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KN92071 KEY NOTE LEISURE AND RECREATION (UK) OCTOBER 2001

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Editor: Emma Wiggin
ISBN: 1-84168-263-2

This report covers: leisure, sporting activities, keeping fit, games, cinema, theatre, gambling, in-home leisure, television, radio, newspapers, magazines, books, reading materials, home viewing, home listening, eating, drinking, short breaks, tourist attractions, DIY, home improvements, gardening, catering, leisure goods, leisure consumer,

Companies covered include: AOL Time Warner, Apollo leisure, Bertelsmann UK, Black & Decker International, B&Q, BSkyB, British Sky Broadcasting Group, Camelot Group, Capital Radio. Carlton Communications, Chrysalis Group, Compass Group Holdings, Daily Mail & General Trust, Diageo, Eidos, Electrolux Outdoor Products, EMAP, EMI Group, Focus Group, Granada Group, Guardian Media Group, GWR Group, Hasbro, Hilton group, Homebase, IPC Media, Kingfisher, Mattel, McDonald's Restaurants, News Corporation, Nintendo, Nomara International, Odeon Cinemas, ABC Cinemas, Pearson, Punch Taverns Group, The Rank Group, The Really Useful group, Scottish & Newcastle, Six Continents, Sony Corporation, Trinity Mirror, The Tussauds Group, United Cinemas International (UK), Viacom, Vivendi, The Walt Disney Company, Whitbread Group, Wyevale Garden Centres

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EXECUTIVE SUMMARY

LEISURE IN THE UK ECONOMY

According to government figures, consumer spending on leisure goods and services accounted for 27 percent of all consumer expenditure in 2000. Since 1996, this proportion has steadily increased from 25.7 percent. However, growth was slower in 2000 than in recent years. The trends for each sector are summarised below, but they usually depend on the behaviour and attitudes of specific demographic groups. Listening to the radio, eating out, playing the National Lottery, or going for long walks are among the must universally popular ways of spending 'leisure money' (or time). However, other activities — such as going to the cinema, betting in bookmakers, playing video games, taking hotel breaks or gardening — are all biased in one way or the other, whether it is by age, education, income or even region of the UK.

TRENDS IN UK LEISURE

Eating Out

Eating out is more popular than ever, driven forward by high employment levels, the rising numbers of dual-income households, and the immense variety of restaurants of all types, ranging from steak houses and Asian restaurants, to fast-food chains and pizza outlets. The dominance of independent restaurant owners — branded chains are the exception in this market — has done nothing to hold back market growth.

Public Houses

Allied to the eating out market, public houses are surviving as a concept by adapting to younger drinkers, to the demands of the more affluent (bar prices have risen fast), and by serving more meals and providing entertainment as an alternative to the traditional, male-dominated 'session drinking'. 'New blood' has flooded into the industry as brewers have diversified, leaving much of the market to innovative 'pub companies'.

DIY and Gardening

Regarding in-home leisure, it is DIY and gardening that represent the largest chunk of consumer spending. Householders are increasingly likely to eat a number of their meals outside the home, and are ready to enjoy their time at home, but the DIY and gardening hobbies also represent investment in properties. (House prices have been rising for many years, and continue to climb in 2001.) A comfortable, attractive home and garden is increasingly the venue for bringing friends and relatives together, rather than the traditional pub or restaurant gathering.

In-Home Entertainment

The media are fragmented, with consumer spending spread across reading (books, newspapers and magazines), viewing (TVs, channel subscriptions and videos) and listening (recordings and radio). The multichannel digital era is taking its time to become a mass market. Meanwhile, home computing (the Internet and playing video games) has become an absorbent activity for much of people's leisure time at home.

Cinema and Theatre

For entertainment outside the home, cinemas and theatres are important but their audiences are biased to certain population segments: teenagers and young adults for cinemas, and affluent professionals (plus foreign tourists) for theatres.

Gambling

Gambling is a crucial leisure market for several reasons including its role as a social hub for many people, whether it be syndicates for the National Lottery or the football pools, or joining bingo clubs or casinos. Moreover, the National Lottery is significant because it has helped to fund many leisure-related projects since its inception in 1994, including many tourist attractions.

