TV Viewing Habits - UK - October 2017

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
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
Figure 1: Devices used to watch live TV, July 2017
Subscription services are now the most popular on-demand option for 16-24s
Figure 2: Services used to watch on-demand TV, July 2017
Live sport is watched by two in three men
Figure 3: Genres watched live on TV, July 2017
Less than one in three smartphone viewers are watching outside the home
Figure 4: TV viewing habits on mobile devices, July 2017
People don’t want all shows to be released at once
Figure 5: Attitudes towards TV viewing habits, July 2017
What we think
ISSUES AND INSIGHTS
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
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
Gradual shift away from live viewing
Figure 6: Proportion of viewing: live, DVR and VoD, 2013-16
Mintel forecasts 14% growth in pay-TV market by 2021
Figure 7: Forecast value of operator revenue from sale of pay-tv services, 2011-12
Value of subscription services to overtake physical discs
Figure 8: Value of the UK video market, 2011-16
UK TV advertising falls slightly
Figure 9: UK advertising expenditure, 2012-16
2018 FIFA World Cup to help boost 4K TV sales
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
Figure 12: Multichannel content spend in key genres, 2012-16
Half of people find new films/TV via a trailer
Figure 13: Sources for discovering new TV/films, June 2017
KEY PLAYERS – WHAT YOU NEED TO KNOW 
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 
The BBC and Sky still dominate
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
Figure 16: Use of on-demand and streaming services to watch TV programmes/films, 2017
LAUNCH ACTIVITY AND INNOVATION 
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
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 
Live TV to always play an important role
Figure 17: Live TV viewership, July 2017
Pay-TV is the primary way people watch live
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
Figure 19: Devices used to watch live TV. July 2017
ON-DEMAND TV VIEWERSHIP 
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
Figure 20: On-demand TV Viewership, July 2017
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
Figure 22: Devices used to watch on-demand TV, July 2017
TV GENRES WATCHED 
News is the most commonly watched live genre
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
Figure 24: Genres watched live, by gender, July 2017
Six in 10 watch drama on-demand
People watch only a few on-demand genres
Figure 25: Genres watched on-demand, July 2017
TV VIEWING HABITS ON MOBILE DEVICES 
Six in 10 mobile viewers are streaming content
Zero-rating schemes could facilitate streaming outside of the home
Netflix lets users download content
Figure 26: TV viewing habits on mobile devices, July 2017
ATTITUDES TOWARDS TV VIEWING 
People still prefer watching TV on a television
Figure 27: Attitudes towards TV viewing habits, July 2017
One in four will pay for better picture quality
Boosting the digital ownership market
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
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
Abbreviations
Consumer research methodology