2 Television and audio-visual content
2
Recent developments in Wales
Channel 3 and Channel 5 licence renewal
On 20 February 2014, Ofcom announced the renewal of the broadcasting licences for
Channel 3 and Channel 5 for a duration of ten years from 1 January 2015, following
acceptance of terms by the licensees. From January 2015 there will be a separate Channel
3 licence for Wales in operation.
As a condition for licence renewal, volume of output on ITV Wales will remain unchanged,
with Wales’ overall news output remaining at four hours per week, and non-news
programming remaining at 90 minutes per week.
Channel 4 licence renewal
Ofcom has renewed Channel 4’s licence for a ten-year period from 1 January 2015.
As part of the licence renewal process, Ofcom strengthened obligations on Channel 4 to
commission programmes in Northern Ireland, Scotland and Wales. The quota for
programmes produced in the devolved nations will increase from the current level of 3% of
volume and spend to 9% in 2020.
The new quota will require Channel 4 to increase the proportion of its TV production in the
UK nations by an estimated 60% by spend and 30% by volume from current levels.
In addition, Ofcom has welcomed voluntary commitments from Channel 4 to:
• see the 9% as a base minimum and aspire to exceed the devolved nations’ quota
where possible;
• develop partnerships with broadcasters and other partners to develop skills and
genre expertise in the independent production sector;
• report on production by spend and hours in each UK nation in its annual statement of
media content policy;
• hold annual formal senior-level engagement with stakeholders in each UK nation to
report on progress.
Local TV
In 2012, Ofcom advertised and awarded the local TV licence for Cardiff to Made TV, during
Phase 1 of local TV licensing. The channel, Made in Cardiff (), is set to
launch in the second half of 2014.
In the second phase of local TV licensing, Ofcom invited applications for local broadcasting
licences in Bangor, Swansea and Mold. Licences were awarded to Bay TV Swansea and
Bay TV Clwyd to run services in Swansea and Mold respectively.
In the case of Bangor, Ofcom’s Broadcast Licensing Committee decided not to award the
local TV licence to the only applicant, Bay TV Gwynedd. The Committee was concerned that
the applicant would not be able to maintain the proposed service over the licence period, on
45
the basis that the assumptions made by the application in terms of the advertising revenue
per household were unlikely to be achievable and no alternative sustainable funding stream
was offered to make up a potential shortfall. No decision has been made on whether the
local TV licence for Bangor will be re-advertised at a future date.
BBC Cymru Wales
By 2016, the BBC has committed that 17% of network television investment will be spent in
the devolved nations21. Currently, production from Wales represents approximately 7% of
network television expenditure and the value of BBC Cymru Wales output for BBC UK TV
networks in 2012/13 was £50m.
The BBC has recently announced that it intends to vacate BBC Wales’ headquarters in
Llandaff by 2018 and relocate to a central Cardiff location.
S4C
The relationship between S4C and the BBC has developed significantly over the past couple
of years and is now characterised by increased creative collaboration. For example, the
recent drama Y Gwyll or Hinterland was produced in Welsh and English, and has been
broadcast on S4C, BBC One Wales and BBC Four. In 2014, S4C will join the BBC iPlayer,
making its content available to a far wider audience across the UK22.
S4C has begun premiering new episodes of its programmes online beginning with the
children’s comedy drama, Ysbyty. Each episode will be available online on S4C’s on-
demand service and its children’s website immediately after each linear broadcast. S4C has
also expanded its service to YouView, allowing customers across the UK to watch S4C
programmes on demand for up to 35 days following the original broadcast.
Following a detailed feasibility study, it was announced on 14 March 2014 that the S4C
Authority had approved a proposal to relocate the channel's headquarters to Carmarthen by
2018. This is a decision in principle, and is subject to contract with the leaders of the bid in
Carmarthen. The S4C Authority has also approved the principle of co-locating elements of
S4C's work with the BBC in Cardiff.
ITV Cymru Wales
ITV Wales relocated to a new headquarters in Cardiff Bay on 30 June 201423. The new
premises will house all of its news, programmes and production facilities. As part of the
move, ITV will invest in the latest high-definition technology for broadcast and online
production.
In autumn 2013, ITV Wales launched a new weekly news programme, Newsweek Wales, on
Sunday mornings and a new factual series Coast & Country.
21
22
23
46
Digital television take-up in Wales
Over half of Welsh households receive satellite television through the main set
Figure shows that in 2014, satellite penetration across Wales as a whole rose by 6pp to
54% while, according to our market research, cable take-up decreased by 7pp to 4%24 over
the same period, and DTV via a broadband connection grew rapidly from 1% to 5% of
respondents, possibly as a result of both BT and TalkTalk offering YouView as part of their
bundled services.
