Ofcom Report: Britons’ Communications Usage On the Rise

LONDON: Ofcom’s latest Communications Market Report reveals that Britons are spending more time than ever watching television, using their cell phones and going online, while also paying less for those services.

Ofcom’s sixth Communications Market Report explores the U.K.’s TV, radio, broadband, telecoms and mobile industries, valued at £52 billion. The report consulted consumers on what they were likely to cut back on given the recession; only 19 percent would cut back on mobile phone spend, 16 percent on TV subscriptions and 10 percent on their broadband services. Meanwhile, 47 percent would choose to cut back on going out for dinner and 41 percent would scale back on holidays. 

Ofcom also reveals that British consumers are paying less for their communications services: In May, consumers spent an average of 25 minutes a day online at home, up from 9 minutes in 2004, but average household spend on Internet services fell in real terms from £11.37 in 2007 to £10.71 in 2008. Consumers are also seeking out new ways to save money. For example, 46 percent said they were taking a bundle of services during the first quarter, up from 39 percent a year ago, and 47 percent are now more likely to take a bundle of services.

Exploring the reach and impact of PVRs, Ofcom found that at the end of March, 27 percent of U.K. homes had a DVR, an increase of 29 percent since September 2008. The media regulator also reveals that 89.2 percent of homes now have digital TV, and more than 2 million homes had HD.

Meanwhile, takeup of broadband reached 68 percent of households by the end of March, up from 58 percent last year. Ofcom also found that 23 percent of British homes use online catch-up services like the BBC’s iPlayer, compared to 17 percent in 2007.

Assessing the overall television business in the U.K., Ofcom states that industry revenues gained 1.3 percent last year to reach £11.2 billion, with pay-TV subs up 6 percent but net ad revenue down 3 percent. The report also notes that the growth in the number of new channels launching in the U.K. had slowed. As at the end of 2008, there were 495 channels on air, up from 470 in 2007. The regulator awarded 77 licenses last year, down 46 percent and the lowest number issued since 1998.