Insight Analysis: ITV1 Share Further Eroded In 2002
ITV1’s share of viewing closed 2002 down by 2.6% points on the year before, whilst the multi-channel sector saw its share rise by 2.4% points, according to figures from BARB.
ITV1’s average share of all TV viewing was 24.1% in 2002, down from 26.7% in 2001. Its primary rival, BBC1, saw its share fall by 0.7% points, from 26.8% to 26.1%. Channels other than the main five saw their combined share continue to rise, up to 22.1% in 2002, from 19.6% a year earlier.
| UK Television Viewing Share Trends | |||||||||||
| Station | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 |
| BBC1 | 33.7 | 32.7 | 32.3 | 32.2 | 32.6 | 30.8 | 29.4 | 28.4 | 27.1 | 26.9 | 26.2 |
| BBC2 | 10.5 | 10.3 | 10.6 | 11.2 | 11.6 | 11.6 | 11.3 | 10.8 | 10.8 | 11.1 | 11.4 |
| ITV 1 | 40.8 | 39.9 | 39.5 | 37.2 | 35.1 | 32.9 | 31.7 | 31.2 | 29.2 | 26.7 | 24.1 |
| Channel 4/S4C | 10.1 | 11 | 10.8 | 10.9 | 10.8 | 10.6 | 10.4 | 10.3 | 10.5 | 10 | 10 |
| Channel 5 | 2.9 | 4.3 | 5.4 | 5.7 | 5.8 | 6.3 | |||||
| Others | 4.8 | 6.1 | 6.8 | 8.5 | 10 | 11.8 | 12.9 | 14 | 16.6 | 19.6 | 22.1 |
| Source: BARB/MediaTel.co.uk | |||||||||||
Since 1992, ITV’s share of viewing has fallen from 40.8%, against BBC1’s 33.7%, to just 24.1% in 2002. In 2001, ITV dropped below BBC1’s total annual share for the first time. ITV1’s rate of decline has been steeper than BBC1’s since around 1999 and this looks set to continue.
BBC2 and Channel 4, for their part, are largely impervious to the rise of multi-channel, with both their shares of viewing hovering just over the 10% mark for the last ten years. This is perhaps because multi-channel stations are typically targeting the mass-market audience, which ITV1 also serves, whilst BBC2 and C4 follow an artier, more alternative public service mandate.
ITV boosts programme budget ITV yesterday pledged to substantially increase its investment in peak-time drama programming, in an attempt to stem the losses to its viewership. In its annual statement of programme policy, the Network said that the programming budget would be increased from 2002’s £750 million to £830 million this year.
These moves come amidst falling advertising revenues, which have put the squeeze on commissioning budgets. The latest predictions from Merrill Lynch put ITV’s revenue down by 5.2% in February and by 10.0% in March. This is a weak start to the year and comes at a time when advertising is supposedly showing some gentle improvement. Growth is not expected to return until September and even then it is extremely slight, at just 1.0%.
| ITV Advertising Growth Trends And Forecasts | |||||||||||||
| January | February | March | April | May | June | July | August | September | October | November | December | Total | |
| 2002 | -16.0 | -16.8 | -7.1 | -11.6 | 9.4 | 10.7 | 3.9 | 7.3 | 1.9 | 10.1 | 3.2 | -4.1 | -1.0 |
| 2003 | -2.0 | -5.2 | -10.0 | -1.0 | -3.0 | -6.0 | -1.0 | -4.5 | 1.0 | -2.5 | 1.0 | 3.0 | -2.5 |
| 2004 | 3.6 | 3.6 | 3.6 | 3.6 | 3.6 | 3.6 | 3.6 | 3.6 | 3.6 | 3.6 | 3.6 | 3.6 | 3.6 |
| Source: Merrill Lynch estimates, January 2003 | |||||||||||||
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