0

3. Radio and audio

Figure 3.1

UK radio industry 2005 2006 2007 2008 2009 2010

Weekly reach of radio (% of population) 90.0% 89.8% 89.8% 89.5% 89.8% 90.6%

Average weekly hours per head 21.6 21.2 20.6 20.1 19.8 20.1

BBC share of listening 54.5% 54.7% 55.0% 55.7% 55.3% 55.2%

Total industry revenue £1,118m £1,126m £1,174m £1,137m £1,092m £1,123m

Commercial revenue £530m £512m £522m £488m £432m £438m

BBC expenditure £588m £614m £652m £649m £660m £685m

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

DAB digital radio take-up (households) 11.1% 16.0% 22.3% 29.7% 33.4% 35.8%

Source: RAJAR (all adults age 15+), Ofcom calculations based on figures in BBC Annual Report and Accounts 2010/11 note 2c (www.bbc.co.uk/annualreport), AA/Warc, broadcasters. Revenue figures are nominal.

UK radio industry key metrics

Source: Ofcom / operator data / BBC Annual Report 2005-2010Note: BBC expenditure figures are estimated by Ofcom based on figures in Note 2c of the BBC Annual Report (www.bbc.co.uk/annualreport); figures in the chart are rounded and are nominal.

588 614 652 649 660 685

530 512 522 488 432 438

1118 1126 1174 1137 1092 1123

0

200

400

600

800

1000

1200

2005 2006 2007 2008 2009 2010

Total commercial

BBC expenditure (estimated)

£ million

Figure 3.2

Radio industry revenue and spending 2005-2010

Source: Ofcom / operator data 2009-2010

Perc

enta

ge c

hang

e in

reve

nue

1.4%

4.5%

-0.4%

-5.4%-6%

-4%

-2%

0%

2%

4%

6%All Radio National advertising Local advertising Sponsorship

Figure 3.3

Commercial revenue percentage change 2009-2010

BBC station expenditure percentage change 2009/10 – 2010/11

Source: BBC Annual Report 2010/11 note 2c (www.bbc.co.uk/annualreport). Note that these are financial year figures, excluding BBC-wide overheads, and are therefore not directly comparable to those set out in Section 3.2.2. Figures are nominal. It should be noted that the percentage changes are based on operating expenditure for individual stations based on financial years and they do not include BBC wide overheads; as such they are not comparable with the calendar year figures that are set out in Section 3.2.2.

-6.1%

1.3%

4.1%

5.8%

5.8%

7.0%

9.8%

12.8%

15.5%

16.1%

17.0%

19.5%

-10% 0% 10% 20% 30%

BBC Radio 3BBC Radio 5 Live

BBC Asian NetworkBBC Local/Regional

BBC Network averageBBC Radio 4BBC Radio 1BBC Radio 2

BBC Radio 4 ExtraBBC 6 Music

1Xtra from the BBCBBC Radio 5 Live Sports Extra

Annual % change of BBC radio station expenditure

Figure 3.4

5

Source: RAJAR / Ipsos MORI / RSMB Note: ‘Digital unspecified’ relates to listening to digital-only stations where the survey respondent has not specified the listening platform used.

Figure 3.5

Digital radio’s share of radio listening, Q1 2011

Dig

ital r

adio

pla

tform

s sh

are

of a

ll ra

dio

hour

s

13.1% 13.3% 13.7% 15.1% 15.8% 15.3% 15.8% 16.7%

3.6% 3.6% 3.4%4.0% 4.1% 4.4% 4.3% 4.1%2.2% 2.2% 2.1%2.9% 2.9% 2.8% 3.1% 3.6%

2.1% 2.0% 1.7%

1.9% 1.8% 2.2% 1.8%2.0%

21.1% 21.1% 20.9%

24.0% 24.6% 24.8% 25.0%26.5%

0%

5%

10%

15%

20%

25%

30%

Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

Digital unspecified

Internet

DTV

DAB

6

Source: RAJAR / Ipsos MORI / RSMB Q1 2005-2011.

