In 1985, the total market for all forms of media was £7 billion, of which 48% was spent on the printed form (newspapers, books, magazines), 23% was on electronic hardware and 18% on music, film and software. Just 11% was being spent on media subscriptions – primarily TV licences. By 2010, Screen Digest forecasts that just 15.8% of all consumer spending on media will be on printed matter, 19.3% on electronic hardware and 14% on music, film and leisure software. Subscription media, including mobile, internet and pay-TV, will command 50.9% of all consumer spend on media.
Screen Digest/ABN Amro estimates that the total market for all forms of media by 2010 will be £56.2 billion but could reach £84.26 billion if new media opportunities can be fully exploited and if technological innovations create new forms of media.
Co-author of the report Ben Keen comments: “One of the important messages of this report is that – looking ahead – there is still significant scope for fresh new media growth. Whether it be 3G wireless, interactive TV, broadband, or some novel media product or service, the challenge for the industry is to deliver sufficiently compelling experiences that persuade the British public to keep parting with their money. Our research is the first to demonstrate conclusively that the market potential is there.”
The report also examines the amount of time people spend consuming media. Currently in the UK, the average person spends 53 hours per week consuming media with broadcast media accounting for 87% of this time. Radio accounts for 21.3 hours per week on average whilst TV takes 25.1 hours.
The average person spends less than half an hour each week reading books, about half an hour reading newspapers and even less time on magazines. One and a half hours per week are spent using leisure software.
The report predicts that by 2010, books, magazines and newspapers combined will account for just 72 minutes per week, whilst leisure software will increase to 142 minutes per week. Time spent on TV and radio, however, will remain fairly static whilst time spent online or using mobile telephony will increase considerably as will revenues derived from this medium.
Further findings from this report along with data and analysis will be added to MediaTel Insight throughout the week.
