iPlayer,this was particularly on statements related to diversity,such as programmes that feature people like
196、me(increasing from 49%to 56%)and programmes that feature people from different backgrounds(increasing from 62%to 66%).ITV Hub also saw improvements on these statements,as well as across statements such as programmes that help me understand what is going on in the world today(increasing from 52%to 57
197、%),programmes that are different in their approach to other providers(increasing from 45%to 51%)and programmes that are relevant to me(increasing from 57%to 62%).All 4 saw improvements on several statements,including programmes that feature people like me(increasing from 47%to 53%).Across all PSB Vo
198、D services,among those who had not watched them in the last six months,the main reasons given for not using the services were:not being interested in the content available on them;preferring to watch other services;and not having access to the service.For example,for BBC iPlayer,27%said they preferr
199、ed to watch other services,20%said they were not interested in the programmes available,and 15%said they didnt have access to the service.SVoD services main appeal is unique content,and ease of use More than half of viewers(53%)reported video-on-demand services as being the main way they watch progr
200、ammes and films.Ofcoms VoD Survey found that subscribers to SVoD services such as Netflix did so to watch exclusive content not available elsewhere(35%)and content different to what was broadcast on TV(33%).These reasons were echoed by Amazon Prime subscribers(26%and 25%respectively),who also cited
201、free parcel delivery as a major reason(48%).For Disney+the reasons included specific programmes only available on the platform(34%)and content not available anywhere else(30%).29 Among its viewers,34 Netflix was seen to deliver well on appeals to a wide range of different audiences(82%),provides ser
202、vices that are easy to find my way around(82%)and easy to find something I want to watch(81%).For Amazon Prime,the two top-rated statements mirrored those of Netflix:appeals to a wide range of different audiences(76%),followed by provides services that are easy to find my way around(74%)and the thir
203、d being a wide range of different types of programmes,such as drama,comedy,entertainment or sport(72%).Disney+and NOW also performed well across these statements.There are high levels of overall satisfaction for SVoD services;86%of viewers in the last six months say they are satisfied with Netflix,w
204、ith a similar proportion saying the same for Disney+(82%)and Amazon Prime Video(80%).While audiences overall are satisfied with individual SVoD provisions,some express dissatisfaction with elements of the current VoD landscape.Ofcoms VoD Survey found that about two-fifths agreed with the statements:
205、there are too many video-on-demand services(44%)and I find the amount of content available on video-on-demand services overwhelming(40%).A further 22%agreed they spent too much money subscribing to video-on-demand services.A slightly lower proportion of Netflix subscribers were happy with the cost o
206、f the service(54%)compared to Amazon Prime(60%)and Disney+(59%).Some viewers reported unsubscribing from SVoD services in the three months before the research took place(Netflix:5%,Amazon Prime:5%,Disney+:5%).35 The current cost-of-living crisis may be influencing these decisions;audiences who had u
207、nsubscribed from a service cited SVoD services increasing their prices(Netflix:24%),or being too expensive(Netflix:27%,Amazon Prime:31%,Disney+:23%),or not being used enough to warrant the expense any more(Amazon Prime:29%,Disney+:30%).While some audiences are unsubscribing,most(67%)said they would
208、miss video-on-demand services if they were no longer available.Audiences reluctance to give up these services,despite the cost,may explain the plateauing of subscriptions to SVoD services,reported earlier.34 Defined as those who have watched the service in the last six months.35 Ofcom VoD Survey 202
209、3.30 TV and video industry trends Introduction:the post-pandemic bounce-back has given way to new challenges across the industry Following record revenue growth in 2021,fortunes in 2022 were mixed;the audiovisual industry maintained some momentum in the early part of the year,before macro-economic f
210、actors combined to make trading conditions much more challenging.This growth in 2021 enabled broadcasters which were among the players worst affected by the pandemic in 2020 to mount a significant recovery,driven by renewed interest in TV advertising,while providers of subscription and ad-supported
211、online TV and video services surged during the extended periods of lockdown.However,the economic downturn that began in 2022 had a negative bearing on performances across the industry,leading to some re-evaluation of the growth ceiling for streaming services and tech companies more broadly.This sect
212、ion quantifies the revenue generated across different sectors of the TV and online video market,and examines some of the underlying industry trends,across advertising,broadcasting(PSB in particular)and online video.How we present financial data Financial data quoted in this report is primarily prese
