Media Nations Report 2023
Media Nations Report 2023
Media Nations Report 2023
UK 2023
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 .................................................................................................... 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 video 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 listening 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
Overview
This is Ofcom’s sixth annual Media Nations report, a research report for industry, policymakers,
academics and consumers. The main objectives of the report are to review key trends in the media
sector and set out how audiences are served in the UK. We adopt a cross-platform perspective,
including broadcast TV and radio, as well as digital delivery including online video and audio
streaming.
As with previous editions, this report is accompanied by an interactive report containing an
extensive range of data. We also publish separate reports for Northern Ireland, Scotland and Wales
covering specific themes and issues relevant to those nations.
Rapid change continues to characterise the TV, online video, radio and audio sectors. We focus on
evolving consumer behaviours and the key industry trends and dynamics shaping them, drawing on
a range of relevant evidence.
Ofcom’s Media Nations report addresses the requirement to undertake and make public our
consumer research (as set out in Sections 14 and 15 of the Communications Act 2003). It also meets
the requirements on Ofcom under Section 358 of the Communications Act 2003 to publish an annual
factual and statistical report on the TV and radio sector.
• 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 restrictions.
• There was a slowing in the take-up of subscription video-on-demand (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 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 number of
broadcast programmes attracting mass audiences is in steep decline
• Broadcast TV’s 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.
3
• 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-up 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 achieving ‘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, revenues 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, digital 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 resulted 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 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’ 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 spend 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 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’.
4
The SVoD market is maturing, with household take-up seemingly approaching a plateau and
providers seeking 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 sustain subscriber growth and boost customer retention, and to create a new source
of revenue, some SVoD providers are incorporating advertising into their services. Netflix’s new
ad-supported tier appears to have reasonably strong early appeal, with 13% of UK online adults
and teens surveyed in February 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 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
digital audio ad spend rose 13% overall, driven by a 41% rise in podcast advertising.
• 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 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 than tune in to
radio.
• Music streaming accounts for half of young people’s 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 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 of 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 can’t get on radio, the key factor
is being able to listen whenever it’s convenient.
5
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 Ofcom’s
own audience research and other third-party research, to evidence and provide commentary on
continuing shifts in audiences’ TV and video viewing habits and preferences.
6
Figure 1: Average 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 also 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 captured within BVoD along with Sky Go/Sky TV On Demand (these two services
stream the same content, so measured viewing cannot be separated out).
1 IPA TouchPoints diary data shows that, comparing the 2023 SuperHub with the 2022 SuperHub, time spent
watching BVoD services increased. Data from Ofcom’s VoD Survey shows that 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
watching SVoD services decreased. Data from Ofcom’s 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 CATI).
7
watching SVoD content can no longer be driven by increased take-up, as it has been in previous
years.
361
15
DVD/Blu-ray/VHS
37
268
Video sharing platforms
46 226
Other TV set usage
23 196
37 72 SVoD/AVoD
16 74
25 36 283
BVoD
39
54 Recorded playback
120 38 16
11 Live TV
30 36
Source: Ofcom estimates from Barb, IPA TouchPoints. *Children figures exclude 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 the viewing data comes from Barb Audiences Ltd (Barb), the industry’s 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 streaming 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 viewing 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 to non-linear programming on BVoD services, including box-sets and
archive content.
8
Broadcast TV viewing 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 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% less broadcast TV year on year, and while the effects of the Covid-19 pandemic
may have boosted viewing figures in 2021, 2022’s figure was 6% lower than 2019’s. 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 likely to take up streaming services alongside
broadcast TV services. For example, data from Ofcom’s 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 compared to 2022). 4
400
350
Average daily TV viewing minutes
329 75+
300 316
65-74
250 248 55-64
45-54
200
180 All individuals (4+)
150 158 35-44
100 106 25-34
73 16-24
50 41 Children (4-15)
39
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
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 decrease 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, 16-24-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 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.
4Ofcom VoD Survey: A bespoke survey of online adults and teens which looks at VoD service use and VoD
provider perceptions. Fieldwork conducted 22-28 February 2022 for 2022 and 22-27 February 2023 for 2023.
9
entertainment/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 viewing 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 vary by broadcaster. Sky 6 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 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 Hub’s performance. Barb data for the first half of 2023 shows that BBC
and ITV are continuing to adapt to changing viewing habits. ITVX accounted for 10% of ITV’s total
viewing, up from the 7% figure across 2022. For context, over the same time periods, BBC iPlayer
rose from 14% of the BBC’s 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.
Figure 4: Average daily minutes viewed of linear* and BVoD, by broadcaster: 2022
% of broadcasters’
content that is BVoD
ITV 33 2 ITV: 7%
Channel 5 10 Channel 5: 4%
Others 29 1 Others: 4%
0 10 20 30 40 50 60
Average daily minutes per person
Linear* BVoD
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 includes all content watched via the on-demand services owned by each broadcaster including
non-linear programming. Sky’s BVoD figure includes viewing to Sky’s SVoD service, NOW, because Barb’s
measurement is unable to separate this from Sky Go/Sky TV On Demand.
5
Ofcom estimates using Barb and IPA TouchPoints for 2022. The comparison with 2017 was with Ofcom
estimates modelled from Barb, Comscore and IPA TouchPoints.
6
Includes viewing to Sky’s SVoD service, NOW, because Barb’s measurement is unable to separate this from
Sky Go/Sky TV On Demand.
10
Broadcast TV’s 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 broadcast TV watched, the weekly reach 7 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 to 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 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 BBC
portfolio channels 8 have experienced a steady decline, reaching less than half of all individuals in
2022 (at 44% and 43% respectively).
90%
ITV1
60% 58%
Commercial PSB portfolio channels
50%
44% BBC Two
40% 43%
37% Channel 4
30% 34%
27% Channel 5
25%
20%
BBC portfolio channels
10%
0%
2017 2018 2019 2020 2021 2022
Source: Barb 28-day consolidated, all individuals (4+), TV sets only. Weekly reach is defined as the percentage
of all individuals aged 4+ watching 15 consecutive minutes or more in an average week.
7 Weekly reach defined as the percentage of all individuals aged 4+ watching 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.
11
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 people’s attention has increasingly arisen outside
broadcast TV over the last 10 to 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 individuals (4+): 2017-2022
100%
90%
29.9 29.7 30.0 30.4 29.0 28.0
80%
70%
15.4 15.2 15.0 14.1 13.9 13.9
60%
50%
40%
30% 55.5 56.7 57.7
54.6 55.2 55.0
20%
10%
0%
2017 2018 2019 2020 2021 2022
PSB channels Commercial PSB portfolio channels Multichannels
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.
Figure 7: Number of broadcast TV transmissions with average audience above 4 million: 2014-2022
3,000
2,500
2,000
1,500
1,000
500
0
2014 2015 2016 2017 2018 2019 2020 2021 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 broadcasts across channels.
10 According to Barb’s programme viewing measurement of SVoD/AVoD services, which 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 viewing across the various channels which covered the same individual events.