Sporting Activities

Gambling is also closely related to the development of sporting activities. Apart from the Lottery, the most lucrative attraction in gambling is betting on horse or greyhound races, or on football matches. Football dominates spectator sport to an increasing extent (both live and on TV), but in sports participation, the trend away from organised team sports continues, with more and more people preferring to keep fit individually by joining a health club or using a public gym or swimming pool. In commercial terms, golf is by far the most important leisure pastime of a sporting nature.

BEYOND 2001: AN UNCERTAIN FUTURE

Tourism, although not covered in this Review, is the market most immediately affected by the events witnessed during 2001. The year has been dominated by the terrorist attacks on the US, but these events cannot entirely overshadow the foot and mouth epidemic earlier in the year, the severe flooding of 2000, and the railway accidents that have shaken consumer confidence in the railway network.

As a result of these extraordinary events, both city centres and the countryside are seen to possess a new vulnerability, and public transport — both flying and rail travel — also has an uncertain immediate future. The eventual outcomes, in terms of leisure markets, could well include less of an inclination to travel far from home, and a renewed tendency towards 'cocooning' within the home, taking advantage of the leisure opportunities being provided by new digital technologies (e.g. DVD 'home cinema', surfing the Internet and video games).

Conversely, consumers continue to resist modernisation in that multichannel TV and other new technologies have had a lukewarm reception. For the next few years, in which Key Note predicts slower leisure spending growth, there will continue to be a balance between the modern leisure attractions and the simple, traditional activities, e.g. spending time with the family, taking long walks and drinking in traditional pubs.

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TABLE OF CONTENTS

Executive Summary

LEISURE IN THE UK ECONOMY
A COMPLEX AND SEGMENTED MARKET
Figure 1: The UK Leisure and Recreation Market, 2001
TRENDS IN UK LEISURE
Eating Out
Public Houses
DIY and Gardening
In-Home Entertainment
Cinema and Theatre
Gambling
Sporting Activities
BEYOND 2001: AN UNCERTAIN FUTURE


1. Market Overview

DEFINITIONS
INTRODUCTION
INDUSTRY STRUCTURE
Number of Companies
in Recreation, Culture and Sport, 2001
Retailers and Public-Sector Organisations
MARKET SIZE AND SEGMENTATION
by Sector by Value (£m), 1996-2000
KEY TRENDS AND DEVELOPMENTS
PEST ANALYSIS
Political Factors
Economic Factors
Social Factors
Technological Factors
THE GLOBAL PERSPECTIVE


2. The Leisure Consumer

INTRODUCTION
LONG-TERM TRENDS
Table 2.1: In-Home Leisure Activities by Ranking ( percent of adults), 1997-2000
1997-2000
DEMOGRAPHIC DIFFERENCES IN KEY LEISURE MARKETS
Weekend Activities
and Region ( percent agreeing), 2000
Evening Activities
( percent agreeing), 2000


3. Competitor Analysis

INTRODUCTION
MAJOR PLAYERS
AOL Time Warner
Apollo Leisure Group Ltd
Bertelsmann UK Ltd
International
B&Q PLC
Group PLC
Camelot Group PLC
Capital Radio PLC
PLC
Chrysalis Group PLC
Holdings PLC
Trust PLC
Diageo PLC
Eidos PLC
Products Ltd
EMAP PLC
EMI Group PLC
Focus Group Ltd
Granada Group PLC
Group PLC
GWR Group PLC
Hasbro
Hilton Group PLC
Homebase Ltd
IPC Media Ltd
Kingfisher PLC
Mattel
Restaurants Ltd
News Corporation PLC
Nintendo
Nomura International PLC
ABC Cinemas Ltd
Pearson PLC
Punch Taverns Group Ltd
The Rank Group PLC
Group Ltd
Scottish & Newcastle PLC
Six Continents PLC
Sony Corporation
Trinity Mirror PLC
The Tussauds Group Ltd
International (UK) Ltd
Viacom
Vivendi
Company Ltd
Whitbread Group PLC
Centres PLC
PUBLIC-SECTOR ORGANISATIONS
COMPANIES