Figure 3.6

Ownership of DAB set, Q1 2011

8.1%13.6%

19.5%27.3%

32.1% 34.5% 38.2%

0%

10%

20%

30%

40%

Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011

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

7

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

Figure 3.7Take-up of equipment capable of receiving digital radio, Q1 2011

Broadband74%

Satellite 43% DAB radio 38%

Dial-up 1%

Terrestrial 38%

Cable 11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Internet Digital TV DAB radio

75% 93% 38%+2 +1 +4

Share of households

Year-on-year increase (pp)

8

Figure 3.8BBC iPlayer quarterly radio requests

Source: Ofcom calculates based on BBC iStatshttp://www.bbc.co.uk/blogs/bbcinternet/bbc_iplayer_press_pack/

52 59 69 66 5869 77

2624

27 2826

2628

7884

96 9484

95105

0

20

40

60

80

100

120

Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

On-demand

Simulcast

Radio requests (millions)

Source: RAJAR, all adults (15+). Data based on calendar year 2009 - 2010

Figure 3.9

Change in listening hours between 2009 and 2010

Perc

enta

ge c

hang

e in

list

enin

g ho

urs

2.1% 1.9%2.8%

1.6%

3.7%

7.0%

1.4%

0%

5%

10%

100% 55.2% 42.6% 46.3% 8.9% 11.1% 31.5%Share of all radio hours:

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

1036m 571m 442m 480m 92m 115m 327m2010 weeklyhours:

Source: RAJAR, all adults (15+), data based on calendar years 2009 – 2010

Figure 3.10

Changes in listening hours, 2010 vs. 2009, by age group

2.14%

-4.31%

3.86%

1.51% 1.67%2.40%

6.29%

4.15%

-6%

-4%

-2%

0%

2%

4%

6%

8%

All adults 15+ 15-24 25-34 35-44 45-54 55-64 65-74 75+

100.0% 11.6% 13.9% 17.6% 18.1% 16.7% 13.9% 8.4%Share of all radio hours:

Perc

enta

ge c

hang

e in

list

enin

g ho

urs

Source: Ofcom / operator data / BBC Annual Report 2005-2010Note: BBC expenditure figures are estimated by Ofcom based on figures in Note 2c of the BBC Annual Report (www.bbc.co.uk/annualreport); figures in the chart are rounded and are nominal.

1118 1126 1174 1137 1092 1123

588 614 652 649 660 685

530 512 522 488 432 438274 268 271 246 201 210

169 153 156 142 136 13687 91 96 100 94 890

200

400

600

800

1,000

1,200

2005 2006 2007 2008 2009 2010

Total

BBC expenditure (estimated)

Total commercial

National commercial

Local commercial

Commercial sponsorship

£ million

Figure 3.11

UK commercial radio revenue and BBC radio spending

12

Source: AA/Warc Expenditure Report. Figures are nominal.www.warc.com/expenditurereport

454404 420

2.7% 2.8% 2.7%

0%

1%

2%

3%

4%

£0m

£200m

£400m

£600m

£800m

£1000m

2008 2009 2010

Radio advertising expenditure Radio share of all media advertising

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

Revenue £m Share of all advertising

Figure 3.12

UK radio advertising spend and share of display advertising, 2008 – 2010

£17.13 £16.59 £16.69£15.70

£13.71 £13.33

0

5

10

15

20

2005 2006 2007 2008 2009 2010

Source: Broadcaster returns and RAJAR, 2005-2010. Figures are nominal.

£ per listener

Figure 3.13

Commercial radio revenue per listener

Source: Ofcom, June 2011

6-10 stations in group18.9%

2-5 stations in group9.1%

Independent15.8%

Global Radio22.2%

Bauer Radio13.8%

UKRD6.7%

UTV5.1%

Guardian Media4.7%

Lincs FM3.7%

Figure 3.14

Number of commercial analogue licences owned, by group

Source: RAJAR, all adults (15+), year ending Q1 2011, does not include community radio listening

Share of all radio listening hours, Q1 2011

BBC network, 46.1%

BBC local/regional, 8.7%

Global, 16.3%

Bauer, 10.9%

GMG, 4.4%

UTV, 3.2%Absolute, 1.5%

Orion, 1.0% Other, 8.9%

Percentage share of listening hours

Figure 3.15

Commercial radio by weekly audience reach: Q1 2011

Source: RAJAR, all adults (15+), Q1 2011.Note: pp = percentage points increase

19,727

13,349

5,274 4,133 2,224 1,297 6390%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0

5,000

10,000

15,000

20,000

Global Bauer GMG UTV Absolute Orion Lincs FM

Wee

kly

reac

h (th

ousa

nds)

