Final Report for Department for Business, Innovation and Skills and Department for Culture, Media and Sport
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Revenue and employment: radioWe have estimated the revenue and employment generated in different parts of the radio value chain in a similar manner to our analysis of the TV value chain. We have considered the same five areas of activity (as illustrated in Figure 4 .31): Content production: the production of programming. Content may be produced in-house by the broadcasters themselves, or specially commissioned from third parties by the broadcasters, or it may be existing content to which the broadcasters acquire the transmission rights Content aggregation: the process of selecting and commissioning pre-recorded content and subsequently combining it with live content, continuity announcements, advertising and trailers, etc. to create radio stations Advertising and sponsorship: the production of content which the broadcaster is paid to transmit Content distribution: the operation of the distribution platform, for example the operation of DAB multiplexes and AM/FM transmitters Equipment: the supply of radio sets to listeners. Figure 4.31: The value chain for radio broadcasting [Source: Analysys Mason, 2012] 
RevenueAccording to Ofcom, in May 2012 there were 548 analogue radio stations in the UK (of which 51 were BBC, 299 were commercial and 198 community stations), as well as 13 national digital-only stations. In 2011, total revenue from the radio industry stood at almost £1.2 billion, up 3% from 2010 (see Figure 4 .32). BBC expenditure on radio has grown slightly in recent years and in 2011 it accounted for 61% of total revenue in the sector. Most of the remaining revenue in the sector comes from advertising, which declined quite sharply in 2009 due to the economic slow-down and has yet to return to its 2008 level.
Average listening per person increased from 20.1 hours per week in 2010 to 20.4 in 2011 (including online listening), of which the BBC radio stations accounted for 46% of total listening (down from 55% in 2010). The proportion of listening that takes place on digital platforms has been increasing by around 3 percentage points a year in recent years, and a large proportion of households now have access to one or more devices that are capable of receiving digital radio (see Figure 4 .33). However, digital listening still accounts for less than 30% of total listening – analogue broadcasting therefore remains very important.
According to GfK,39 6.8 million radio sets were sold in the UK in the year to 1Q 2012, including portable radios, personal media players, car audio systems, home audio systems, clock radios, radio recorders, headphone stereos, tuners and receivers. Of these, 1.9 million (28%) were DAB sets (the total value of these sales is not reported). The total number of radio sets sold in the UK has declined year on year from a peak of 10.4 million in the year to 1Q 2008, while the number of DAB sets sold has remained static at 1.9 million a year for the last three years. EmploymentThere is little available data for the amount of employment created by radio broadcasting, but in response to a Freedom of Information request made in November 2011, the BBC stated that it employed 1479 people in its Audio and Music division, which is responsible for all the BBC’s national radio networks and for the production of most of the classical and popular music across radio and TV.40 As Figure 4 .32 shows, the BBC is estimated to account for just over 60% of UK radio revenue. If we assume that revenue is a reasonable proxy for employment, this would suggest that total employment in the UK radio sector is around 2500 people. Directory: government -> uploads -> system -> uploads -> attachment data -> file file -> Voluntary and mandatory surrenders 2013 file -> Tensions in Sino-Japanese Relations in 2012 and 2013: Plus ça change? file -> Review of Gaming Machine Stake and Prize Limits file -> E-bulk rb system Test Plan commercial contents file -> Consular section file -> Documents that can be used as proof of address and identity file -> Positive for Youth Discussion Paper June 2011 Capital infrastructure to support services for young people file -> Open Source Software Options for Government Version 0, April 2012 Aim file -> Aviation House 125 Kingsway Download 2.13 Mb. Share with your friends:
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