213、nted in nominal terms,meaning that historical data has not been adjusted to account for inflation.For those who wish to see how inflation has historically affected the value of the industry,our interactive report enables financial data to be viewed in either nominal or real(CPI-adjusted)terms,with u
214、sers easily able to switch between the two.Industry revenues Commercial broadcasters suffered small revenue declines in a difficult economic environment Following their strong 2021 rebound from the heavy Covid-19-related disruption of the previous year,the commercial broadcast TV sector was unable t
215、o sustain revenue growth in 2022.Combined revenues for commercial PSBs,digital multichannels and pay-TV platform operators declined by 1.8%to 11.1bn.This was 2.6%higher than in 2019,the last pre-pandemic year,although high inflation in 2022 complicates nominal-terms comparisons with previous years.F
216、or the commercial PSB channels and many digital multichannels which rely primarily on income from advertising,the downturn in the UK economy in the second half of 2022 with a recession narrowly avoided was a key factor in their revenue declines,as growth in the first half of the year could not be ma
217、intained.ITV,Channel 4 and Channel 5 collectively generated 97m less than in 2021,but the 2.3bn annual total was still the second-highest since 2017.The difficult advertising market also affected the online video sector.Following its 80%surge in 2021,online video advertising achieved more modest,alt
218、hough still double-digit,revenue growth of 31 14.7%in 2022,increasing to 2.7bn.36 This exceeded revenue generated by the commercial PSBs and digital multichannel broadcasters,respectively,for the first time.SVoD,meanwhile,was the primary driver of overall audiovisual market growth in 2022,generating
219、 578m more than in 2021,or 3.3bn in total,with this increase driven more by price rises than customer growth,which has significantly slowed.Pay-TV platform operators,such as Sky,Virgin Media and BT,still make up the largest single sector of the audiovisual market,with their 2022 revenue of 6.5bn dow
220、n 1.1%year on year but still 186m above 2019 levels.The net result of these sectors respective performances was that total commercial TV and online video revenue increased by 4.5%in 2022 to 17.3bn,with online video services,across subscription,ad-supported and transactional,increasing their market s
221、hare to 36%,compared to 15%in 2017.Figure 23:Commercial TV broadcast and online revenue:2017-2022 Source:Ofcom/broadcasters(broadcast data),Ampere Analysis and IAB UK PwC Digital Adspend Study(online data).Figures are presented in nominal terms and replace previous Ofcom revenue data for the TV and
222、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 subscription VoD.Platform operators data prior to 2019 is not comparable to subsequent years,owing to a ch
223、ange in methodology in Sky reporting coinciding with its change in ownership to Comcast.Digital multichannels include non-PSB channels and commercial PSB portfolio channels.Commercial PSB channels comprise the following:ITV,STV,ITV Breakfast,Channel 4,Channel 5 and S4C.Online video advertising does
224、not include outstream video advertising delivered on non-video services;the 2022 figure has been modelled,based on the IAB UK historical data,by Ofcom to be comparable with the definition used in previous years.Totals may not equal the sum of the components due to rounding.36 This figure excludes ou
225、tstream video advertising delivered on non-video services,in line with the definition of online video advertising used in previous years.Analysis of the market using IABs updated definitions and segmentation can be found in the advertising market trends section of this section.TotalYoY2021-2022CAGR
226、2017-20224.5%6.2%8.1%0.4%14.7%32.2%21.5%26.9%-4.1%0.4%-1.3%-1.2%-1.1%1.0%6.15bn6.34bn6.28bn6.22bn6.54bn6.47bn2.52bn2.47bn2.35bn2.07bn2.40bn2.37bn2.25bn2.25bn2.21bn1.95bn2.39bn2.29bn0.99bn1.25bn1.66bn2.11bn2.68bn3.26bn0.66bn0.83bn1.12bn1.28bn2.32bn2.66bn0.30bn0.33bn0.35bn0.40bn0.28bn0.30bn12.86bn13.4
227、7bn13.96bn14.03bn16.60bn17.34bn02468002020212022Revenue(bn)Digital transactionalOnline video advertisingSubscription VoDCommericial PSBsDigital multichannelsPlatform operatorsGrowth 32 Advertising market trends A tale of two halves in 2022,as early growth turned to contraction
228、There were mixed performances in the different sectors of the advertising market,and these also varied significantly over the course of the year,ultimately resulting in overall advertising expenditure increasing by 8.8%in 2022,to 34.8bn.This was primarily driven by online,which rose by 11.1%and acco
229、unted for the vast majority of the 2.8bn increase.Other contributors to the growth on a much smaller scale were out-of-home(+280m),cinema(+127m),radio(+15m),and direct mail(+13m),while TV(-189m),newspapers(-40m)and magazines(-9m)all declined.However,the annual figures do not tell the full story.Stro
230、ng growth(26%)in the first half of the year was followed by a market contraction of 5.7%in the second half,in part reflecting a particularly strong H2 2021,but also the pressures of economic stagnation and high inflation taking their toll on advertising budgets.Online ad spend followed this trend,gr