Annual changein reach + 2.2pp + 1.7pp +0.7pp +0.9pp +0.2pp -0.1pp

Weekly UK audience reach 38.2% 25.9% 10.2% 4.3% 2.6% 1.2%

+0.9pp

8.0%

Figure 3.16

Weekly reach of BBC stations: Q1 2011

Source: RAJAR, all adults (15+), Q1 2011

1.0%

1.7%

2.2%

2.5%

3.5%

4.4%

13.1%

19.8%

21.0%

22.9%

28.2%

0% 10% 20% 30%

BBC Asian Network UK

1Xtra from the BBC

BBC 7

BBC 6 Music

BBC World Service

BBC Radio 3

BBC Radio FIVE LIVE

BBC Local/Regional

BBC Radio 4

BBC Radio 1

BBC Radio 2 (- 0.2%)

( 0.0%)

(+ 1.4%)

(+ 0.3%)

(+ 0.5%)

(+ 0.2%)

(+ 0.4%)

(+0.3%)

(+ 0.3%)

(+0.5%)

(+1.0%)

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

Figure 3.17

Source: BBC Annual Report 2010/11 Part 2 (www.bbc.co.uk/annualreport).

BBC radio stations: spend on radio content, 2010/11

2.53.85.37.37.48.6

11.813.0

16.223.8

36.737.3

46.755.4

92.8114.8

0123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960616263646566676869707172737475767778798081828384858687888990919293949596979899100101102103104105106107108109110111112113114115116117118119120121122123124125126127128129130131132133134135136137138139140141142143144145146147148149150

BBC Radio 5 Live Sports ExtraBBC Radio nan Gàidheal

BBC Radio 4 ExtraBBC Radio 6 Music

BBC 1 XtraBBC Asian Network

BBC Radio CymruBBC Radio Wales

BBC Radio Ulster / FoyleBBC Radio Scotland

BBC Radio 1BBC Radio 3BBC Radio 2

BBC Radio 5 LiveBBC Radio 4

BBC English Local Radio(+7.0%)

(+0.7%)(+15.6%)

Cost (£m), (and % change year on year)

(+4.2%)

(-8.6%)(+14.0%)

(-4.4%)(+12.5%)

(-0.8%)(-4.1%)

(-3.4%)(+13.8%)

(+12.3%)(+6.0%)

(-9.5%)(no change)

Figure 3.18

Source: BBC Annual Report 2010/11 Part 2 (www.bbc.co.uk/annualreport).

BBC radio stations: cost per listener hour of programmes, 2010/11

0.50.7

1.41.4

1.72.1

2.63.2

3.94.8

5.75.9

6.76.8

12.913.7

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

BBC Radio 2BBC Radio 1

BBC Radio 6 MusicBBC Radio 4

BBC Radio 4 ExtraBBC Radio 5 Live

BBC Radio 5 Live Sports ExtraBBC English Local Radio

BBC 1 XtraBBC Radio Ulster / Foyle

BBC Radio WalesBBC Radio 3

BBC Asian NetworkBBC Radio Scotland

BBC Radio CymruBBC Radio nan Gàidheal

(-0.8p)(-1.0p)

(-1.8p)

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

(-3.0p)

(-0.4p)(-0.2p)

(+0.5p)(+0.3p)

(no change)(+0.4p)

(-0.2p)(-no change)

(+0.1p)(-1.3p)

(+0.1p)(no change)

Figure 3.19

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

Type of station AM FM AM/FM total

Local commercial 53 245 298

UK-wide commercial 2 1 3

BBC UK-wide networks 1 4 5

BBC local and nations 36 46 46

Community radio 4 188 193

TOTAL 96 484 545

Figure 3.20

Source: Ofcom, July 2011Note: the conditions of each licence will determine the amount of programming that may be shared between these licensed services. Here we have taken the view that a service providing at least four hours a day of separate programming (even if the same brand has other services) equals one service.

Source: Ofcom, community station revenues 2009/10

Community radio income, by sourceCommunity radio stations’ income 2009/10

Figure 3.21

On-air advertising and sponsorship22% (£16,500)

Grants35% (£26,000)

SLAs 9% (£7,000)

Donations14% (£10,500)

Other20% (£14,500)

Income by typeThe average community radio station income was around £74,500

22

Figure 3.22

Recorded music retail revenues: 2007-2010

Source: Entertainment Retailers’ Association yearbook, 2011. Figures are nominal.

1.23 1.17 1.13 1.01

0.08 0.10 0.130.14

0.06 0.05 0.060.05

1.38 1.32 1.311.20

0

0.25

0.5

0.75

1

1.25

1.5

1.75

2007 2008 2009 2010

Total

Music videosSingles

Albums

Revenues (£bn)

CAGR(%)1yr 3yr

-8.6 -4.5

-10.7 -6.2

9.4 18.6

-10.6 -6.5

23

Figure 3.23

Distribution of recorded music retail revenues: 2007-2010

Source: Entertainment Retailers’ Association yearbook 2011Note: This chart does not include revenues from music videos.