4. Reading Materials

INTRODUCTION
KEY TRENDS
Newspaper Trends
Book Trends
Magazine Trends
MARKET SIZE
1996-2000
Magazines
Books
Advertising Revenues
INDUSTRY STRUCTURE
Newspaper Publishers
National Titles
Regional Titles
Book Publishers
Magazine Publishers
Trade Associations
MAJOR PLAYERS
BBC Worldwide Ltd
Bertelsmann UK Ltd
Trust PLC
EMAP PLC
Group PLC
IPC Media Ltd
News Corporation PLC
Pearson PLC
Trinity Mirror PLC
Advertising
Newspaper Publishers
Table 4.2: Main Media Advertising Expenditure by Newspaper Publishers (£000), Year to June 2001
Book Publishers
Table 4.3: Main Media Advertising Expenditure by Book Publishers (£000), Year to June 2001
Magazine Publishers
Table 4.4: Main Media Advertising Expenditure by Consumer Magazine Publishers (£000), Year to June 2001
BUYING BEHAVIOUR
Newspapers
Table 4.5: Newspaper Readership by Adults ( percent), July 2000-June 2001
Books
2001
Magazines
FORECASTS 2001 TO 2005
2001-2005


5. Home Viewing

INTRODUCTION
KEY TRENDS
MARKET SIZE
Equipment
Table 5.1: The UK Television and Video Equipment Market by Sector by Value (£m), 1996-2000
Video Services
Funding of TV Channels
Other Viewing Markets
Videotapes and Discs
Table 5.2: The UK Prerecorded Video/DVD Market by Sector by Value (£m), 1999-2000
Camcorders
INDUSTRY STRUCTURE
Table 5.3: Selected Major Companies in Home Viewing by Activity, 2001
Equipment Supply
Broadcasting
Cable, Satellite and Digital Terrestrial Delivery
Supply
Trade Associations
MAJOR PLAYERS
AOL Time Warner
BBC
British Sky Broadcasting Group PLC
PLC
Granada Group PLC
Company Ltd
Advertising
Television
Table 5.4: Main Media Advertising Expenditure by Television Companies (£000), Year to June 2001
and DVD
Table 5.5: Main Media Advertising Expenditure on Prerecorded Video Cassettes and DVD (£000), Year to June 2001
BUYING BEHAVIOUR
Viewing Equipment
Television
Video
Table 5.6: Buying and Hiring Videos by Theme ( percent of adults), 2001
FORECASTS 2001 TO 2005
2001-2005


6. Home Listening

INTRODUCTION
KEY TRENDS
MARKET SIZE
Audio Equipment
by Sector by Value (£m), 1996-2000
Recorded Music
Table 6.2: The UK Recorded Music Market by Sector by Value (£m), 1996-2000
Radio Funding
INDUSTRY STRUCTURE
Table 6.3: Selected Major Companies in Home Listening by Activity, 2001
Audio Equipment Manufacturers
Recorded Music
Radio Broadcasters
MAJOR PLAYERS
AOL Time Warner
BBC
Capital Radio PLC
Chrysalis Group PLC
EMAP PLC
EMI Group PLC
GWR Group PLC
Sony Corporation
Vivendi
ADVERTISING
Recorded Music
by Recorded Music Companies (£000), Year to June 2001
Radio
Table 6.5: Main Media Advertising Expenditure by Radio Companies (£000), Year to June 2001
BUYING BEHAVIOUR
Audio Equipment
Table 6.6: Ownership of Audio Equipment ( percent of adults), 1995 and 2001
Recorded Music
2001
Radio Listening
FORECASTS 2001 TO 2005
Table 6.8: The Forecast UK Home Listening Market by Sector by Value (£m at rsp), 2001-2005


