Radio - UK - February 2008

Table of Contents

• Issues in the Market
• Main issues
• Definition
• Abbreviations
• Market in Brief
• Radio targets ' Third Space'
• Two beneficial triangles: Mobile-MP3-radio, ' hear-like-buy'
• The DAB debate
• Brand extension: long-term fixture or digital battering ram?
• The new digital divide
• Switch off from work, switch off from radio
• MP3 diverts youth
• The Trojan horse of new technology
• Radio online: threats and opportunities
• Increased competition hits commercial sector
• Internal Market Environment
• Key points
• Interest in radio
  • Figure 1: Radio listening, 2003-07
• Listening habits
  • Figure 2: Radio listening trends, 2003-07
  • Figure 3: Average weekday reach of radio and television, by daypart, Q2 2007
• Platform proliferation: radio' s ' third age'
  • Figure 4: Digital platform shares, 2007
  • Figure 5: Devices used to listen to radio, June 2007
• Podcasting
• Demand for radio on portable devices
  • Figure 6: Interest in media on portable devices, February-June 2007
• Mobile phones
  • Figure 7: Listening to radio via mobile phone, 2002-07
• MP3 players
  • Figure 8: Use of MP3 players for podcast listening, 2006-07
• UK goes digital
  • Figure 9: Ownership of DAB radios at home, 2004-07
• The end of analogue?
• Switch-off consumer-led
• Not all thumbs up for digital
  • Figure 10: BBC digital station reach, 2006-07
• Technological convergence, brand divergence
  • Figure 11: Method of listening to music nowadays, July 2007
• Broader Market Environment
• Key points
• Population structure
  • Figure 12: Trends in the age structure of the UK population, by gender, 2002-12
• Socio-economic structure
  • Figure 13: Forecast adult population trends, by socio-economic group, 2002-12
• Employment
• PC ownership
  • Figure 14: Household ownership of PCs, 2003-07
• Portable device ownership
• Mobile phones
  • Figure 15: Mobile phone ownership, 2003-07
• MP3 players
  • Figure 16: MP3 player ownership, 2003-07
  • Figure 17: MP3 player ownership among music consumers, 2005-07
  • Figure 18: MP3 player ownership, by demographic 2005-07
• Internet penetration
  • Figure 19: British Internet penetration at home/work/place of study or elsewhere, 2001-07
• Methods of buying music
  • Figure 20: Value sales of pre-recorded music, 2004-06Figure 21: Attitudes towards downloading music to mobile phones, 2006 and 2007
• Consumer mobility
  • Figure 22: Average hours per week spent travelling, by mode of transport, 2003-07
• Competitive Context
• Key points
• Internal competition
• The commercial sector vs the BBC
• Channel 4 enters the fray
• BBC facing reduced resources
• Commercial sector networks for success
• External competition
  • Figure 23: Entertainment habits, 2003-07
• Internet poses greater direct threat to television...
• ...but opens the door to a new breed of radio competitors
• MP3 stalks 4x4
• Competition for advertisers
  • Figure 24: Total UK adspend, by medium, 2004-06
• Strengths and Weaknesses in the Market
• Strengths
• Penetration rates
• Opportunities of new platforms
• Versatility
• Cost
• Positive consumer attitudes
• Weaknesses
• Losing touch with teens
• Listening habits are hard to change
• Funding
• New platforms pose new threats
• Digital costs
• Market Size and Forecast
• Key points
• Listeners spoiled for choice
  • Figure 25: Radio listening, quarter 3, 2002-12
  • Figure 26: Hours of radio listening, quarter 3, 2002-07
• Radio forced to look beyond the spot
  • Figure 27: Commercial radio revenues, 2002-07
• The future: More choice, more competition
• More words from our sponsors
• Switch-off the trigger for take-off?
• Segment Performance
• Key points
• No break for commercial radio
  • Figure 28: Radio listening, BBC and commercial broadcasters, 2002-07
• National stations gain ground
  • Figure 29: Radio listening, national and regional stations, 2002-07
• Danger of digital cannibalism
  • Figure 30: Digital listening, 2007
• Market Share
• Key points
• BBC retains dominant position
  • Figure 31: Radio market share of listening hours, 2002-07
• Global eyes top spot
  • Figure 32: Commercial radio group share of listening hours, 2004-07
• Known brands give head start in digital space
  • Figure 33: Reach of digital-only radio stations, 2007
  • Figure 34: Digital-only radio stations' listening hours, 2006-07
• Brand Communication and Promotion
• Key points
• Fluctuating adspend is campaign-led
  • Figure 35: Adspend by leading radio broadcasters, 2003-07
• Cross-group promotion gains currency
• Above-the-line still the main route to the mass market
• Below-the-line activity builds station brands
• Branding
• Event marketing
• Companies and Products
• Key points
• Industry keen on consolidation
• Bauer Radio
  • Figure 36: Emap Radio financials, 2005-06-2006-07
• BBC Radio
  • Figure 37: BBC Radio, average 15-minute reach, 2004-05-2006-07
• Licence fee disappointment
  • Figure 36: BBC licence fee distribution, 2006-07
• GCap Media
  • Figure 38: GCap Media plc financials, 2005-06-2006-07*
• Global Radio
  • Figure 39: Chrysalis Radio financials, 2005-06-2006-07
• GMG Radio
  • Figure 40: GMG Radio financials, 2005-06-2006-07
• SMG
  • Figure 41: SMG radio financials, 2006-07 (first half only)
• Radio Listening Habits
• Key points
• How often do consumers tune in?
  • Figure 63: Frequency of listening to the radio, December 2007
• Who listens?
• Changing listening habits?
  • Figure 64: More or less radio listening, compared with two years ago, December 2007
• Who' s tuning in, who' s tuning out?
• Listeners' Choice of Platforms
• Key points
• How are consumers tuning in?
  • Figure 65: Radio listening platforms, December 2007
• Who' s on what platform?
• Infrequent listeners show interactive potential
  • Figure 66: Radio listening platforms, by frequency of listening to the radio, December 2007
• New platforms the driver for increased listening
  • Figure 67: Radio listening platforms, by whether listen more or less than two years ago, December 2007
• Analogue and DAB the ' primary' platforms
  • Figure 68: Combinations of radio listening platforms, December 2007
• Appendix -- Radio Listening Habits
• Who listens?
  • Figure 78: Frequency of listening to the radio, by demographic sub-group, December 2007
• Who' s tuning in, who' s tuning out?
  • Figure 79: More or less radio listening, compared with two years ago, by demographic sub-group, December 2007
• Appendix -- Listeners' Choice of Platforms
• Who' s on what platform?
  • Figure 80: Radio listening platforms, by demographic sub-group, December 2007
• Appendix -- Attitudes Towards Radio
• Attitudes to radio by demographics
  • Figure 81: Agreement with most popular statements about radio listening, by demographic sub-group, December 2007Figure 82: Agreement with next most popular statements about radio listening, by demographic sub-group, December 2007
• Appendix -- Radio Target Groups
• Radio Target Groups -- Detailed Demographics
  • Figure 83: Radio target groups, by demographic sub-group, December 2007