92% 87% 81% 76%

8% 13% 19% 24%

53%

47%

0%

20%

40%

60%

80%

100%

2007 2008 2009 2010 Single/album split in 2010

Albums

Singles

Digital share

Physical shareRev

enue

sha

re (%

)

£1.32bn £1.27bn £1.26bn £1.15bnTotal recorded music revenues

Singles

Albums

24

Figure 3.24

Recorded music sales by volume: 2007-2010

Source: Entertainment Retailers’ Association yearbook 2011

138.5 129.5 118.5 103.8

8.6 4.9 3.1 2.1

6.2 10.316.1

21.0

78.0110.3

149.7 159.7

144.7 139.8 134.6124.8

86.6

115.2

152.8161.8

0

25

50

75

100

125

150

175

2007 2008 2009 2010 2007 2008 2009 2010

Digital

Physical

Sales volumes (million units)

Albums Singles

25

Figure 3.25

Digital music revenues, by business model: 2005-2010

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

46.9 72.1130.0

189.7226.0

22.721.4

19.4

19.6

18.5

13.514.1

10.7

10.9

6.6

5.9

£56.9£89.7

£112.4

£169.8

£225.9£259.7

0

50

100

150

200

250

300

2005 2006 2007 2008 2009 2010

Total

Mobile sub-scriptionMobile DTO

Online sub-scriptionOnline DTO

Revenues (£m)CAGR(%)1yr 5yr

15 35

-11 -15

-6 7

-7 15

19 54

Source: RAJAR, all adults (15+), 2004-2010 calendar years and Q1 2011

89.7% 90.0% 90.4% 89.3% 89.7% 89.6% 90.6% 91.6%

66.5% 66.8% 65.9% 65.8% 66.1% 64.9% 67.1% 67.9%

63.8% 62.6% 62.9% 61.0% 61.5% 61.2% 63.7% 66.0%

58.2% 58.3% 57.6% 58.1% 59.0% 58.5% 60.6% 61.8%

52.0% 50.8% 51.7% 48.9% 49.5% 49.3% 51.5% 52.9%

26.6% 26.0% 26.7% 27.1% 26.9% 25.4% 28.5% 30.9%

21.0% 21.1% 20.6% 19.5% 18.7% 17.3% 18.4% 19.8%5.2% 5.7% 6.1% 6.0% 6.2% 5.9% 6.3% 6.3%0%

20%

40%

60%

80%

100% All radio

All BBC

All commercial

BBC network

Local commercial

National commercial

BBC nations / local

Other2004 2005 2006 2007 2008 2009 2010 Q1 2011

Percent of population

Reach of radio, by sector

Figure 3.26

54.0% 55.1% 54.4% 55.4% 55.7% 55.2% 55.2% 55.0%

43.0% 44.0% 43.2% 45.4% 46.4% 46.7% 46.3% 46.2%

11.0% 11.1% 10.4%

10.0% 9.3% 8.5% 8.9% 8.8%

44.2%42.8% 43.2% 42.4% 42.2% 42.6% 43.4% 42.6%

10.0% 10.1% 10.5%

11.3% 10.6% 10.4% 11.1% 11.7%

34.2% 32.7% 32.8% 31.1% 31.6% 32.2% 31.5% 31.0%

1.8% 2.1% 2.3% 2.2% 2.1% 2.2% 2.2% 2.4%0%

20%

40%

60%All BBC

BBC Network

BBC local / nations

All commercial

National commercial

Local commercial

Other2004 2005 2006 2007 2008 2009 2010 Q1 2011

Percent of listening hours

Share of listening hours, by sector

Figure 3.27

Source: RAJAR, all adults (15+), 2004-2010 calendar years and Q1 2011

-2.9% - 2.2% -4.3%

2.5%

-21.0%

5.2%

-7.3%

-30%

-20%

-10%

0%

10%

20%

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

Percentage change in listening hours

Changes in listening hours by sector: 2005 - 2010

Figure 3.28

Source: RAJAR, all adults (15+), data based on calendar years 2005 and 2010

14.617.5

20.7 22.2

23.9 23.3 21.4

21.419.2 19.7 21.0

0

5

10

15

20

25

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

Adult Women

ABC1 Adults

C2DE Adults

Average listening per week20.3 hours

Weekly listening hours

Source: RAJAR, all adults (15+), year ending Q1 2011, average weekly listening hours per head of population