Satellite television is more prominent as the main platform in rural areas of Wales, with
almost three in five (57%) using this platform, compared to 53% of those in urban areas.
Both urban and rural areas have similar proportions of Freeview television.
Main television set share, by platform Figure
Source: Ofcom research, Q1 2014
Base: All adults aged 16+ (n = 3740 UK, 491 Wales, 2249 England, 501 Scotland, 499 Northern
Ireland, 252 Wales urban, 239 Wales rural, 492 Wales 2013, 491 Wales 2014)
QH1a. Which, if any, of these types of television does your household use at the moment?...QH1b
And which of these do you consider is your main type of television?
Note:* See footnote 22
Just under three in four households in Wales have an HD-ready television, in line with
the UK average
Seventy three per cent of Welsh households claim to either have HDTV services or have a
HD-ready television. The rise in take-up has been driven by urban areas – up 13pp year on
year, while at a nation level there has been a 9pp increase.
24 Decline in Wales cable TV as main television - market research surveys are subject to sample error
and will occasionally report anomalous results. In these cases we cross check with other sources to
validate our findings. In this instance, the validation (BARB establishment survey) suggests that in Q1
2014 % of TV households in Wales had a cable service. While the change in cable take-up in
Wales between Q1 2013 and 2014 reported by our survey is statistically significant at 95%
confidence, we believe it is unlikely to represent a real reduction and may be explained by sample
error. This sampling method randomly selects locations across Wales in which to conduct interviews.
In instances like this where we know there to be substantial geographic variation due to the partial
coverage of cable service the survey may be subject to greater sample error if, for example, the
randomly selected areas in which interviews were conducted have substantially lower than average
cable use.
41
54
40 40
52 53 57 46 45 51
53 48 54
36
37
36 29
33 37
36
34 40
37 35 38
37
16
4
16
19
8 4
5
8 8 9 11
44
5 4 6
4 5 5
1
1 2
1 1 5
11 1
2 13 3 5 3 1 2 2 2 1 2
0%
20%
40%
60%
80%
100%
UK
2014
WAL
2014
ENG
2014
SCO
2014
NI
2014
Wales
urban
2014
Wales
rural
2014
Wales
2009
Wales
2010
Wales
2011
Wales
2012
Wales
2013
Wales
2014
No TV in
household
Only terrestrial TV
(channels 1-4/1-5)
DTV via broadband
DSL line
Cable TV*Freeview (pay or
free)
Satellite
(pay or free)
% homes
47
Fifty-two per cent receive HDTV services, with the remaining 21% claiming to have a HD-
ready TV but not to receive HD services.
Within Wales there are differences between those who live in rural and urban households.
Seventy-five per cent of those in urban households have an HD-ready set, compared to 67%
in rural locations. Fifty-four per cent of households in urban locations claim to have HD TV
channels, compared to 46% in rural locations. Similar levels in urban and rural locations who
have HD-ready televisions but do not receive HD services (21% and 20% respectively).
Proportion of homes with HD television Figure
Source: Ofcom research, Q1 2014
Base: All adults aged 16+ (n = 3740 UK, 491 Wales, 2249 England, 501 Scotland, 499 Northern
Ireland, 252 Wales urban, 239 Wales rural)
QH53. Is the main TV in your household an HDTV set or HD ready?/ QH54. For the main TV set,
does your household have an HD TV service – from either Sky, Virgin Media, Freesat or Freeview?
Smart TV take-up in Wales increased by three percentage points year on year
Among those with a television in their household, 9% claim to have a smart television; this is
a 3pp year-on-year increase. Rural areas have seen a 6pp increase over the past 12
months, compared with 2pp in urban areas. Rural areas have the highest level of take-up,
with 14% claiming to have a smart TV; this compares to 8% in urban areas.
22 21 22 22 19 21 20
51 52 51 50 53 54 46
0%
20%
40%
60%
80%
100%
UK 2014 Wales 2014 England
2014
Scotland
2014
N Ireland
2014
Wales
urban 2014
Wales rural
2014
HDTV
channels
HD ready, no
channels
73 737373 72 75
67
48
Smart TV take-up in Wales Figure
Source: Ofcom research, Q1 2014
Base: All adults aged 16+ with a TV in household (n = 3635 UK, 480 Wales, 2186 England, 481
Scotland, 488 Northern Ireland, 248 Wales urban, 232 Wales rural)
QH18. Are any of your TV sets ‘smart TVs’? These are new types of TV that are connected to the
internet and can stream video directly onto your television screen, without the need for a computer,
set-top box or games console.
