1

3. Radio and audio

Figure 3.1

UK radio industry 2004 2005 2006 2007 2008 2009

Weekly reach of radio (% of population) 90.3% 90.0% 89.8% 89.8% 89.5% 89.8%

Average weekly hours per head 21.9 21.6 21.2 20.6 20.1 19.8

BBC share of listening 55.5% 54.5% 54.7% 55.0% 55.7% 55.3%

Total industry revenue (£m) 1,158 1,156 1,126 1,175 1,131 1,092

Commercial revenue (£m) 551 530 512 522 488 432

BBC expenditure (£m) 607 626 614 653 643 660

Radio share of advertising spend 3.5% 3.3% 3.0% 2.9% 2.7% 2.8%

DAB digital radio take-up (households) 5% 10% 16% 22% 30% 33%

Source: Ofcom, RAJAR 2008 (adults aged 15+), BBC, WARC, radio operators 2008

UK radio industry key metrics 2004-2009

3

24.6

15.8

4.1 2.9 1.80

5

10

15

20

25

All digital DAB DTV Internet Digital unspecified

+ 3.5 + 0.5+ 2.7 + 0.7 + 0.3

Year-on-year increase (percentage points)

Dig

ital r

adio

pla

tform

s sh

are

of a

ll ra

dio

hour

s

Source: RAJAR (adult listeners 15+), Q2 2010Note: ‘Digital unspecified’ relates to listening to digital-only stations where the survey respondent has not specified the listening platform used.

Figure 3.2

Digital radio’s share of radio listening, Q2 2010

4

4.4%9.1%

15.3%20.3%

27.3%33.0% 35.3%

0%

10%

20%

30%

40%

Q2 2004 Q2 2005 Q2 2006 Q2 2007 Q2 2008 Q2 2009 Q2 2010

Source: RAJAR / Ipsos MORI / RSMB Q1 2004-2010.

Figure 3.3

Ownership of DAB set, Q2 2010

Percentage of adults who claim to own a DAB set / have a DAB set in the home

3.8%

7.3% 8.1% 8.2% 8.6%7.1%

0Oct 2007 May 2008 Oct 2008 May 2009 Nov 2009 June 2010

Weekly podcasting(percentage adults)

Source: RAJAR / Ipsos MORI, ‘Measurement of Internet Delivered Audio Services (MIDAS 6)’, conducted during June 2010, and previously Nov 2009, May 2009, October 2008, May 2008, and October 2007.

Figure 3.4

Listening to podcasts

6

0% 20% 40% 60% 80% 100%

ALL 16+

16-24s

25-44s

45-54s

55+Live radio on a TV set

Radio on a radio set

Radio on a computer

Streamed music on a computer

Downloaded audio on a computer

Downloaded audio on a mobile phone

Radio on a mobile phone

Streamed music on a mobile phone

Audio on a music centre

Radio on a handheld device

Other audio on a handheld device

Source: Ofcom research June 2010Base = All respondent days: 16+ = 7966; 16-24s = 1106; 25-44s = 3003; 45-54s = 1484; 55+ = 2373

Figure 3.5

Proportion of listening time, by age and activity

111.9 117.0 124.2 123.6 125.6

96.292.9

94.7

88.678.4

101.3 100.8 99.5 98.6 97.8

97.295.4

92.9 89.6 89.9

0

20

40

60

80

100

120

140

2004 2005 2006 2007 2008 2009

Source: Listening data based on RAJAR (Adults 15+). Funding share data based on commercial radio revenues and estimated BBC expenditure on radio for 2009.

Listening hours and radio income / funding (as an index from 2004)

BBC radio expenditure

BBC radio listening hours

Commercial radio revenues

Commercial listening hours

Figure 3.6

BBC and commercial listening / income, indexed against 2004 figures

-0.4% -1.2%0.0%

0.4%

-9.0%

-3.2%

1.1%

-10%

-5%

0%

5%

10%

Source: RAJAR, (all listeners aged 15+). Data based on calendar year 2008 - 2009

Perc

enta

ge c

hang

e in

list

enin

g ho

urs

100% 55.3% 42.3% 46.6% 8.7% 10.6% 31.8%Share of all radio hours:

All Radio All BBC All Commercial BBC network BBC local Nat commercial Local commerc

