Ofcom' s annual report on the Communications Market makes an interesting read; there has been a complete cultural and behavioural shift in the UK. We are a mere 8 years on from 2008, but it does seem that technology has taken over even more so in that short time.
What is interesting for me, is that the average monthly price for our communications per household has actually reduced, despite the addition of more devices and services that are a must have.
Apparently, we can no longer live life without a smartphone attached to our hip (over 11 hours a day viewing for 18-24 year olds), but at least it is costing us less. Or is it? Mobile phones are the key driver in the cost reduction with wholesale forces being driven down, but are all consumers aware of the packages that they are on and if they are cost effective?
With advertising blasting at us in the forms of post, email, text, phone, TV and Internet, do any of us actually digest any kind of advertisements these days? Just a thought.
In spite of the the bigger role media and communications are playing in our daily lives, on the whole the industry is making less money from each of us. While the television indusrty grew last year, radio, telecoms and post all reported lower revenues. In the case of telecoms, the biggest sector, the reduction is mostly due to a regulatory clampdown on mobile wholesale prices. Average total household spend per month has fallen from £127 in 2008 to £117 last year. In spite of this the media and communications have maintained their share of wallet at about 5.5pc through the recession, as a result of households economising on food, holidays and other more discretionary spending. As the internet is increasingly embedded in everyday life, Britons increasingly see media and communications spending as an essential utility, says Ofcom.