Ofcom publishes Communications Market report

Ofcom has published The Communications Market 2004, a report on key trends within the radio, television and telecommunications sectors in 2003-4.
The Communications Market report will be published annually. It collates data from numerous sources including Ofcom's own research and provides an interpretation of emerging trends within each sector as well as an analysis of new developments common to the communications market as a whole.
Key trends identified include: Consumers are dedicating more of their time to electronic media and communications services; As usage rises, encouraged in part by falling prices, UK consumers are also committing more of their household spending to communications services; The UK is going digital, with greater adoption of digital services and formats (such as MP3s and DVDs), increased digital network coverage and cheaper digital devices; Lower barriers to entry for new competitors, increasing innovation and the emergence of new technologies are broadening choice for consumers; Traditional sources of revenue are changing, as for the first time ever in the UK the total amount of revenue raised by the television industry through subscription has exceeded the total amount of revenue raised from advertising.
Ed Richards, Ofcom’s Senior Partner, Strategy and Market Developments, said: “Parliament asked Ofcom to be an evidence-based regulator; it is an objective we take seriously. Radio, television and the wide range of services available over telecoms networks play an increasingly important role in people’s lives. Our analysis shows that consumers are setting aside more of both their time and their money for media and communications services. As a result, the market is growing, with new services and innovation at the heart of its development.
“There are also fundamental economic shifts in the landscape with long-term significance. For the first time ever, subscription revenue is greater than advertising revenue in the television industry; in telecoms, revenues from mobile have outstripped those from residential fixed-line telephony.”
(GB)