13
Figure 8: Top 10 most-watched programmes in the UK, highest performing episode per title: 2022
Average
Share audience
Rank Title Channel Date (%) (millions)
1 FIFA World Cup: England vs France (QF) ITV1 10/12/2022 68.4 16.1
10 The Thief, His Wife and The Canoe 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 applicable.
FIFA World Cup QF England vs France (ITV1) 10th Dec 91% 9% 16.1
The State Funeral of HM Queen Elizabeth II Part 2 (BBC One) 19th Sep 95% 5% 13.2
The Queen’s Platinum Jubilee (BBC One) 4th Jun 88% 12% 13.2
I'm a Celebrity... Get Me Out of Here! (ITV1) 2022 series average 88% 12% 11.0
0 2 4 6 8 10 12 14 16 18
Linear* BVoD Average audience (millions)
Source: Barb, 28-day consolidated, all individuals (4+), all devices. *Linear refers to viewing across all the
broadcast 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
15
Figure 10: SVoD penetration of UK households, by provider: Q1 2015 to Q1 2023
68%
70% 66%
65%
Any SVoD
60%
59% 60% 59%
53% Netflix
Source: Barb Establishment Survey. Includes paid-for subscriptions and free trials. 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 additional 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 the 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 UK
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 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
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 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 year 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 Prime Video or normal TV. Age 3-12. 1 January – 31 March 2023: 1,696.
16
(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 3-12-year-olds: Q1 2021 – Q1 2023
66% Q1 2021 Q1 2022 Q1 2023
62% 61%
59%
56%
45% 45%45%
42% 40%
37% 38%
36%
31% 30%
19%
16%
10% 8% 10%10% 9% 8%
6% 7% 6% 6% 6% 5%
4% 4% 5% 4% 4% 4% 4% 3% 4% 4% 3%
0%
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 off,
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 summary of our analysis is outlined below.
Using Barb’s 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 March 2023.
17
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 segments. 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
analysed approximately 500,000 viewing sessions on the TV set, containing a total of 3.7 million
‘switch’ events. 18
Source: Ofcom/TRP.
18Each switch (or channel/platform viewed) must last a minute or longer to be counted. The entire journey
must exceed at least five minutes 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.
18
Linear Heavy viewers have longer TV viewing sessions and make
more switches per session
Linear Heavy viewers 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%). 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 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 average 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.
19‘Unmatched’ 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.
19
Figure 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 all other linear channels and BVoD services. BBC One is the first destination 20 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 more 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/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 if they are viewing with children (18% when
viewing with children, 6% without).
If a viewer watches the channel that is ‘automatically on’ when they switch on the TV for more than a
20
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 individuals.
Social video
21
© Ipsos, Ipsos 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?
21
olds who visited Facebook and Instagram spent 18 minutes and 25 minutes on those platforms
respectively.
Figure 16: Time spent per day on selected social video platforms, by age: March 2023 (minutes)
58
52
48 48
43
39 40
37 36
34
31
28 28 26
25
23
20 18 19
18 17
14 13 12
10 11
8 8 8 8
6
4 4 4 2 4 5 4 4 3
1 0
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 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.
23Ofcom VoD Survey 2023: A bespoke 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.
22
Figure 17: Forms of content viewed on YouTube, by UK teens and adults: December 2022 –
February 2023
68%
63%65%
58% 59% 60%
57% 56%
53% 52%
49%
45% 44% 44%
40%
36%36% 36% 37%35% 35%
32% 33% 32%30%32%
28%
23%23% 25%
20% 20% 19%
15%
11%
6%
Programmes or films (full length YouTube videos longer than 15 YouTube videos up to 15 YouTube Shorts
not clips/ highlights) minutes (but not full length minutes long (but not YouTube
programmes or films) Shorts)
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 respondents. Fieldwork conducted 22-27 February 2023. ‘I
have not used YouTube in the past 3 months’ and ‘Don’t 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 long does not include YouTube Shorts.
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 TouchPoints 2023 SuperHub. Base: all GB adults aged 15+ who have been online in past 12 months.
23
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 monthly by adults who watch short video content online
"How to" (e.g. recipes, DIY) 64%
News 63%
Videos uploaded by the general public 59%
Videos uploaded by friends/family 54%
Music 54%
Videos/vlogs uploaded by social media influencers followed 48%
Videos from comedy programmes 45%
Videos from entertainment programmes 41%
Videos/vlogs uploaded by companies followed 39%
Sports including interviews 37%
Videos from chat shows 36%
Videos from drama programmes 30%
Clips from video games 28%
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 popular 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’ or tutorial videos were much less popular
among 3-12-year-olds, with only 14% of them choosing to watch this content. 27
36%
28%
26%
Source: The Insights Family UK. Age 3-12. Multi-choice question: What type of videos do you watch on
YouTube? Q1: 1 January – 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.
24
Audience attitudes and sentiments
Source: Ofcom’s Public Service Media Tracker 2022. Question 28: And now, if you think about ALL the public
service broadcaster channels 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 individual PSB channels, Channel 4 (79%) continued to have the highest levels of
satisfaction among its viewers, followed by ITV 30 (76%), BBC One (75%) and Channel 5 (70%), all
largely consistent with 2021 figures.
Figure 21: Proportion of PSB viewers who rated the delivery of different attributes of PSBs ‘well’
(NET 7-10): 2022
Source: Ofcom’s Public Service Media Tracker 2022. Question 24. “Thinking about each broadcaster 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 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, rather than the top-rated attributes for each PSB.
31 Barb.
26
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 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 can't find programmes that I want to watch. It's easier to find
the things you want on Netflix or Prime Video”
(Man, 28 years old – ITV)
“I don't watch normal TV and haven't for quite some time. My go-to is
Netflix and my daughter goes straight for YouTube”
(Woman, 31 years old – Channel 5)
32
At the time of fieldwork for the Public Service Media Tracker, Channel 4’s BVoD service was called All 4 or All
4+ and ITV’s BVoD was ITV Hub or ITV Hub+.
33
BVoD viewers are defined as those who have watched at least one BVoD service in the last six months.
27
Figure 22: Proportion of BVoD viewers who rated the delivery of different attributes of BVoD
services ‘well’ (NET 7-10): 2022
Source: Ofcom’s Public Service Media Tracker 2022. Question 35. Thinking about each broadcaster TV catch-up,
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 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 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%), ‘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 VoD 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 preferred to watch other services, 20% said they were not interested in the
programmes available, and 15% said they didn’t have access to the service.
34 Defined as those who have watched the service in the last six months.
35 Ofcom VoD Survey 2023.
29
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 factors 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 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 section 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.
Industry revenues
30
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 £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 down 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 share to 36%, compared to 15% in 2017.
0
2017 2018 2019 2020 2021 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 online
video industry, owing to restatements and improvements in methodologies. Values for ‘platform operators’
include Ofcom’s 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 change 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 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.
36This figure excludes ‘outstream’ 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 IAB’s updated definitions and
segmentation can be found in the advertising market trends section of this section.
31
Advertising market trends
£34.77bn
35
£31.96bn £0.66bn
£0.70bn
£1.09bn
£0.65bn £1.18bn
30 £0.74bn
£1.08bn
£0.90bn Cinema
£25.32bn
25 £23.73bn £0.64bn
£23.76bn Radio
£22.29bn
Expenditure (£bn)
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, newspapers and magazines to avoid double-counting between
these categories and online. TV includes spot advertising, sponsorship and placement.
32
£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 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), among 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 online
display, such as banner advertising – in contrast to TV’s smaller year-to-year fluctuations over the
past decade.
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 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. ‘Outstream’ 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.
33
Figure 25: UK TV and online video advertising expenditure: 2017-2022
TV (excluding BVoD) BVoD Instream online video (excluding BVoD) Outstream/other Connected TV
£5.46bn £5.38bn £5.25bn
£5.11bn £5.11bn
£4.93bn £0.73bn £4.74bn £0.23bn
£0.30bn £0.39bn £0.85bn
£0.45bn £4.40bn £0.46bn
£0.52bn
£2.94bn £3.24bn
£2.43bn
£4.81bn £4.72bn £4.73bn
£4.48bn £4.54bn £4.56bn
£1.74bn £3.88bn £2.18bn
£1.26bn £1.77bn
£1.35bn
£0.94bn £1.50bn
£0.66bn £0.76bn
£0.32bn £0.40bn
Source: AA/WARC Expenditure Report; IAB UK PwC Digital Adspend Study 2022. Figures are presented in
nominal terms. ‘Instream’ refers to streamed media attached 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. ‘Outstream’ 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 UK’s
definition of instream was revised in 2022 due to the evolution of social video advertising formats. Where
advertising is 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. Viewing 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. Increased 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 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 limited, 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.
