Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The market
- People watch more time-shifted TV but overall TV viewership is in decline
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- Figure 1: Traditional vs time-shifted viewing – Average minutes watched per person per day, 2010-15
- Value of pay-TV continues to rise
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- Figure 2: Value of operator revenue from sale of pay-TV services, 2010-16
- Sales of TV sets stabilise
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- Figure 3: Value of the UK television market, 2011-21
- Key players
- Vodafone to launch pay-TV service
- Now TV unveils new smart box and contract-free bundle
- Sky Q created as premium TV service
- Social media networks explore livestreaming opportunities with sport
- Twitter begins livestreaming on Apple TV, Xbox One and Amazon Fire TV
- The consumer
- Nine in 10 consumers watch live TV
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- Figure 4: Live TV viewership, June 2016
- Over half use pay-TV to watch live TV
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- Figure 5: Services used to watch live TV, June 2016
- TV shows are the primary reason for watching live TV
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- Figure 6: Reasons for watching live TV, June 2016
- Nearly two thirds watch on-demand TV
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- Figure 7: On-demand TV viewership. June 2016
- Free streaming is the main way people watch on-demand TV
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- Figure 8: Service used for on-demand viewing, June 2016
- Over three quarters watch on-demand TV on a television
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- Figure 9: Devices used for on-demand TV viewing, June 2016
- Pay-TV considered to have a better variety of package deals than subscription streaming services
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- Figure 10: Comparison of pay-TV and subscription streaming, June 2016
- Recommendation services are becoming an important feature
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- Figure 11: Attitudes towards TV viewing, June 2016
- What we think
Issues and Insights
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- Binge watching vs appointment TV
- The facts
- The implications
- Live sport on social media could shake up TV market
- The facts
- The implications
The Market – What You Need to Know
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- People watch more time-shifted TV but overall TV viewership declines
- The value of pay-TV continues to rise
- The popularity of online video challenges traditional TV content
- Spend on film/sport channels increases
- Sales of television sets to stabilise
- Smart TV ownership grows
- BBC iPlayer users start paying TV licence fee
Market Background
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- Value of pay-TV continues to rise
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- Figure 12: Value of operator revenue from sale of pay-TV services, 2010-16
- People watch more time-shifted TV but overall TV viewership declines
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- Figure 13: Traditional vs time-shifted viewing – Average minutes watched per person per day, 2010-15
- The popularity of short online video challenges traditional TV content
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- Figure 14: How often people watch short online videos, by age, June 2016
- Advertising revenue grows
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- Figure 15: TV advertising revenues (excluding on-demand), 2010-15
- Spend on film/sport channels increases
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- Figure 16: Spend on network TV programmes, 2014 and 2015
- Value and volume of sales of television sets to remain relatively flat
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- Figure 17: Value of the UK television market, 2011-21
- Figure 18: Volume of the UK television market, 2011-21
- Smart TV ownership grows
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- Figure 19: Household ownership of consumer technology products, April 2015 and April 2016
- BBC iPlayer users start paying TV licence fee
- Competition shows dominate broadcast television
Key Players – What You Need To Know
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- Vodafone to launch pay-TV service
- Now TV unveils new smart box and contract-free bundle
- TalkTalk relaunches pay-as-you-go streaming service
- Social media networks explore livestreaming opportunities with sport
- Twitter begins livestreaming on Apple TV, Xbox One and Amazon Fire TV
- Facebook enables videos to be streamed on a TV
- Sky Q created as premium TV service
- The BBC explores binge watching
- Virtual reality TV content is being tested
Launch Activity and Innovation
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- New TV services launch
- Vodafone to launch pay-TV service
- TalkTalk relaunches pay-as-you-go streaming service
- Disney to introduce UK video streaming service
- Now TV unveils new smart box and UK’s first contract-free triple-play bundle
- Social media networks explore livestreaming opportunities with sport
- More live content is added to TV streaming platforms
- Twitter begins livestreaming on Apple TV, Xbox One and Amazon Fire TV
- Facebook enables videos to be streamed on a TV
- Bloomberg TV launches on TVPlayer
- Sky Q created as premium TV service
- The BBC explores binge watching
- Virtual reality TV has potential but is not there yet
- BBC Three switches to online-only
The Consumer – What You Need to Know
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- Nine in 10 people watch live TV
- TV shows are the primary reason for watching live TV
- Nearly two thirds watch on-demand TV
- Younger people are more positive about subscription streaming services
- People consider pay-TV to have a better variety of package deals
- Younger people wish to binge watch
- Recommendation services are becoming an important feature
- Live sport holds great potential for streaming services
Live TV Viewership
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- Nine in 10 people watch live TV
- Live adverts can help grab attention of live viewers
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- Figure 20: Live TV viewership, June 2016
- Over half use pay-TV to watch live
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- Figure 21: Services used to watch live TV, June 2016
- Younger people are watching live TV on free streaming services
- Nearly everyone watches live content on a TV
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- Figure 22: Devices used to watch live TV, June 2016
Reasons for Watching Live TV
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- TV shows are the primary reason for watching live TV
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- Figure 23: Reasons for watching live TV, June 2016
- Older viewers are far more likely to watch the news
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- Figure 24: Have watched the news live in the last 3 months, by age, June 2016
- Over half of male viewers watch live sport
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- Figure 25: Watched a sports games/competition live in the last 3 months, by gender, June 2016
On-demand TV Viewership
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- Nearly two thirds watch on-demand TV
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- Figure 26: On-demand TV viewership. June 2016
- Free streaming is the main way people watch on-demand TV
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- Figure 27: Service used for on-demand viewing, June 2016
- Over three quarters watch on-demand TV on a television
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- Figure 28: Devices used for on-demand TV viewing, June 2016
Comparison of Pay-TV and Subscription Streaming
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- People consider pay-TV to have a better variety of package deals
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- Figure 29: Comparison of pay-TV and subscription streaming, June 2016
- Younger people are more positive about subscription streaming services
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- Figure 30: Repertoire of services which on-demand provides better than pay-TV, by age, June 2016
- Younger people have better opinion of programming on subscription streaming services
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- Figure 31: View of programming on pay-TV and subscription streaming services, by age, June 2016
- Streaming services are considered better for multi-device use by younger viewers
- Offline viewing/low data usage are areas to improve
Attitudes towards TV Viewing
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- Recommendation services are becoming an important feature
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- Figure 32: Attitudes towards TV viewing, June 2016
- Younger people wish to binge watch
- Advertisers have to alter game plan for binge watchers
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- Figure 33: Agreement with statement “Binge watching a TV series is better than watching it week by week”, by age, June 2016
- Metrics and understanding audiences
- Live sport holds great potential for subscription services
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- Figure 34: Agreement with statement “Subscription streaming should include live sport”, by gender, June 2016
- Younger people are intrigued by VR TV
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- Figure 35: Agreement with statement “I would be interested in watching a virtual reality TV show/film”, by age, June 2016
- Many frustrated by not being able to use services abroad
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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