Almost half of consumers in Wales watch online TV and video content
Viewing of online TV and video content in Wales – including TV streaming, catch-up TV, and
short video clips on sites such as YouTube – is in line with the UK average in 2014, with
almost half (48%) watching online in this way. There is no significant difference between the
number of people in Wales who watched online TV/video in the past week (32%) and the UK
average (35%).
Online TV/video viewing Figure
Source: Ofcom research, Q1 2014
Base: All adults aged 16+ (n = 3740 UK, 491 Wales, 2249 England, 501 Scotland, 499 Northern
Ireland, 252 Wales urban, 239 Wales rural)
QE5A-B. Which, if any, of these do you use the internet for? And, which, if any, of these activities
have you used the internet for in the last week? QD28A-B. Which if any, of the following activities,
other than making and receiving voice calls, do you use your mobile for? And which of these activities
have you used your mobile for in the last week?
% TV homes
12
9
12
8 7 8
14
0%
5%
10%
15%
20%
UK 2014 Wales 2014 England 2014 Scotland
2014
N Ireland
2014
Wales urban
2014
Wales rural
2014
Figure above bar shows % point change in
take-up of Smart TVs from Q1 2013
+5 +1+4 +4+3 +2 +6
14 16 14 17 14 16 15
35 32 36 25 34 32 31
49 48 50
42
48 49 46
0%
20%
40%
60%
80%
100%
0%
20%
40%
60%
80%
100%
UK 2014 Wales 2014 England
2014
Scotland
2014
N Ireland
2014
Wales
urban 2014
Wales rural
2014
Watched in
past week
Watch less
than weekly
Broadband
penetration
Proportion of individuals with broadband at homeOnline TV/ video viewing on PC or mobile
49
Over one in three adults in Wales watch catch-up TV
Viewing of catch-up TV in Wales is higher than the UK average (35% vs. 32%). Wales has a
higher proportion of this type of viewing than any of the other nations.
Overall viewing levels in both urban and rural areas are similar (36% in urban vs. 34% in
rural), while broadband penetration is higher in rural areas (75%) than in urban areas (69%).
Use of catch-up TV Figure
Source: Ofcom research, Q1 2014
Base: All adults aged 16+ (n = 3740 UK, 491 Wales, 2249 England, 501 Scotland, 499 Northern
Ireland, 252 Wales urban, 239 Wales rural)
QE5A. Which, if any, of these do you use the internet for?/ QD28A. Which if any, of the following
activities, other than making and receiving voice calls, do you use your mobile for?
Over a third of urban respondents in Wales watch video clips online
The proportion of respondents who claim to view video clips online in Wales is lower than
the UK average (34% vs. 38%). Wales has the second lowest proportion of this type of
content viewing of the devolved nations, while Scotland has the lowest, at 30%.
Viewing levels are higher in urban than in rural areas (35% urban vs. 29% rural) despite
lower broadband penetration (69% and 75% respectively).
32 35 33 29
33 36 34
12 15 13
8
13 15 15
0%
20%
40%
60%
80%
100%
0%
10%
20%
30%
40%
50%
UK 2014 Wales
2014
England
2014
Scotland
2014
N Ireland
2014
Wales
urban 2014
Wales rural
2014
Use of
catch-up TV
Use of on-
demand TV
Broadband
penetration
(%)
Proportion of individuals with broadband at homeUse of catch-up TV online or mobile
50
Use of internet for watching short video clips (. YouTube) Figure
Source: Ofcom research, Q1 2014
Base: All adults aged 16+ (n = 3740 UK, 491 Wales, 2249 England, 501 Scotland, 499 Northern
Ireland, 252 Wales urban, 239 Wales rural)
QE5A. Which, if any, of these do you use the internet for?/ QD28A. Which if any, of the following
activities, other than making and receiving voice calls, do you use your mobile for?
Broadcast television viewing
People in Wales spend on average hours per day watching TV
In 2013, people in Wales spent hours per day watching television, the highest among the
nations and higher than the UK average consumption of hours per day.
Average hours of daily TV viewing, by nation: 2013 Figure
Source: BARB, Individuals (4+). Main PSBs = BBC One, BBC Two, ITV, Channel 4, Channel 5
including HD variants but excluding +1s. Notes: i) Following digital switchover in Wales in 2010 S4C
ceased to carry Channel 4 content. S4C is therefore not included in the main PSB channels in 2013.
