industry info march02

Slide1: 

DEVELOPMENTS IN THE UK TELEVISION MARKET March 2002

Slide2: 

Contents Technology in the home (How do people get digital TV?) Programming and Audiences (Who is watching what?) Economics (How are broadcasters financed?) Focus on ITV

Take-up of digital television compared with other home technologies: 

Take-up of digital television compared with other home technologies

Pay TV take-up by platform: 

Source: Company literature. Pay TV take-up by platform UK Multichannel Pay-TV Penetration, Quarter 4, 2001 Platform Households (‘000s) % of UK TV households Analogue Cable 1,626 6.7% Digital Satellite 5,716 23.7% Digital Cable 1,977 8.2% Digital Terrestrial 1,263 5.2%

Slide5: 

Take-up of various home entertainment equipment Source: ITC, the Public’s View 2001 Base = All Viewers

Slide6: 

Number of television sets in the home Source: ITC, the Public’s View 2001 Base = All respondents

Slide7: 

Increased bandwidth enhances applications Current UK Broadband Connections, December 2001 Source: Company literature. 0-50 Kbps 100-500 Kbps 2 Mbps 10 Mbps Bandwidth GPRS/Modem E-mail; Instant messaging Basic web browsing; e-commerce. EDGE/3G/ADSL/ Cable modem (current) Video conferencing; Fast internet access; File sharing; CD-quality audio; Real-time gaming Cable modem (future)/ ADSL Full motion video Fibre Multiple video streams

Slide8: 

Contents Technology in the home (How do people get digital TV?) Programming and Audiences (Who is watching what?) Economics (How are broadcasters financed?) Focus on ITV

Issue of ITC licences, and programme services available in digital households by genre : 

Issue of ITC licences, and programme services available in digital households by genre Source: ITC estimates Issue of ITC licences and total number of licensed programme services Note: The negative figure for net licences issued in 2000 reflects the replacement of many regional cable licences with fewer national licences.

Content available via basic multi-channel TV: 

Content available via basic multi-channel TV “The TV channels I receive at the moment give me all the choice I want” From: The Public’s View 2001 A selection of the content available with a basic package CBBC* *BBC Choice commences broadcasting at 7pm. Prior to this, CBBC uses the spectrum. Note: This is a representative schedule only, based on a week in January 2002.

Slide11: 

0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 2000 Audience share in all homes by channel, 1997-2001 Source: BARB %

Slide12: 

Audience share in multi-channel homes by channel, 1997-2001 Source: BARB 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 1997 1998 1999 2000 2001 %

Slide13: 

Average weekly audience reach (3 minutes consecutive) by channel, all homes, 1998 - 2001 Source: BARB %

Slide14: 

Viewer profiles by type of television received Profile of viewers by type of service and age, July-September 2001 Source: BARB Profile of viewers by type of service and social class, July-September 2001

Slide15: 

1997 1998 1999 2000 2001 Hours viewed per household per day by social class, 1997-2001 Source: BARB Multichannel Homes All Homes 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

Slide16: 

0 1 2 3 4 5 6 1997 1998 1999 2000 2001 Hours viewed per household per day by age, 1997-2001 Source: BARB

Slide17: 

Contents Technology in the home (How do people get digital TV?) Programming and Audiences (Who is watching what?) Economics (How are broadcasters financed?) Focus on ITV

Slide18: 

Sources of UK television revenue... Source: ITC ...and trend in share of main components, 1995-2001 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 1995 1996 1997 1998 1999 2000 2001 NAR Sponsorship Subscription Sale of goods Other BBC licence fee spent on TV

Slide19: 

UK TV Net Advertising Revenue by channel over time... Source: ITC

Slide20: 

Tender payments by Channel 3, Channel 5 and Additional Services licensees, 1993-2001 Note: The drop in total tender payment in 1999 reflects the renewal of some Channel 3 licences. The increase in PQR in this year reflects the policy decision that more emphasis be given to the PQR component of tender payments. £ million, nominal prices The Broadcasting Acts 1990 and 1996 require that certain kinds of licence are awarded by the ITC after a process of competitive tender. Licences awarded in this way are required to make additional payments to the Treasury (via the ITC). Additional payments are in two parts. The first is a percentage set by the ITC, of qualifying revenue (PQR). The second part is the cash bid, which on renewal is set by the ITC. This is index-linked and payable annually. Source: ITC 0 50 100 150 200 250 300 350 400 450 500 1994 1995 1996 1997 1998 1999 2000 2001

Slide21: 

Contents Technology in the home (How do people get digital TV?) Programming and Audiences (Who is watching what?) Economics (How are broadcasters financed?) Focus on ITV

Slide22: 

Original programmes (including repeats) as a percentage of total output (hours) by channel Source: ITC; Channel 4 Annual Report ITV, Channel 4 and Channel 5 all have requirements in their licences to produce a set amount of original programming each year. Note: Channel 4’s original programming target was only introduced as a licence requirement in 1998; prior to this the figures were reported in Channel 4’s Annual Report. ITC Licence Requirement for original programmes and actual performance, 2001 % Original programmes as a percentage of total output, 1995-2001

Slide23: 

Source: ITC ITV, GMTV, Channel 4 and Channel 5 all have requirements in their licences to commission a set amount of programming from independent producers each year. ITC Licence Requirement for independently produced programmes and actual performance, 2001 Qualifying independents as a percentage of total qualifying output, 1995-2001 Qualifying hours commissioned from independent producers as a percentage of total qualifying output by channel

Slide24: 

The ITV licensees Grampian Scottish Ulster Border Tyne Tees Yorkshire Granada Central Anglia HTV Carlton/LWT Westcountry Meridian Channel

Slide25: 

Source: BARB Audience share by region, ITV1 compared with BBC1, 2001 ITV1 BBC1 % 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 Border Ulster Yorkshire Channel Islands North East North West Scotland Midlands East Wales South & South East London South West West

Slide26: 

Source: BARB Audience share for regional news programmes by region, ITV1 compared with BBC1, 2001 % 0 5 10 15 20 25 30 35 40 45 50 Channel Border Ulster South & South East Scottish Grampian Yorkshire North East East Midlands Wales South West London North West West ITV1 BBC1