Customising the TV Viewing Experience - UK - June 2009

Table of Contents

• Issues in the Market
• Main issues
• Definition
• Abbreviations
• Market in Brief
• Towards a digital future
• The UK embraces technology
• Internet users like TV
• TV when you want it
• PVR habits and attitudes
• The impact on advertising
• Internal Market Environment
• Key points
• TV viewing up in 2008
• Digital switchover in progress
• Size isn' t everything for TVs
• Much new technology still in early adopter phase
  • Figure 1: Trends in presence of new technology at home, 2004-08
• Laptops point to more flexibility
  • Figure 2: Computer penetration, UK, 2004-08
• Seven in ten online
  • Figure 3: British internet penetration at home/work/place of study or elsewhere, by gender, age, socio-economic group, region and working status, Jan 2004-Jan 2009
• Broadband now the norm
  • Figure 4: Internet use and type of connection, UK, 2004-08
• Broadband getting faster
  • Figure 5: Broadband connection speed, 2008
• Email and internet top computer uses
  • Figure 6: Trends in home PC usage, 2004-08
• Broader Market Environment
• Key points
• Economy
• The recession continues to bite
• Increasing numbers finding it "difficult"
  • Figure 7: Current feelings about household income, 2007 and 2008
• The economy tops list of concerns
  • Figure 8: How concerns of the British population have shifted over the past year/2 months, February 2008-January 2009
• Spending intentions altered by downturn
  • Figure 9: Spending cutbacks over the next six months, December 2008
• Leisure spending intentions
  • Figure 10: Impact of the recession on leisure activities, April 2009
• Age trends emphasise the digital divide
• Households still getting smaller
  • Figure 11: UK household sizes, 2004-14
• Competitive Context
• Key points
• Live TV trumps the PVR
  • Figure 12: Words that consumers use when describing ways of watching television, March 2009
• Online video increasing its audience
  • Figure 13: Top ten online video viewing properties ranked, by total UK unique visitors*, Jan 2008 and Jan 2009
• Strengths and Weaknesses in the Market
• Strengths
• Recession boosts in-home leisure
• New ways to reach viewers
• PVR owners watch more TV
• Drives customer loyalty and satisfaction
• Alternative advertising opportunities
• Weaknesses
• Falling ad revenues
• Audience fragmented even further
• How to make it pay
• Considerable up-front costs
• Re-thinking the advertising takes time and money
• Digital TV Market
• Key points
• Nine in ten now multichannel households
  • Figure 14: UK multichannel TV households, by platform, 2004-08
• Segment Performance
• Key points
• Multichannel TV take up
  • Figure 15: Take-up by platform, Q4 2008
• Multichannel market share
  • Figure 16: Multichannel market share, by platform, Q4 2008
• Project Canvas
• Branded PVR market share
  • Figure 17: Branded PVR market share, Q4 2008
• Companies and Brands
• Key points
• Overview
• British Sky Broadcasting Group plc (Sky)
  • Figure 18: BSkyB financial and operating details, 2007-09*
• Virgin Media
  • Figure 19: Virgin Media financial and operating details, 2007-09*
• Freeview
  • Figure 20: Freeview financial and operating details, 2007-08
• 4oD
• Demand Five
• Platform Penetration
• Key points
• Most main TVs are now digital
  • Figure 21: Platform penetration on multiple home sets, April 2009
• Satellite shows youth bias
• Freeview top on additional sets
• Same platform services popular on second sets
  • Figure 22: TV services subscribed/owned on main set, by TV services subscribed/owned on second set, April 2009
• ' None of these' on four in ten third sets
  • Figure 23: TV services subscribed/owned on main set, by TV services subscribed/owned on third set, April 2009
• PVR Trends
• Key points
• Digital recorders in the home
  • Figure 24: Penetration of digital recorders, April 2009
• Income determines PVR penetration
• Satellite users show most enthusiasm
  • Figure 25: Digital recorders have in home, by TV services subscribed/owned on main set, April 2009
• Multiple PVR ownership
  • Figure 26: Digital recorders have in home, by digital recorders have in home, April 2009
• Digital recorder use
  • Figure 27: Digital recorder use, April 2009
• ABC1s more likely to skip adverts
• Families make use of PVR facilities
• Older PVR owners missing out on extras
• Sky+ owners biggest ad-skippers
  • Figure 28: Use PVR for activities all the time, by digital recorders have in home, April 2009
• Extras provide added value for occasional use
  • Figure 29: Occasionally use PVR for activities, by digital recorders have in home, April 2009
• Six in ten PVR owners never PPV
  • Figure 30: Never use PVR for activities, by digital recorders have in home, April 2009
• Online TV Viewing
• Key points
• BBC iPlayer heads TV catch-up
  • Figure 31: Services used to watch TV online, April 2009
• Younger internet users making most use of online TV
  • Figure 32: IPTV providers, by age, gender and socio-economic group, April 2009
• IPTV viewers watch a range of services
  • Figure 33: IPTV providers, by IPTV providers, April 2009
• Cable customers more likely to use catch-up TV
  • Figure 34: IPTV providers, by TV services subscribed/owned on the main set, April 2009
• Appendix -- Internal Market Environment
  • Figure 48: Number of television sets in household, 2004-08
  • Figure 49: Screen size, 2004-08
  • Figure 50: Screen type, 2006-08
  • Figure 51: Television features, 2004-08
  • Figure 52: When television was obtained, 2004-08
• Appendix -- Broader Market Environment
  • Figure 53: Trends in personal disposable income and consumer expenditure, 2004-14
  • Figure 54: Trends in the age structure of the UK population, by gender, 2004-14
  • Figure 55: Forecast adult population trends, by socio-economic group, 2004-14
• Appendix -- Platform Penetration
  • Figure 56: Main TV in home, by demographic sub-group, April 2009
  • Figure 57: Second TV in home, by demographic sub-group, April 2009
  • Figure 58: Third TV in home, by demographic sub-group, April 2009
• Appendix -- PVR Trends
  • Figure 59: Most popular digital recorders have in home, by demographic sub-group, April 2009
  • Figure 60: Next most popular digital recorders have in home, by demographic sub-group, April 2009
• PVR use
  • Figure 61: Use of digital recorder, by demographic sub-group, April 2009
  • Figure 62: Use of digital recorder, by demographic sub-group, April 2009
  • Figure 63: Use of digital recorder, by demographic sub-group, April 2009
  • Figure 64: Use of digital recorder, by demographic sub-group, April 2009
  • Figure 65: Use of digital recorder, by demographic sub-group, April 2009
• Appendix -- Online TV Viewing
  • Figure 66: IPTV providers, by demographic sub-group, April 2009