The Communications Market Report: International
UK consumers among the best connected for broadband, mobile and digital TV
The UK and Spain lead the way on digital TV take-up (91 per cent of homes)
The UK had the second highest number of homes with pay TV DVRs (such as Sky+ and V+) at the end of 2009 with 7.8 million devices, up by 40 per cent on 2008.
Although the UK leads the world in the take-up of HD ready TV sets (59 per cent of households), take-up of HDTV services is lower than in other countries where more high definition channels are available.
Just under a quarter of UK consumers (24 per cent) watch TV on the internet each week more than in any other country surveyed. People in the USA were the second most likely to watch TV on the internet (22 per cent) on a weekly basis.
US TV viewers watched more TV than in any other country with 280 minutes per day, followed by Polish TV viewers with 240 minutes and Italians with 238 minutes.
Digital radio take-up in the UK was the highest among the countries Ofcom surveyed with almost a third (31 per cent) claiming to own and use a digital radio.
Digital radio take-up was lowest in Japan (3 per cent) and the USA (7 per cent).
Ownership and use of personal media players (such as MP3/MP4 and iPods) was highest in Italy, with nearly two thirds (64 per cent) of people and was also high in the UK with just over half (52 per cent) of people claiming to own and use such a device.
Across most countries, the desktop PC is still the most popular device used to access the internet at home, followed by the laptop.
But in the UK the opposite is true with laptops being the most popular device used to access the internet at home, used by 69 per cent of internet users.
Mobile internet is also popular with people in the UK with 29 per cent of internet users saying they use their mobile to access the internet at home, second only to those in Japan at 43 per cent.
Fourteen per cent of UK and US consumers also use their games consoles to access the internet, compared with 7 per cent of internet users in Germany.
Italy has the highest percentage of adults who use the internet for social networking at 63.4 per cent, closely followed by the UK and USA at 63.2 per cent.
The UK is behind other countries in take-up of VoIP services with only 5 subscribers for every 100 people, compared with 26 in France and 20 in the Netherlands.
Italy has the highest take-up of smartphones with 26 subscribers for every 100 people, followed by Spain (21) and the UK (18).
But the UK saw the highest growth in smartphone take-up in the past year with a 70 per cent rise in subscriber numbers between January 2009 and January 2010.
Germany has the highest landline take-up with 85 per cent of the population having a landline (84 per cent in the UK), while Italy has the highest mobile take-up with 95 per cent of the population owning a mobile phone (91 per cent in the UK).
The UK is second biggest text messaging nation in Europe after Ireland, with 140 messages per person per month (218 per person per month in Ireland).
People in the UK are using their mobile phones for social networking more than in other countries.
The Market Context
- The communications sector generated £1113bn in revenues in 2009
- Subscription revenues comprise 88% of all service revenues
- Total communications revenue and revenue per head are highest in the US
- Per capita revenues are highest in US, Australia and Japan
- Global advertising expenditure fell substantially in 2009 - although online continues to grow
- The performance of advertising types has differed considerably
- Advertising markets vary in size and structure between countries
- The impact of the economic downturn on publicly-quoted telecoms companies
- The impact of the economic downturn on publicly-quoted broadcasters
- Consumer confidence recovered during 2009
- Communications expenditure remains relatively resilient in economic downturn
- Spend on communications services has been resilient compared to spend in several other sectors
- Communications services spending intentions over the coming year
- Consumers say they are more likely to reduce spend on other goods and services, rather than communications over the next 12 months
- Fixed-line voice comparatively resilient in UK, as mobile grows in all markets
- The UK, France and the US have the highest broadband and DTV penetration in the countries we carried out our consumer research
- There are large variations in take-up of communications 'bundles' across Europe
- Watching TV is still the most popular activity
- The UK and the US lead in take-up of HD-ready TV sets and DVRs
- The same four communications activities were likely to 'most missed' across all countries except Japan
- In all countries internet access was the service most likely to be most missed
- Market liberalisation drives have prompted rapid growth in the number of regulatory authorities worldwide
- Foundation of NRAs
- There is international interest in the use of spectrum to provide new wireless communications services
- Designed in the UK, components from Japan, assembled in China and used around the world...
- Growing international markets for TV programmes
- Australia, Canada, New Zealand and the US were the largest markets for UK TV exports in 2009
- Multinational operations in the communications sector
TV and visual content
- Industry metrics and summary
- Global TV revenues fell in 2009 as growing income from pay-TV services failed to offset reductions in advertising
- Growing revenues from pay-TV providers failed to offset declining TV advertising revenue in 2009.