S4C’s average share in Wales in 2013 is % ii) *This figure reflects the average across the English
regions with the highest in Border () and lowest in West () respectively.
38
34
39
30
37 35
29
0%
20%
40%
60%
80%
100%
0%
10%
20%
30%
40%
50%
UK 2014 Wales
2014
England
2014
Scotland
2014
N Ireland
2014
Wales
urban 2014
Wales rural
2014
Use to watch
video
clips/webcasts
Broadband
penetration (%)
Proportion of individuals with broadband at homeUse of internet or mobile to watch video clips
Hours per person
per * (see note)
51% 53% 52% 51% 49%
49% 47% 48% 49% 51%
0%
20%
40%
60%
80%
100%
UK England* Scotland Wales N. Ireland
Non-PSBs
Main PSBs
Share of daily hours %
51
Over half (51%) of all viewing is to the five main PSB channels
In 2013, the five main PSB channels accounted for a combined 51% share of total TV
viewing in Wales, comparable to that in the other nations and the same as the average 51%
share across the UK (Figure ).
Share of the five main PSB channels, all homes: 2013 Figure
Source: BARB, Individuals (4+). HD channel variants are included but not +1s. Note:
Following digital switchover in Wales in 2010 S4C ceased to carry Channel 4 content. S4C is
therefore included in the main PSB channels in 2008 but not in 2013. S4C’s average share in Wales
in 2013 is %
The combined share of the five main PSB channels decreased by 10pp between 2008
and 2013
Between 2008 and 2013, there was a ten percentage point reduction in the combined share
of the five main PSB channels in Wales. This reduction was broadly comparable with the UK
average decrease, at 9pp (Figure ).
21 21 22 19 25 21 19 19
26 25 20 21 22 17
6 6 6 5
7
6 5 6
8 6
5 6 6
4
15
20 14
13
15
15 17 18
15 14
17 15 16
18
5
5
5
5
5
5 5 5
5 5
5 5 3
5
4
5
4
4
4
4 4 4
4 4
4 5 4 4
0
20
40
60
80
U
K
Bo
rd
er
Ea
st
o
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ng
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on
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or
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or
th
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es
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es
t
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es
t
Yo
rk
sh
ire
Sc
ot
la
nd
W
al
es
N
. I
re
la
nd
S4C
Channel 5
Channel 4
ITV
BBC Two
BBC One
51% 58% 51% 46% 55% 51% 51% 52% 57% 55% 52% 52% 51% 49%
Audience share (%)
Share of the five
main PSBs
52
Reduction in combined share of the five main PSB channels, all homes: Figure
2008 and 2013
Source: BARB, Individuals (4+). HD channel variants are included but not +1s.
Notes: i) Following digital switchover in Wales in 2010 S4C ceased to carry Channel 4 content. S4C is
therefore included in the main PSB channels in 2008 but not in 2013. S4C’s average share in Wales
in 2013 is %. ii) In 2010 a new BARB panel was introduced, including the re-defining of
boundaries. Therefore, pre and post panel change data should be compared with some caution.
The total share of the main PSBs and their portfolio channels decreased by
between 2008 and 2013; more than the UK average net loss
In Wales, the five main PSB channels experienced a decrease in their combined
share of total TV viewing compared to 2008 (marginally higher than the UK average
decrease of ). At the same time, the PSB portfolio channels saw a increase (the
UK average gain was almost double, at ). Offset together, this resulted in a net loss
overall of , more than the UK average net loss of and higher than that
experienced in the other nations.
51% 58% 51% 46%
55% 51% 51% 52% 57% 55% 52% 52% 51% 49%
9% 13%
10%
7% 12% 8% 7%
12%
7% 11% 9% 10% 13%
0%
20%
40%
60%
80%
100%
U
K
B
or
de
r
E
as
t o
f
E
ng
la
nd
Lo
nd
on
M
er
id
ia
n
M
id
la
nd
s
N
or
th
E
as
t
N
or
th
W
es
t
S
ou
th
W
es
t
W
es
t
Y
or
ks
hi
re
S
co
tla
nd
W
al
es
N
. I
re
la
nd
Share loss since
2008 (pp)
Share of the
main PSB
channels in 2013
Audience Share (%)
53
Net change in the audience share of the five main PSB channels and Figure
their portfolio channels, all homes: 2008 and 2013
Source: BARB, Individuals (4+)
Notes: i) PSB main channels include HD variants but not +1s. PSB portfolio channels = main PSB +1
channel variants and the PSB digital channels and their respective HD and +1 variants). ii) Following
digital switchover in Wales in 2010 S4C ceased to carry Channel 4 content. S4C is therefore included
in the main PSB channels in 2008 but not in 2013. S4C’s average share in Wales in 2013 is %. iii)
In 2010 a new BARB panel was introduced, including the re-defining of boundaries. Therefore, pre-
and post-panel change data should be compared with some caution.
