News & Current Affairs

August 14, 2008

Spending on communications falls

Spending on communications falls

Person using mobile phone, PA

Mobile use has doubled in five years, Ofcom says

Britons are spending more time using communications services but paying less for them, says an Ofcom report.

Every day in 2007, the average consumer spent 7 hours and 9 minutes watching TV, on the phone, using the internet or using other services, it says.

Since 2002, mobile use has doubled and PC and laptop use has grown fourfold, says the watchdog’s annual review.

But the average UK household spend on communications in 2007 was £93.63 a month – a fall of £1.53 on 2006.

TV remains the most popular pastime, with the average person watching for 3 hours and 38 minutes a day last year.

In 2007 the average person in the UK spent 24 minutes per day on their computer and 10 minutes using their mobile.

Graph showing household spend on communications services between 2002and 2007

Ofcom’s annual communications market review notes that monthly spend on communications has fallen for three years in a row.

Ofcom says consumers are getting increasingly canny about the way they buy services, switching providers or paying one fee for a bundle of services.

COMMUNICATIONS FACTS
Communications industry revenue topped £51.2bn in 2007
Average households spend £93.63 per month on communications services
87.2% have digital television
80% of new TV sales are high-definition sets
40% buy communications services in a bundled package
44% of adults use text messaging every day
36% of adults use the net every day
Source: Ofcom market review

Lower prices for broadband are one factor, with the average household spending £9.45 for an internet connection in 2007 compared with £9.87 in 2006.

Fierce competition between broadband providers is causing some concern that it may be difficult for the industry to raise the investment needed for faster networks.

But the report shows that broadband take-up is continuing to grow both at home and on the move.

By the end of 2007, Ofcom found, 58% of homes had broadband, compared with 52% a year earlier.

Dongle surge

The real surge, though, came in the use of mobile broadband after a big marketing push by mobile phone companies selling so-called “dongles”.

Between February and June this year, monthly sales of these devices, which give internet access to laptop users, rose from 69,000 to 133,000 a month.

According to Ofcom figures, two million people say they have used mobile broadband via a dongle or similar device and three-quarters of them say they use it at home as well as on the move – evidence that the mobile operators are beginning to compete with fixed-line businesses for broadband customers.

Children watching TV, BBC

TV retains its popularity despite booming net, mobile and computer use

British consumers are also spending more time on the phone than ever before, with a 21% increase in minutes spent on mobile calls.

Even fixed-line calls are holding up with Ofcom seeing just a 2% fall in minutes spent calling.

The Ofcom report paints a picture of a country where consumers are making more and more use of modern media services – from YouTube to personal video recorders – while still retaining an interest in the traditional services.

Digital television is now in use in 87% of British homes, with many having hundreds of channels to choose from. Despite the variety, 57% of viewing in these multi-channel homes is of the five main channels.

Ofcom also noted that while the amount of TV viewing is up on 2006, the longer term trend shows a slight decline in viewing.

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July 31, 2008

Surveys: Many people are now watching TV online

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Surveys: Many people are now watching TV online

As much as 20 percent of all TV viewing in the US now happens online, says a survey released this week by Integrated Media Measurement Inc. (IMMI), supporting other recent research which also indicates that the Internet is fast turning into the top choice for many.

For the first time this year, a significant part of the online audience for primetime TV episodes is not watching some portion of the show on TV, according to IMMI’s new survey results. Recent launches of sites like Hulu, offering full episodes of programs, is surely bolstering the trend.

For some shows, online viewing is higher than DVR playback. Yet the IMMI researchers also contend that only about one-third of American households own DVRs, whereas about 82 percent of them have Internet access.

About 29 percent of “traditional live TV viewers” use a DVR frequently, in contrast to just 22 percent of online TV viewers.

Around 50 percent of all online viewing was characterized by IMMI’s respondents as “TV replacement,” whereas 31 percent of the time, it was described as “catch-up viewing,” and 18 percent of the time as “fill-in viewing.”

Online TV as a “TV replacement” is certainly nothing new. As previously reported in BetaNews, in a study conducted by Burst during the recent Hollywood writer’s strike, almost half of those surveyed were spending more time than usual online, in order to avoid repeat programming on TV.

Although that particular study didn’t ask the TV defectors how they spent their time online, it’s probably a good bet that a lot of them were viewing videos.

Europe seems to be much further ahead of the US in watching TV online, according to a survey by Motorola. Even back in mid-2007, when that survey was published, 45 percent of respondents across the UK, France, Spain, Germany, and Italy claimed to be watching at least some TV online, with France taking the lead at 59 percent.

Given the choice, why do some people prefer watching TV online? Another recent survey — this one conducted by Simmons, a unit of Esperian — showed that viewers are 25 percent “more engaged” when watching TV online.

Released last December, the Simmons study defined “engagement” according to six characteristics that respondents identify with media: “personal time-out,” “social interaction,” “inspirational,” “trustworthy,” “life-enhancing,” and ad receptivity.

Although that could be, maybe people just find it interesting to get up off the couch, ditch the remote, and flip around between various Web sites – some showing TV programs, and others offering music, downloadable software, social networking, news, gaming, e-mail, search engines, and an endless array of other stuff.

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