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IWA Cardiff Media Summit 2017

The Future of Media in Wales

#IWAMedia

Wales – Media

#IWAMedia

•  Availability of communications better, but range of content much narrower

•  BBC & ITV output & spend on English language TV down, programme range narrower

•  S4C - first ever funding cut

•  Ownership of commercial radio consolidating - severe drop in locally originated output

•  Print circulations of Welsh newspapers falling; monetising online usage a challenge

•  Digital platforms increased access to news, but forensic capacity of journalism down

Wales – Media Challenges

#IWAMedia

•  Delivering portrayal •  Extending presence of Welsh issues in radio •  Implications if indie production moves to 2 main owners– a broadcaster & private

capital •  Consultation process on Ofcom’s proposal for BBC Operating Licence •  Effective NEDs for BBC Wales •  Sustaining plurality of professional journalism at local & Wales level •  Wales in network news •  Coherent, holistic Welsh-language service

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TheFutureofMediainWales IWAMediaSummit2017

29March2017

ClaireEnders claire.enders@endersanalysis.com

Someofoursubscribers

6TheFutureofMediainWales,March2017

Film/Television21stCenturyFox,Arqiva,BBC,BBCTrust,BBCWorldwide,BeinSports,Bertelsmann,BoxPlus,Channel4,DigitalUK,DiscoveryCommunications,EndemolShine,FoxNetworks,Foxtel,Freeview,IMGMedia,ITV,Ludorum,Miramax,NBCUniversal,ProSiebenSat.1,Scripps,SevenOneMedia,Sky,SonyPictures,STV,TurnerBroadcasting,UKTV,Viacom,VirginMedia,Vivendi,WaltDisney,WarnerBros,YouViewAgenciesDentsuAegis,Engine,Grey,GroupM,GTB,Hogarth&Ogilvy&Mather,J.WalterThompson,Kantar,Karmarama,Kinetic,MEC,M/Six,Maxus,Mediacom,Mindshare,Publicis,WPP,Wunderman,Xaxis,Young&Rubicam

PublishingArchant,Cedar,Centaur,DCThomson,DMGT,DorlingKindersley,DowJones,ESIMedia,FinancialTimes,Future,GuardianMediaGroup,Haymarket,HearstMagazines,MagneticMedia,Holtzbrinck,ImmediateMedia,JohnstonPress,NewsUK,Newsworks,NLAMediaAccess,PenguinRandomHouse,TelegraphMediaGroup,TimeInc,TrinityMirror,Which?TelecomsBT,EE,H3G,LibertyGlobal,Openreach,PostOffice,Samsung,TalkTalkGroup,Telefónica,TescoTelecoms,UtilityWarehouse,Vodafone,VonageUKPublicSectorDCMS,EBU,EuropeanCommission,Ofcom,NationalAuditOffice

Music/RadioBauerRadio,BMGRightsManagement,Communicorp,EMIMusicPublishing,Pandora,PRSforMusic,SonyMusicEntertainment,Spotify,UniversalMusic,WirelessGroupProfessionalServicesAccenture,Afiniti,Allen&Overy,Atos,BaringaPartners,Bain&Co,DeloitteConsulting,Edelman,Ernst&Young,KPMG,Linklaters,McKinsey,Miles33,OC&CStrategy,Oliver&Ohlbaum,PwC,RussellReynolds,TataConsultancyServices,VentureConsulting,XIXEntertainmentTechAutoTrader,DAZN,Facebook,Google,Jobsite,Microsoft,NTTData,RadiumOne,Yahoo!

FundsAberdeenAssetManagement,BaillieGifford,CedarRockCapital,CenkosSecurities,HighfieldsCapitalManagement,LionTree,MorganStanleyInvestmentManagement,VeritasInvestmentManagement,CapeViewCapitalLLPInvestmentBanksAllen&Co,BarclaysCapital,BNPParibas,Citigroup,LepePartners,Moelis&Co,NMRothschild,TheRaineGroupPrivateEquity/VCApax,Cinven,GlooNetworks,PermiraAdvisors,ProvidenceEquity,UsahaTegas

TheUKisconnectingacrossmultipledevices

TheFutureofMediainWales,March2017 7

85%

73%

58%64%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015 2016

HomeInternetuse Smartphone TabletLaptop 16-34sHomeInternetuse 16-34sSmartphone

[Source:OfcomTechTrackersH2orWave3]

