The Communications Market:The Communications Market:

Digital radio report chart packDigital radio report chart pack

July 2010y

Contact details:Robert Turner (robert.turner@ofcom.org.uk)Caroline Leaver (caroline.leaver@ofcom.org.uk)

Alternate contact:Steve Gettings (steve.gettings@ofcom.org.uk)

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Basis of report publicationBasis of report publication

• The Government announced its Digital Radio Action Plan in July 2010. Ofcom was asked in the plan to publish an annual report on the availability and take-up of digital radio services. This is the therefore the first of those reports.therefore the first of those reports.

• The plan emphasises that digital radio switchover should only begin when the market is ready for such a process and that it should therefore be predominantly consumer-led. An aspirational target date of 2015 was supported by the report. But it also concluded that a decision on switchover could pp y ponly made once two criteria had been fulfilled:

– when 50% of all radio listening is via digital platforms; and• when national DAB coverage is comparable to FM, and local DAB reaches 90% of the g p ,

population and all major roads.

• This report includes data on digital radio devices’ share of radio listening. Future editions will also report on the coverage project, designed to measure current levels of FM and DAB coverage.p g p j , g g

• In this report ‘digital radio’ is used in its broadest sense to include all platforms and technologies that allow listeners to access digital radio services.

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Figure 1 Percentage share of listening hours (di it l l ifi d)(digital, analogue, unspecified)

Radio listening share by digital and analogue listening

12.8% 17.9% 21.1% 24.6%80%

100%

Digital

Radio listening share by digital and analogue listening

21.1% 12.6% 12.7% 8.5%60%

80% DigitalUnspecifiedAnalogue

66.1% 69.5% 66.2% 67.0%

20%

40%

0%Q2 2007 Q2 2008 Q2 2009 Q2 2010

Source: RAJAR Ipsos MORI/ RSMBNote: New digital radio listening share survey begun in Q2 2007 by RAJAR Ipsos MORI/ RSMBNote: New digital radio listening share survey begun in Q2 2007 by RAJAR Ipsos MORI/ RSMB

Figure 2: Proportion of people, by age, who have ever

Digital radio listening by age group (% of total)

g p p p , y g ,listened to radio via a digital platform, Q1 2010

60%

Digital radio listening by age group (% of total)

53% 54% 57% 56% 55%

40%

53% 54% 55%46%

29%20%

0%All 15+ 15-24 25-34 35-54 55-64 65-74 75+

Source: Ofcom research, Q1 2010Source: Ofcom research, Q1 2010Base: All who listen to the radio (n=7017)Q: Whether ever use digital radio

Proportion of people, by age, who have ever listened to radio through a digital platform, Q1 2010Proportion of people, by age, who have ever listened to radio through a digital platform, Q1 2010

Figure 3: Distribution of listening to digital radio, by g g g , ysocio-economic group – ever used digital radio

Di i l di li i b i i (% f l)Digital radio listening by socio-economic group (% of total)

60%

63%55%

40%

53% 55% 48%42%20%

Source: Ofcom research, Q1 2010

0%All adults AB C1 C2 DE

Source: Ofcom research, Q1 2010Base: All who listen to the radio (n=7017)Q: Whether ever use digital radio

Figure 4: Share of digital listening, by platform and areag g g, y p

DAB Radio via DTV0 4 9%

All digitalInternet0-4.9%

5.0-9.9%

10.0-14.9%

15.0-19.9%

20.0-24.9%

25.0-29.9%

30.0+%

N/A

Source: Ofcom / RAJAR / Octagon Q1 2010

Figure 5: Digital radio’s share of radio listening, Q1 2010

Year-on-year increase (percentage points)

ours

g g g, Q

20

25+ 3.9 + 0.6+ 2.4 + 0.7 + 0.1

of a

ll ra

dio

ho

24.010

15

tform

s sh

are

o

15.1

4.0 2.9 1.90

5

ital r

adio

pla

t

All digital DAB DTV Internet Digital unspecifiedDig

Source: RAJAR (adult listeners 15+), Q1 2010

6Note: ‘Digital unspecified’ relates to listening to digital-only stations where the survey respondent has not specified the listening platform used.