BBC One’s early evening news bulletins attracted 31% share in Wales
In 2013, BBC One’s early evening nations news bulletin attracted an average 31% share of
TV viewing in Wales; marginally higher than the UK average for the same slot at 29%. ITV
Wales’ counterpart bulletin attracted a lower average share (19%), the lowest among the
devolved nations but marginally higher than the UK average.
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
UK
Border
East of England
London
Meridian
Midlands
North East
North West
South West
West
Yorkshire
Scotland
Wales
N. Ireland
Change in total share of five main PSB channels since 2008 Change in total share of the PSB portfolio channels since 2008
49%
51%
55%
52%
52%
57%
52%
51%
51%
55%
46%
51%
58%
51%
21%
22%
21%
21%
20%
21%
21%
21%
22%
19%
22%
21%
21%
21%
Change in audience share (percentage points)
54
BBC One and ITV/ STV/ UTV/ ITV Wales early-evening news bulletin Figure
shares, all homes: 2013
Source: BARB, Individuals (4+)
Notes: i) Based on regional news programmes, start time range 17:55-18:35, 10mins+ duration, BBC
One and ITV (exc HD), weekdays. BBC One’s news bulletin is transmitted between 18:30-1900 and
ITV Wales’ is transmitted between 18:00-18:30. ii) In 2010 a new BARB panel was introduced,
including the re-defining of boundaries. Therefore, pre- and post-panel change data should be
compared with some caution.
Half of all respondents in Wales use TV as their main source of local news
In Wales in 2013, 53% of respondents cited television as their main source of local news25,
in line with the UK average of 50%. The next most popular sources were evenly distributed:
the internet (13%) and radio and newspapers, both at 12%.
25 ‘Local news’ refers to news about the local area, not the nation (UK / England / Wales / Scotland /
Northern Ireland) or the UK as a whole. There is a further question covering news for each devolved
nation below.
29
%
25
% 3
3%
24
% 3
3%
27
%
28
%
25
%
44
%
38
%
30
%
32
%
31
%
27
%
18
%
38
%
18
%
12
% 19
%
16
% 22
%
17
%
16
%
15
% 21
% 25
%
19
%
35
%
0%
10%
20%
30%
40%
50%
U
K
B
or
de
r
E
as
t o
f E
ng
la
nd
Lo
nd
on
M
er
id
ia
n
M
id
la
nd
s
N
or
th
E
as
t
N
or
th
W
es
t
S
ou
th
W
es
t
W
es
t
Y
or
ks
hi
re
S
co
tla
nd
W
al
es
N
. I
re
la
nd
BBC One
ITV/STV/
UTV/ITV
Wales
Audience Share (%)
55
Sources of local news, by nation Figure
Source: Ofcom Media Tracker.
Base: All; England (1,452); Scotland (185); Wales (133); Northern Ireland (123). Only responses ≥ 3%
labelled.
Q: Can you tell me what, if anything, is your main source of news about what is going on in your own
local area?
When asked about national news26, respondents gave similar responses as for local news;
13% cited the internet and 12% each cited radio and newspapers. Television proved more
popular for national than local news, with 60% of respondents choosing it as their main
source of national news.
Sources of national news, by nation Figure
Source: Ofcom Media Tracker.
Base: All respondents in Scotland (189), Wales (118), Northern Ireland (113). Only responses ≥ 3%
labelled.
Q: Can you tell me what, if anything, is your main source of news about what is going on in [Scotland,
Wales, Northern Ireland]?
26 National news refers to news about the nation (Wales / Scotland / Northern Ireland) and not the UK
as a whole.
50% 48%
57% 53%
64%
9% 9%
6% 12%
10%
13% 13%
17% 12%
8%10% 11%
5% 13%
9%8% 8%
9%
7% 5%2% 2%
2% 0% 3%8% 9% 4%
3% 1%
0%
20%
40%
60%
80%
100%
UK England Scotland Wales N Ireland
Do not know / Do not
follow news
Other
Talking to people
Internet
Newspapers
Radio
TV
80%
60% 61%
8%
12% 7%
2%
12%
10%
2%
4%
6% 13%
11%
1% 2%
3% 1% 5%
0%
20%
40%
60%
80%
100%
Scotland Wales Northern Ireland
Do not know / Do
not follow news
Other
Internet
Talking to people
Radio
Newspapers
TV
56
TV programming for viewers in Wales
The following section outlines spend and hours of programming for viewers in Wales,
Scotland, Northern Ireland, and the English regions provided by the BBC and ITV/ STV/
UTV. The figures exclude Gaelic and Welsh-language programming but include some spend
on Irish language programming by the BBC. See section for details on S4C.
