Technology

TV revenue sees fastest growth in communications sector: Ofcom

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MUMBAI: Global communications sector revenues, the total of TV, radio, telecom and post sectors, grew in 2011 by 3.7 per cent to touch ?1,322 billion, according to a report by UK media watchdog Ofcom.

In terms of percentage growth, television revenues grew fastest among the communications industries, by 6.6 per cent in 2011 to ?258 billion.

Global advertising expenditure grew by 3.8 per cent in 2011 to ?298 billion, the highest total spend since 2007. While expenditure on internet advertising grew at a compound annual rate of 16 per cent between 2007 and 2011 to ?48 billion, the compound annual growth rate of newspaper advertising was in the negative at 6.9 per cent to drop to ?60 billion, while for magazines it was a 6.8 per cent fall to ?28 billion.

In the television and radio sectors, subscriptions generated the largest and fastest-growing proportion of total revenues in 2011. Television subscription revenues grew by 10.5 per cent in 2011 to ?133 billion and at a compound annual rate of nine per cent between 2007 and 2011. Radio subscription revenues grew by 12.5 per cent in 2011 to ?2 billion and at a compound annual rate of 8.5 per cent between 2007 and 2011.

Telecom sector generated the largest absolute rise in revenues in 2011, up by ?31 billion to ?936 billion.

The number of fixed-line voice connections remains relatively resilient in the UK, with more fixed-line voice connections per 100 people than in the other markets covered. Although this number fell between 2006 and 2011 in all of the countries which Ofcom surveyed, the fall in the UK was among the smallest. Tablet take-up is highest in Spain and Australia (it is 24 per cent in both). Italy and the US have the next-highest claimed ownership (23 per cent and 20 per cent) while in the UK take-up is 19 per cent.

In nearly all comparator countries, consumers say they have reduced face-to-face communication and fixed telephone calls with friends and family. In all eight countries, use of post declined. In contrast, preferences for online communications increased, particularly in the UK and Italy, which showed large increases in the use of email and social networking.

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