Figure 6: Distribution of listener hours, by service and l /di it l l tf Q1 2010

+4pp +3pp 0pp +1pp +1ppAnnual increase

in digital listening

analogue/digital platforms, Q1 2010

24%

9%

80%

100%

Not Stated24%

4%

60%

rket

sha

re

Digital

Digital share of listening = 24%

67%

30%

13%

1%

5%

4%

1%1%

3%

20%

40%

% m

ar

Analogue

30%

7% 5%23%1%

5%1%

0%All Radio BBC Network Local / Nations

BBCNational

commercialLocal

commercial

Source: RAJAR / OCTAGON, Q1 2010

BBC commercial commercial

Figure 7: Distribution of listener hours, by service,

0 9 0 4 0 1 0 3 0 2 0 1 0 1 0 0 0 4Annual increase

in digital listening

g , y ,between analogue & digital platforms, Q1 2010

1.7%15%

18%

Not Stated

+0.9pp +0.4pp +0.1pp +0.3pp +0.2pp +0.1pp +0.1pp 0.0pp +0.4pp in digital listening

3.5%

3.3%

1.0%

0.9%9%

12%

15%

ket s

hare

Not Stated

Digital

12.0%

7.9% 6.9%

1.7%

1.6% 1.0% 0 5% 0 4%0.4%

0.9%

0.4%0.3%

0.2% 0.1%3%

6%

9%

% m

ark

Analogue

2.5% 2.4% 0.9% 0.7%0.3%

0.5% 0.4% 0.8%0%

Source: RAJAR / OCTAGON, Q1 2010

Figure 8: Most listened-to digital-only stations, Q1 2010

1600

Average weekly reach Q1 2010 (thousands) % change year on year -14% -12% -20% +2% +53% +4% +10% +7% +1% new new +32% -29% -1% +294% -27%

1200

1600

Bauer

BBC

Radio group

1,5211,313

1,165 1,097 1,078

800

BBC

AbsoluteOther

Global,807 750 685 622

486286 276 260 238 177 172

0

400Global

The

Hits

Wor

ld S

ervi

ce

sh H

its R

adio

BB

C R

adio

7

BB

C 6

Mus

ic

Pla

net R

ock

from

the

BB

C

Spo

rts E

xtra

Hea

t

Jazz

FM

Abs

olut

e 80

s

Cla

ssic

Roc

k Q

NM

E R

adio

Pan

jab

Rad

io

Chi

ll

BB

C W

Sm

as

1Xtra

f

Five

Liv

e A

Abs

olut

e P

Source: RAJAR, Q1 2010, (all listeners 4+), figures are rounded.

Figure 9: Forecast digital radio listener hours, according to the last government’s Digital Britain report

Digital % share of all radio listening (at year end)

68%80%

100%All digital platforms share of radio listening

43%50%

58%

68%

56%

60%

'Drive to Digital'

'Organic growth'

17% 20%26%

31%36%

43%

24%28%

33%38%

43%49%

20%

40%

7%12% 24%

0%

20%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: Digital Britain Report, Value Partners Analysis, RAJAR

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Figure 10: Take-up of equipment capable of receiving g p q p p gdigital radio, 2010

Cable 11%90%

73% 92% 35%+3 +3 +2

Share of householdsYear-on-year increase (pp)

Dial-up 1%

Terrestrial 39%

50%

60%

70%

80%

Broadband72%

Satellite 42% 35%20%

30%

40%

50%

35%

0%

10%

%

Internet Digital TV DAB radio

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Source: Research from: Ofcom, GfK and RAJAR Q1 2010

Figure 11: The radio set universe, frequency of listening

Sets in the market ( illi ) l

Estimated proportion d t l t kl

Estimated proportion that are digital (%)5

g , q y gand proportion that are digital

(millions) – lower bound estimate3

used at least weekly (%)4

that are digital (%)

In home radios1 70m – 80m 73% 14%-16%

Vehicle radios2 34m 92% 1%

Total 104 114m 83% 10%-11%Total 104 – 114m 83%

Source: Ofcom research on home radio ownership and vehicle figures from the Department of TransportNote 1: In home radios includes hi-fis, portable radios and alarm clock radios. Note 2: Data on the number of vehicles on UK roads as reported by the Department of Transport in December 2009Note 2: Data on the number of vehicles on UK roads, as reported by the Department of Transport in December 2009Note 3: Due to the complexity of estimating the radio set universe, we have included a range of figures based on consumer research conducted in November 2008 and GfK retail sales data for 2000-2010.Note 4: Frequency of listening figures from Ofcom consumer research May 2010, Base: 1075 UK adults (Q1) How many working (insert type of device) do you have in your household?(Q Q ) f ( f )?

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(Q4ii to Q6i): How often do you or someone in your household listen to (type of device)? Note 5: Proportion of radios including a DAB digital radio tuner uses GfK sales data, June 2010 (11mdevices sold in 10 years).