In a change from previous years, historical financial figures are presented in nominal
terms and not adjusted for inflation. The reason for this is to align the CMR suite of
reports and to provide a ‘base’ view of the overall market to inform any further
analysis.
Programme definitions
First-run originations - Programmes commissioned by or for a licensed public service
channel with a view to their first showing on television in the United Kingdom in the reference
year.
First-run acquisitions - A ready-made programme bought by a broadcaster from another
rights holder and broadcast for the first time in the UK during the reference year.
Repeats - All programmes not meeting one of the two definitions above.
PSB spend on first-run originated content for viewers in Wales remained stable in
2013
£263m was spent by the BBC and ITV/STV/UTV on producing first-run originated
programmes specifically for viewers in Wales, Scotland, Northern Ireland and the English
regions in 2013, down by £3m (or %) in nominal terms from 2012 and down by 13% since
2008.
In nominal terms, the year-on-year PSB spend in Wales has remained stable at around
£26m over the last four years, after a sharp drop in 2009.
57
Spend on first-run originated nations/regions’ output by the BBC/ ITV/ Figure
STV/ UTV
Source: Broadcasters. All figures are nominal.
Note: Spend data for first-run originations only. Spend excludes Gaelic and Welsh-language
programming but includes some spend on Irish-language programming by the BBC. This does not
account for total spend on BBC Alba or BBC spend on S4C output. Note: In 2013 the BBC contributed
£ from the licence fee for the provision of S4C services. In addition, the BBC spent a further
£ on the provision of programming to S4C under the Strategic Partnership agreement. The
BBC also spent £ on BBC Alba output in 2013. For more information on S4C, please see Section
.
Total spend on current affairs programming for people in Wales increased by 15%
year on year
Turning to spend by genre, including acquisitions and repeats, PSB spending on current
affairs programming in Wales increased by 15% in 2013, compared with 2012, and was 8%
higher than 2008. This increase was, however, counterbalanced by a drop in both news and
non-news programming spend, down 5% and 8% respectively year on year, resulting in an
overall drop of 5% for the year.
191
153 160 162 165 159
29
25 24 25 23 27
51
50 52 53 52 53
33
28 25 27 26 26
303
256 261 267 266 263
£0m
£100m
£200m
£300m
£400m
2008 2009 2010 2011 2012 2013
Wales
Scotland
Northern
Ireland
England
% -13%
% -22%
+% %
+14% %
% -17%
Spend
5 years1 year
% change
58
Change in total spend on nations and regions output, by genre and Figure
nation: 2008-2013
Source: Broadcasters. All figures are nominal.
Note: Spend excludes Gaelic and Welsh-language programming but includes some spend on Irish-
language programming by the BBC. This does not account for spend on BBC Alba or BBC spend on
S4C output.
Expenditure in Wales on PSB non-network programming decreased 5% year on year
Expenditure on non-network content broadcast by the BBC and ITV for people in Wales
decreased by 5% to £ in 2013.
Spend on non-news/non-current affairs accounted for more than half of total spend (55%);
news accounted for a further 34%, with current affairs making up the remaining 11%.
In addition to this, according to the latest annual report for financial year 2013/2014 the BBC
also contributed £ to the operational costs of S4C. It also incurred a further £ of
costs in delivering other content to S4C under the terms of the operating agreement27 . It
also contributed £ to content shown on BBC ALBA in Scotland.
27
UK England N. Ireland Scotland Wales
1yr (%) 5yr (%) 1yr (%) 5yr (%) 1yr (%) 5yr (%) 1yr (%) 5yr (%) 1yr (%) 5yr (%)
Current Affairs 1% -13% -9% -31% 35% 31% 6% 17% 15% 8%
News -4% -10% -5% -11% 1% 5% 0% -6% -5% -8%
Non-news/non-current
affairs 1% -22% -13% -78% 23% -19% 0% 6% -8% -34%
Total Spend in 2013 £265m £159m £27m £53m £26m
UK England N. Ireland Scotland Wales
1yr 5yr 1yr 5yr 1yr 5yr 1yr 5yr 1yr 5yr
Change in Spend -2% -13% -5% -17% 15% -7% 1% 4% -5% -23%
59
Total spend by the BBC/ ITV1/ STV/ UTV on non-network Figure
nations/regions output for the main PSB channels (BBC1 and Channel 3): 2013
Source: Broadcasters.