34
Broadcasters’ output and spend
3,000 £2,880m
£2,586m £2,610m £130m
£2,459m £2,522m Channel 5
2,500 £143m £114m £479m
£105m
£133m
£440m £2,073m £427m Channel 4
£432m
£440m
2,000 £99m
£837m ITV
Spend (£m)
£329m
£755m £784m
£728m £790m
1,500 BBC Portfolio
£633m £227m
£147m £131m
£137m £146m £300m BBC Two
1,000 £241m
£285m £283m £124m
£292m
£202m
BBC One
500 £914m £908m
£730m £815m £764m £687m
0
2017 2018 2019 2020 2021 2022
35
Figure 27: PSB first-run UK-originated hours, by channel: 2012-2022
35,000
32,354 32,126 32,491 31,974 32,988 31,770 32,188 31,531 31,626
32,712
29,800
30,000
20,000
1,702 1,773 2,061 2,064 2,083 2,120 2,483 Channel 5
1,594 1,571 1,965
3,079 2,617 1,933 2,827 2,771
3,305 2,941 2,965 2,789 2,721 2,473 Channel 4
15,000 2,072
5,108 4,911 5,056 5,112 5,100 5,068 5,122 5,331 5,305 ITV
5,133 5,015
10,000
2,800 2,963 3,190 3,140 3,184 3,248 3,100 2,592 2,949 3,224 BBC Two
3,457
5,000 BBC One
5,561 6,397 6,666 6,505 6,718 6,542 6,647 6,494 6,363 6,533 6,480
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Source: Ofcom/broadcasters. Figures exclude BBC ALBA and programming for the nations and regions.
36
Figure 28: PSB first-run UK-originated spend, by genre: 2017-2022
3,000 £2,880m
£2,586m £2,610m Religion & ethics
£2,459m £2,522m
£172m Education
2,500
£132m £188m Feature films
£188m £204m £2,073m £178m £233m Arts & classical music
£198m
2,000 £164m £163m £224m Children's
£180m £187m £272m
Spend (£m)
Feature films
4% 5% 4% 4% 4% 5% 4% 3% 4%
4% 4% 4% 5% Education
3% 3% 3% 3% 4% 3% 3% 4% 5%
8% 7% 7% 7% 6% 6% 7% 6% Religion & ethics
8% 8% 8%
10% 10% 11% 11% 10% Comedy
11% 10% 10% 10% 10% 11%
5% Arts & classical music
10% 8% 9% 7% 9% 7% 9% 10%
9% 8% Drama
Children's
Soaps
Specialist factual
61% 64% Factual entertainment
57% 58% 57% 58% 58% 59% 59% 59% 58%
Entertainment
General factual
Sports
News & current affairs
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Source: Ofcom/broadcasters. Figures exclude BBC ALBA and programming for the nations and regions.
37
Figure 30: PSB children’s programming first-run hours and real terms spend: 2012-2022
First-run UK originated hours First-run acquired hours Total first-run spend (real terms)
1,200 £114m £113m 120
£110m £108m
£102m
1,000 £95m £93m 100
£89m
316 377 347 £80m £80m
800 306 364 80
431
288 165 £68m
Spend (£m)
265 302
Hours
600 60
296
400 40
693 666 672 673 664 640
580 575 525
520 518
200 20
0 0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Source: Ofcom/broadcasters. Spend figures are presented in real terms (CPI-adjusted to account for inflation).
Funding of UK children’s programming 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 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 children’s
productions such as Makeaway Takeaway and The Sound Collector on CITV.
ITV’s children’s channel CITV has historically been an important source of children’s content from
the PSBs outside their main channels. However, in March 2023, ITV announced plans to close CITV
and move most of its children’s content online, to a dedicated children’s section of its ITVX
streaming 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 designed 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
children’s programmes will remain on the linear ITV portfolio, via an existing children’s programming
block on ITVBe that will continue, and a new early-morning children’s block on ITV2 that is set to air
from September.
ITV’s move to shift its children’s offering from linear to online follows an announcement by the BBC
to execute a similar strategy. In 2022, as part of its broader digital-first strategy, the BBC signalled its
intentions to move its main children’s channel, CBBC, online. No final date for CBBC’s 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, the BBC has plans to maintain some children’s programmes on linear, with the
CBeebies channel continuing to air. The BBC has also adapted its approach to the provision of
children’s programming: in 2022, it asked Ofcom for a modest decrease in the originations quota on
CBBC, in order to invest in original UK animations while increasing animation acquisitions in the
short term, a request that was approved by Ofcom in May 2022.
38
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
too 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 2021’s £483m, 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 third-party children’s spend represented a more positive
development for funding of the genre than some of those outlined in the previous section. This
increase made children’s the second-largest contributor to third-party spend, accounting for 10% of
it, marginally ahead of factual.
Figure 31: PSB spend on first-run originations, by direct spend and third-party contributions: 2017-
2022
£3,560m
Direct spend
£2,880m
£2,459m £2,586m £2,522m £2,610m
£2,073m
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 programming for the nations and regions.
39
Increased competition in news broadcasting saw the genre
buck the trend 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 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 32: Multichannel programming spend for selected key genres: 2017-2022
£4,952m
5,000 £4,789m £4,810m £4,773m
£123m £4,419m £4,536m
4,500 £101m £124m £405m £134m
£332m £346m £287m £189m
£121m £279m
4,000 £423m Music
£930m £918m £955m £930m
3,500 £875m Leisure
£938m Children's
Spend (£m)
3,000
Factual
2,500
News
2,000 Films
£3,269m £3,262m £3,314m £3,249m £3,092m Entertainment
1,500
£2,790m
1,000
Sport
500
0
2017 2018 2019 2020 2021 2022
Subscription video-on-demand
Although revenue growth was healthy in 2022, the economics of streaming are
under pressure
While SVoD services 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 approach 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
40Ampere 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.
40
rises, notably by Netflix in March 2022 and Amazon in September 2022, 41 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.
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 – 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 increasingly 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
revenue, 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-supported 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, Freevee, launched in September 2021 as IMDb TV. The new ad tier would be for
Amazon’s 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 including advertising as standard. Sky’s NOW has
41 The monthly price of Netflix’s 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 Video, Disney+, NOW, Apple TV+, Discovery+,
Netflix’s new ad-supported tier appears to have reasonably strong early appeal in the UK. According
to Ofcom’s VoD Survey of online adults and teens, 13% of subscribers 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 subscribers (55+) are more likely
to take the Basic tier. By May 2023, global take-up of Netflix’s 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
17% 17%
20% 25% 14%
28%
% Netflix subscribers*
Don't know
34% 26%
36% Premium
34%
40% Standard
35%
Basic
27% 38% Basic with adverts**
27% 32%
21% 20%
20%
13% 12% 10% 14%
9%
Source: Ofcom VoD Survey 2023. 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 its investment in content, Netflix, the SVoD market’s 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. Netflix’s annual
spend on UK productions averaged $1.5bn (£1.2bn) between 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 offerings
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-
offs 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.
