Page 87 - SAMENA Trends - August 2020
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REGULATORY & POLICY UPDATES  SAMENA TRENDS

        Ofcom Releases Media Nations 2020 Report


                                                                                 and viewers spent 82% more time on ITV
                                                                                 Hub. But the boost to the PSBs’ audience
                                                                                 figures   during   peak-lockdown   was
                                                                                 short-lived, as  the pandemic  interrupted
                                                                                 production  of soaps, major  sporting
                                                                                 events and entertainment shows. By June
                                                                                 2020 their  combined  monthly  share of
                                                                                 broadcast TV viewing fell to 55%, its lowest
                                                                                 level  since  August  2019.  The  outlook  for
                                                                                 commercial public service broadcasters
                                                                                 PSBs is especially tough, as they manage
                                                                                 cost-cutting  measures  amid  financial
                                                                                 uncertainty.  Their  cumulative  revenues
                                                                                 declined by 3.5% in 2019 to £2.2bn, and TV
                                                                                 advertising  revenues  are  expected  to  fall
                                                                                 17-19%  in  2020.  As  lockdown  measures
                                                                                 eased towards the end of June, the uplift
        A  surge  in  screen  time  during  lockdown   the pandemic. Disney+, which launched on   in  viewing to  video streaming services
        saw UK adults spend 40% of their waking   the first day of the UK’s lockdown, made   and other  non-broadcast content held
        day watching TV and online video services,   an  immediate  impact.  The  new  service   steady, at 71% higher than the year before.
        Ofcom has found in its annual study of the   attracted  16% of online  adults by early   In contrast, by the end of June, traditional
        nation’s  media  habits.  As  people  across   July, surpassing NOW TV (10%) to become   broadcast  TV  viewing  declined  from  its
        the  UK  followed  official  health  advice  to   the third most-popular  subscription   peak in early lockdown – falling 44 minutes
        stay  home  during  April  2020,  they  kept   streaming  service  behind  Netflix  (45%)   to  3  hours  2  minutes  per  day.  Broadcast
        themselves informed  and entertained  by   and  Amazon  Prime  Video  (39%).  Among   TV viewing is now comparably lower than
        spending  six hours and 25 minutes each   children aged 3-11, Disney+ was used in a   it  was  in  2014-2017,  although  it  remains
        day on average – or nearly 45 hours a week   third of homes (32%) by June – overtaking   11%  higher  than  this  time  last  year.  And
        – watching TV and online video content –   BBC iPlayer which saw use among these   our  adoption  of streaming  services
        a rise of almost a third (31%) on last year.   children fall  from 26% to 22% during  the   appears likely to continue after lockdown.
        The  biggest  factor  behind  this  increase   spring. The public service broadcasters –   The  overwhelming  majority  of  online
        was people spending twice as much time   the BBC, ITV, STV, Channel 4 and Channel 5   adults signed up to Netflix (96%), Amazon
        watching subscription streaming services   – briefly achieved their highest combined   Prime Video (91%) and Disney+ (84%) said
        such  as  Netflix,  Disney+  and  Amazon   monthly  share  of  broadcast  TV  viewing   they plan to keep  their  subscriptions  in
        Prime Video – one hour 11 minutes per day   in  more  than  six  years  in  March  (59%),   the  months  ahead.  Similarly,  more  than
        on  average  in  April  2020.  The  trend  was   driven by  a  demand  for trusted news   half of UK adults (55%) say that they will
        even  more  pronounced  among  16-34s,   programmes  as  the  pandemic  grew.  The   continue  to spend the same amount  of
        who streamed for an  average two  hours   BBC was the most popular source of news   time watching streamed content in future
        each day.                            and information  about Covid-19  – used   as they did during lockdown. Yih-Choung
        Silver  streamers  widen  their  viewing.   by 82% of adults during the first week of   Teh, Ofcom’s Strategy and Research Group
        Ofcom’s  Media  Nations  2020  report  also   lockdown.  The  BBC,  ITV,  Channel  4  and   Director,  said:  “Lockdown  led  to  a  huge
        finds that an estimated 12 million UK adults   Channel  5 were trusted  by around  eight   rise  in  TV  viewing  and  video  streaming.
        signed up to a new video streaming service   in  10.  Broadcasters’  video-on  demand   “The  pandemic  showed  public  service
        during lockdown, of whom around 3 million   services have also seen  some success   broadcasting at its best, delivering trusted
        had never subscribed to one before. Some   in  lockdown.  Dramas  Normal  People  and   news  and  UK  content  that  viewers  really
        of these were older viewers who previously   Killing  Eve  helped  BBC  iPlayer  attract  a   value.  But  UK  broadcasters  face  a  tough
        watched  only  broadcast  TV.  One  third   record  570  million  program  requests  in   advertising market, production challenges
        (32%) of 55-64 year olds, and 15% of people   May 2020 – 72% higher than in May 2019.   and financial uncertainty. So they need to
        aged  65+  used  subscription  streaming   Similarly, Channel 4’s on-demand service,   keep demonstrating that value in the face
        services in the early weeks of lockdown –   All  4,  generated  30%  more  views  among   of intense  competition  from streaming
        up from 25% and 12% respectively before   16-34s in the first two weeks of lockdown;   services.”









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