Note: Spend excludes Gaelic and Welsh-language programming but includes some spend on Irish-
language programming by the BBC. This does not account for spend on BBC Alba or BBC spend on
S4C output.
First-run originated hours in Wales down by almost a quarter (23%) since 2008
The BBC and ITV1/ STV/ UTV produced a total of 11,232 hours of first-run originated
content for the English regions, Scotland, Wales and Northern Ireland in 2013, up 2% (or
230 hours) since 2012, and down 6% (765 hours) since 2008.
Wales was the only nation that saw a reduction in first-run originated output year on year,
down 3% on 2012. Over the five-year period since 2008 the number of hours of first-run
originated programming for Wales fell by almost a quarter (23%) to 923 hours in 2013.
Hours of first-run originated nations/regions output, by genre and Figure
broadcaster: 2013
Source: Broadcasters.
Note: Hours data for first-run originations only. Hours exclude Gaelic and Welsh language
programming but include some spend on Irish-language programming by the BBC. This does not
include total hours for BBC Alba or BBC hours on S4C output.
24 12
3 6 3
176
144
10 13 9
64
3
14
34
14
0
100
200
300
UK England Northern Ireland Scotland Wales
Non-news/non-
current affairs
News
Current Affairs
Spend (£m)
509 247 31 182 49
4,882
3,865
393
303
321
802
74 200
306
222
196
51
39
65
41
3,588
2,657 218
457
256
1,255
10 68
1,143
34
UK England Northern Ireland Scotland Wales
ITV/STV/UTV non-
news/non-current
affairs
ITV/STV/UTV news
ITV/STV/UTV
current affairs
BBC non-news/non-
current affairs
BBC news
BBC current affairs
H
ou
rs
o
f o
ut
pu
t
11,232 hrs
2%
-6%
6,904 hrs
+3%
-13%
949 hrs
+4%
-17%
2,456 hrs
+1%
+46%
2013 total hours
Change since 2012
Change since 2008
923hrs
-3%
-23%
60
Total cost per hour for nations programming has increased by 16% since 2008 for
Wales – second only to Northern Ireland
When analysing the cost of making programmes for the nations, the average cost per hour
for Wales was £25,000, the same as Northern Ireland, and £2,000 more than the UK
average.
In nominal terms, over the five-year period, cost per hour increased by 16% in Wales,
compared to the UK average reduction of 5%.
Cost per hour for total nations’ and regions’ output, by nation: 2008-Figure
2013
Source: Broadcasters. All figures are nominal.
Note: Spend excludes Gaelic and Welsh-language programming but includes some spend on Irish-
language programming by the BBC. This does not include hours or spend on BBC Alba or BBC hours
and spend on S4C output.
PSB television quota compliance
Wales’ share of expenditure on originated network production declined in 2013
Figure illustrates the distribution of spend on qualifying first-run commissioned network
programming by the five main PSB channels in the six years up to 2013. As in previous
years, the majority was spent within the M25; % - down from % in 2012. A further
% of first-run spending was captured by producers based in the north of England and
% in southern England. After four years of growth, share of spend dedicated to Wales
declined from % to %.
In 2013 the proportion of spending on originated network productions outside London
increased for the third consecutive year. In contrast, London spending continued a
downward trend, falling by . This shift may be attributable in some part to the BBC
relocating a significant production base, including the majority of BBC Sport, to Salford, and
no London Olympics to act as a counterweight.
£24k £24k
£20k
£28k
£22k£23k £23k
£25k
£20k
£25k
£0k
£10k
£20k
£30k
UK England Northern Ireland Scotland Wales
2008
2013
C
os
t p
er
h
ou
r
-5% Change since 2008-4% 20% -27% 16%
61
Expenditure on originated network productions: 2008-2013 Figure
Source: Ofcom/broadcasters.
Note: A new category ‘other’ has been created for regional productions from London producers which
do not meet both 70% of spend and 50% of talent in any one particular macro region28.
Volume of productions in Wales decreased to % in 2013
In 2013, for the first time, less than half (%) of first-run network programmes were
produced within the M25, down from % in 2012. A further % were produced in
northern England, % in southern England and % in Scotland. Wales accounted for
% of hours. The steeper rise in volume produced outside London, when compared to
spend, is in part attributable to lower production costs regions than outside the Greater
London area.
Producers in Wales delivered % of all first-run hours in 2013 (down from % in 2012).
28 See on
Ofcom website for further details.
