End Of Year News Round-Up: Television
January
The BBC began the year by claiming victory over ITV in the annual ratings war, with BARB figures for 2001 showing that across all hours more people watched BBC1 than ITV1 (see BBC Claims Ratings Victory Over ITV). Over at ITV things were less than rosy, as the channel announced it would no longer publish commercial performance targets after failing to meet them for the last two years. Further gloom was provided by Channel 4, which reported its first financial loss in ten years. However, new kid on the terrestrial TV block, Channel Five, increased its programming budget and led opposition to BBC3. January was a tough month for BARB, which left the industry without viewing figures for the opening weeks of the New Year. Then, when the new figures were eventually released, viewing levels were down 5%, prompting fierce criticism from the broadcasting industry (see BARB Releases First New System Overnights). Meanwhile, Shadow Media Secretary, Tim Yeo, proposed the liberalisation of competition laws to clear the way for a single ITV (see Tories Call For ITV Consolidation).
February
February saw ITV Digital reach 1.26 million subscribers, only to announce widespread cost-cutting and restructuring plans later in the month (see ITV Digital To Restructure; Merger Talks Revived?
March
March was dominated by news surrounding troubled digital TV platform, ITV Digital, which went into administration at the end of the month. The move followed the break up of negotiations with the the Football League, after ITV offered just £50 million of the £178 million it owed under the terms of a three-year deal to televise its Nationwide League football match. ITV also released a trading statement, which reflected the continued decline in advertising revenues, which blighted commercial broadcasters throughout 2002 (see ITV Revenues Down 12% In H1, Visibility Still Limited). ISBA weighed in to the Carlton and Granada merger debate, claiming that it was willing to facilitate discussions to explore the possible benefits to UK advertisers. Meanwhile, the BBC was suffering from digital teething problems and the Corporation’s chairman, Gavyn Davies, expressed his disappointment at the Government delaying the launch of its new digital youth channel, BBC 3.
April
The fall-out from ITV Digital’s collapse continued to dominate the media headlines during April, as it was announced the troubled platform was to be sold off as a going concern. Meanwhile, the Football League confirmed it was to push ahead with plans to sue Carlton and Granada for £500 million. Secretary of State, Tessa Jowell, reassured the industry that the end of ITV Digital would not signal the end of digital TV aspirations and Pace Micro Technology launched its new low-cost digital receiver allowing UK viewers to switch to digital TV without having to subscribe to digital platforms such as ITV Digital. Elsewhere, Channel 4 announced a year on year loss after-tax of £20.6 million, as the advertising recession continued to bite. It also introduced its new breakfast show RI:SE, following a high-profile marketing campaign. The BBC, proved its importance in times of crisis, gaining twice as many viewers as ITV for its coverage of the Queen Mother’s funeral.
May
May saw the publication of the Draft Communication Bill, which proposed changes that would allow the long-anticipated consolidation of ITV and the relaxation of the rules on foreign ownership of UK media assets. Both ISBA and the IPA welcomed the move, but expressed concern that the BBC would not come under Ofcom’s control. Meanwhile, the Football League proceeded with legal action against Carlton and Granada, following the collapse of ITV Digital. Stuart Prebble, the chief executive of ITV, sent ripples through the industry, announcing his decision to step down. May was also notable as figures later revealed that BBC1 had overtaken ITV1 in the monthly peak-time ratings for the first time. Over at Channel 4 the new breakfast show, RI:SE, got off to a shaky start, with its producer quitting after just four days on air, following disagreements with the production company. Elsewhere, the ITC welcomed the Government’s proposals for the pricing and availability of digital terrestrial TV licences, in anticipation of broadcasters swooping after the collapse of ITV Digital. Channel 5 took further steps to distance itself from its downmarket image by commissioning a series of art programmes.
June
June saw the BBC form a partnership with BSkyB to bid for the digital television licenses made available following the collapse of ITV Digital. ITV also announced its intention to have a second stab at digital terrestrial TV, by forming a partnership with Channel 4. The summer month saw the start of three major television events; Big Brother 3, the Queen’s Golden Jubilee and the World Cup. According to BARB, the “World Cup Effect” boosted TV viewing figures by nearly 20% and Initiative Media claimed that 68% of the world’s population watched the tournament across 44 countries. The BBC was given further cause for celebration as Culture Secretary, Tessa Jowell, dismissed the idea that the licence fee system of funding would be scrapped in the near future. Meanwhile, a survey from Mediaedge:cia claimed that the Government’s plans to turn off the analogue TV signal looked “increasingly futile.”
