Sharp upturn in usage of BBC iPlayer catch-up service consolidates broadcaster in leading position

Screen Digest releases revised forecast data on UK online television market

London 6th February 2008: Media analyst firm Screen Digest (www.screendigest.com) today releases revised usage data and forecasts on the online TV market in the UK. A surge in usage for the BBC’s iPlayer catch-up service has prompted Screen Digest to revise upwards its forecasts for free-to-view (FTV) TV consumption in the UK. The change reflects the emerging prominence of the FTV model in driving usage of web-TV services.

Screen Digest reports that 0.8bn free-to-view online TV streams and downloads – including TV shows, sports and niche programming – were initiated by UK broadband households in 2007. This is now expected to rise to 1.5bn in 2008, and forecast to hit 2.8bn by 2012. Screen Digest analysis of comScore consumption data indicates that video streams initiated via the bbc.co.uk domain, including the iPlayer sub-domain, accounted for 38 per cent of total UK FTV streams and downloads in 2007.

UK FTV online TV revenues however remain unchanged, going from £19m in 2007 to £98m in 2012. This is due to the dominance of the BBC’s services, and lack of clear strategies from commercial broadcasters.

iPlayer’s success underlines comparative lag in other broadcasters’ delivery models

Screen Digest has repeatedly emphasised two major factors in determining a successful free online video proposition for broadcasters:

1) Browser-based open access delivery

2) Flash-based streaming

See pdf for chart

Browser-based open access delivery

The BBC’s decision to migrate the iPlayer’s focus away from a proprietary application download environment to an open access web streaming model coincided with the public broadcaster reporting a significant uplift in online viewers. As the BBC announced earlier this year, in the fortnight starting 25 December 2007, over 1m users visited the site, downloading or streaming over 3.5m programmes (250,000 daily).

Screen Digest believes that this growth pattern is sustainable and following clear ‘on-message’ marketing is likely to continue into at least the first half of 2008. This growth will be predicated on the BBC’s continued development of the iPlayer open web platform to include, for example, ‘platform syndication’ strategies such as enabling users to embed the iPlayer into third party websites and personal blogs.

The application-based strategies pursued by some UK broadcasters, which require users to download a heavy proprietary application before being able to download content, has so far erected an unnecessary barrier to initial consumer adoption and hampered market growth. For example, Channel Four’s 4oD platform still requires the installation of an application by viewers to access full online catch-up services, as does the BBC’s own iPlayer download service.

Flash-based streaming

Moving to a Flash-based streaming for full seven day catch-up has also been a critical move by the BBC, enabling non-Windows users to access programming. The democratisation of access to BBC catch-up services is in stark contrast to services offered by ITV.com and 4oD, which are still only accessible to UK broadband homes that have a Windows PC.

Future market potential dependant on commercial broadcaster strategies

Arash Amel, Senior Analyst says “Screen Digest is monitoring the development of the market. Our long-term financial outlook of the UK online TV sector will now be dependant on the future development of convincing platform strategies by UK commercial broadcasters ITV, Channel Four and Five, as well as new entrants such as Bebo, MySpace, YouTube and Joost.

It is expected that the success of the BBC’s iPlayer open web streaming model, and future ‘viral syndication’ strategies, will encourage UK commercial broadcasters to enter a long term reassessment of how they deliver programming to users.”

See pdf for chart

Ends

To download a pdf of this release with all charts please go to:
http://www.greenfieldscommunications.co.uk/releases/08/060208_SD_iplayer.pdf

For more information please contact:

Media enquiries: Lucy Green
Tel: +44 (0) 7817 698366 lgreen {at} greenfieldscommunications(.)com

Screen Digest: Fay Hamilton, PR and Promotions Manager
Tel: +44 (0) 20 7424 2847 fay.hamilton {at} screendigest(.)com

About this research
The data and analysts in this press release are taken from Screen Digest’s broadband service, which continuously tracks the growth of broadband across 44 countries.

About Screen Digest

Screen Digest is the pre-eminent firm of industry analysts covering global media markets. Headquartered in London, with offices in New York and Carmel, California, we employ a team of 40 specialist analysts covering film, television, broadband, mobile, cinema, home entertainment and gaming. Our online services and reports provide the information and analysis that hundreds of media companies worldwide base their decisions on. Most recently we have launched Global Media Intelligence (GMI), a new service which provides research and analysis specifically for media-focused institutional investors.

To find out more, please contact Screen Digest sales sales {at} screendigest(.)com
Tel: +44 (0) 20 7424 2820 www.screendigest.com