Average weekly listening by demographic, year ending Q1 2011

Figure 3.29

Source: RAJAR, all adults (15+), data based on calendar years 2005 and 2010

-2.9%

-14.5%

-5.8%-8.2%

3.6%

-0.6%

2.6%

6.9%

-15%

-10%

-5%

0%

5%

10%

All 15+ 15-24 25-34 35-44 45-54 55-64 65-74 75+

Percentage change in listening hours

Changes in listening hours by age: 2005-2010

Figure 3.30

31

Source: RAJAR, all adults (15+), year ending Q1 2011.

Most listened-to radio stations, year ending Q1 2011

Average weekly reach (millions) % change year on year

14.011.7 10.5 9.5

6.8 5.82.9 2.1 2.1 2.0 2.0 1.8 1.5 1.5 1.2 1.1 1.00

3

6

9

12

15

BBC

Rad

io 2

BBC

Rad

io 1

BBC

Rad

io 4

All L

ocal

BBC

Rad

io

BBC

Rad

io F

ive

Live

(inc

Sp

orts

Ext

ra)

Cla

ssic

FM

talk

SPO

RT

BBC

Rad

io 3

Mag

ic 1

05.4

Cap

ital L

ondo

n

Hea

rt Lo

ndon

Kiss

100

FM

BBC

Wor

ld S

ervi

ce

Abso

lute

Rad

io

BBC

6 M

usic

The

Hits

BBC

Rad

io 7

+1.7%

+6.5%+1.9%

+3.9%+4.7%

+5.5%

+7.2% +4.6%+11.0%+11.2%

+6.7%

+9.4% + 66.3% +11.6%-3.4%

Global

BBC

UTV

Radio group

Absolute

Bauer+4.6%

+3.9%

Figure 3.31

Source: RAJAR Ipsos MORI/ RSMB. All adults (15+), data relates to corresponding year ending each date shownNote: Unspecified relates to listening where the radio platform was not confirmed by the listener.

Share of listening hours across analogue and digital platforms

72.7% 67.5% 66.7% 65.4%

9.5% 12.5% 9.3% 8.1%

17.8% 20.1% 24.0% 26.5%

0%

20%

40%

60%

80%

100%

Q1 2008 Q1 2009 Q1 2010 Q1 2011

Digital

Unspecified

Analogue

Radio listening share by digital and analogue listening

Figure 3.32

Digital radio monthly listening by age group

50%58%

53% 53% 50%42%

25%

0%

20%

40%

60%

All 16+ 16-24 25-34 35-54 55-64 65-74 75+

Digital radio listening by age group (at least monthly)

Source: Ofcom research, Q1 2011Base: All who listen to the radio (n=2811)Q: Use digital radio at least monthly

Figure 3.33

33

Source: RAJAR, Q1 2011, UK Adults aged 15+

67 6578

44

7564 63

39

73 70 64 6654

25 2814

48

16 26 2655

18 21 29 2838

100

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

0%

20%

40%

60%

80%

100%

Not Stated

Digital

Analogue

100% 46% 9% 11% 32% 4% 2% 1% 9% 16% 1% 12% 5% 1%

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

Audience profiles and platform split, by sector and station, year ending Q1 2011

Figure 3.34

Most listened-to digital-only stations, Q1 2011

Source: RAJAR, Q1 2011, UK adults aged 15+

Average weekly reach Q1 2011 (millions) % change year on year

1.31.2 1.1 1.1

0.9 0.8 0.80.6 0.6

0.50.3 0.3 0.3 0.2 0.2 0.2

0.0

0.5

1.0

1.5

BBC

6 M

usic

BBC

Rad

io 7

The

Hits

Smas

h H

its R

adio

1Xtra

from

the

BBC

Five

Liv

e Sp

orts

Ext

ra

Plan

et R

ock

Hea

t

Abso

lute

80s

Jazz

FM

Abso

lute

Rad

io

Cla

ssic

Roc

k

Abso

lute

Rad

io 9

0s Q

NM

E R

adio

Chi

ll

Abso

lute

Rad

io 0

0s

Bauer

BBC

Absolute

Radio group

Independent / other

Global

+27% +10% +8% +28% +35% +17% +15% +40% +136% +5% +12% new +26% -16% +14% new

Figure 3.35

36

Source: RAJAR, All adults (15+), year ending Q1 2011 Note: Audience share by category(year to Q1 2011) % share BBC & commercial, local & national