231、owing by 30.1%in H1 and declining by 5.4%in H2,with spend on social media falling for the first time.With the macro-economic environment remaining challenging in 2023,the outlook according to the Advertising Association/WARC is for minimal growth this year,before an expected recovery in 2024.Figure
232、24:UK advertising expenditure:2017-2022 Source:AA/WARC Advertising Expenditure report.Figures are presented in nominal terms.Online is total internet as defined by IAB UK.All digital ad expenditure(e.g.broadcaster video advertising,publisher display and classifieds)has been removed from TV,newspaper
233、s and magazines to avoid double-counting between these categories and online.TV includes spot advertising,sponsorship and placement.TV weathers the storm,as growth for broadcaster VoD continues Following its resurgence in 2021,the TV advertising market,including broadcaster video-on-demand(BVoD),suf
234、fered a small decline in 2022,with expenditure falling by 1.4%to 5.38bn,reflecting the difficult economic environment,as well as a recalibration of the market following the pandemics skewing of typical trends.Advertising revenue generated by BVoD services increased by 15.4%to 4.81bn4.72bn4.48bn3.88b
235、n4.73bn4.54bn11.79bn13.60bn15.66bn16.70bn23.50bn26.12bn1.14bn1.21bn1.30bn0.70bn0.90bn1.18bn1.70bn1.55bn1.38bn0.91bn1.08bn1.09bn1.44bn1.28bn1.16bn0.73bn0.74bn0.70bn0.64bn0.67bn0.64bn0.53bn0.65bn0.66bn22.29bn23.73bn25.32bn23.76bn31.96bn34.77bn055402002020212022Expenditure(bn)Cine
236、maRadioMagazines(print)Newspapers(print)Direct mailOut of homeOnlineTV(excluding VoD)33 845m,but this was not enough to compensate for a 4%fall in linear TV ad revenue,resulting in the small overall decline in total TV advertising.The advertising sectors that recorded the biggest reductions in their
237、 TV ad spend were leisure equipment(-49m),drink(-45m),business and industrial(-38m)and motor vehicles(-36m).Declines for these and other sectors were partially offset by increases in spend for,most notably,travel and transport(+162m),as well as telecoms(+42m)and cosmetics and personal care(+34m),amo
238、ng other sectors.Although TV ad spend remains higher than its pre-2021 peak,its share of display advertising has fallen to 28%,having been consistently falling since peaking at 45%in 2013.This is primarily a reflection of the continued growth of online advertising including video and other forms of
239、online display,such as banner advertising in contrast to TVs smaller year-to-year fluctuations over the past decade.Online video advertising on non-broadcaster services is now on par with total TV ad spend Total online video advertising expenditure(instream and outstream),excluding that spent on BVo
240、D,increased by 10.8%in 2022 to reach 5.25bn,a figure comparable to the amount spent on TV,as shown in Figure 25 below.Some of this competes with TV budgets,but for big brands in particular online is not a substitute for TVs significant audience reach,its credibility as a trusted medium that infers q
241、uality,and its high attention levels and completion rates.A significant proportion of online video advertising revenues comes from smaller advertisers who do not usually buy TV advertising spots;however,new addressable TV ad formats are slowly making TV more accessible to them.In 2022,959 advertiser
242、s used TV for the first time,with 1,268 having done so in 2021.37 Growth for BVoD comes as advertisers increasingly include it in their campaigns to extend their reach beyond using linear TV alone,particularly to target younger audiences(16-34-year-olds accounted for 24%of BVoD viewing in 2022 and j
243、ust 9%of linear TV viewing)and those in higher socio-economic groups(ABC1s accounted for 62%of BVoD viewing compared to 51%of linear).38 However,as highlighted in the previous section,younger audiences spend a greater proportion of their viewing time on social video services,such as YouTube and TikT
244、ok,than they do on TV and BVoD,a dynamic that is helping to drive continued growth in non-BVoD online video advertising,albeit at a slower rate than in 2022.This includes both instream and outstream/social in-feed advertising,39 the latter being less substitutive to TV spend than other online video
245、formats.37 ThinkBox/PwC:Nielsen Ad Intel/Sky.New-to-TV advertisers are defined as those not advertising on TV in the preceding five years.38 Barb,as-viewed.39 IAB UK defines instream video advertising as a form of display advertising that is streamed media attached to video content.Online video adve
246、rtising will only launch when a piece of online video content is viewed.It is specific to the content against which it is attached and not the static web pages that the content may be launched from.Outstream refers to standalone video ads that sit outside a stream of video content,including ads that
247、 appear on social media feeds,as well as standalone video ads on news websites.34 Figure 25:UK TV and online video advertising expenditure:2017-2022 Source:AA/WARC Expenditure Report;IAB UK PwC Digital Adspend Study 2022.Figures are presented in nominal terms.Instream refers to streamed media attach
