The Stage

Online television viewing doubles in the last year

Published Thursday 14 August 2008 at 12:25 by Matthew Hemley

The amount of people watching television online has more than doubled in the last year, according to a report by Ofcom.

In its annual review of the communications market, the media regulator said the proportion of people with an internet connection who watch TV online was 17% in 2007, compared with 8% the year before.

Online advertising spend was up by almost 40% year-on-year, reaching £2.8 billion in 2007.

For the first time, more money was spent on internet advertising than the combined advertising spending of ITV1, Channel 4, S4C and Five, which was £2.4 billion.

Ofcom’s annual review of the communications market also revealed that by July 2008, nearly nine out of ten households had digital television, compared to seven out of ten 12 months ago.

In homes with digital television, 57% of viewing was of the five main Public Service Broadcaster (PSB) channels, down slightly from 58% in 2006.

The report also revealed that total television industry revenue was nearly £11.2 billion in 2007, up 3.8% from 2006.

The total spend on UK original programming by the five main PSB channels fell 5.3% to £2.6 billion, while the combined spend on external commissions from the BBC, ITV1, Channel 4 and Five increased by 8.9% to £1.2 billion.

Money spent on in-house productions declined by 9.6% to just over £1.2 billion during 2007.

Elsewhere, radio listening online has also increased, with the number of people listening to radio via the internet up to 14.5 million by May 2008, a rise of 21% from 12 million in November 2007.

According to Ofcom, seven million households had a DAB radio set by March of this year, up from 17% on last year.

Peter Phillips, Ofcom’s partner for strategy and market development, said: “Our devotion to watching, listening and staying in touch wherever and whenever we want shows no sign of diminishing and, with healthy competition, overall prices offer increasing value for money. That is what consumers demand and what Ofcom helps deliver.”