Ofcom has published its annual Communications Market Report, revealing significant trends and changes in consumer behavior. The report explains how a new 'networked generation' of online consumers is emerging and turning away from traditional media.
The UK communications regulator reports that the national communications market exceeded �50 billion for the first time, representing over 4 percent of the UK gross domestic product. Ofcom chief operating officer Ed Richards said the research reveals dramatic and accelerating changes across all communications industries.
�The sector is being transformed by greater competition, falling prices and the erosion of traditional revenues and audiences,� he said. �A new generation of consumers is emerging for whom online is the lead medium and convergence is instinctive.�
The number of households with a digital television increased to a total of 18.3 million, driven by the addition of nearly 2 million Freeview homes. Total television revenues exceeded �10 billion, driven by growth in subscription income, which now exceeds advertising revenue by a 10 percent margin.
Meanwhile, the number of homes and small businesses with a broadband connection rose to 11 million. Online advertising revenues continued to rise to around �1.3 billion, worth more than three times that of radio advertising and a third of television advertising at �3.8 billion.
Industry revenues from broadband access were up 70 percent year-on-year to nearly �2 billion. Mobile revenues grew 10 percent to �13 billion, while landline revenues fell 7.5 percent to �10 billion. Although overall consumer spend on communications rose slightly, for the first time in five years it fell slightly as a proportion of total household expenditure, largely as a result of falling prices of fixed-line charges.
The UK communications regulator reports that the national communications market exceeded �50 billion for the first time, representing over 4 percent of the UK gross domestic product. Ofcom chief operating officer Ed Richards said the research reveals dramatic and accelerating changes across all communications industries.
�The sector is being transformed by greater competition, falling prices and the erosion of traditional revenues and audiences,� he said. �A new generation of consumers is emerging for whom online is the lead medium and convergence is instinctive.�
The number of households with a digital television increased to a total of 18.3 million, driven by the addition of nearly 2 million Freeview homes. Total television revenues exceeded �10 billion, driven by growth in subscription income, which now exceeds advertising revenue by a 10 percent margin.
Meanwhile, the number of homes and small businesses with a broadband connection rose to 11 million. Online advertising revenues continued to rise to around �1.3 billion, worth more than three times that of radio advertising and a third of television advertising at �3.8 billion.
Industry revenues from broadband access were up 70 percent year-on-year to nearly �2 billion. Mobile revenues grew 10 percent to �13 billion, while landline revenues fell 7.5 percent to �10 billion. Although overall consumer spend on communications rose slightly, for the first time in five years it fell slightly as a proportion of total household expenditure, largely as a result of falling prices of fixed-line charges.