Uploading and Downloading - UK

Issues in the Market

Key themes

Definitions

Market in Brief

A multimedia future set to drive forward demand

Interest is widespread, although illegal download market remains a concern

Market value has shown strong growth

Future for paid-for content looks worrying

Internal Market Environment

Key points

PC and broadband penetration rises

Figure 1: Household ownership of PCs (desktop or laptop), 2002-06

Most downloading happens at home

Figure 2: Where access the Internet, 2006

New technology is already increasing the range of activities consumers use their PC and broadband connection for

Figure 3: Ownership of selected electronic items, 2002-07

Commercial music purchases are dwarfed by illegal downloads

Figure 4: Online activities in the last six months, by media usage, December 2006

Mobile and PC downloads are increasingly interchangeable

Figure 5: Features have and features used on mobile phones, 2002-06

Convergence drives new ways of downloading

Struggling for mobile downloads

Will convergence change the way we download?

Downloads are competing with a range of other services

Figure 6: How 11-19s spend their money offline, and what they use the Internet for, 2007

Broader Market Environment

Key points

Lack of legislation

Rising social status

Figure 7: Trends and projections in total UK population, by socio-economic group, 2001-11

Working in favour of downloads

Figure 8: UK workforce and employment by gender, 2002-12

Competitive Context

Key points

Ad-supported content

Public sector broadcasting

Streaming rather than downloading?

Technical savvy

Virtual worlds

Strengths and Weaknesses in the Market

Strengths

Weaknesses

Market Size and Forecast

Key points

PC/laptops increased their share of downloading in 2006

Figure 9: UK retail value sales of downloading, by sector, 2002-06

Trying to evaluate the grey market for downloads

The consumer market is set to show stagnation by 2012.

Figure 10: UK value sales of downloads, 2002-12

The future of the market

Segment Performance

Key points

Market shifts from products for phones to products for portable devices

Figure 11: UK retail value sales of downloading, by sector, 2002-12

Ad-supported music and video set to emerge as a major factor

Market Share

Key points

3’s strategy towards downloading gives it a strong position in the mobile download market

Figure 12: Percentage of downloads by network provider, by units sold, 2006

Music download market supports a number of companies

Figure 13: Third party provider market share, by units sold, 2004 and 2006

Figure 14: Top ten most visited UK music websites, week ending 30 June, 2007

The paid-for video download market still developing

Software market sees limited commercial involvement

Companies and Products

Apple

CD WOW

Channel 4

Google/YouTube

HMV

Jamster

MonsterMob

Napster

Play

Virgin

Brand Communication and Promotion

Key points

Major advertisers pull back

Figure 15: Main monitored media advertising spend on mobile downloads, by advertiser, 2003-07

Figure 16: TV AD expenditure on mobile downloads in sharp decline since 2005

Press advertising is first choice for mobile advertisers - but why is Internet so low?

Figure 17: Main monitored media advertising spend on mobile downloads, by channel, 2006

High level of competition prompts aggressive marketing for mobile downloads

Consumer Downloading and Streaming by Platform

Key points

Technology ownership Increasing

Figure 18: Households with new technology items, 2002-07

PCs still dominate download activities

Figure 19: Topline downloading and streaming activity by platform, May 2007

Choice of platform strongly associated with type of download activity

Figure 20: Breakdown of downloading and streaming activity by platform, May 2007

Consumer Upload, Download and Stream Activity

Key points

Involvement with uploading and downloading

Figure 21: Uploading, downloading and streaming activity in last 12 months, May 2007

Appendix

Consumer research

ACORN

Advertising data

Abbreviations

Strengths and weaknesses in the market

Strengths

Weaknesses

Internal market environment

PC and laptop ownership - detailed demographics

Figure 21: Household ownership of PCs (desktop or laptop), by gender, age, social grade, age of children in household, marital status, working status, household size, ITV region, lifestage and Mintel Special Groups, 2006

Ownership of electrical items - detailed demographics

Figure 23: Ownership of selected electronic items, by gender, age, social grade, age of children in household, marital status, working status, household size, ITV region, lifestage and Mintel Special Groups, 2006

Internet usage - detailed demographics

Figure 24: Used the Internet in the last 12 months, by gender, age, social grade, age of children in household, marital status, working status, household size, ITV region, lifestage and Mintel Special Groups, 2006

Mobile phone ownership - detailed demographics

Figure 25: Mobile phone ownership, by gender, age, social grade, age of children in household, marital status, working status, household size, ITV region, lifestage and Mintel Special Groups, 2006

Broader market environment

Figure 26: Structure of the UK population, by gender and age, 2002-12

Market size and forecast

Factors used in the forecast

Consumer downloading and streaming by platform

Figure 27: Computer downloading and streaming activity by gender, age, region, social grade, daily newspapers, sunday newspapers, household income, age of own children in household, Internet usage, supermarket usage, mobile phone provider and TV received, May 2007

Figure 28: Mobile phone or PDA downloading and streaming activity by gender, age, region, social grade, daily newspapers, sunday newspapers, household income, age of own children in household, Internet usage, supermarket usage, mobile phone provider and TV received, May 2007

Consumer upload, download and stream activity

Figure 29: Most popular uploading, downloading and streaming activity by gender, age, region, social grade, daily newspapers, sunday newspapers, household income, age of own children in household, Internet usage, supermarket usage, mobile phone provider and TV received, May 2007

Figure 30: Uploading, downloading and streaming activity by gender, age, region, social grade, daily newspapers, sunday newspapers, household income, age of own children in household, Internet usage, supermarket usage, mobile phone provider and TV received, May 2007

Consumer attitudes

Figure 31: Most common attitudes by gender, age, region, social grade, daily newspapers, sunday newspapers, household income, age of own children in household, Internet usage, supermarket usage, mobile phone provider and TV received, May 2007

Figure 32: Attitudes by gender, age, region, social grade, daily newspapers, sunday newspapers, household income, age of own children in household, Internet usage, supermarket usage, mobile phone provider and TV received, May 2007

Cluster analysis

Figure 33: Attitudes to downloading by gender, age, region, social grade, daily newspapers, sunday newspapers, household income, age of own children in household, Internet usage, supermarket usage, mobile phone provider and TV received, May 2007

Attitude clusters crosstabs

Figure 33: Clusters by download type

Figure 34: Clusters by activity done

Figure 35: Clusters by repertoires