Figure 3.7

Change in listening hours 2008-2009

-0.4%

5.8%

-3.1%

-0.4%

-4.2%

2.1%1.2%

-6%

-4%

-2%

0%

2%

4%

6%

All adults 15+ Children 4-14 15-24 25-34 35-44 45-54 55+

Source: RAJAR , data based on calendar years 2008 – 2009Perc

enta

ge c

hang

e in

list

enin

g ho

urs

93.0% 7.0% 11.4% 12.7% 16.5% 16.9% 35.5% radio hours:

Figure 3.8

Changes in listening hours, 2009 vs. 2008, by age group

1076 1118 1126 1174 1137 1092

525 588 614 652 649 660

551 530 512 522 488 432286 274 268 271 246 201177 169 153 156 142 13688 87 91 96 100 94

0

200

400

600

800

1,000

1,200

2004 2005 2006 2007 2008 2009

Total

BBC expenditure (estimated)

Total commercial

National commercial

Local commercial

Commercial sponsorship

Source: Ofcom / operator data / BBC, 2004-2009Notes: BBC expenditure figures are estimated by Ofcom based on figures supplied by the BBC; figures in the chart are rounded.

£ million

Figure 3.9

UK commercial radio revenue and BBC radio spending

11

Source: WARC (World Advertising Research Council), data based on constant 2005 prices

474420

365

2.9% 2.8% 2.8%

0%

1%

2%

3%

4%

£0m

£200m

£400m

£600m

£800m

£1000m

2007 2008 2009

Radio advertising expenditure Radio share of all media advertising

Revenue £m Share of all advertisingRevenue £m Share of all advertising

Revenue £m Share of all advertising

Figure 3.10

UK radio advertising spend and share of display advertising, 2007 – 2009, (based on 2005 prices)

£17.60 £17.13 £16.59 £16.69£15.70

£13.71

0

5

10

15

20

2004 2005 2006 2007 2008 2009

Source: Licensee revenue data and RAJAR listening data, 2004-2009

£ per listener

Figure 3.11

Commercial radio revenue per listener

13

Figure 3.12

1.451.23 1.17 1.13

0.08

0.08 0.10 0.13

0.09

0.06 0.05 0.06

1.63

1.38 1.32 1.31

0

0.25

0.5

0.75

1

1.25

1.5

1.75

2006 2007 2008 2009

Total

Music videosSingles

Albums

Recorded music retail revenues, 2006-2009

Revenues (£bn)

Source: Entertainment Retailers’ Association yearbook, 2010.

CAGR(%)1yr 3yr

-0.8 -6.9

12.7 -15.8

27.4 15.6

-3.8 -8.0

14

Figure 3.13

96% 92% 87% 81%

4% 8% 13% 19%

50%

50%

0%

20%

40%

60%

80%

100%

2006 2007 2008 2009 Single/album split in 2009

Albums

Singles

Digital share

Phsyical share

Distribution of recorded music retail revenues, 2006-2009

Rev

enue

sha

re (%

)

Source: Entertainment Retailers’ Association yearbook 2010Note: This chart does not include revenues from music videos.

£1.54bn £1.32bn £1.27bn £1.26bnTotal recorded music revenues

Singles

Albums

15

Figure 3.14

159.5138.5 129.5 118.5

13.8 8.6 4.9 3.1

2.86.2 10.3

16.1

53.1 78.0110.3

149.7

162.3144.7 139.8 134.6

66.986.6

115.2

152.8

0

25

50

75

100

125

150

175

2006 2007 2008 2009 2006 2007 2008 2009

Digital

Physical

Recorded music sales by volume, 2006-2009

Sales volumes (million units)

Source: Entertainment Retailers’ Association yearbook 2010

Albums Singles

16

Figure 3.15

25.7 46.972.1

129.8

189.6

13.2

23.922.0

20.8

22.9

3.0

13.5

15.712.1

12.7

14.3

£13.3

£56.9

£92.5£114.4

£172.8

£236.8

0

50

100

150

200

250

2004 2005 2006 2007 2008 2009

Total

Mobile sub-scriptionMobile DTO

Online sub-scriptionOnline DTO

Digital music revenues by business model, 2006-2009

Revenues (£m)

Source: Screen DigestNote: excludes revenue from ad-supported services. Due to different data sources this chart is not directly comparable with previous charts.