248、ed to video content.This can include pre-roll,mid-roll and post-roll formats.Online video advertising will only launch when a piece of online video content is viewed.It is specific to the content against which it is attached and not the static web pages that the content may be launched from.Outstrea
249、m refers to standalone video ads that sit outside a stream of video content,including ads that appear on social media feeds,as well as standalone video ads on news websites.IAB UKs definition of instream was revised in 2022 due to the evolution of social video advertising formats.Where advertising i
250、s inserted between short-form,scrollable content,such as reels,and is dependent on the preceding or following video content,it is included in the instream category.YouTube is positioning itself to compete more effectively for traditional TV ad spend,building on a growing presence on TV screens.Viewi
251、ng of the service is set to be measured alongside broadcasters programming by UK ratings agency Barb,which is seeking to include fit for TV content on video sharing platforms in its reporting.Separately,YouTube announced a 30-second unskippable ad format for its connected TV offering in May 2023.Inc
252、reased viewing of YouTube and other non-broadcaster VoD on connected TV,combined with more TV-like advertising opportunities on these services,are likely to make advertisers more comfortable allocating ad spend to them.According to IAB UK,connected TV advertising generated 229m in 2022.SVoD services
253、 are likely to emerge in the coming years as a fledgling contributor to online video advertising.Most of them,as discussed later in this section,have either already introduced ads for some users or are in the process of rolling out ad-supported tiers.Their contribution to spend is likely to be limit
254、ed,at least in the short term,due to the low reach of SVoD ad tiers although roll-outs are becoming more aggressive,with Netflix removing its cheapest ad-free tier in the UK in July 2023 and due to the low ad loads for customers who are exposed to advertising on the services.4.81bn4.72bn4.48bn3.88bn
255、4.73bn4.54bn0.30bn0.39bn0.45bn0.52bn0.73bn0.85bn0.32bn0.40bn0.66bn0.76bn1.50bn4.56bn0.94bn1.35bn1.77bn2.18bn3.24bn0.46bn0.23bn5.11bn1.26bn5.11bn1.74bn4.93bn2.43bn4.40bn2.94bn5.46bn4.74bn5.38bn5.25bn2002020212022TV(excluding BVoD)BVoDInstream online video(excluding BVoD)Outstream/otherConn
256、ected TV2002020212022 35 Broadcasters output and spend Normal operations largely resumed in 2022 following the extended pandemic disruption,though some lasting impacts remain With the year largely free of Covid-19-related restrictions and disruption,broadcasters were able to return to ful
257、l production schedules in 2022.This was reflected in growth,both in spend and the number of hours of first-run PSB originations.Spend totalled 2.9bn,up 10.3%year on year,and 14.2%greater than in 2019.This reflected a high level of output at 32,712,first-run originated hours were their highest since
258、2016 but it also reflected increased costs for some genres due to increased competition for them,lingering Covid-related production protocol costs,and inflationary pressure affecting production-related expenses on staffing and travel.Growth in spend was driven by an annual increase by each of the fi
259、ve main PSB channels apart from BBC One,which had a marginal decline(-0.7%)following a significant increase in 2021.The BBC portfolio of channels was also a significant contributor to overall growth;the 73%increase in spend on these channels was largely driven by the relaunch of BBC Three as a linea
260、r channel in February 2022.The overall increase in first-run originated hours which was partly because some programming,delayed by Covid-19,aired later than originally planned was more concentrated,driven by BBC Two,the BBC portfolio channels and Channel 5.There were small decreases for the other ch
261、annels,with those for ITV(-0.5%)and Channel 4(-2%)reflecting the higher cost per hour for certain genres,and therefore the reduced output the broadcasters were able to deliver,despite increasing their levels of investment.The extent to which higher costs will be sustained remains unclear,with concer
262、ns in the industry that they are unlikely to fall from their current highs even when inflation stabilises.Figure 26:PSB first-run UK-originated spend,by channel:2017-2022 Source:Ofcom/broadcasters.Figures are presented in nominal terms.730m815m764m687m914m908m292m285m283m202m241m300m137m147m146m124m
263、131m227m728m755m790m633m784m837m440m440m432m329m427m479m133m143m105m99m114m130m2,459m2,586m2,522m2,073m2,610m2,880m05001,0001,5002,0002,5003,0002002020212022Spend(m)Channel 5Channel 4ITVBBC PortfolioBBC TwoBBC One 36 Figure 27:PSB first-run UK-originated hours,by channel:2012-2022 Source:
264、Ofcom/broadcasters.Figures exclude BBC ALBA and programming for the nations and regions.Sports and drama were among the genres receiving increased investment,boosting volumes of programming for each There were several major sporting events in 2022,including the FIFA World Cup,the Womens Euros and th