42
Figure 35: Selected SVoD services’ proportion of content hours, by genre: May 2023
6% 7%
15% 13%
21%
15% 4%
41% 8% 23%
6% 4% 3% 42% 15%
7% Other
11%
Films
6% 36%
39% 31% Factual
11%
44% 34% Entertainment, reality
Drama
10%
25% 14% 20% 54% Comedy
12% Children's
12% 5% 26%
20% 18%
9% 11% 12%
43
Figure 36: UK Netflix users, by method of subscription/access: February 2023 (% all respondents)
59%
4% Part of bundle with another service (e.g. phone)
42%
11%
Source: Ofcom VoD Survey 2023. Online adults/teens aged 13+. Base: 2,050. Question: Does your household
subscribe to Netflix? If yes, how is this service paid for in your household? Fieldwork conducted 22-27 February
2023.
Early indications of the strategy’s 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 early 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 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.
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
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.
44
Figure 37: PSB BVoD services’ content hours, by genre: October 2022 and May 2023
Children's Comedy Drama Entertainment, reality Factual Films Other
16,851 17,070
16,247
15,662 1,183
1,242 653 711
1,114
13,238 2,454 2,637
3,343
2,846 692
864
3,935 9,002
4,224 3,900 6,758 6,786
738
6,386 6,595
3,393 3,547 287 958
3,245
5,072
3,299 2,866 3,387 3,099
1,279 1,369
2,908
2,826 3,117 1,561 2,245 2,360 1,614 1,457
975 479 414
715 857 411 527
Another BVoD service rebrand came from Channel 4 in May 2023. As part of its Future4 strategy, the
broadcaster unified its linear and digital brands, seeking to limit the distinction between them, and
rebranded its BVoD service as Channel 4, dropping the All 4 brand. The key goals of Future4 are to
accelerate digital growth, develop new revenue streams and reach younger audiences on the
platforms they use. As part of this strategy, Channel 4 is experimenting with online-only original
programming, including the current affairs series Untold, which features documentaries reflecting
the lives of younger people. While some episodes air on linear TV, most are made available only for
streaming.
One of the BBC’s current strategic aims for BBC iPlayer is to increase the volume of archive content
available on the service. The broadcaster sought approval for this in 2022, with Ofcom allowing the
BBC to proceed with its plans, following a consultation which concluded in November. 43
Outside their own branded streaming services, broadcasters are using social media platforms, to
varying extents, to distribute their programming and increase their reach to younger audiences.
Most are being relatively cautious in this, limiting the amount of longer-form entertainment and
scripted content they make available on YouTube and other social video services, given its limited
monetisation potential, and their concern that viewers will not attribute content they see to the
broadcaster it came from or follow it back to BVoD services. Channel 4 has used social platforms in
various ways, making 1,000 hours of full-length shows available on YouTube in 2022, and identifying
branded (advertiser-funded) content as a key opportunity, delivered via the 4Studio which it
established in 2020. In October 2022, Channel 4 launched the digital-first brand Channel 4.0, through
which it targets 13-24-year-olds on social platforms with videos from young content creators.
43 The BBC’s proposal to publish – subject to financial and operational constraints – any title on BBC iPlayer in
line with its agreements with producers and underlying rightsholders, was first published as part of a public
interest test (PIT) in June 2022. In October 2022, the BBC Board decided that the proposals were not material
and would, in any event, satisfy the PIT. In November 2022, following consultation, Ofcom concluded the
proposal was not a material change, allowing the BBC to proceed with its plans.
45
Free-to-view TV streaming services, beyond those affiliated with the main
broadcast channels, are emerging in the UK
New competition in the streaming market is emerging in the form of advertising-supported video-
on-demand (AVoD) services/channels, also commonly referred to as FAST, or free advertising-
supported streaming TV. These can include on-demand libraries and/or online linear channels. Most
of these offerings are distinct from BVoD in that they are not broadcaster branded, with services
operating in the UK including Amazon’s Freevee, Paramount’s Pluto TV and Samsung TV Plus.
While these services are achieving some success in the US – a trend that has generated some hype
about their potential in other markets – they are yet to achieve significant reach in the UK: just 8% of
adults and teens surveyed in February 2023 said they had used Freevee in the past three months,
and 4% or less for other AVoD/FAST services, as shown in Figure 38 below. The UK market poses
challenges for non-broadcaster AVoD/FAST services, including strong free TV and streaming
competition from the PSBs, as well as from subscription TV/streaming services that offer access to
big-budget originals and extensive content libraries; AVoD/FAST services, in contrast, typically offer
comparably less-desirable, older, non-exclusive programming.
FAST channels (live linear streams) are still very new but are set to become more common as
broadcasters begin to embrace them as part of their BVoD propositions. As part of its ITVX launch,
ITV introduced 18 streaming-only linear channels, which are either themed (e.g. Classic Comedy) or
are dedicated to a single programme (e.g. The Chase).
Figure 38: VoD services used to watch programmes, films or other video content, by reach: 2023
SVoD Free-to-view
Netflix 65% BBC iPlayer* 66%
Amazon Prime Video 52% YouTube 56%
Disney+ 34% ITVX / STV Player 46%
Sky on Demand or Sky Go 24% All 4 41%
Virgin TV Catch-up or Virgin Media Go 11% My5 22%
NOW 11% Freeview Play 11%
Paramount+ 10% UKTV Play 10%
BVoD
Apple TV+ 9% Freevee 8%
Discovery+ 8% Facebook Watch 6% AVoD/FAST
All 4+ 8% Pluto TV 4%
Social video
BritBox 4% TED Talks 3%
ITVX Premium (formerly ITV Hub+) 4% Samsung TV Plus 3%
YouTube Premium 4%
Apple Fitness+ 2%
Hayu 2%
Lionsgate+ (formerly STARZPLAY) 2%
Crunchyroll 2%
Source: Ofcom VoD Survey 2023. Adults/teens aged 13+. Online & CATI. Services used in the past three months:
fieldwork conducted 22 February – 9 March 2023. Notes: *Payment of licence fee required to use BBC iPlayer.
Free-to-view list excludes some services with hybrid business models (e.g. mixture of ad-supported and
transactional content) where free-to-view use cannot be isolated. NOW includes NOW Entertainment, NOW
Cinema and NOW Sports.
46
Radio and audio
Industry trends: continued growth in local advertising
and sponsorships fuels commercial radio
This section provides insight and commentary on key trends across the radio and audio sectors. It
contains data on advertising, revenues and spend, and the availability of radio services, as well as
notable developments in the radio, music streaming and podcast markets.
700 £656m
£638m
£613m
600 £581m £89m Other relevant turnover
£555m £86m
£537m £42m £81m £530m
£28m
£26m Commercial sponsorship
500 £80m £110m £128m
£100m £108m £114m
£102m
Revenue (£m)
Local commercial
400 £87m £97m £102m
£140m £133m £118m
£135m National commercial
£79m
300
200
£346m £337m
£275m £286m £298m £300m £284m
100
0
2016 2017 2018 2019 2020 2021 2022
In 2022 there was a return to a radio advertising mix more like the pre-pandemic situation, with the
share of expenditure from government, social and political organisations falling to 8% from 12% in
2021. In contrast, travel and transport’s share of expenditure grew from 5% to 8%, reflecting the
reopening of travel following lockdowns and restrictions in 2020 and 2021.
44 We also understand this may have been affected by relative price changes in TV and radio advertising
(including price increases for some radio advertising) resulting in some budgets being reallocated to TV. Data
from ECI Media Management indicates a significant decline in TV price inflation between 2021 and 2022,
although still ahead of other media. See ECI Media Management Inflation Report Q1 2023.