UKconnectivity:takeup

17billionextrahoursonlineby2020,75%onmobile

TheFutureofMediainWales,March2017 8

0

10

20

30

40

50

60

70

80

90

2012 2013 2014 2015 2016 2017f 2018f 2019f 2020f

PC Tablet Smartphone ExcludesofflineappandTV-basedusage;PC6+,smartphone/tablet8+[Source:EndersAnalysisbasedoncomScore]

Totalinternetconsumption(hours,bn)

Smartphoneshavecreatednewconsumptionhabits

TheFutureofMediainWales,March2017 9

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

16-34 AdultsJul-Sep2016

Base:2,893adults16+[Source:Ofcom‘TechTrackerH22016’]

Inthelastweekusedamobilephoneto…

Under45sspendmoretimeonlinethanwatchingTV

TheFutureofMediainWales,March2017 10

119157

183

235

324

6692 83 73

39

123

142122

83

47

23

29

32

34

32

212

263

237

190

118

0

50

100

150

200

250

300

350

18-24 25-34 35-44 45-54 55+

Television PC Smartphone Tablet [Source:EndersAnalysis,comScore,BARB/Infosys+]

Averagetimeonlinebydeviceandage,percapita,2016(mins/day)

Socialmediausageisbecomingthenorm

TheFutureofMediainWales,March2017 11

39%27%

13% 15%3%

36%

37%

36%22%

10%

9%

14%

11%

14%

6%

85%78%

60%

50%

19%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

16-24 25-34 35-44 45-54 55+

Morethan10timesaday 2-10timesaday OnceadayBase:Alladults

[Source:OfcomAdultsmediauseandattitudes2016]

TitleFrequencyofvisingsocialmediasites(%,2015)

Riseofglobalmediaplayers

TheFutureofMediainWales,March2017 12

20172007

VideoviewingismovingslowlyawayfromtheTVset

TheFutureofMediainWales,March2017 13

88

67

75

84

10099

60

65

70

75

80

85

90

95

100

105

110

2010 2011 2012 2013 2014 2015 2016

Individuals Children Adults16-34 Adults35-54 Adults55+[Source:EndersAnalysis,BARB/InfoSys+]

ReporteddailyaverageviewingtimetotheTVset(2010=100)

Broadcasterswillstillhaveover80%viewingsharein2026

TheFutureofMediainWales,March2017 14

0

50

100

150

200

250

300

350

2016 2021f 2026f 2016 2021f 2026f 2016 2021f 2026f

Individuals4+ Adults16-34 Adults55+

Broadcaster SVOD Otheronlinevideo [Source:EndersAnalysis]

AveragevideoviewingacrossUKpopulation,2011-2026f(mins/day)

Newspaper’scirculationcontinuestodecline

TheFutureofMediainWales,March2017 15

19.0 18.1 17.6 16.5 15.4 14.4 13.6

35.3 33.9 30.9 28.8 25.8 23.5 21.2

13.3 11.7 12.011.3

10.910.4 9.9

43.441.2

37.432.9

30.128.5

26.6

111.0104.9

97.989.5

82.276.8

71.3

0

20

40

60

80

100

120

2009 2010 2011 2012 2013 2014 2015

Mid-Market Popular Quality Regional [Source:EndersAnalysisbasedonABC]

Newspapercirculationvolumesperweek(m)

£31inprintrevenuelostforevery£1gainedindigital

TheFutureofMediainWales,March2017 16

(130) (128)

(97)

(154)

(95)

34 30 30

5 3

-160

-140

-120

-100

-80

-60

-40

-20

0

20

40

2012 2013 2014 2015 2016Q1-Q3

Printloss Digitalgain [Source:EndersAnalysis,AA/WARC]

Digitalgainversusprintlossinnationalnewspapers(£m)

AccesstoNewsischangingfast

TheFutureofMediainWales,March2017 17

78%

40%35%

32%

69%

29%33%

48%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

TV Newspapers Radio Anyinternetorapps

2013 2016 [Source:Ofcom‘NewsconsumptionintheUK’]

Platformsusedfornews‘nowadays’,2013-2016

Socialmediahasincreasinglyimportantroleinonlinenews

TheFutureofMediainWales,March2017 18

48%

42%

36%

31%

18%

16%

7%

4%

OnlineTVandradiocompanies

Socialmediasites

Searchengines

Onlinenewspapers

Onlinenewsaggregationsites

Onlinenewsorganisations

Onlinenewsmagazines

Blogs

Base:1,393adultswhousetheinternetfornewsnowadays,Nov2016[Source:Ofcom‘NewsResearch2016’]

Onlinesourcesusedfornews,2016

Presstoonlineadvertisingsubstitutionisclear

TheFutureofMediainWales,March2017 19

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Nationalnewspapers Otherpress Online TV Othermedia [Source:EndersAnalysis,AA/WARC]

Shareofadvertisingbymedium(%)

TheFutureofMediainWales??