265、e Winter Olympics.These events,together with a high volume of other,more regular sport on TV,resulted in PSBs first-run originated hours of sports programming reaching their highest level in the past decade,at 3,367 hours.This represented 10%of all first-run originated hours on PSB channels;2014 was
266、 the last year in which sports reached this proportion.Spend on sports in 2022 totalled 614m,which was up 4%on 2021 and 26%higher than in 2018,the last year to feature both a football World Cup and the Winter Olympics.The volume of first-run originated drama programming on PSB channels,meanwhile,rea
267、ched its highest level since 2016,at 407 hours,illustrating the increasing value of this genre to broadcasters.Spend rose to 339m in 2022,a year-on-year increase of 47%,and 16.6%higher than in 2019.Another genre with a notable increase in first-run originated hours was factual entertainment.Here,out
268、put has been consistently rising;the 1,749 hours in 2022 were the highest for a decade,up 10.1%year-on-year and 57%higher than in 2019.The genres share of first-run originated PSB hours increased to 5%,compared to an average 3%between 2012 and 2020.5,5616,3976,6666,5056,7186,5426,6476,4946,3636,5336
269、,4803,4572,8002,9633,1903,1403,1843,2483,1002,5922,9493,2245,1335,1084,9115,0565,1125,1005,0685,1225,0155,3315,3053,3052,9412,9652,7893,0792,7212,6172,4732,0722,8272,7711,5941,5711,7021,7732,0612,0642,0831,9651,9332,1202,48313,30413,30913,28412,66112,87812,15912,52512,37711,82511,86612,44932,35432,1
270、2632,49131,97432,98831,77032,18831,53129,80031,62632,71205,00010,00015,00020,00025,00030,00035,00020000212022HoursBBC PortfolioChannel 5Channel 4ITVBBC TwoBBC One 37 Figure 28:PSB first-run UK-originated spend,by genre:2017-2022 Source:Ofcom/broadcasters.Figures are
271、presented in nominal terms.Figure 29:Genre mix of PSB first-run UK-originated hours:2012-2022 Source:Ofcom/broadcasters.Figures exclude BBC ALBA and programming for the nations and regions.Childrens first-run originated hours on PSB channels have fallen to their lowest levels In contrast to the reco
272、rd highs for some genres,outlined above,the volume of first-run UK originated childrens programming on PSB channels dropped to its lowest level in 2022,down to 518 hours compared to 640 in 2019.First-run acquisitions have not compensated for the general decline,with total first-run childrens hours i
273、n 2022,2021 and 2020 the three lowest figures over the past decade.Levels of investment in the genre have also been falling over the long term.Although 2022 spend(80m)was up on 2021(+9.6%),it was lower than in 2019(-2.4%)and lower than in any of the years between 2012 and 2016.Analysis of spend over
274、 this longer period in real terms(i.e.accounting for inflation)illustrates the long-term decline more clearly,as shown in Figure 30 below.353m488m415m257m591m614m411m414m374m353m405m440m318m336m353m341m343m376m307m261m291m248m231m339m248m262m274m200m284m272m188m187m198m172m224m233m180m164m163m147m17
275、8m188m198m188m204m164m132m172m2,459m2,586m2,522m2,073m2,610m2,880m05001,0001,5002,0002,5003,0002002020212022Spend(m)ReligionðicsEducationFeature filmsArts&classical musicChildrensComedySpecialist factualGeneral factualFactual entertainmentSoapsDramaNews¤t affairsEntertainmentSpor
276、ts57%58%57%58%58%59%59%61%64%59%58%9%8%10%8%9%7%9%7%5%9%10%11%10%10%10%10%11%10%10%11%11%10%8%8%8%8%7%7%7%6%6%7%6%3%3%3%3%4%3%3%4%4%5%5%4%4%4%5%4%4%4%5%4%3%4%20000212022Feature filmsEducationReligionðicsComedyArts&classical musicDramaChildrensSoapsSpecialist factu
277、alFactual entertainmentEntertainmentGeneral factualSportsNews¤t affairs 38 Figure 30:PSB childrens programming first-run hours and real terms spend:2012-2022 Source:Ofcom/broadcasters.Spend figures are presented in real terms(CPI-adjusted to account for inflation).Funding of UK childrens progr
278、amming more broadly was affected by the closure of the BFI Young Audiences Content Fund in January 2022,following the conclusion of the three-year term for this pilot scheme.The fund was worth a total of 44m and was aimed at creating opportunities for production in the UK so that innovative content
279、that otherwise would not be made could be created by new and diverse voices.It supported the creation of quality,distinctive public service content for under-18s and 144 development projects in total between 2019 and 2022,including PSB childrens productions such as Makeaway Takeaway and The Sound Co
280、llector on CITV.ITVs childrens channel CITV has historically been an important source of childrens content from the PSBs outside their main channels.However,in March 2023,ITV announced plans to close CITV and move most of its childrens content online,to a dedicated childrens section of its ITVX stre
281、aming service.This strategic decision is in response to declining linear viewing by children,evidenced by Ofcom analysis in the previous section of this report.ITVX Kids was launched in July 2023,with a different user experience to the main streaming service,accessible via profiles specifically desi
282、gned for child users.ITV has stated that ITVX Kids will offer 1,000 hours of programming,although it is not yet clear how much of this will be new UK-originated content.Following the launch,the closure of CITV is scheduled to take place in autumn 2023.However,some childrens programmes will remain on