47
Historically among radio’s key advertisers, the motor industry’s share of expenditure fell by three
percentage points to 8% in 2022, which may reflect global supply chain issues in the automotive
sector and the economic outlook. 45
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
£164m
£76m
£54m
Podcast
£104m
£89m Audio streaming platforms /
£33m online radio applications
£23m
£110m £110m
£65m £70m
Source: IAB UK PwC Digital Adspend Study 2021 & IAB UK PwC Digital Adspend Study 2022.
45
According to SMMT data, the number of new cars sold in the UK in 2022 fell by 2% to 1.61 million, about
700k lower than in 2019.
48
The range of digital audio advertising opportunities has grown over time, although there is not yet a
standard industry-wide set of measurement tools. While some advertisers may choose to run the
same spot adverts on online audio platforms as they do on broadcast radio, online audio platforms
give advertisers the opportunity to target audiences more precisely, in terms of both demographics
and geography. Technology allows advertisers to create tailored copy, so people may hear an advert
which refers specifically to their area, or even to their local weather conditions. Some advertisers
and media owners are starting to develop marketing campaigns involving interactive adverts and
interactive sponsored content on smart speakers. Examples include Tesco’s Christmas party advert
and Magic’s interactive smart speaker quiz, sponsored by holiday firm On the Beach, which ran in
February and March 2023.
For podcasts, new forms of advert can include the dynamic insertion of host-read adverts, in
addition to pre-, post- and mid-roll adverts. A particular advantage of dynamic insertion of host-read
adverts is that it allows adverts to be updated and changed over time, important for podcasts that
may be discovered and listened to a significant time after their release. This greater use of dynamic
advertising insertion, and the development of automated buying platforms, is helping the sector
meet challenges around scale, although concerns about brand safety and measurement remain,
relating to specific differences between podcasts, (which are not subject to Ofcom regulation and do
not have an industry-wide measurement system), and broadcast radio (which is regulated by Ofcom
and measured by RAJAR).
£279m
Downloads
Physical formats
Subscription
£1,562m £1,638m
£1,391m
Source: Official Charts Company and ERA estimates, BPI ‘All About The Music 2023’.
49
Availability and distribution of radio services
In contrast, the total number of DAB services across national and local DAB has increased, with the
number of national services increasing by four year on year to a total of 57 across the BBC and
commercial national multiplexes. The total number of services available on local multiplexes
increased by 48 to 654. In some cases, this has been enabled by the adoption of DAB+, allowing a
46 The LW spectrum bands are only used for broadcasting in ITU Region 1, which includes Europe, Africa, parts
of the Middle East, Russia, Central Asia and Mongolia. The ability to receive AM LW broadcasts is uncommon in
many modern analogue radios, even if they can receive AM MW broadcasts.
47 These had been on 234KHz.
50
greater number of individual services to be carried on a multiplex. In July 2023, Global announced
that Classic FM would be broadcast on DAB+ from January 2024.
Some parts of the UK have additional radio services carried on small-scale DAB multiplexes. As at the
launch of the Leicester small-scale multiplex on 8 March 2023, there were 276 services licensed on
DSP licences and 62 C-DSP 48 services broadcasting on 24 multiplexes. Most services on small-scale
DAB multiplexes are broadcast in DAB+. To receive DAB+ services, people need a DAB+ compatible
receiver. We commissioned a quantitative survey to assess the penetration and usage of DAB+ in
response to a recommendation from the Government as part of its Digital Radio and Audio Review.
We plan to publish this in the Autumn.
48
Community Digital Sound Programme - these services are licenced as community radio broadcasting on DAB,
either as simulcasts of analogue community stations or digital-only community radio.
49
In a macro area, there is insufficient spectrum to licence SSDAB in each of the identified areas. This means
that applications across the macro area need to be considered together, so that decisions can be taken on the
areas in which to licence SSDAB.
51
Figure 45: DAB coverage as of March 2023
Commercial Small-
BBC
scale
Digital One Sound Digital Local DAB
Market developments
Radio sector
Draft Media Bill signals changes in the regulatory landscape
The Government published a draft Media Bill in March 2023 which includes a range of provisions
concerning the regulation of radio services in the UK. In particular, the draft legislation indicates that
commercial radio will be further deregulated through the removal of formats, although it contains
provisions to ensure the availability of local news. The Bill would also increase flexibility around the
analogue licensing regime in the light of the increasing focus on digital platforms. Changes to the
licensing regime would allow radio licensees based outside the UK to hold licences to broadcast on
DAB in the UK, with the expectation that broadcasters based in Ireland would be the first to be able
to seek a UK licence.
The draft Bill also makes certain ‘radio selection services’ 50 subject to regulation for the first time,
requiring these services which fall within scope of the regulation to provide access to simulcasts of
BBC radio and UK radio stations licensed by Ofcom that are distributed online. 51 Under the draft Bill,
regulated radio selection services must make qualifying radio services available in response to
50 Defined in Section 42 of the draft Bill as “a service provided by means of the internet which enables, or
among other things enables, a user of the service to use that service— (a) to make a selection between
internet radio services provided by different persons, and (b) to cause a selected internet radio service to play,
by giving spoken commands that are recorded by equipment connected to the internet”.
51 i.e. an “internet radio service” [Section 42].
52
specific requests by consumers, must not overlay advertising, and must not charge the internet radio
services for these.
Bauer rebrands local stations to Greatest Hits
In April 2023, Bauer rebranded several of its stations as Greatest Hits Radio, in parallel with the
launch of Ken Bruce’s show on the network. Seven of Bauer’s stations in Scotland, including Clyde 2
and Forth 2, were rebranded as Greatest Hits Radio, bringing these stations in line with similar
stations in England, including CFM in Cumbria, which was also rebranded at the same time, along
with Lincs FM’s analogue service. These services will continue to include local content and
advertising.
In July 2023, Bauer announced that subject to regulatory approval, it intends to acquire Jack Media
Oxfordshire Limited’s stations in order to extend FM coverage of its services.
Global launches new digital stations
In February 2023 Global launched Radio X Classic Rock and Capital Chill – stations broadcasting on
the Sound Digital national multiplex as well as being available online via smart speakers and Global
Player. Global has also expanded its operations in Scotland, with Heart Scotland and Capital
Scotland 52 introducing new programming from its Glasgow base.
Bauer launches new Rayo app, and Nation Broadcasting goes ad-free via TuneIn
Premium
By developing Rayo (first announced in March 2023), Bauer will make its audio content available in a
single app and on a website with a consistent digital brand, akin to the approach adopted by BBC
Sounds and Global Player. Bauer has also added advertising-free Magic Radio and Greatest Hits
Radio stations to its subscription radio service. Nation Broadcasting announced in June 2023 that it
would be available via the TuneIn Premium subscription service.
Music streaming
Agreement to improve music metadata
In November 2022 the Competition and Markets Authority published its music streaming market
study. It concluded that neither record labels nor streaming services were likely to be making
significant excess profits that could be shared with creators, and that interventions outside the
scope of competition would be needed to address issues around payments to creators. The
Government initiated a programme of work to examine these issues, and as part of this, in May 2023
key organisations in the UK music industry agreed to improve their metadata. Having better
metadata should help to better identify artists and creators due who are due royalty payments.
Additional research from the programme is expected to be published later in the summer.
Music streaming services continue to adapt their offerings…
In November 2022 Amazon made changes to its Prime Music service, giving Prime subscribers access
to its full library of music (rather than a subset, as before) and access to advertising-free versions of
certain podcasts, including titles from Wondery and the New York Times. However, the changes also
mean that, apart from songs on All Access playlists, Prime subscribers not paying an additional
subscription fee can only listen to music via a shuffle mode.