7. Games

INTRODUCTION
KEY TRENDS
MARKET SIZE
INDUSTRY STRUCTURE
Trade Associations
MAJOR PLAYERS
Eidos PLC
Hasbro
Mattel
Nintendo
Sega
Sony Corporation
Advertising
Table 7.2: Main Media Advertising Expenditure on Games (£000), Year to June 2001
BUYING BEHAVIOUR
FORECASTS 2001 TO 2005
2001-2005


8. DIY and Gardening

INTRODUCTION
KEY TRENDS
MARKET SIZE
by Sector by Value (£m at rsp), 1996-2000
DIY Market
rsp and percent), 2000
Figure 8.1: The UK DIY Market by Sector by Value ( percent), 2000
Gardening Market
Table 8.3: The UK Gardening Goods Market by Sector by Value (£m at rsp and percent), 2000
Figure 8.2: The UK Gardening Goods Market by Sector by Value ( percent), 2000
INDUSTRY STRUCTURE
Trade Associations
MAJOR PLAYERS
Manufacturers
Table 8.4: Selected Leading DIY and Gardening Manufacturers and Brands, 2001
Akzo Nobel Decorative Coatings Ltd
International
Products Ltd
Hozelock Ltd
Industries PLC
Newell Rubbermaid
Robert Bosch Ltd
Retailers
2001
B&Q PLC
Focus Group Ltd
Homebase Ltd
Topps Tiles PLC
Centres PLC
Advertising
Table 8.6: Main Media Advertising Expenditure on DIY and Gardening Products and by DIY Retailers (£000), Year to June 2001
BUYING BEHAVIOUR
DIY Participation
Table 8.7: Participation in Main DIY Activities ( percent of adults), 1996 and 2001
Gardening Participation
Table 8.8: The Purchase of Garden Products in the Past 12 Months ( percent of adults), 1996 and 2001
Sources of Advice
Table 8.9: Preferred Sources of Advice for DIY ( percent of adults, men and women), 2001
FORECASTS 2001 TO 2005
UK DIY and Gardening Goods Market by Sector by Value (£m at rsp), 2001-2005


9. Eating and Drinking

INTRODUCTION
KEY TRENDS
MARKET SIZE
Restaurant Market
Table 9.1: The UK Fast Food and Restaurant Market by Value (£m), 1996-2000
Table 9.2: The UK Fast Food and Restaurants Market by Sector by Value (£m and percent), 2000
2000
Public House Market
Table 9.3: The UK Public House Market by Value (£m), 1996-2000
INDUSTRY STRUCTURE
Table 9.4: Selected Leading Multiples in Restaurants, Pubs and Hotels by Approximate Number of Outlets, 2001
Trade Associations
MAJOR PLAYERS
Burger King Ltd
Restaurants PLC
Holdings PLC
Restaurants Ltd
Nomura International PLC
Pizza Express PLC
Punch Taverns Group Ltd
Scottish & Newcastle PLC
Six Continents PLC
Whitbread Group PLC
Advertising
Take-Aways (£000), Year to June 2001
BUYING BEHAVIOUR
Restaurant Users
Table 9.6: Frequency of Visits to Restaurants ( percent of adults), 2001
Pub Users
Table 9.7: Frequency of Visits to Public Houses ( percent of adults), 2001
Restaurant Chains
Table 9.8: Branded Restaurants Used in Last Year by Selected Regions ( percent of adults), June 2001
FORECASTS 2001 TO 2005
Table 9.9: The Forecast UK Eating and Drinking Market by Sector by Value (£m), 2001-2005