283、 the linear ITV portfolio,via an existing childrens programming block on ITVBe that will continue,and a new early-morning childrens block on ITV2 that is set to air from September.ITVs move to shift its childrens offering from linear to online follows an announcement by the BBC to execute a similar
284、strategy.In 2022,as part of its broader digital-first strategy,the BBC signalled its intentions to move its main childrens channel,CBBC,online.No final date for CBBCs linear switch-off has been announced,but the BBC has indicated that it will not take place before mid-2025 at the earliest.Like ITV,t
285、he BBC has plans to maintain some childrens programmes on linear,with the CBeebies channel continuing to air.The BBC has also adapted its approach to the provision of childrens programming:in 2022,it asked Ofcom for a modest decrease in the originations quota on CBBC,in order to invest in original U
286、K animations while increasing animation acquisitions in the short term,a request that was approved by Ofcom in May 2022.69366667258067357566464052052554364296265302110m114m113m102m108m89m95m93m68m80m80m020406080006008001,0001,20020000
287、212022Spend(m)HoursFirst-run UK originated hoursFirst-run acquired hoursTotal first-run spend(real terms)39 Third-party spend reached its highest levels in 2022,with investment in drama driving growth While PSBs direct spend on first-run UK-originated content increased in 2022,as outlined above,so t
288、oo did contributions from other sources.Third-party spend which comes from sources such as co-productions with other commissioners,government high-end TV tax credit,deficit financing and advances from independent producers reached its highest annual total,at 680m.This was up 41%compared to 2021s 483
289、m,and represented 19%of total PSB origination spend,up from 9%in 2014.The increase in third-party spend was driven by drama,which accounted for 69%of total third-party investment,reflecting the continued interest in high-end scripted programming as a focus of co-productions.Meanwhile,an increase in
290、third-party childrens spend represented a more positive development for funding of the genre than some of those outlined in the previous section.This increase made childrens the second-largest contributor to third-party spend,accounting for 10%of it,marginally ahead of factual.Figure 31:PSB spend on
291、 first-run originations,by direct spend and third-party contributions:2017-2022 Source:Ofcom/broadcasters.Third-party spend includes funding from sources such as co-productions,high-end TV tax credit,and distributor advances.Figures are presented in nominal terms.Spend figures exclude BBC ALBA and p
292、rogramming for the nations and regions.Production sector trends Production sector revenues reached a new high of 3.8bn in 2022,according to the latest figures from Pact and Oliver&Ohlbaum Associates,which are available in our interactive report.We have commissioned an in-depth study to further our u
293、nderstanding of the production sector,which will be published later in 2023.2,459m2,586m2,522m2,073m2,610m2,880m410m459m549m482m483m680m2,869m3,045m3,071m2,555m3,093m3,560m2002020212022Third-party spendDirect spend 40 Increased competition in news broadcasting saw the genre buck the trend
294、 of declines in multichannel programming spend Content spending trends on multichannel TV did not follow those of PSB in 2022,with collective spend across key genres(see Figure 32 below)declining by 5%year on year to 4.5bn.As a result,spend remains below the 2019 level,when it was close to 5bn.There
295、 were declines for all the key genres except news.Provision of news on multichannel TV has become more competitive in recent years;new market entrants have contributed to multichannel news programming spend reaching its highest levels,at 189m in 2022,up 42%on the previous high of 134m in 2021.Figure
296、 32:Multichannel programming spend for selected key genres:2017-2022 Source:Ofcom/broadcasters.Figures are presented in nominal terms.Online video market developments Subscription video-on-demand Although revenue growth was healthy in 2022,the economics of streaming are under pressure While SVoD ser
297、vices have collectively achieved significant success,both in the UK and globally,there are increasing signs that the market is entering a phase of maturity that poses challenges for future growth and sustainability.One of these signs is the overall household take-up of SVoD services appearing to app
298、roach a plateau(discussed in the previous section).But the slowdown in customer growth has not yet had an adverse impact on revenue growth,which remained strong in 2022.The SVoD sector generated an estimated 3.3bn in the year,up 21.5%year on year.40 This was driven by a combination of price 40 Amper
299、e Analysis.These figures exclude any revenue generated by advertising on SVoD services,i.e.they are subscription revenue only.This is received either directly from subscribers,or through agreements with bundling partners,such as pay-TV providers.3,269m3,262m3,314m2,790m3,249m3,092m930m918m955m938m93