Percentage of production by value
% % % % % %
% % %
% %
%
% %
%
% %
%
% % % % %
%
% % % % % %
% % % % % %
% % % % % %% % %
0%
20%
40%
60%
80%
100%
2008 2009 2010 2011 2012 2013
Other
Northern Ireland
Wales
Scotland
Southern
England
Northern England
Midlands & East
London
62
Volume of originated network productions: 2008-2013 Figure
Source: Ofcom/broadcasters.
Note: A new category ‘other’ has been created for regional productions from London producers which
do not meet both 70% of spend and 50% of talent in any one particular macro region29.
Welsh language programming
Welsh-language output and spend
In 2013, S4C entered into an agreement with the BBC Trust wherein it was agreed that S4C
would be part-funded by the television licence fee. As part of the terms it was agreed that
S4C would receive £ in financial year 2013/2014, falling year on year to £ in
2016/ DCMS also continues to provide funding of £ to S4C. The remaining 2%
of funding comes from S4C’s advertising revenue and commercial activities.
The BBC also has a statutory obligation to provide ten hours of content per week free of
charge to S4C, including the Newyddion (news) service, the soap opera Pobol y Cwm and
some sports and special events output, the value of which was agreed at £ per
annum. In 2013 the BBC spent £ on production and related costs for S4C content.
Overall spend on programming on S4C was £90m
The combined spend of S4C and the BBC on programming on S4C reached £ in
2013. This included £ spent by the BBC in delivering 535 hours of programmes
outside S4C’s budget under the terms of the operating agreement and £
commissioning, acquisition and repeats costs incurred by S4C directly..
29 See on
Ofcom website for further details.
30 Press release:
Actual agreement:
Percentage of production by volume
% % % % % %
% % % %
%
%
% % % % %
%
% % % % % %
% % % % % %% % % % % %
% % % % % %% %
0%
20%
40%
60%
80%
100%
2008 2009 2010 2011 2012 2013
Other
Northern Ireland
Wales
Scotland
Southern
England
Northern
England
Midlands & East
London
63
Other spend on other programming in the devolved nations: 2013 Figure
Source: Broadcasters.
Note: BBC S4C Statutory refers to the cost to the BBC of programming supplied to S4C by the BBC
as part of their statutory agreement. ILBF / USBF refers to additional production contributions by the
Irish Language Broadcast Fund and the Ulster Scots Broadcast Fund.
S4C spent £62m (excluding the previously-mentioned BBC production spend) on first-run
commissioned programming in 2013; a 9% fall in nominal terms on 2012. This was the third
consecutive year of decline in spend.
Spend by S4C on first-run Welsh-language programming Figure
Source: S4C. All figures expressed in nominal terms. Note: Does not include programming provided
by the BBC under the statutory obligation.
The total number of hours broadcast by S4C in 2013 rose by 91 hours to 6,720 hours, which
was driven by increases in repeats and first-run acquisitions. Repeats continued to make up
the majority of the channel’s output, accounting for 56% of all programming during the year.
Repeated hours were up by 5%; from 3,717 hours in 2012 to 3,737 hours in 2013. First-run
commissions from indie companies fell by 1% year on year, bringing the total to 1,968 hours
in this category.
0
20
40
60
80
100
Northern Ireland Scotland Wales
BBC S4C Statutory
S4C
BBC ALBA
ILBF / USBF funding
Spend (£m)
£16m £15m
£17m £14m
£2m
£2m
£8m
£8m
£9m
£9m
£5m
£4m
£11m
£9m
£1m
£1m
£68m
£62m
£0m
£10m
£20m
£30m
£40m
£50m
£60m
£70m
£80m
2012 2013
Religion
Sport
Music and Arts
Children
Light Music/
Entertainment
Current Affairs
General Factual
Drama
Spend on Welsh language programming
64
In contrast, first-run acquisitions experienced the steepest increase, as the number of hours
in this category grew by 37% to almost 470 hours in 2013, which was below the 2011 level
(482 hours in 2011). BBC statutory programming hours fell by 9%, but at 535 hours,
remained above the obligation of 520 hours per year. First-run commissions from the BBC
dropped from 13 to ten hours for the year.
Type of Welsh-language output on S4C, by hours Figure
Source: S4C
672 711 640 567 535
3,521 3,371 3254 3717
58 351 482
342 14 13
13 101,432
1,772 1,830
1,990 1,968
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2009 2010 2011 2012 2013
First-run commissions
(indie)
First-run commissions
(BBC)
First-run acquisitions
Repeats
BBC Statutory
Hours
6,7205,695 6,219 6,6296,219
65