July
BBC and BSkyB began the month on a high, after beating off competition from Channel 4 and ITV to gain control of the digital terrestrial television licences made available following the collapse of ITV Digital. The BBC, which was expecting approval for BBC3 after a positive review from the ITC, stepped up the pressure on its commercial rivals by increasing its programming budget to £180 million. However, Channel 4 consoled itself with the massive success of Big Brother, with the final show helping the channel gain its highest ever daily share. However, July also saw Channel 4 wave goodbye to its film production arm, FilmFour LTD, which was integrated back into the main Channel 4 business. Over at ITV David Liddiment announced his intention to step down as director of channels and criticised the Communications Bill for failing to ensure the survival of a healthy broadcasting sector (see Liddiment Criticises Draft Communications Bill). ITV saw viewing figures fall to an all time low and recorded an audience share of just 22.5% for the month. There was more good news for BSkyB as its full-year financial results beat analysts’ expectations, with 214,000 subscribers added in Q4, taking the total to 6.1 million. Meanwhile, BARB continued to fare poorly with the resignation of ATR’s managing director, Adam Phillips, in a cloud of controversy. In other people news, the DCMS confirmed that Lord Currie of Marylebone would be appointed the first chair of the new communications regulator Ofcom.
August
The summer season started well for Carlton and Granada as the Football League lost their High Court case against the ITV partners, after the collapsed ITV Digital venture left millions in unpaid royalties. The two companies also announced plans to forge stronger links in a bid to win back advertisers and viewers and cut costs at a time of financial uncertainty. Granada’s chief executive, Steve Morrison, stepped down, as did BARB chairman, Nick Phillips. Over at Channel 5, chief executive, Dawn Airey, launched into a war of words with ITV, claiming the channel was loosing its audience because it is “too bland”. Channel 5 also undertook a re-branding exercise which saw the number 5 replaced with the word Five.
September
September was Dawn Airey’s month, as the then chief executive of Channel Five, shocked the broadcasting industry by taking up an offer to join BSkyB as managing director of Sky Networks (see Airey’s Departure Represents Coup For BSkyB). Meanwhile, ITV staged a PR coup by publicly asking the BBC to reorganise its schedules to prevent a clash between two of this autumn’s biggest dramas, Dr Zhivago and Daniel Deronda. The channel also retained the rights to broadcast the UEFA Champion League matches under a new deal covering the 2003 to 2006 seasons. Elsewhere, ITV1 underwent a the biggest re-branding excercise in its history and BARB attempted to draw a line under its less than impressive year, with the appointment of Nigel Walmsley, former deputy chief executive of Carlton, as its new chairman. The BBC also announced the launch of BBC7, a new digital talk-radio station for adults and children.
October
October saw the BBC’s new digital terrestrial service, Freeview, launch to around 75% of homes in the UK. It also unveiled its £4.5 million foray into reality television, Fame Academy, which was quickly dubbed Lame Academy after a series of less than impressive viewing figures. Meanwhile, the Carlton and Granada will they or wont they merger debate re-opened, after the ITV shareholders entered into advanced merger talks that could lead to the creation of a single ITV. This was welcomed by panellists at the annual Media Question Time Event (see Carlton And Granada Merger Will Aid Dysfunctional ITV). Gerry Murphy, chief executive of Carlton, stepped down to join DIY group Kingfisher and ITV appointed controller of CBBC, Nigel Pickard, as its new director of programmes, replacing David Liddiment who leaves the Network at the end of the year. There was more bad news at Channel 4, which cut 45 jobs from its commercial arm, 4 Ventures, as part of a major restructure of the company’s senior management team.
November
November was dominated by the Communications Bill, which looks set to liberalise media ownership regulations. In a surprise development, News Corp chairman, Rupert Murdoch, ruled out acquiring Channel 5 (see Murdoch Denies Interest In Five
December
The Christmas month brought good and bad news for the BBC, which received a public dressing down from the Public Accounts Committee, which urged the Corporation to do more to catch television licence-fee dodgers. It also claimed the BBC accounts should come under its scrutiny (see BBC Attacked For Failing To Control Licence Fee Evasion). On a brighter note, the Beeb’s much criticised foray into reality-tv, Fame Academy, silenced its critics drawing a peak audience of 8.2 million for its two part Friday night final. Elsewhere, the ITC suspended a TV ad for alco-pop WKD on the grounds that it may encourage the teasing and bullying of effeminate men. Meanwhile, Channel 4 announced that Tess Ross, the head of drama at the channel, was to head up its new, down-sized film production arm, Film Four. Freeview was also under pressure after research from BMRB suggested that it could face an uphill struggle over the next year as it competes for audience share with Sky and cable digital services.
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