CAGR(%)1yr 5yr

37 78

12 37

10 48

7 42

46 104

Source: Ofcom, July 2010Note: The percentages are derived from a universe of analogue stations rather than licences

6-10 stations in group14.8%

2-5 stations in group12.4%

Independent18.6%

Global Radio23.0%

Bauer Radio14.1%

UKRD3.8%

UTV5.2%

Guardian Media4.5%

Lincs FM3.8%

Figure 3.16

Number of commercial analogue stations owned, by group

BBC network, 46.2%

BBC local/negional, 8.3%

Global, 16.6%

Bauer, 10.7%

GMG, 4.3%

UTV, 2.7%Absolute, 1.1%

Orion, 1.0% Other, 8.9%

Source: RAJAR Q1 2010

Share of all radio listening hours, Q2 2010Percentage share of listening hours

Figure 3.17

Commercial radio: weekly audience reach, Q2 2010

19,454

12,982

4,952 3,608 2,020 1,297 6390%

5%

10%

15%

20%

25%

30%

35%

40%

0

5,000

10,000

15,000

20,000

Global Bauer GMG UTV Absolute Orion Lincs FM

Source: RAJAR Q2 2010, adults

Wee

kly

reac

h Q

2 20

10 (t

hous

ands

)

Annual changein reach + 0.5pp + 0.5pp - 0.2pp + 0.2pp n/a - 0.1pp

Weekly UK audience reach 37.7% 25.2% 9.6% 3.9% 2.5% 1.2%

- 0.1pp

7.0%

Figure 3.18

Weekly reach of BBC stations, Q2 2010

0.8%1.2%

1.8%2.3%2.5%

3.6%13.1%

17.7%20.2%

22.9%26.6%

0% 10% 20% 30%

BBC Asian Network UK1Xtra from the BBC

BBC 7BBC 6 Music

BBC World ServiceBBC Radio 3

BBC Radio FIVE LIVEBBC Local/Regional

BBC Radio 4BBC Radio 1BBC Radio 2

(- 0.3%)

(+ 0.4%)

(+ 0.8%)

(+ 0.7%)

(0.0%)

(+ 1.2%)

(+ 0.2%)(- 0.1%)

(0.0%)

(+ 0.6%)(- 0.3%)

Source: RAJAR Q2 2010, adults 15+

Average weekly listening (% UK adults), and year on year change

Figure 3.19

BBC network radio broadcast hours, by genre: 2009/10

51.0%

14.9%9.4% 6.0% 5.1% 2.7% 3.1% 1.5% 1.8% 1.5% 3.0%

0%

20%

40%

60%

Mus

ic

New

s an

d w

eath

er

Ente

rtain

men

t

Dra

ma

Spor

t

Cur

rent

affa

irs

Fact

ual

Arts

Chi

ldre

n's

Rel

igio

n

Oth

er

Source: BBC annual report 2009/10

Share of output (%)

yr on yr -0.2% -0.6% -0.2% 0.4% 0.0% 0.1% 0.4% 0.3% -0.1% 0.1% 0.0%

Figure 3.20

0.50.6

1.31.7

2.22.3

2.73.2

3.64.3

5.96.3

7.88.5

13.716.7

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

BBC Radio 2BBC Radio 1BBC Radio 4BBC Radio 7

BBC Radio 5 Live Sports ExtraBBC Radio 5 Live

BBC Radio 6 MusicBBC English Local Radio

BBC 1 XtraBBC Radio Uslter / Foyle

BBC Radio WalesBBC Radio 3

BBC Radio ScotlandBBC Radio Asian Network

BBC Radio CymruBBC Radio nan Gàidheal

(+ 2.2p)(+ 1.6p)

(+ 0.7p)

Source: BBC Annual report 2009/10

BBC radio stations: cost per listener hour of programmes, 2009/10

Cost (pence) per listener hour, (and change year on year)(-1.5p)

(no change)(+ 0.9p)

(- 0.1p)(- 0.9p)

(+ 0.3p)(- 0.7p)

(no change)(- 0.4p)

(- 0.3p)(no change)

(no change)(no change)

Figure 3.21

UK radio stations broadcasting on analogue, DAB digital radio, and community radio, July 2010

Note 1: In total there are 288 individual analogue services on AM/FM as 36 simulcast over both AM/FM wavebands. Of the 288 analogue stations and 191 DAB stations, there are 334 unique stations, as 46 stations are digital-only brands. *The existing Digital One national DAB radio multiplex does not offer coverage of Northern Ireland. Note 2: A single radio brand may broadcast to many different parts of the country, using different technologies. For each area/technology combination, Ofcom issues a distinct broadcast licence (where it is licensable). The conditions of each licence will determine the amount of programming that may be shared between these licensed services. Here we have taken the view that a service providing at least four hours a day of separate programming (even if the same brand has other services) equals one service.

