Multi-Channel Success Hits Terrestrial Broadcasters
The increasing popularity of digital television continues to have a negative impact on the UK’s main terrestrial channels with ITV1 seeing its share of viewing decline by 16% in less than ten years and BBC One dipping by 7% during the same period.
New figures released by communications regulator Ofcom show that the growth of digital satellite and Freeview helped ITV to see its share of viewing drop to less than 24% at the end of last year, down from 40% in 1993 as audiences turned away from the UK’s largest commercial broadcaster.
BBC One has fared slightly better over the same period, but its share of viewing still dropped to less than 24% at the end of 2003, down from just under 33% ten years ago. Meanwhile, digital channels have seen their share of viewing increase steadily from 6.1% in 1993 to just under the 24% mark.
BBC Two and Channel 4 have seen their share of viewing dip slightly in the face of increased competition from the multi-channel sector. However, Channel Five has seen its grip on UK audiences rise from just 3.1% following its launch in 1997 to 6.5% at the end of last year.
Despite the fragmentation of media consumption, the five main channels continue to reach most of the viewing public most weeks. On average 84% of the population watched BBC One for at least 15 minutes each week during 2003 and almost 80% included ITV1 in their viewing.
The research shows that BBC One remains the nation’s favourite channel, mentioned by more than a third of viewers as the channel they would choose if they could have only one. Just 26% opted for ITV1, with 7% choosing Channel 4 and 6% opting for Five. Sky Sports and Sky One were found to be as the most popular non-terrestrial channels.
Commenting on the figures, Ed Richards, Ofcom’s senior partner, strategy and market developments, said: “This report reveals the extent to which the UK is becoming a digital nation, with widespread availability of digital networks of all kinds. This is to be welcomed; the advance of digital technology brings increased consumer choice and greater innovation.”
Ofcom’s wide-ranging Communications Market 2004 report, which examines trends in the industry from across the spectrum, also shows that the amount of money received through subscriptions by the television industry has overtaken advertising revenue for the first time in the sector’s history.
Subscription income for Pay-TV services rose by 11% last year to around £3.3 billion, while advertising revenues climbed by just 3% to £3.24 billion, roughly in line with inflation and following three year of stagnation driven by poor economic conditions.
However, there was good news elsewhere for advertisers as it emerged that the tolerance of television commercials is increasing. The number of terrestrial viewers who feel that more advertising would be acceptable has more than doubled since last year and there has also been a rise in the number of multi-channel viewers who would welcome more commercials.
Overall, the figures show that a third of all viewers feel there is already more advertising than they are happy with. Around half say they are happy with the current levels but would not want to see them increase in the near future.
Humour and entertainment were cited as the main reasons that viewers enjoyed adverts, but they still disliked the fact that they interrupted their programmes. Just one in six viewers said they often encounter misleading advertising and far fewer said they are often offended by commercials.
Ofcom: 020 7981 3040 www.ofcom.org.uk
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