Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Gradual shift away from live viewing
- Value of subscription services to overtake physical
- Sport spending up by 24% in 2016
- 2018 World Cup to help boost 4K TV sales
- UK TV advertising falls slightly
- Key players
- Amazon offers live TV channels via customisable Amazon Channels
- Three introduces Go Binge to aid streaming on phones
- Sky Sports changes channel structure to offer more flexibility
- The consumer
- Nearly everyone watches live TV on a television set
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- Figure 1: Devices used to watch live TV, July 2017
- Subscription services are now the most popular on-demand option for 16-24s
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- Figure 2: Services used to watch on-demand TV, July 2017
- Live sport is watched by two in three men
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- Figure 3: Genres watched live on TV, July 2017
- Less than one in three smartphone viewers are watching outside the home
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- Figure 4: TV viewing habits on mobile devices, July 2017
- People don’t want all shows to be released at once
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- Figure 5: Attitudes towards TV viewing habits, July 2017
- What we think
Issues and Insights
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- Opportunities to boost mobile viewing out-of-home
- The facts
- The implications
- Positioning digital ownership for the fans
- The facts
- The implications
The Market – What You Need to Know
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- Gradual shift away from live viewing
- Mintel forecasts 14% growth in pay-TV market by 2021
- Value of subscription services to overtake physical discs
- Sport spending up by 24% in 2016
- 2018 World Cup to help boost 4K TV sales
- UK TV advertising falls slightly
Market Background
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- Gradual shift away from live viewing
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- Figure 6: Proportion of viewing: live, DVR and VoD, 2013-16
- Mintel forecasts 14% growth in pay-TV market by 2021
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- Figure 7: Forecast value of operator revenue from sale of pay-tv services, 2011-12
- Value of subscription services to overtake physical discs
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- Figure 8: Value of the UK video market, 2011-16
- UK TV advertising falls slightly
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- Figure 9: UK advertising expenditure, 2012-16
- 2018 FIFA World Cup to help boost 4K TV sales
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- Figure 10: Value of the UK television market, 2011-21
- Figure 11: Volume of the UK television market, 2011-21
- Sport spending up by 24% in 2016
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- Figure 12: Multichannel content spend in key genres, 2012-16
- Half of people find new films/TV via a trailer
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- Figure 13: Sources for discovering new TV/films, June 2017
Key Players – What You Need to Know
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- The BBC, Sky and Netflix still dominate
- Sky to offer TV without a dish in 2018
- Three introduces Go Binge to aid streaming on phones
- Amazon offers live TV channels via customisable Amazon Channels
- Netflix introduces offline viewing for mobile devices
- Sky Sports changes channel structure to offer more flexibility
- Virgin offers new premium set-top box
Market Share
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- The BBC and Sky still dominate
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- Figure 14: Top five UK broadcaster groups, % share of audience, 2016
- Figure 15: Usage of pay-TV services, December 2016
- BBC iPlayer leads on-demand streaming
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- Figure 16: Use of on-demand and streaming services to watch TV programmes/films, 2017
Launch Activity and Innovation
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- Sky to offer TV without a dish in 2018
- Sky Sports changes channel structure to offer more flexibility
- Virgin offers new premium set-top box
- Streaming services
- Three introduces Go Binge to aid streaming on phones
- Amazon offers live TV channels via customisable Amazon Channels
- Netflix’s introduces offline viewing for mobile devices
- Subscription tier added to ITV Hub
- Channel 4 explores new personalised advertising
- Facebook launches Watch tab as the network focuses on original content
The Consumer – What You Need to Know
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- Almost all watch live TV
- Nearly two in three watch on-demand TV
- News is the most commonly watched live genre
- Six in 10 watch drama on-demand
- Six in 10 mobile viewers are streaming content
- People don’t want all shows to be released at once
- One in four will pay for better picture quality
Live TV Viewership
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- Live TV to always play an important role
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- Figure 17: Live TV viewership, July 2017
- Pay-TV is the primary way people watch live
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- Figure 18: Services used to watch live TV, July 2017
- People are still turning on the TV to watch live
- Young men are the most likely to use their smartphone for live TV
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- Figure 19: Devices used to watch live TV. July 2017
On-demand TV Viewership
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- Subscription services are now the most popular on-demand option for 16-24s
- Content discovery lessons from other markets
- On-demand services have changed people’s view on ownership
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- Figure 20: On-demand TV Viewership, July 2017
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- Figure 21: Services used to watch on-demand TV, July 2017
- Eight in 10 watch on-demand content on a TV
- One in four are watching on a smartphone
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- Figure 22: Devices used to watch on-demand TV, July 2017
TV Genres Watched
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- News is the most commonly watched live genre
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- Figure 23: Genres watched live on TV, July 2017
- Live sport is watched by two in three men
- New media players to put further scrutiny on 3pm football TV ban
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- Figure 24: Genres watched live, by gender, July 2017
- Six in 10 watch drama on-demand
- People watch only a few on-demand genres
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- Figure 25: Genres watched on-demand, July 2017
TV Viewing Habits on Mobile Devices
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- Six in 10 mobile viewers are streaming content
- Zero-rating schemes could facilitate streaming outside of the home
- Netflix lets users download content
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- Figure 26: TV viewing habits on mobile devices, July 2017
Attitudes towards TV Viewing
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- People still prefer watching TV on a television
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- Figure 27: Attitudes towards TV viewing habits, July 2017
- One in four will pay for better picture quality
- Boosting the digital ownership market
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- Figure 28: Like to own downloads of favourite TV show/films, by age, July 2017
- People don’t want all shows to be released at once
- Parents want to be able to change the ending
- Nearly one in four are interested in watching VR dramas
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- Figure 29: Interested in watching dramas using a virtual reality headset, by age, July 2017
- Second screening presents challenges and opportunities for advertisers
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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