Blow to BBC as Gen Z turns off TV
Less than half of Gen Z viewers regularly watch traditional television, creating another hurdle for the BBC which continues to lose young audiences to TikTok and YouTube.
Figures published on Wednesday by Ofcom show that just 48pc of 16 to 24-year-olds watched broadcast TV during an average week last year, down from 76pc in 2018.
It is the latest example of Gen Z viewers, which includes anyone born between 2000 and 2008, ditching live shows in favour of streaming content online.
Children aged between four and 15 are switching off at a similar rate, with just 55pc watching terrestrial compared with 81pc five years ago.
The likes of Disney, Netflix and TikTok are all benefiting from younger viewers’ shift away from live TV, evidencing the radical shift across the industry.
Matt Hill, research and planning director at Thinkbox, the marketing body for commercial TV, said it was disappointing that Ofcom was still choosing to focus so heavily on live shows despite it being a category in decline.
He said: “Live TV remains vital, but it’s only one side of TV. On-demand is where TV is rapidly growing – which is why every TV company has been devoting so much energy and investment in developing on-demand services.
“And this strategy is paying off – as Ofcom’s report shows, on-demand TV is growing more than any other type of video, YouTube and TikTok included.”
Ofcom’s research also revealed that viewing on broadcasters’ streaming platforms, such as BBC iPlayer and ITV, grew by almost 30pc last year to 20 minutes per person each day.
However, this was not enough to compensate for the large decline in audiences across traditional TV channels.
TikTok has grown rapidly since its launch in the UK in 2018 and is now used by 22m Britons at least once a month, according to data from SensorTower.
Separate figures from Data.AI showed the average UK smartphone user spent 36 hours and three minutes per month scrolling TikTok videos last month.
Meanwhile, YouTube is continuing to grow in popularity almost two decades after its launch.
Figures show that the average person spent 38 minutes on YouTube every day at the end of last year, compared to 31 minutes at the beginning of 2022.
By contrast, the weekly reach of terrestrial TV fell from 79pc to 75pc last year – the second consecutive year of record decline.
While the drop in viewing is being felt across all age groups, the slump is most dramatic among Gen Z audiences.
In addition to watching traditional TV less frequently, young viewers are also watching for shorter periods of time.
On average, Gen Z viewers watch broadcast TV for just 33 minutes a day – down 16pc year on year.
By contrast, Ofgem found 16 to 24-year olds are spending an hour and 33 minutes each day watching online video platforms such as TikTok and YouTube.
The decline is so acute that many younger viewers have abandoned terrestrial TV altogether, with an estimated 5.3m households only accessing TV via the internet.
Ian Macrae, Ofcom’s director of market intelligence, said: “Gen Z and Alpha [children born between 2008 and 2024] are used to swiping and streaming, not flipping through broadcast TV channels.
“They crave the flexibility, immediacy and choice that on-demand services offer, spending over three hours a day watching video, but only 20 minutes of live TV. It’s no surprise that the traditional TV is fast becoming a device of choice to watch YouTube.”
The decline in viewing figures has prompted soul-searching at broadcasters as bosses try to win back audiences.
The BBC, which lost half a million licence fee payers last year, has increased its focus on British storytelling. All broadcasters, including Channel 4 and ITV, are increasingly investing in their streaming services as viewers move online.
However, Ofcom has warned that terrestrial TV is at a “tipping point”, with a growing risk that older audiences could be left behind by the shift to streaming. Weekly reach among over-65s remains relatively stable at 95pc.
Despite the broader decline, traditional broadcasters also remain the go-to destination for major national and international events.
The BBC’s coverage of the New Year’s Eve fireworks was the most-watched programme last year, attracting an audience of 12.1m.
This was closely followed by the Coronation of the King, while the Eurovision Song Contest was watched by more than 10m people.
England’s defeat to Spain in the Euro 2024 final has been the biggest event of the year so far, with the BBC and ITV drawing a combined audience of more than 15m.
While traditional broadcasters continue to shed audiences, there are also indications that growth among US streaming giants is slowing.
Ofcom found that the take-up of subscription streaming services such as Netflix has levelled out at just over two thirds of households, returning to the peak it achieved in early 2020.
Viewing data from ratings agency Barb show the BBC, ITV and Channel 4 all outpaced their streaming rivals for viewing minutes in the first half of the year.
But traditional TV channels are still battling a fall in advertising revenues, with the recent downturn prompting ITV and Channel 4 to slash jobs.
Ofcom’s report showed the decline in terrestrial TV advertising spend offset growth in streaming revenues, as total TV ad spend fell by 8.9pc to £4.9bn.
Meanwhile, price rises helped subscription revenues for US streaming giants rise 22pc to just under £4bn, while the companies also pulled in around £50m from new advertising tiers.