Source: Ofcom, July 2010

Type of station AM FM AM/FM total

DAB Total

Local commercial 31 203 234 139 267

UK-wide commercial 2 1 3 10* 10

BBC UK-wide networks 1 4 5 11 11

BBC local and nations 36 46 46 32 46

Community radio 4 172 176 0 176

TOTAL 74 426 464 192 510

Figure 3.22

Source: Ofcom, community station revenues 2008/09

Community radio income, by source

Grants41%

Advertising and sponsorship

23%

Donations9%

Service contracts / SLAs12%

Other16%

Community radio stations’ income 2008/09

Figure 3.23

25

Community station Location Award date

Betar Bangla Stratford, east London June 2010

Generation Radio Clapham Park, south London June 2010

Greenwich Kasapah Greenwich, south east London June 2010

Reprezent FM South London June 2010

Rinse FM Inner London June 2010

Streetlife Radio Waltham Forest, north east London June 2010

Susy Radio Redhill and Reigate, Surrey June 2010

SAFE Radio Grays, Essex March 2010

SFM Sittingbourne, Kent February 2010

Gateway FM Basildon, Essex February 2010

Insanity Egham, Surrey February 2010

Kane FM Guildford, Surrey February 2010

The Vibe Watford February 2010

Ox FM Oxford December 2009

Ummah FM Reading October 2009

Community radio licence awards in 2009/10

Source: Ofcom, June 2010

Figure 3.24

6

2917 18 14 13

41

1927

916

34 313

10

10 1010 10

10

1010

1010

10 10

13

13

13 1212 12

12

1212

1212

12 12

0

10

20

30

40

50

60

Northern Ireland

Scotland Wales Central Southern England

East England

East Midlands

London North East

North West

South West

West England

West Midlands

Yorkshire

BBC network / local & nationsNational commercialLocal commercial

26

Availability of DAB stations, by area

Source: Ofcom, June 2010

Figure 3.25

89.7% 90.0% 90.4% 89.3% 89.7% 89.6% 90.6%

66.5% 66.8% 65.9% 65.8% 66.1%64.9% 67.0%

63.8% 62.6% 62.9% 61.0% 61.5% 61.2% 63.7%

58.2% 58.3% 57.6% 58.1% 59.0% 58.5% 60.6%

52.0% 50.8% 51.7% 48.9% 49.5% 49.3% 51.7%

26.6% 26.0% 26.7% 27.1% 26.9% 25.4% 28.3%

21.0% 21.1% 20.6% 19.5% 18.7% 17.3% 17.7%5.2% 5.7% 6.1% 6.0% 6.2% 5.9% 6.3%0%

20%

40%

60%

80%

100%

2004 2005 2006 2007 2008 2009 Q2 2010

All radio

All BBC

All commercial

BBC network

Local commercial

National commercial

BBC nations / local

Other

Source: RAJAR (adult 15+), 2004-2010

Percent of population

Reach of radio, by sector

Figure 3.26

54.0% 55.1% 54.4% 55.4% 55.7% 55.2% 54.6%43.0% 44.0% 43.2% 45.4% 46.4% 46.7% 46.2%

11.0% 11.1% 10.4% 10.0%

9.3% 8.5% 8.3%

44.2% 42.8% 43.2% 42.4% 42.2% 42.6% 43.2%

10.0% 10.1% 10.5% 11.3%10.6% 10.4% 11.0%

34.2% 32.7% 32.8% 31.1% 31.6% 32.2% 32.2%

1.8% 2.1% 2.3% 2.2% 2.1% 2.2% 2.2%0%

20%

40%

60%

2004 2005 2006 2007 2008 2009 Q2 2010

All BBC

BBC Network

BBC local / nations

All commercial

National commercial

Local commercial

Other

Source: RAJAR (adult listeners15+), 2004-2010

Percent of listening hours

Share of listening hours, by sector

Figure 3.27

10.015.5 17.7

20.4

22.2 23.2 22.3

20.1 21.1 19.1 19.3 21.0

0

10

20

30

4-14 15-24 25-34 35-44 45-54 55-64 65-74 75+ Adult Men

Adult Women

ABC1 Adults

C2DE Adults

Average listening per week (all aged 15+)