300、0m875m332m346m405m423m287m279m101m124m123m121m134m189m4,789m4,810m4,952m4,419m4,773m4,536m05001,0001,5002,0002,5003,0003,5004,0004,5005,0002002020212022Spend(m)MusicLeisureChildrensFactualNewsFilmsEntertainmentSport 41 rises,notably by Netflix in March 2022 and Amazon in September 2022,41
301、 and overall growth in subscriptions,which increased from 39.7 million in Q4 2021 to 42.2 million in Q4 2022.42 Netflix accounted for half of all SVoD revenue in 2022,with the four largest services(Netflix,Amazon Prime Video,Disney+and NOW)taking a 93%market share.Figure 33:UK SVoD revenues,by servi
302、ce:2017-2022 Source:Ampere Analysis.Figures are presented in nominal terms.Subscription revenue only.Others include(in years in which the services were available)Apple TV+,Discovery+,BritBox,Crunchyroll,Paramount+and ITV Hub+/ITVX.Amazon Prime Video revenue is estimated based on users of the service
303、 revenue is not ascribed to Amazon Prime customers who do not claim to use Prime Video(e.g.subscribe only for the unlimited express shipping).Despite continued revenue growth,SVoD business models are under pressure as attracting and retaining customers becomes more challenging,with providers increas
304、ingly looking to identify new revenue-generating opportunities,better manage costs,and focus on profitability.Pure subscription models are giving way to hybrid strategies that embrace advertising In a bid to sustain subscriber growth and boost customer retention,as well as create a new source of rev
305、enue,SVoD providers are incorporating advertising into their services.Netflix launched its advertising-supported tier,originally Basic with adverts but subsequently enhanced and rebranded as Standard with adverts,in 12 markets in November 2022,pricing it at 4.99 a month in the UK.Disney+s ad-support
306、ed tier launched in the US in December and is set to roll out internationally in the second half of 2023.According to reports in June 2023,Amazon is also planning an ad tier.The company already sells ads alongside its live sports content,and operates a free-to-view advertising VoD(AVoD)service,Freev
307、ee,launched in September 2021 as IMDb TV.The new ad tier would be for Amazons core Prime Video service and would sell advertising against its scripted programming.Among the smaller services,Discovery+introduced a lower-priced AdLite tier(priced at 3.99 a month)in March 2022,before removing it and in
308、cluding advertising as standard.Skys NOW has 41 The monthly price of Netflixs Basic and Standard tiers increased by 1,to 6.99 and 10.99,while its Premium tier increased by 2 to 15.99;the monthly price of Amazon Prime increased by 1 to 8.99.42 Barb Establishment Survey.Across Netflix,Amazon Prime Vid
309、eo,Disney+,NOW,Apple TV+,Discovery+,Paramount+,BritBox and HayU.535m698m948m1,147m1,387m1,616m303m355m474m606m713m778m129m275m383m138m172m207m204m218m253m15m23m27m27m87m228m992m1,247m1,656m2,114m2,680m3,258m05001,0001,5002,0002,5003,0003,5002002020212022Revenue(m)OthersNOWDisney+AmazonNet
310、flix 42 been ad-supported since March 2021,with customers needing to subscribe to the Boost add-on(5 a month)to receive the ad-free experience.Netflixs new ad-supported tier appears to have reasonably strong early appeal in the UK.According to Ofcoms VoD Survey of online adults and teens,13%of subsc
311、ribers surveyed in February said that they were taking the new ad plan,with the proportion rising to 20%among 35-44-year-olds,higher than for the Premium tier in that age demographic.The 10.99-a-month Standard tier is still the most popular overall,with just over a third taking it,although older sub
312、scribers(55+)are more likely to take the Basic tier.By May 2023,global take-up of Netflixs ad tier had reportedly reached 5 million monthly active users across the 12 markets in which it is offered.Figure 34:UK Netflix subscribers by plan subscribed to,by age:February 2023 Source:Ofcom VoD Survey 20
313、23.Online adults/teens aged 13+.*All adult respondents with a Netflix subscription paid directly to Netflix.*Since rebranded to Standard with adverts.Base:864.Fieldwork conducted 22-27 February 2023.Streaming content investments remain high but are becoming more prudent Having consistently increased
314、 its investment in content,Netflix,the SVoD markets biggest spender,has said that it is planning to maintain its level of annual spend on original and licenced programming at about$17bn(13.4bn),which is what it spent in 2021 and 2022.Netflixs annual spend on UK productions averaged$1.5bn(1.2bn)betwe
315、en 2020 and 2023,according to the company,significantly higher than its original target of$1bn a year for the market.Difficult market conditions and limited growth prospects have prompted other SVoD providers to re-evaluate the extent to which they are investing in streaming content and trim their o
316、fferings accordingly.Disney removed dozens of titles from its catalogue in May 2023,opting for a$1.5bn content write-off charge to reduce longer-term costs associated with the assets.Similarly,Warner Bros.Discovery,as part of a significant post-merger restructuring in 2022,announced content write-of