- Digital TV take-up continues to rise as digital switchover gathers momentum
- Homes in Spain adopted digital TV most rapidly during 2009 (up by 17.0pp) in the run up to switchover
- Digital switchover strategies
- New digital platforms begin to offer more choice to consumers
- Pay-DTT households, 2007-2009
- Proportion of DTT and IPTV homes
- TV devices connected to the main set in the home
- Broadcasters look to technology to drive growth
- Take-up and use of key audio-visual services
- ARPU and pay-TV penetration trends
- Patterns of viewing concentration influenced by digital TV take-up
- Public spending on channels per percentage point of audience share generated, 2009
- The value of TV airtime to advertisers was similar across many comparator countries in 2009
- In 2009 only BRIC countries among the major country groups experienced growth
- Revenues in Canada and the major European comparator countries
- Revenues in the BRIC countries
- Most countries saw TV revenues rise between 2004 and 2009
- The US, Japan and Ireland generate most TV revenue per head
- Advertising accounts for the bulk of declining revenues per head
- TV licence fees still important in Europe
- Advertiser-funded income stream under pressure in 2009
- France and Spain overhaul public TV funding
- Pay-TV revenues resilient in the downturn
- Australia generated the most pay-TV ARPU in 2009
- US operators generate the highest ARPU
- Markets with higher pay-TV take-up tend to have greater DVR adoption
- HDTV enters the mainstream in several markets
- Number of HDTV homes, by platform and country
- Satellite generally offers access to more HD channels than other platforms
- Consumers most likely to claim they watch HD channels for genres other than sports and film
- DVRs becoming widespread in mature TV markets
- VoD remains nascent in many markets
- Access to VoD on the TV varies significantly across countries
- Global VoD and PPV worth of £5.5bn in 2009
- 'Hybrid' devices offer the prospect of significant enhancements for satellite and DTT
- UK consumers use online TV most
- The US generates the most revenue per head
- Free-to-view content dominates audio-visual online revenue in France and Germany
- Cutting the cord – US cable operators face the online video challenge
- Television output from European public service broadcasters (PSBs)
- PSB output according to the origin of programmes
- The proportion of programme originations have fallen on PSB channels over the past five years
- PSB acquisition trends
- PSB repeats trends
- Analogue TV take-up continued to fall in 2009 as switchover drove digital migration
- DTT continues to be popular in UK households
- The majority of comparator countries have one principal TV distribution technology
- Among our comparator countries, DTT is most popular among Spanish homes
- On average, pay-TV accounts for the majority of TV households (61%) across all comparator countries
- Homes in Poland, India and Russia adopted pay-TV at the fastest rates during 2009
- The majority of households in the UK took a pay-TV package in 2009
- India and the US pass 100 million pay-TV households
- Consumption of broadcast television
- Patterns of viewing among the five most popular TV channels
- The share commanded by channels receiving public funding
- Viewing share of terrestrial / well-established TV channels
- Television remains the most common primary source for international and national news for internet users
- Main sources of other information
- Definitions of 'regional' and 'local; vary between countries
- The availability of local/regional television
- Summary of local and regional TV services in selected comparator countries in 2010
- Features of local TV markets
- Funding and ownership of local/regional TV services
Radio and audio content
- Key radio market indicators
- Radio revenues down by 6.5% overall in the four years 2005-2009, among 17 comparator countries
- Proportional changes in radio revenues, 2005 - 2009
- The most substantial revenue swings, by component, 2005 - 2009
- The smaller revenue swings, by component, 2005 - 2009
- Consumers increasingly using the internet and mobile media devices to access radio and other audio content
- People in Italy are most likely to claim they use their mobile handset to listen to audio
- Global radio industry revenues, 2005 - 2009
- Advertiser spend falls in US radio market, offsetting revenue growth in smaller markets
- Developing radio markets in Brazil, China, and India were among the fastest-growing over the past four years, alongside Canada
- Radio markets in Sweden and Germany receive the highest share of funding from licence fees
- Radio markets in Ireland, the US, and Germany generate the highest revenues per head
- Radio claims larger share of advertising in the North American markets
- Digital music sales per capita are highest in the US and the UK
- Growth in digital music revenues higher in the US and Japan
- Weekly radio listening highest in France and Germany (77%)
- Listeners in Italy most likely to claim ownership and use of FM radio and portable media players; while the UK has the highest ownership and use of digital radio
- Audio / radio listening while watching TV more prevalent in the US
- Time spent listening to radio highest in Russia and Poland
- Public radio’s share highest in Sweden, Germany, and the UK
Internet and online content
- Key internet and web based content indicators
- Take-up of advanced mobile phones is high across our comparator countries
- Overall, Italy has the highest number of smartphone subscribers…
- Spain and the UK lead in terms of high-value subscribers
- A word on mobile operating systems (OS)
- In the UK and France the OS ecosystem is more mixed than elsewhere
- Internet share of total advertising expenditure is steadily increasing
- The maturing internet advertising market
- Online search advertising grows at the expense of display.