20.1 hours

Weekly listening hours

Source: RAJAR Q2 2010, (average weekly listening hours per head)

Demographic profile of overall listening

Figure 3.28

-5.3%

-18.3%

-13.4%-10.6%

-8.8%

1.4%

-1.7%

-25%

-20%

-15%

-10%

-5%

0%

5%

All 15+ 4-15 15-24 25-34 35-44 45-54 55+

Source: RAJAR (Individuals 4+): data based on calendar years 2004 and 2009

Percentage change in listening hours

Changes in listening hours by age, 2004 - 2009

Figure 3.29

-5.3% - 2.2%-10.1%

3.7%

-25.1%

1.3%

-13.4%-30%-20%-10%

0%10%20%

All Radio All BBC All Commercial BBC network radio BBC local / national National commercial Local commercial

Source: RAJAR, (all listeners aged 15+). Data based on calendar year 2004 versus 2009

Percentage change in listening hours

Changes in listening hours by sector, 2004 - 2009

Figure 3.30

32

Source: RAJAR, (Q2 2010), (all listeners 4+), figures are rounded.

Average weekly reach (millions) % change year on year

Most listened-to radio stations, Q2 2010

14.8 13.710.9

7.2 5.72.6 2.5 2.4 2.2 2.2 1.9 1.6 1.5 1.3 1.2 1.1 1.1

0369

1215

BBC

Rad

io 2

BBC

Rad

io 1

BBC

Rad

io 4

BBC

Rad

io F

IVE

LIVE

Cla

ssic

FM

talk

SPO

RT

95.8

Cap

ital F

M

Hea

rt 10

6.2

FM

Mag

ic 1

05.4

Kiss

100

FM

BBC

Rad

io 3

Abso

lute

Rad

io

The

Hits

BBC

Wor

ld S

ervi

ce

Smas

h H

its R

adio

BBC

6 M

usic

BBC

Rad

io 7

+ 2.6%

- 13.6% + 87.1%

+ 3.7%+ 2.8%

- 2.1%

+ 8.1% - 5.1% - 9.0% - 25.0%- 0.7%

-3.2% - 24.9%+ 5.6%- 10.4%

Global

BBC

UTV

Radio group

Absolute

Bauer+ 15.7%

+ 4.7%

Figure 3.31

66.1% 69.5% 66.2% 67.0%

21.1% 12.6% 12.7% 8.5%

12.8% 17.9% 21.1% 24.6%

0%

20%

40%

60%

80%

100%

Q2 2007 Q2 2008 Q2 2009 Q2 2010

DigitalUnspecifiedAnalogue

Source: RAJAR Ipsos MORI/ RSMBNote: Unspecified relates to listening where the radio platform was not confirmed by the listener

Share of listening hours across analogue and digital platforms

Radio listening share by digital and analogue listening

Figure 3.32

48% 49% 50% 52% 51%42%

26%

0%

20%

40%

60%

All 15+ 15-24 25-34 35-54 55-64 65-74 75+

Digital radio listening by age group, (monthly)

Digital radio listening by age group (at least monthly)

Source: Ofcom research, Q1 2010Base: All who listen to the radio (n=2483)Q: Use digital radio at least monthly

Figure 3.33

Source: RAJAR, Q1 2010, UK Adults aged 15+

67 6476

44

7565

42

73 7060 65

55

24 2715

48

15 2629 55

18 20 33 2736

100

9 9 10 8 10 9 133 9 10 7 8 9

0%

20%

40%

60%

80%

100%Not StatedDigitalAnalogue

100% 47% 9% 10% 31% 4% 2% 1% 10% 17% 1% 12% 5% 0.8%

All Radio / BBC / commercial National commerical BBC stationsShareof radio listening

Audience profiles and platform split, by sector and station, Q1 2010

Figure 3.34

Most listened-to digital-only stations Q2 2010

Average weekly reach Q2 2010 (millions) % change year on year

Source: RAJAR, Q2 2010, (all listeners 4+), figures are rounded.