317、fs amounting to between$2.8bn and$3.5bn.Amazon,meanwhile,has also expressed caution on content spending for Prime Video,including the sustainable management of production budgets.13%9%12%20%10%14%27%21%20%27%32%38%34%35%40%34%36%26%20%28%25%17%17%14%13+18-2425-3435-4445-5455+%Netflix subscribers*Don
318、t knowPremiumStandardBasicBasic with adverts*43 Figure 35:Selected SVoD services proportion of content hours,by genre:May 2023 Source:Ampere Analysis.Traditional content licensing has re-emerged as a revenue opportunity A key selling point of most successful SVoD services that have emerged over the
319、past decade is access to exclusive original programming;traditional media companies which have entered the market have been ending(not renewing)licensing deals with rival streamers in order to launch their own services.However,with the market now maturing,providers are reconsidering the strategy of
320、maintaining exclusivity over all their original titles,with licensing deals re-emerging as a revenue stream.Disney,for instance,has said that it is now considering licensing original content outside its flagship franchises to third parties,and in July 2023 sold the streaming rights to ten series,inc
321、luding Bones,Scandal and The X-Files,to Channel 4.Warner Bros.Discovery,which currently licenses HBO programming to Sky in the UK but sells it direct-to-consumer via the Max streaming service in many international markets,agreed a deal with Netflix in June 2023 for the licensing of HBO Originals inc
322、luding Insecure,Six Feet Under and Ballers.This apparent trend is not limited to traditional media companies which have moved into streaming.In April 2023,Apple secured a deal with French pay-TV provider Canal+to make Apple Originals available to Canal+customers without them having to subscribe to,o
323、r use,Apple TV+.Netflix leads password-sharing crackdowns in a bid to maximise the value of its users Following some experimentation with anti-password-sharing measures,Netflix began a wide-scale roll-out of its crackdown in 2023.UK users accessing the service via the login of someone they do not li
324、ve with began to receive emails from Netflix in May 2023,informing them that a Netflix account is intended for use by one household,and inviting them to either transfer a profile to a new membership or buy an extra member on the account for an additional 4.99 a month.The initiative is designed to ge
325、nerate new revenue from non-paying users,of which there are a significant proportion in the UK:11%of online adults and teens,according to Ofcoms VoD Survey.9%11%20%12%18%26%12%5%14%12%20%10%44%25%39%34%36%31%7%11%4%11%3%54%15%6%6%8%23%15%42%4%21%41%15%6%7%13%NetflixAmazon PrimeVideoDisney+NOWApple T
326、V+Discovery+Paramount+OtherFilmsFactualEntertainment,realityDramaComedyChildrens 44 Figure 36:UK Netflix users,by method of subscription/access:February 2023(%all respondents)Source:Ofcom VoD Survey 2023.Online adults/teens aged 13+.Base:2,050.Question:Does your household subscribe to Netflix?If yes
327、,how is this service paid for in your household?Fieldwork conducted 22-27 February 2023.Early indications of the strategys success internationally appear to vary by market,with the crackdown in Spain resulting in a drop in users,while in the US it apparently boosted daily sign-ups.Evaluating the ear
328、ly stages of the initiative across more than 100 countries,Netflix stated in July 2023 that cancel reaction was low and that it was seeing healthy conversion of borrower households into full paying Netflix memberships,as well as good take-up of the extra member feature.Other SVoD providers with less
329、 mature businesses than Netflix have so far been more hesitant to follow suit on curbing password sharing,as they continue to seek user growth,but they are likely to be watching closely to gauge the viability of the strategy.Broadcaster video-on-demand and free advertising-supported streaming TV BVo
330、D service rebrands signal further digital-first shifts among the PSBs As they steadily build on-demand audiences,broadcasters are seeking to continue to improve their respective streaming services and transition to an online future.One of the most significant recent strategic moves illustrating this
331、 was ITVs relaunch of its streaming offering in December 2022(rolling it out from November).This combined ITV Hub,ITV Hub+and BritBox into a single service,ITVX.Users can access an expanded catalogue,including exclusive originals,on either a free(ad-supported)or subscription basis,via an improved us
332、er interface.The revamp has enabled ITV to significantly expand the volume of content hours in its streaming catalogue,putting it more on a par with the offerings of the BBC and Channel 4.By May 2023,there were 13,238 hours of free-to-view programming on ITVX,compared to 9,002 on ITV Hub in October
333、2022.More than half of the increase in hours came from drama programmes,while ITV also added 692 hours of films,having not previously offered any on ITV Hub.42%13%4%11%59%Paying Netflix subscribersPassword-sharing Netflix usersPart of bundle with another service(e.g.phone)Part of household pay TV service billPaid for directly to Netflix 45 Figure 37:PSB BVoD services content hours,by genre:October