Ofcom highlights changing face of TV

Ofcom report finds terrestrial channels losing ground to newer offerings

Technology is changing the business and viewing of television, according to Ofcom's latest quarterly report on the state of the UK market. 

The survey found that the five terrestrial channels are losing ground to newer offerings, and nearly a third of all programmes watched are from multi-channel services.

The changing landscape is also having a profound effect on television revenues. Advertising accounted for less than 40 per cent of revenues last year, and shopping, interactive services and pay-per-view made up 20 per cent. Direct consumer spending accounted for the rest.

"Many channels have developed alternative sources of revenue, including premium rate telephony services, interactive services and advertising, pay-per-view and TV shopping," said the report.

"In total these new and alternative revenue sources generated £235m for digital channels in 2004."

Elsewhere, telecoms sector revenues are expanding at a rate of five per cent a year but are being outpaced by mobile revenues, which are up 17 per cent and now account for a third of all telecoms revenues. Over 35 per cent of UK homes are now connected via non-BT providers.

The biggest loser has been radio, with commercial radio listening rates falling to 33.9 per cent.