1.41.3 1.3

1.0

0.8 0.8 0.70.5 0.5

0.3 0.3 0.3 0.3 0.2 0.20.0

0.5

1.0

1.5

The

Hits

Smas

h H

its R

adio

BBC

6 M

usic

BBC

Rad

io 7

Hea

t

Plan

et R

ock

1Xtra

from

the

BBC

FIVE

LIV

E SP

OR

TS

EXTR

A Jazz

FM

Abso

lute

80s

Abso

lute

Rad

io C

lass

ic

Roc

k NM

E R

adio Q

Panj

ab R

adio

Chi

ll

Bauer

BBC

Absolute

Radio group

Independent / other

Global

-25% -25% +87% +6% -10% +1% -2.5% -19% -5% new +55% +34% -13% +242% -27%

Figure 3.35

37

Listening hours share for BBC and commercial stations, local/national

Source: RAJAR, All adults (15+), Apr ‘09-Mar ‘10 & Apr ’08-Mar ‘09

Share of listening hours, by nation

Audience share by category (Year to Q1 2010) % share BBC & commercial, local & national

England Scotland Wales N Ireland UK

89.9%89.6%90.5%87.3%90.1%Reach

21.9 hours22 hours 22.7 hours21.0 hours21.9 hoursAverage weekly listening

UK TOTALNorthern Ireland

WalesScotlandEngland

47%37%

49%

25%

46%

9%

8%

12%

23%

9%11%

13%

11%

7%11%

31%41%

25%

37%32%

2%8%3%2% 2%

0%

20%

40%

60%

80%

100%Other

LocalCommercial

NationalCommercial

BBCLocal/National

BBC Network

Figure 3.36

Source: RAJAR / Octagon, All Adults (15+), Apr 2009 – Mar 2010

Location of listening – year to Q1 2010

Car 19%

Home 67%

Work/Elsewhere 14%

Figure 3.37

Source: GfK sales data, 2006-2010

10.17.9 8.3 7.3 7.1

1.5 1.8 2.1 2.1 1.9

02468

10

Year to Q1 2006

Year to Q1 2007

Year to Q1 2008

Year to Q1 2009

Year to Q1 2010

Analogue setsDAB sets

Rad

io s

et s

ales

(mill

ions

)

Share of sales 87.1% 12.9% 81.4% 18.6% 79.8% 20.2% 77.9% 22.1% 78.9% 21.1%

Total annual sales 11.6 million 9.7 million 10.4 million 9.4 million 9.0 million

Number of analogue and digital radio sets sold

Figure 3.38

£134 £121£99 £99 £90 £75

£85 £91

£238 £210

£107

£145£161

£149 £155£202

£412

£196£150

£198 £174

£95£80 £74

£115 £109£89 £78 £70 £53 £56 £61

£0

£100

£200

£300

£400

£500

Q1 2003 Q1 2004 Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010

All

In-home

Car audio

Portable

Source: GfK sales data 2003-2010

Average price paid for DAB digital radio receivers

Figure 3.39

Yes 66%

Don't know1%

No 33%

Source: Ofcom research May 2010

Figure 3.40

Have you heard of the term ‘DAB’ digital radio?

17%

55%

28%

0%

10%

20%

30%

40%

50%

60%

Likely to buy Unlikely to buy Don't know

Percentage of respondents who listen to the radio but have no DAB set in the home

Source: Ofcom research, Q1 2010Base: Those who listen to the radio but have no DAB sets in the home (n=)Q: How likely is it that your household will get a DAB radio in the next 12 months?

Figure 3.41

Likelihood to buy a DAB radio within the next 12 months

63%

30%

4% 2% 1%0%

10%

20%

30%

40%

50%

60%

Very satisfied Fairly satisfied Neither Fairly dissatisfied Very dissatisfied

Percentage of respondents who listen to the radio

Source: Ofcom research, Q1 2010Base: All who listen to the radio (n=2483)Q: How satisfied are you with the choice of radio stations available in your area?

