TV Viewing Habits - UK - October 2016

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The market
People watch more time-shifted TV but overall TV viewership is in decline
Figure 1: Traditional vs time-shifted viewing – Average minutes watched per person per day, 2010-15
Value of pay-TV continues to rise
Figure 2: Value of operator revenue from sale of pay-TV services, 2010-16
Sales of TV sets stabilise
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
Figure 4: Live TV viewership, June 2016
Over half use pay-TV to watch live TV
Figure 5: Services used to watch live TV, June 2016
TV shows are the primary reason for watching live TV
Figure 6: Reasons for watching live TV, June 2016
Nearly two thirds watch on-demand TV
Figure 7: On-demand TV viewership. June 2016
Free streaming is the main way people watch on-demand TV
Figure 8: Service used for on-demand viewing, June 2016
Over three quarters watch on-demand TV on a television
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
Figure 10: Comparison of pay-TV and subscription streaming, June 2016
Recommendation services are becoming an important feature
Figure 11: Attitudes towards TV viewing, June 2016
What we think
ISSUES AND INSIGHTS
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
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 
Value of pay-TV continues to rise
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
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
Figure 14: How often people watch short online videos, by age, June 2016
Advertising revenue grows
Figure 15: TV advertising revenues (excluding on-demand), 2010-15
Spend on film/sport channels increases
Figure 16: Spend on network TV programmes, 2014 and 2015
Value and volume of sales of television sets to remain relatively flat
Figure 17: Value of the UK television market, 2011-21
Figure 18: Volume of the UK television market, 2011-21
Smart TV ownership grows
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 
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
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
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
Nine in 10 people watch live TV
Live adverts can help grab attention of live viewers
Figure 20: Live TV viewership, June 2016
Over half use pay-TV to watch live
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
Figure 22: Devices used to watch live TV, June 2016
REASONS FOR WATCHING LIVE TV 
TV shows are the primary reason for watching live TV
Figure 23: Reasons for watching live TV, June 2016
Older viewers are far more likely to watch the news
Figure 24: Have watched the news live in the last 3 months, by age, June 2016
Over half of male viewers watch live sport
Figure 25: Watched a sports games/competition live in the last 3 months, by gender, June 2016
ON-DEMAND TV VIEWERSHIP 
Nearly two thirds watch on-demand TV
Figure 26: On-demand TV viewership. June 2016
Free streaming is the main way people watch on-demand TV
Figure 27: Service used for on-demand viewing, June 2016
Over three quarters watch on-demand TV on a television
Figure 28: Devices used for on-demand TV viewing, June 2016
COMPARISON OF PAY-TV AND SUBSCRIPTION STREAMING 
People consider pay-TV to have a better variety of package deals
Figure 29: Comparison of pay-TV and subscription streaming, June 2016
Younger people are more positive about subscription streaming services
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
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 
Recommendation services are becoming an important feature
Figure 32: Attitudes towards TV viewing, June 2016
Younger people wish to binge watch
Advertisers have to alter game plan for binge watchers
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
Figure 34: Agreement with statement “Subscription streaming should include live sport”, by gender, June 2016
Younger people are intrigued by VR TV
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
Abbreviations
Consumer research methodology