In its recently published and highly publicised report, The Communications Market 2010 (August), Ofcom highlighted the key role of the mobile phone in stimulating media usage (which also includes communications). UK consumers now consume more media than ever before, with the average person now multi-tasking to cram nearly nine hours’ worth of media within little over seven hours of their time every day. According to Ofcom, media multi-tasking now accounts for 20% of all media usage, rising to 29% within the 16 to 24 age group, as shown in Figure 1.
Figure 1: Daily media consumption in the UK, based on research carried out for Ofcom in April/May 2010 [Source: Ofcom, Analysys Mason, 2010]
![Figure 1: Daily media consumption in the UK, based on research carried out for Ofcom in April/May 2010 [Source: Ofcom, Analysys Mason, 2010]](/PageFiles/16428/Figure_1.gif)
This transformation in media consumption patterns is largely attributed to the surge in smartphone ownership, which has doubled to just over a quarter of the population aged 16 and over within the last two years. Indeed, when Apple launched the iPhone in 2007, it revolutionised the way in which consumers access mobile content by providing a far more intuitive interface than before. With mobile handset processor power increasing, and a range of devices imitating Apple’s benchmark user interface, it is much easier for consumers to access various services on a mobile device, and to simultaneously consume media on other devices, such as a TV.
Smartphones have evolved to incorporate multiple functions, such as high-resolution cameras and GPS – so much so that their original purpose has been relegated to a secondary role, particularly by young people. Ofcom’s research revealed that less than a quarter of the time spent by 16 to 24 year olds on their mobiles is for voice calls, while Internet access, social networking, audio and video consumption account for more than a quarter of their time, and text messaging for half of it. Whereas smartphone ownership used to be limited to high-end contract users, these devices are now increasingly affordable to the majority, because they are available on monthly contracts as low as GBP10 (EUR12.13) per month or even on a pay-as-you go basis for less than GBP70 (EUR84.92).
Other key factors behind the strong growth of mobile media and applications usage include:
- Increasing speed of mobile data services. As mobile operators increasingly roll out 3.5G and, in some cases, even 4G infrastructure, the mobile Internet user experience has vastly improved, with speeds approaching those of fixed broadband services, subject to optimum conditions.
- Flat-rate mobile data services. A few years ago, using mobile data would lead to ‘bill shock’, but most mobile operators now offer flat-rate data bundles, which are adequate for most users, at a relatively low additional fixed cost or sometimes even bundle them within relatively low-end subscriptions. Orange UK, for example, includes mobile Internet browsing within its GBP15 (EUR18.20) per month Dolphin subscription. By making costs more predictable, operators have removed one of the key barriers to consumer usage of mobile data services.
- Increasing number of application stores. Mobile application stores give consumers easier access to a wider range of applications. As of August 2010, Apple’s App Store had over 200 000 applications, while Google’s Android Market had over 100 000.
- ‘Digital natives’ coming of age. As ‘digital natives’, or those who grew up surrounded by twenty-first century digital technologies, displace the ‘digital immigrants’ who were brought up in an analogue world, the change in consumption patterns will accelerate, and service providers will need to satisfy emerging needs among consumers.
Through a combination of inter-linked factors, the stage is set for the continued growth of media consumption on mobiles. For our views on how the market will develop in the period up to 2015 in the UK and Europe, please have a look at our recently published report Mobile content and applications in Europe: forecasts and analysis 2010–2015.