Share of listening hours, by nation

Audience share by category (Year to Q1 2011) % share BBC & commercial, local & national

Listening hours share for BBC and commercial stations, local/nationalEngland Scotland Wales N Ireland UK

90.8%92%92.9%88.1%90.9%Reach

22.3 hours22.2 hours 23.3 hours21.8 hours22.3 hoursAverage weekly listening

UK TOTALNorthern Ireland

WalesScotlandEngland

47%37%

50%

27%46%

8%8%

12%

22%

9%11%

13%

11%

8%11%

31% 40%26%

34%32%

2%9%2%2% 1%

0%

20%

40%

60%

80%

100%Other

LocalCommercial

NationalCommercial

BBCLocal/National

BBC Network

Figure 3.36

Source: RAJAR, year ending Q1 2011, UK adults 15+

Location of listening – year to Q1 2011

In-vehicle 20%

Home 65%

Work/Elsewhere 15%

Figure 3.37

Source: GfK sales data, 2006-2011. Note: Figures cover GB only, GfK Panelmarket data represents over 90% of the market. Categories of device included are; portable radios, personal media players, car audio systems, home audio systems, clock radios, radio recorders, headphone stereos, tuners and receivers.

7.7 8.37.2 7.3

6.6

1.7 2.1 2.1 1.9 1.9

02468

10

Year to Q1 2007

Year to Q1 2008

Year to Q1 2009

Year to Q1 2010

Year to Q1 2011

Analogue setsDAB sets

Rad

io s

et s

ales

(mill

ions

)

Share of sales 81.5% 18.5% 79.9% 20.1% 77.5% 22.5% 79.1% 20.9% 77.7% 22.3%

Total annual sales 9.4 million 10.4 million 9.3 million 9.2 million 8.5 million

Number of analogue and digital radio sets sold

Figure 3.38

Yes 83%

Don't know3%

No 14%

Source: Ofcom research 2011

Figure 3.39

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

39

21%

51%

28%

0%

10%

20%

30%

40%

50%

60%

Likely to buy Unlikely to buy Don't know

Percentage of respondents who listen to the radio and have any active radio sets at home but have no DAB set in the home

Source: Ofcom research, Q1 2011Base: Those who listen to the radio and have any active radio sets but have no DAB sets in the home (n=1304)QP12: How likely is it that your household will get a DAB radio in the next 12 months?

Figure 3.40

Likelihood of buying a DAB radio within the next 12 months

40

41

Figure 3.41

Unique audience of selected music streaming sites

Source: UKOM / Nielsen. Month of April 2011, home and work panel. Applications included.

0

0.25

0.5

0.75

1

1.25

1.5

1.75

Apr-10 Jul-10 Oct-10 Jan-11 Apr-11

Spotify

Last.fm

We7.com

Grooveshark

music.myspace.comsongs.sky.com

Unique audience (m) Growth (%)Apr 10– Apr 11

7

-27

-18

49

-100

-99

42

Figure 3.42

19%

8%

3%

18%

7%

2%

0%

4%

8%

12%

16%

20%

Listening to radio Streamed audio services (free)

Streamed audio services (subscription based)

% of respondents 2010 2011

QE10A. Which, if any, of these do you or members of your household use the internet for whilst at home? Source: Ofcom research, Q1 2011Base: Those with access to the internet at home (n= 2534)

Audio internet usage

43

Figure 3.43

Time spent using selected music services and media players

0:00:00

1:00:00

2:00:00

3:00:00

Apr-10 Jul-10 Oct-10 Jan-11 Apr-11

Spotify (App)

iTunes (App)

Windows Media Player (App)We7.com

Grooveshark

Napster

Last.fm

music.myspace.com

Time per person (hours)

Source: UKOM/Nielsen. Month of April 2011. Home and work panel. Applications included.

44

Figure 3.44MP3 player/iPod ownership and personal use

26% 27%

18% 20%

32%

39% 40%

33%30%

45%

0%

10%

20%

30%

40%

50%

UK England Scotland Wales Northern Ireland

% of respondents Personal use Ownership

QB1: Which of the following do you, or does anyone in your household, have in your home at the moment?QB2. Do you personally use: MP3 player/ iPod?Source: Ofcom research, Q1 2011Base: All adults aged 16+ (n = 3474 UK, 1983 England, 487 Scotland, 493 Wales, 511 Northern Ireland)