10. Short Breaks and Tourist Attractions

INTRODUCTION
KEY TRENDS
MARKET SIZE
The Short Breaks Market
1996-2000
Market
Table 10.2: The Tourist Attractions Market by Type of Attraction (million admissions), 2000
Figure 10.1: The Tourist Attractions Market by Type of Attraction (million admissions), 2000
Trade Associations
INDUSTRY STRUCTURE
Short Breaks
Accommodation
Tourist Attractions
MAJOR PLAYERS
Short Breaks
Attractions
Advertising
Table 10.3: Main Media Advertising Expenditure on Accommodation and Tourist Attractions (£000), Year to June 2001
BUYING BEHAVIOUR
Short Breaks
Exhibitions
and 2001
FORECASTS 2001 TO 2005
Table 10.5: The Forecast UK Short Breaks and Tourist Attractions Markets (£m, 000 trips and million admissions), 2001-2005
Theatre
INTRODUCTION
KEY TRENDS
MARKET SIZE
Box Office Revenues
Table 11.1: The UK Cinema and Theatre Market by Box Office Revenue and Number of Admissions (£m and million), 1996-2000
Revenue
INDUSTRY STRUCTURE
Number of Cinemas
1995-2000
Number of Theatres
‘Hollywood Studios’
Trade Associations
MAJOR PLAYERS
Table 11.3: Leading Operators of Cinemas and Theatres, 2001
Group Ltd
Apollo Leisure Group Ltd
Cameron Mackintosh Ltd
Odeon Cinemas Ltd/ABC Cinemas Ltd
Group Ltd
UGC Cinemas Ltd
International (UK) Ltd
Cinemas Ltd
Advertising
Feature Films
June 2001
Concerts
June 2001
BUYING BEHAVIOUR
Cinema
2001
Theatre
Table 11.7: Frequency of Theatre Going ( percent of adults), 1997, 1999 and 2001
FORECASTS 2001 TO 2005
2001-2005


12. Sporting Activities

INTRODUCTION
KEY TRENDS
MARKET SIZE
Table 12.1: The UK Sports Participation and Sports Spectating Market by Value (£m), 1996-2000
(£ per household), 1995/1996-1999/2000
Participation in Sport
Home Fitness
Spectating
INDUSTRY STRUCTURE
Sports Facilities
2001
2000
Professional Football
Table 12.5: Leading Football Clubs by Stadium Capacity, 2000
Other Spectator Sports
Sports Equipment and Sports Wear
MAJOR PLAYERS
Advertising
Year to June 2001
BUYING BEHAVIOUR
Keeping Fit
Other Sports Participation
Table 12.7: Participation in Main Sports/Physical Activities ( percent of adults), 1996, 1998 and 1999
Buying Sports Equipment
Table 12.8: Ownership and Acquisition of Keep Fit Equipment in the Last 12 Months ( percent of adults), 1996, 1998 and 1999
Spectator Sports
and 1999
Sport in the Media
Table 12.10: Leading Sports in the Media ( percent of adults), 1996 and 1999
on Television
adults, men and women), 2001
FORECASTS 2001 To 2005
Table 12.12: The Forecast UK Sports Participation and Sports Spectating Market (£m), 2001-2005


13. Gambling

INTRODUCTION
KEY TRENDS
MARKET SIZE
1996-2000
and 1999/2000
National Lottery
Bookmaking
Amusement Machines
Bingo
Football Pools
Casinos
INDUSTRY STRUCTURE
the UK Gambling Market, 2001
MAJOR PLAYERS
Arena Leisure PLC
Camelot Group PLC
Coral Eurobet PLC
Gala Group Ltd
Hilton Group PLC
International PLC
The Rank Group PLC
Sportech PLC
Stanley Leisure PLC
William Hill Ltd
Advertising
Table 13.4: Main Media Advertising Expenditure by Gambling Companies (£000), Year to June 2001
BUYING BEHAVIOUR
National Lottery
Table 13.5: Participation in the National Lottery by Frequency ( percent of adults), 2000 and 2001
Other Forms of Gambling
and 2001
FORECASTS 2001 TO 2005
Table 13.7: The Forecast UK Gambling Market by Value (£m), 2001-2005
Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS


15. The Future

INTRODUCTION
2001: THE VIEW FROM EARLY OCTOBER
THE VIEW BEYOND 2001
A SILVER LINING?
MARKET FORECASTS
Table 15.1: The Forecast UK Leisure and Recreation Market by Sector by Value (£m), 2001-2005


16. Further Sources

Associations
Periodicals
Directories
General Sources
Sources
Publications
Other Sources

Understanding TGI Data

Penetration
Social Grade
Standard Region

Key Note Research

Text © 2001 Key Note

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Last updated by Jacob van Eldik 26th October 2001