In March 2023 Apple launched Apple Music Classical, a new standalone music streaming app
designed for listening to classical music, which offers users information better suited to classical
Podcasts
Some publishers are seeking to reduce costs in their podcast business
Over the past few months, several large podcast producers in the US have rationalised their podcast
line-up and made job cuts, amid reports of cuts in production budgets. Despite the resilient
audiences, analysts have pointed to the sector’s reliance on advertising as a weakness, given the
increasingly challenging economic environment.
Spotify has made several changes to its business over the past year, following trends which saw
costs grow twice as quickly as revenues. It reduced headcount by 6% across the business in January
2023, and in June announced a further round of 200 job cuts in its podcast division as well as the
merger of Gimlet and Parcast to create a Spotify Originals studio. NPR cut its headcount by 10% in
March 2023 and cancelled four podcasts, including 8-year-old Invisibilia, to help address a $30m
budget deficit.
Broadcasters continue to develop their podcast offerings for both listeners and
advertisers
In May 2023 the New York Times launched a standalone app, providing access to subscriber-only
podcasts in addition to other NYT audio content, such as The Daily, and early access to This American
Life. In the UK, where the podcast advertising market is less developed, broadcasters have continued
to develop their offerings involving both first- and third-party podcasts. Following their departure
from the BBC, Emily Maitlis, Jon Sopel and Lewis Goodall’s News Agents news podcast launched as a
Global Player original in August 2022. In April 2023, talkSPORT launched a network of third-party
football podcasts alongside its existing portfolio of original podcasts, offering advertisers greater
scale.
53Track metadata fields for classical music such as title, composer, opus, performer/orchestra, conductor and
recording may differ from metadata used for pop music such as song, artist and album.
54
Audience trends: overall reach of live radio stays high
as listening continues to shift to online
This section provides data and commentary on what people are listening to, and how. It starts by
looking at listening across a range of audio types and devices, before focusing on consumer trends
relating to radio listening, music streaming, podcasts, voice assistants and in-car listening.
Audio listening
Figure 46: Weekly use of different audio types, GB adults 15+: 2018-2023 55
80% 76%
70%
61%
60%
50% 47%
40%
31% 32%
29%
30%
24% 25% 24% 23%
20% 18% 18%
14%
10% 11%
10% 8% 8%
5%
0%
Live radio on a Online radio On-demand radio Streamed music Personal digital Podcasts Personal music on Music video sites / Audiobooks
radio set music CD etc. channels
2018 2019 2020 (pre-lockdown) 2020 (lockdown) 2021 wave 1 2021 wave 2 2022 wave 1 2022 wave 2 2023 wave 1
Online audio formats continue to be more popular among younger listeners, with 75% of 15-34-
year-olds listening to streamed music each week. Podcasts also had a higher reach among under-35s
compared to the overall population (26% vs 18%). Despite growth in vinyl and cassette sales, as
54 This figure for podcasts weekly reach (18%) is slightly lower than RAJAR’s figure (19.6%) which we typically
use, however, we include it in this chart as it allows us to compare a range of different audio types and over
time.
55 The deduplicated figure from IPA TouchPoints for weekly reach of all live radio on any device and platform is
slightly lower than the RAJAR equivalent. We include the granular splits in this chart (live radio on a radio set,
online radio and on-demand radio) to show the changes compared to other audio types over time, but we
defer to RAJAR for weekly reach of all live radio (88% of adults aged 15+) as it is the industry standard for
measuring radio listening.
55
outlined above, the reach of music on physical formats has halved for this age group over the past
five years (down 11 percentage points); one in ten adults aged 15-34 now listen this way each week.
Figure 47: Weekly use of different audio types, GB adults 15-34: 2018-2023
80%
75%
70%
59% 59%
60%
50%
41% 42%
40%
40% 38%
29%
30%
25%
21%
20% 18% 17% 18%
10% 9%
10% 8% 7% 6%
0%
Live radio on a Online radio On-demand radio Streamed music Personal digital Podcasts Personal music on Music video sites / Audiobooks
radio set music CD etc channels
2018 2019 2020 (pre-lockdown) 2020 (lockdown) 2021 wave 1 2021 wave 2 2022 wave 1 2022 wave 2 2023 wave 1
56
Figure 48: Share of time spent each week on any audio: adults 15+ vs 15-34s
Any radio content (inc. radio podcasts) = 64%
1%
1%
Any radio content (inc. radio podcasts) = 30%
Any radio content = 72%
1%
2018
Live radio on a radio set Online live radio Online catch-up radio Radio podcasts Streamed music
Music video sites/channels Personal digital music Other podcasts Personal music on CD etc Audiobooks
56
Ofcom Audio Survey.
57
More information on how this works is available here: Spotify FAQS, How does Spotify Radio work, accessed
12 July 2023.
57
Figure 49: Most-used services by weekly users of different online audio: March 2022 and March
2023
Radio online Online Music (excluding Radio) Podcasts Audiobooks Music videos as background listening
2022 2023 2022 2023 2022 2023 2022 2023 2022 2023
Source: Ofcom Audio Survey 2022 and 2023. ‘NET: Global’ includes Global Player and website or app for Heart,
Capital, Classic FM, Smooth, Radio X radio stations. ‘NET: Bauer’ includes Planetradio.co.uk (for radio stations
including Magic, Kiss, Greatest Hits, Hits, Absolute, Scala, Planet Rock) and specific apps for Magic, Kiss,
Greatest Hits, Hits, Absolute, Scala and Planet Rock.
58
RAJAR Q1 2023.
59
RAJAR Q1 2023.
60
The table shows stations that are available across the UK. These can be stations that either have the same
output regardless of where in the UK they are listened to (e.g. BBC Radio 2, or Heart UK on national DAB), or
they can be local radio services that have some tailored local content (notably local news) alongside output
that is mostly ‘simulcast’ or ‘networked’ across a number of local stations which share the same branding.
61
LBC, along with Capital, was the first licenced commercial radio stations to broadcast, fifty years ago this
October.
58
for longer each week. The top five UK-wide stations remain unchanged since Q4 2022, with BBC
Radio 2 and BBC Radio 4 alone accounting for over a quarter of weekly radio listening.
Figure 50: Top ten UK-wide stations/networks, ranked by market share: Q1 2023
Rank National station/ network Ranking change Weekly reach Market Owner
from previous of adults 15+ share
quarter
1 BBC Radio 2 - 25.8% 15.2% BBC
2 BBC Radio 4 - 16.8% 11.2% BBC
3 Heart Network (UK) - 15.9% 5.6% Global
4 Hits Radio Network 62 - 12.1% 5.0% Bauer
5 BBC Radio 1 - 13.5% 4.9% BBC
6 Greatest Hits Network +3 9.5% 3.7% Bauer
7 Classic FM -1 8.1% 3.6% Global
8 Smooth Radio Network (UK) -1 9.4% 3.4% Global
9 BBC Radio 5 live -1 9.1% 3.0% BBC
10 LBC (UK) +1 4.9% 2.9% Global
=10 Capital Network (UK) - 11% 2.9% Global
Source: RAJAR Q1 2023. TSA: All Radio. Weight: Automatic (each station weighted by its own weight).
62 Note that nearly all the services comprising Bauer’s ‘Hits Radio Network’ broadcast under local branding (e.g.
Hallam FM, Metro Radio, Clyde 1, Radio City), although most of the programming is shared across the network
on these services.
63 We have used BBC nations/local radio total survey areas (TSAs) for this analysis as they are non-overlapping
areas. A TSA is the defined area RAJAR uses to measure listening and ensures robust sample sizes in those
areas. Market share for a particular station can vary if measured within different TSAs.
