Ofcom's Communications Market 2010 Report provides an annual snapshot of how we consume media in the UK.I was struck by multiple findings which demonstrate the public is sensitive to the opportunity costs of media consumption. Spending half their waking hours engaged in media and communication activities consumers have adopted multi-tasking and convergent devices to compress over nine hours activity into a single day.
Consumers reduce costs by selecting triple play services (voice, broadband and TV) however price is not the only driver. Half of all users sited 'the convenience of dealing with one supplier' as an additional factor in this choice. Further evidence for consumers' sensitivity to opportunity cost is provided by the stagnation of internet telephony. Skype offers cost savings over fixed line telephony but the complexity and limitations of the service reduces its attractiveness to consumers.
The opportunity for broadcasters, advertisers and service providers is to fill the 4.5 hours per day not spent communicating with other people. Ofcom found limited appetite, beyond social networking, for user generated content. Consumer preference is for quality content from a recognised brand available through multiple devices.
The Communications Market Report (Ofcom, 2010) provides compelling evidence that fewer public service channels with stronger brands could achieve 'more for less'.