Figure 3.42

Satisfaction with choice of radio stations in area

53%

41%

4%1% 0%

0%

10%

20%

30%

40%

50%

60%

Very satisfied Fairly satisfied Neither Fairly dissatisfied Very dissatisfied

Percentage of respondents who listen to the radio

Source: Ofcom research, Q1 2010Base: All who listen to the radio (n=2483)Q: How satisfied are you with the choice of radio stations available in your area?

Figure 3.43

Satisfaction with radio content

45

6.4 5.8 5.3 4.8 4.5 4.4 4.1

0

1

2

3

4

5

6

7

Radio on radio set

Audio on a music centre

Downloaded audio on computer

Streamed music on a

mobile phone

Streamed music on a computer

Live/on demand radio on a computer

Radio on TV set

Importance of audio service (scale of 1-10, 10 being highest)

Source: Ofcom research June 2010Additional questionnaire Q2f: “How important are each of these activities to you? Please use a scale from 1 to 10, where 1 means not at allimportant to you and 10 means very important to you.”Base: all who ever do each activity: Radio on TV (530); radio on radio set (1013); radio on computer (354); streamed music on a computer (219); downloaded audio on computer (466); downloaded audio on mobile phone (206); audio on a music centre (907)

Importance of audio / radio activities to user

Figure 3.44

46

81%69%

61%

38%

17%

19%31%

39%

62%

83%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Radio on a Radio Set

Live radio on a TV Set

Music/audio on a Music Centre

Downloaded audio/CDs on a

Computer

Radio live or on-demand on a

Computer

While using other media

On its own

Base = All respondent days: 7966

Proportion of all audio listening

Proportion of time spent listening to audio, solus vs. simultaneous

Figure 3.45

47

Figure 3.46

0

0.25

0.5

0.75

1

1.25

Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10

Spotify

Last.fm

We7.com

Grooveshark

music.myspace.comsongs.sky.com

Unique audience to selected streaming sites

Unique audience (m)

Source: UKOM/Nielsen. Month of April 2010, home and work panel. Applications included.

Growth (%)Apr 09 – Apr 10

74

-19

98

318

-69

(-)

48

Figure 3.47

Selected online streaming services

Source: Operators, June 2010

Service Business Model Catalogue Launch date

SpotifyFree ad-supported streaming applicationPremium monthly subscription for extra features, also available via mobile apps

8 million tracks February 2009

Last.fmFree ad-supported ‘radio-based’ streaming servicePremium monthly subscription for extra features

6.5 million tracks 2002

Sky Songs Subscription based only, paid each month for access to unlimited streaming and 5 downloads 5 million tracks October 2009

Grooveshark Ad-funded music streaming and recommendation service 7 million tracks 2007

We7 Ad-funded online streaming service, browser based and available via iPhone app 4 million tracks October 2008

mflow Free limited online streaming and pay per download 2 million tracks April 2010

49

Figure 3.48

19%

8%

3%

0%

4%

8%

12%

16%

20%

Listening to radio Streamed audio services (free)

Streamed audio services (subscription based)

% of respondents

QE10A. Which, if any, of these do you or members of your household use the internet for whilst at home? Source: Ofcom research, Q1 2010Base: Those with access to the internet at home (n= 6163)

Audio internet usage

50

Figure 3.49

0:00:00

1:00:00

2:00:00

3:00:00

Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10

Spotify (App)

iTunes (App)

Windows Media Player (App)We7.com

Grooveshark

Napster

Last.fm

music.myspace.com

Time spent using selected music services and media players

Time per person (hours)

Source: UKOM/Nielsen. Month of April 2010. Home and work panel. Applications included.

51

Figure 3.50MP3 player/iPod ownership and personal use

32% 33%

26%

37%

27%

40% 41%

33%

45%

37%

0%

10%

20%

30%

40%

50%

UK England Scotland Northern Ireland Wales

% of respondents Personal use Ownership

QB1: Which of the following do you, or does anyone in your household, have in your home at the moment?QB2. Do you personally use: MP3 player / IPod?Source: Ofcom research, Quarter 1 2010Base: All adults aged 15+ (n = 9013 UK, 1075 Wales, 5709 England, 1468 Scotland, 761 Northern Ireland, 810 Wales urban, 265 Wales rural, 348 South East Wales, 360 South West Wales, 367 North/ Mid Wales)