59
groups, continues to dominate listening in the Channel Islands, mainly because those stations were
the only commercial stations to broadcast there until the arrival of the DAB+ multiplex in August
2021. Data from RAJAR indicates that although the way in which people in the Channel Islands listen
to commercial radio has shifted, with more using DAB instead of analogue, this has had no impact on
the numbers of people listening to commercial radio overall or its market share.
60
Figure 51: Top three stations based on market share in each BBC nations/local radio area: Q1 2023
Total survey area (TSA) Station ranked 1st Station ranked 2nd Station ranked 3rd
UK BBC Radio 2 BBC Radio 4 Heart
BBC Coventry & Warwickshire BBC Radio 2 BBC Radio 4 BBC Radio 1
BBC Essex BBC Radio 2 Heart BBC Radio 4
BBC Hereford & Worcester BBC Radio 2 BBC Radio 4 BBC Radio 1
BBC Radio Berkshire BBC Radio 2 BBC Radio 4 Heart
BBC Radio Bristol BBC Radio 4 BBC Radio 2 Heart
BBC Radio Cambridgeshire BBC Radio 2 BBC Radio 4 Heart
BBC Radio Cornwall BBC Radio Cornwall BBC Radio 2 BBC Radio 4
BBC Radio Cumbria BBC Radio 2 BBC Radio 4 BBC Radio Cumbria
BBC Radio Derby BBC Radio 2 BBC Radio Derby BBC Radio 4
BBC Radio Devon BBC Radio 2 BBC Radio 4 Heart
BBC Radio Gloucestershire BBC Radio 2 BBC Radio 4 Heart
BBC Radio Guernsey Island FM 104.7 BBC Radio 1 BBC Radio Guernsey
BBC Radio Humberside BBC Radio 2 BBC Radio 4 BBC Radio Humberside
BBC Radio Jersey Channel 103 FM BBC Radio 2 BBC Radio 1
BBC Radio Kent BBC Radio 2 Heart BBC Radio 4
BBC Radio Lancashire BBC Radio 2 BBC Radio 4 BBC Radio Lancashire
BBC Radio Leeds BBC Radio 2 Capital BBC Radio 4
BBC Radio Leicester BBC Radio 4 BBC Radio 2 Capital
BBC Radio Lincolnshire BBC Radio 2 Lincs FM* BBC Radio 4
BBC Radio London BBC Radio 4 BBC Radio 2 LBC London
BBC Radio Manchester BBC Radio 2 Smooth Radio BBC Radio 4
BBC Radio Merseyside BBC Radio 2 BBC Radio Merseyside Smooth Radio
BBC Radio Newcastle BBC Radio 2 Smooth Radio Metro Radio
BBC Radio Norfolk BBC Radio 2 BBC Radio 4 Heart
BBC Radio Northampton BBC Radio 2 Heart BBC Radio Northampton
BBC Radio Nottingham BBC Radio 2 BBC Radio 4 Smooth Radio
BBC Radio Oxford BBC Radio 2 BBC Radio 4 Heart
BBC Radio Scotland BBC Radio 2 Clyde 1 BBC Radio 4
BBC Radio Sheffield BBC Radio 2 Hallam FM BBC Radio 4
BBC Radio Shropshire BBC Radio 2 BBC Radio 4 BBC Radio Shropshire
BBC Somerset BBC Radio 2 BBC Radio 4 Heart
BBC Radio Stoke BBC Radio 2 Signal One BBC Radio Stoke
BBC Radio Suffolk BBC Radio 2 BBC Radio 4 Heart
BBC Sussex & BBC Surrey BBC Radio 4 BBC Radio 2 Heart
BBC Radio Tees BBC Radio 2 Smooth Radio Capital
BBC Three Counties Radio BBC Radio 2 BBC Radio 4 Heart
BBC Radio Ulster BBC Radio Ulster Cool FM Downtown Radio
BBC Radio Wales BBC Radio 2 BBC Radio 4 Heart
BBC Radio Wiltshire & Swindon BBC Radio 2 BBC Radio 4 BBC Radio 1
BBC WM 95.6 BBC Radio 2 BBC Radio 4 Heart
BBC Radio York BBC Radio 2 BBC Radio 4 BBC Radio 1
Key BBC Radio 2 BBC Radio 4 BBC Radio 1 BBC Local Global Bauer Tindle
61
Source: RAJAR Q1 2023, based on market share in the BBC nations’/local total survey areas; six-month
weighting. *Lincs FM has since rebranded to Greatest Hits Radio on FM, but is still available as Lincs FM on
DAB, online and smart speakers.
40%
30%
49.1% 49.8% 47.6% 47.4%
20% 43.6% 44.0% 43.2% 41.5% 41.4%
34.2% 35.5% 32.1% 32.4% 34.0% 33.4% 32.4%
10%
0%
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023
Source: RAJAR. Dotted line indicates suspension of fieldwork from the end of Q1 2020 until Q3 2021 due to the
Covid-19 lockdowns. This led to subsequent changes in methodology, so comparison with previous quarters
should be made with caution.
Listening via the internet and smart speakers using primarily the BBC’s umbrella online platform,
BBC Sounds, accounts for just under a fifth (19.7%) of the BBC’s total radio listening. In contrast,
almost two-fifths (37.8%) of time spent listening to News Broadcasting (formerly Wireless, and
including talkSPORT, Times Radio and Virgin Radio) is via online platforms, including station-branded
apps.
64
RAJAR Q1 2023.
65
Ofcom Technology Tracker 2023.
62
Figure 53: Share of listening, by platform of each main broadcaster group: Q1 2023
100% 3.4% 3.5% 3.7% 2.1%
4.3%
90% 14.0% 10.5%
15.9% 18.3% 19.0%
80% 9.2%
10.5%
10.7%
70% 10.2%
18.8%
60%
38.7%
50% 39.8% 37.0%
44.8%
40%
46.4%
30%
20% 38.2%
32.4% 32.6%
10% 22.3%
13.7%
0%
All radio BBC Global Bauer News Broadcasting
Analogue DAB Online (ex smart speakers) Smart speakers DTV
Source: RAJAR Q1 2023. Note: News Broadcasting rebranded from Wireless in 2023.
Of course, listeners’ choice of content and platform is largely dependent on where they are at the
time. Listeners have the widest range of options while at home, where 30.9% of listening is online,
with around two-thirds of this through a smart speaker. DAB radio continues to account for just over
half of in-car listening (50.6%) compared to AM/FM’s 43% and 6% via the internet, 66 although this
varies by nation, as illustrated in Figure 54 below. Listeners in Northern Ireland are more likely than
the rest of the UK to listen to AM/FM in the car, partly due to lower DAB coverage levels and the
popularity of local radio. More information on radio listening in the nations is available in our
Northern Ireland, Scotland and Wales reports and more data on in-car radio listening, including
DAB’s share over time, can be found later in this section.
66 RAJAR Q1 2023.
63
Figure 54: Platform share of listening, at home and in the car, by nation: Q1 2023
25.8% 33.3%
35.2% 31.8%
39.5% 32.6%
29.0% 31.9%
44.5% 45.8%
50.6% 49.0%
Source: RAJAR Q1 2023. TSA: All radio (UK), BBC Radio Ulster (Northern Ireland), BBC Radio Scotland (Scotland),
BBC Radio Wales (Wales).
Music streaming
67 RAJAR Q1 2023.
64
average, with three-quarters of 15-34-year-olds using music streaming services at least once a week
in the first quarter of 2023, although this was marginally lower than a year ago (by two percentage
points). Conversely, reach among over-54s increased slightly to just over a fifth (22%) in 2023,
perhaps an indication of the potential for future growth in this age group.