- The vast majority of global search advertising is divided into three search engines.
- UK consumers buy most and spend most online
- Japanese mobile internet advertising in a league of its own
- Mobile phone owners in Japan are engaging more with mobile applications
- The UK has experienced rapid growth in mobile internet advertising
- Total fixed broadband connections per 100 households is highest in the Netherlands
- The US and Sweden have the largest number of mobile broadband subscribers per 100 households
- Mobile broadband is both a complement and a substitute to fixed broadband
- According to Cisco, video data is now the largest consumer of bandwidth around the world
- Consumer broadband traffic around the world
- Nearly 500 million accessed the internet across nine of our comparator countries
- In most countries more men than women accessed the internet in August 2010
- Spain has the highest proportion of internet users aged under 35
- Female internet users are significantly younger than male internet users
- Internet access via desktop computers is lowest in the UK
- Laptop vs. desktop ratio between young and old is largest in the UK
- Where are we going on the web?
- What are we looking for online?
- What are we doing online?
- What else do we commonly use the internet for?
- Users are generating more of their own content than ever before...
- Social networking continues to grow across Europe and North America.
- The US provides the greatest numbers but Australians spend the most time
- One-month snapshot of active internet users who visit social networks
- In the UK more than four in five 18 to 24 year olds are social networkers
- Facebook is the largest player in the English speaking world, but there are many alternatives
- Italy embraces Facebook
- The Netherlands and Ireland have the highest proportion of LinkedIn users
- Mobile social networking a success in the UK and Japan
- Mobile social networking take up also driven by young adults
- The UK is tweeting
- Smartphones are changing the way we use our mobiles – and how we access the web
- Mobile internet use has grown steadily
- Around half of internet users aged 18-24 access the internet on their mobiles
- Downloading mobile applications varies little across our comparator countries
- Mobile map use has grown rapidly during the past year, driven by smartphone growth
- Mobile users remain reluctant to download music directly to their handsets
- Key telecoms indicators
- BRIC countries offset falling revenues in our other comparator countries
- Mobile revenue growth no longer offsets decline in fixed-line revenues
- Telecoms revenues declined in seven of our comparator countries in 2009
- BRIC countries have seen the most marked decline in revenue growth
- Investment in next-generation access networks gathers pace
- Development patterns vary between countries
- Japan leads the way among our comparator countries in fibre availability
- Different approaches to extending super-fast broadband to all
- But take-up still very low in most countries
- The emergence of super-fast mobile networks
- Most comparator countries have plans for the deployment of 4G mobile services
- PC-based VoIP calls are most popular in countries where there is high demand for international calls
- Use of VoIP as a substitute for a standard fixed line is highest in France
- Growth in VoIP slowing in UK as it gains pace in some other countries
- VoIP's share of fixed telephony revenues was highest in the Netherlands in 2009
- Fixed voice share of total telecoms revenues falls to less than a third
- Mobile accounts for highest proportion of spend in all countries except Canada and Sweden
- Russia had the highest growth in telecoms revenues in the five years to 2009
- Data's share of revenues has more than doubled since 2004
- Mobile data revenues growing faster than those from fixed broadband
- Mobile accounts for over two-thirds of total telecoms spend in Poland
- Mobile makes up the highest proportion of voice connections in India and Russia
- Fixed voice revenues fall in every country except Russia and Brazil
- Average revenue per fixed line is highest in Ireland at £50 a month
- Fixed call volumes are declining fastest in Japan and the US
- Call minutes per fixed line were highest in Brazil in 2009
- Australia is the only nation where the incumbent's fixed call volume share increased
- Take-up of VoIP drives decline in fixed lines in the Netherlands, France and Japan
- China becomes second largest mobile market in terms of revenues
- Revenue per mobile connection is lowest in India at just £1.50 per month
- Mobile data service revenue grew strongly in the US and Australia
- Mobile voice revenues per connection decline in all countries except Russia
- Share of non-SMS data services has increased in all countries since 2004
- Mobile call volumes continue to grow, but growth rates vary
- Mobile calls per connection fell in ten of our comparator countries in 2009
- Mobile messaging volumes continue to increase in most comparator countries
- Mobile messaging use per connection is highest in the US
- Massive growth in mobile connections in the BRIC countries
- Mobile broadband pushes up overall mobile take-up
- Post-pay accounts for a growing share of connections in most countries
- MVNOs have the highest market share in Germany among our comparator countries
- India has the most competitive mobile market
- High take-up of 3G mobile services in Japan and Australia
- Annual broadband revenue growth averaged 19% between 2004 and 2009
- Broadband accounted for 30% of fixed telecoms revenues in 2009
- China has more fixed broadband connections than the US