Figure 12: Proportion of individuals claiming access to g p gDAB in the home

40%

Proportion of all individuals (%)

20%

30%

13.6%19.5%

27.3%32.1% 34.5%

10%

20%

3.9%8.1%

0%Q1 2004 Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010

13

Source: RAJAR / Ipsos MORI / RSMB Q1 2010

Figure 13: Take-up of DAB digital radio, by multiplex area

10-14.9%

g p g , y p

15.0-19.9%

20.0-24.9%

25.0-29.9%

35.0-39.9%

30.0-34.9%

40.0-44.9%

45.0-49.9%

N/A

50.0+%

14

Source: Ofcom / RAJAR / Octagon Q1 2010

Figure 14: Number of analogue and digital radio sets sold

T t l l l 11 6 illi 9 7 illi 10 4 illi 9 4 illi 9 0 illi

g g g

10.110

)

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

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

7.9 8.3 7.3 7.1

468

10

Analogue setsDAB setses

(mill

ions

1.5 1.8 2.1 2.1 1.9

024

Y t Q1 Y t Q1 Y t Q1 Y t Q1 Y t Q1adio

set

sal

e

Source: GfK sales data, 2005-2010

Year to Q1 2006

Year to Q1 2007

Year to Q1 2008

Year to Q1 2009

Year to Q1 2010R

a

Figure 15: Average price of DAB digital radio receiversg g p g

Average price of sets (£)

£412£400

£500

£134

£238 £210

£107

£145£161

£149 £155£202

£196£150

£198 £174

£200

£300

All

In home£134 £121£99 £99 £90 £75

£85 £91£107 £149 £155

£95£80 £74

£115 £109 £89 £78 £70 £53 £56 £61£0

£100

In-home

Car audio

Portable

£0Q1 2003 Q1 2004 Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010

Source: GfK sales data 2003-2010

Figure 16: Have you heard of the term ‘DAB digital radio’?g y g

% of UK adults

Source: Ofcom research May 2010Base: 1075 UK adultsQ: Have you ever heard of the term ‘DAB digital radio’ or seen this logo before today?

Figure 17: Likelihood to purchase a DAB set Q1 2010Figure 17: Likelihood to purchase a DAB set, Q1 2010

% of those who do not currently have access to DAB at home (%)

55%

50%

60%

17%

28%30%

40%

17%

0%

10%

20%

0%Likely to buy Unlikely to buy Don't know

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

Figure 18: Reasons for not acquiring a DAB digital

Too expensive3%

Don't know why I should

radio set, Q1 2010

Happy to use analogue radio

Can receive via DTV4%

3% should2% Can't afford it

2%

No needWould never listen 6%

Poor reception 4%

g4%

No need55%

Happy to use existing service 32%

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

Figure 19 Number of UK radio stations broadcasting on analogue (excluding communitybroadcasting on analogue (excluding community radio), July 2010

Type of station AM FM Total ypanalogue 1

Local commercial 31 203 234

UK-wide commercial 2 1 3UK wide commercial 2 1 3

BBC UK-wide networks 1 4 5

BBC local and nations 36 46 46

TOTAL 70 254 288

In total there are 288 individual analogue services as 36 BBC stations are simulcast over both AM/FM wavebands. Source: Ofcom, July 2010

g

Figure 20 Number of UK radio stations broadcasting on DAB digital radio, July 2010 g g y

Type of station Relation to analogue area Number of stations

Local commercial DAB in analogue area 84

DAB extends analogue area 22

DAB only 33

UK-wide commercial 7*

BBC UK wide networks 11BBC UK-wide networks 11

BBC local and nations 32

TOTAL 189

Note: Number of stations is ‘unique stations’, rather than brands. This includes any station with more than four hours a day of separate programming

Source: Ofcom, July 2010

than four hours a day of separate programming.

Figure 21: Number of services available on DAB, by area g , y

22

Source: Ofcom July 2010

Figure 22: Availability of DAB stations, by areag y , y

Number of stations, by area

1013

1212 12

50

60BBC network / local & nationsNational commercialLocal commercial

41

10

10 10

10

10

10

10

10 10

13

13 1212 12

12

12

1212

12

20

30

40

6

2917 18 14 13

41

1927

916

34 31

3

10 10 1010

1013

0

10

20

N th S tl d W l C t l E t E t L d N th E t N th S th W t W t Y k hiNorthern Ireland

Scotland Wales Central Southern England

East England

East Midlands

London North East North West

South West

West England

West Midlands

Yorkshire

23

Source: Ofcom, June 2010