59%
60%
53% 53% 53%
50% 49%
50% 48% 47% 47%
45% 45% 44%
42%
40%
31% 31%
30%
24%
22%
19% 18% 19%
20% 16%
9%
10%
0%
15+ 15-34 35-54 55+
2018 2020 (pre-lockdown) 2020 (lockdown) 2021 wave 1 2021 wave 2 2022 wave 1 2023 wave 1
Figure 56: Share of time spent music streaming by platform, GB adults 15+ vs 15-34s: 2023
Amazon Music Unlimited YouTube Music (App) BBC Sounds Other music streaming service
65
Podcasts
30%
26.5%
26.2%
25%
21.8%
20.8%
20% 19.6%
18.7%
16.9%
15% 15.4%
13.3%
10.8%
10% 10.2% 9.8%
7.2%
5%
3.4%
0%
Q1 2018 Q1 2019 Q1 2020 Q1 2022 Q1 2023
Source: RAJAR. Dotted line indicates suspension of fieldwork from the end of Q1 2020 until Q3 2021 due to the
Covid-19 lockdowns. This led to subsequent changes in methodology, so comparison with previous quarters
should be made with caution.
68 RAJAR Q1 2023.
66
Figure 58: Podcast series subscribed to, and individual podcasts listened to weekly: 2023
41%
27%
24% 24%
16% 17%
14%
7% 6% 8%
4%
2%
Source: Ofcom Podcast Survey 2023. Base: All regular podcast listeners, 1006 (2023), 1003 (2022). Question 9:
On average, how many individual podcasts do you listen to in a week? Question 10: How many podcast series
are you subscribed to?
Figure 59: Audience profiles: speech radio listeners vs podcast listeners: Q1 2023
Proportion of speech/podcast listeners who listen to both audio Age profile of speech/podcast listeners
types or exclusively to one
4.4%
6.5% 65+
19.3%
21.2% Speech radio AND 36.6% 13.2%
podcast 55-64
21.6%
23.0%
24.1%
Total speech radio OR 45-54
podcast listeners Podcast AND NOT 20.5%
speech radio 19.5%
= 24.1m (43%)
27.4% 35-44
16.1%
18.7%
54.7% Speech radio AND NOT 25-34
podcast 11.7%
13.7% 25.5%
8.9%
7.3% 15-24
6.1%
Speech radio AND Speech radio AND NOT Podcast AND NOT
podcast podcast speech radio
69
This does not include stations which provide some speech-only programmes, such as some BBC nations/local
stations.
67
People consume different types of speech content for different reasons, so there may be limited
substitutability between different types of speech-based content. For example, among those who
listen to a speech-based radio station at least monthly, 50% cited ‘catching up on news’ as a reason
to listen to such a station, versus 18% of monthly podcast listeners who said they listened to
podcasts for this reason. In contrast, half of those who listen to a podcast at least monthly said they
listened to a podcast ‘to learn something new’ or ‘for entertainment’ (compared to 35% and 33%
respectively for listeners to speech-based radio stations). The most-cited reason to listen to an
audiobook was for entertainment (44% of audiobook listeners).
Figure 60: Reasons for listening to different types of speech-based content: 2023
60%
39%
40%
35%
33%
30% 31%
30% 28%
24% 24% 24%
22% 22%
18% 18%17% 19%
20%
16% 15% 16% 16%
13% 14% 13%12% 12% 13% 14%
10% 11%
10% 7% 7% 8% 8% 9% 9% 8% 8% 7% 8%
6% 6%
0%
To catch-up on To learn For For background To pass the To relax For company To give me Habit For practical To make me
news something new entertainment listening time something to advice feel better
talk about
A radio station that is mainly speech-based (e.g. BBC Radio 4, LBC, talkSPORT)
A podcast
An audiobook (digital/online and physical)
Other type of audio content (e.g. Time to Walk by Apple Fitness+, guided audio meditation )
68
Figure 61: Attitudes to podcasts: 2023
Strongly agree Slightly agree Neither agree nor disagree Slightly disagree Strongly disagree
70
Ofcom Technology Tracker 2023.
71
Ofcom Technology Tracker 2023.
69
Smart speakers account for a fifth of in-home radio listening,
and their share is growing
In the past year, smart speakers’ share of in-home listening has grown from 14% to 20%. This growth
has come at the expense of in-home DAB (down by four percentage points) and analogue listening
(down by one percentage point).
30%
0%
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023
AM/FM DAB Online (ex smart speaker) Smart speaker DTV Any internet
Source: RAJAR. Dotted line indicates suspension of fieldwork during the Covid-19 lockdowns and change in
methodology. Comparison with previous quarters should be made with caution.
Many radio listeners have stopped using their radio set since
getting a smart speaker
Ofcom published the findings of its qualitative research into smart speakers in December 2022.
About half of the respondents who took part reported using their smart speaker(s) as a radio, and
had stopped using, or even got rid of, other devices such as physical radio sets since getting the
smart speaker. Some bought their smart speaker specifically as a replacement for a radio because of
the audio quality.
“We used to have two radios in the bedroom because we love this
station, LBC, and it was quite hard to tune in on the old radio, and then
the clock radio that we used to have was set to our local station here.
So now we don’t have either of those and we just have Alexa.”
(Radio focus group participant)
In-car listening
60%
50%
40%
66.6% 65.1% 63.5%
30% 62.5%
58.5% 58.2% 57.8% 55.5% 55.5%
47.0% 49.4% 45.9% 44.4% 45.0% 44.2% 43.1%
20%
10%
0%
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023
AM/FM DAB Any internet
Source: RAJAR. Dotted line indicates suspension of fieldwork and change in methodology. Comparison with
previous quarters should be made with caution. Includes vans and lorries.
Most cars have a DAB radio, and the proportion of cars with
smartphone connectivity is increasing
More than six in ten households which use cars have a car with a DAB radio in it (62%), while a third
use one which can stream music from the driver’s or a passenger’s phone to the dashboard – a
significant year-on-year increase. Thirty-two per cent of households use a car with a built-in
infotainment system, also significantly more than last year.
Voice assistant for e.g. making calls, playing music or navigation 24%
22%
Source: Ofcom Technology Tracker 2022 and 2023. Base: Person has car and uses it as a driver or passenger
n=2871 (2022), n=2874 (2023). Arrows indicate statistically significant year-on-year increase at the 95%
confidence level.
71
Live radio is still the most popular form of audio in cars
Listening to live radio, either on an AM/FM or DAB radio, was the most common in-car audio
listening activity in 2023, with at least half of car users doing at least one of these activities. Over a
fifth (22%) of drivers and passengers used a streaming service on a mobile phone to listen to music
in the car (up from 17% in 2022), while 9% listened to music via an infotainment system built into
the car. Those aged under 35 were more likely than average to listen to music using a streaming
service via a mobile phone in the car, with 36% of 16-24-year-olds and 39% of 25-34-year-olds saying
they did this either as a driver or a passenger.
22% 21%
15%
13%
9% 8%
Listen to live radio Listen to live radio Listen to music Listen to music on Listen to music Listen to radio on Listen to a Listen to a
on an in-car FM or on an in-car DAB using a streaming an in-car CD or stored on a phone a mobile phone streaming service podcast via a
AM radio radio service on a tape player via an in-car mobile phone
mobile phone infotainment
system
Source: Ofcom Technology Tracker 2023. QR4. Which, if any of these ways do you listen to audio content in a
car? Base: All respondents who drive/are a passenger in a car n=2874.
72