TheFutureofMediainWales,March2017 20

PressinWalesisbecominglessreliantonprint

TheFutureofMediainWales,March2017 21

10.69.7 9.1 8.4

7.66.5 5.8

2.3

2.11.9

1.7

1.5

1.21.1

0.3

0.30.3

0.3

0.3

0.20.2

12.9

11.711.0

10.1

9.0

7.77.0

0

2

4

6

8

10

12

14

2009 2010 2011 2012 2013 2014 2015

Paiddailytitles PaidSunday Free [Source:EndersAnalysis]

Wales’newspaperscirculationperweek(m)

Impressivedigitalaudiences,butlessengagement

TheFutureofMediainWales,March2017 22

Monthly audience of online sites, 000s (LHA) & time spent per user, mins (RHA), Feb 2017

Welshvoicesarefewandfarbetweeninradio

TheFutureofMediainWales,March2017 23

6.2

2.3

[VALUE].0

ShareofradiolisteninginWales,Q42016,%

Other WelshlicencesbutpartofnetworksBBCRadioWales BBCRadioCymruNationBroadcasting

N.B.SwanseaSoundonAMhas12hoursofWelshlanguageprogrammingaweek[Source:RAJAR]

ProducedinWales

BBC

Welshlanguage

ThePSBsarehighlyviewed…

TheFutureofMediainWales,March2017 24

75

72

74

73

71

71

72

72

73

73

74

74

75

75

76

BBCOne ITVWales

2014 2015[Source:OfcomPSBAnnualReport2016]

“Regionalnewsprogsprovideawiderangeofgoodqualitynewsaboutmyarea”(%ratingfordelivery)

29.9

18.8

29.9

21.9

0

5

10

15

20

25

30

35

BBCOne ITVWales

2015 2016Note:Individuals4+,IncludesHDvariants,excludes+1variants

[Source:Ofcom]

EarlyEveningNewsprogrammeaudienceshare(%)

Contributingtopluralityofvoiceandthecreativesector

TheFutureofMediainWales,March2017 25

ExternalCommissions

• WelshindiesT/O~£37m

•  18indiesproducednetworkprogrammingforPSBsin2015

• C4investment£8mon65hours

• Plus,contentforWales

InternalCommissions

• BBCStudios•  ITVCymru

• BothalsosupplyS4C•  ITVStudiosacquisitionofTwoFour&Boom

Pluralityofvoice

•  ITVCymrunearly300hours

• BBCTVnearly500hours•  S4Cprogrammingfrom:

•  Indies• BBCStudios•  ITVCymru

In2015theBBCSpent£178monnetworkandlocalcontentfromWales

Summary

TheFutureofMediainWales,March2017 26

•  Traditionalmediafacesongoingdisruptionfromdigital

•  Globalisationbringsnewplayerswithmuchdeeperpockets

•  DeclineofWelshnewspapersnotoffsetbyonline

•  Nationalissuesfacebeingsidelinedbyglobalagendas

•  PublicservicebroadcastingremainskeytofutureofWelshmediaandcreativeindustries

IWA Cardiff Media Summit 2017

A sustainable media workforce

#IWAMedia

IWA Cardiff Media Summit 2017

An interview with Charlotte Moore

#IWAMedia

IWA Cardiff Media Summit 2017

What’s the story: Will professional journalism survive in Wales?

#IWAMedia

Sustaining Welsh Language Media

TV - Changing audience behaviour:• declineinTVviewing,growthofsocialmedia• butTVviewings9llrelevantforatleastnextdecade• EPGprominencelessimportantthanpresenceonApps• S4C:DCMSReview–scopetowidenremit?Welsh Language Radio:•  BBCRadioCymru•  RadioCymruMwy–experimentonDAB/on-line•  CommercialRadio–5sta9onshavesomeWelsh

languagecontent•  CommunityRadio(10sta9onsinWales)

Sustaining Welsh Language Media

Connectivity and on-line • PapurauBroon-line&Hyper-localMedia• Golwg360• YrAwrGymraeg• BBCCymruFywImpact of Global Media threatoropportunity?• Facebook&Google80%shareofdigitaladrevenuesWelsh Government:• £4.2millionsupportforWelshLanguageincludesfundingforPapurauBro

IWA Cardiff Media Summit 2017

Please remember to share your thoughts on www.doo.vote/iwamedia

Thank you for coming

#IWAMedia