The gradually declining power ratio of terrestrial TV in the increasingly fragmented media marketplace was brought to the fore in June, with the sector seeing revenues decline by 12.2% year on year. In contrast total satellite revenues increased by 22% during the same period, as the number and variety of channels offering advertisers access to a highly targeted and specialised audience continued to grow. The success of the free-to-air digital platform, Freeview, has also been viewed as a contributing force in this shift in spend (see Freeview Completes Offering With New Sports Channel).
ITV1 suffered the most significant decline in the terrestrial sector during June, despite an increased investment in programming. The broadcaster also faced pressure in the boardroom after Granada shareholders reportedly expressed unease over the terms of the proposed £2.6 billion merger with Carlton Communications (see Granada Shareholders Uneasy Over ITV Merger Deal).
Channel 4 was also seen under pressure, with total television revenues dropping year on year. The channel sparked a game of executive musical chairs after its director of television, Tim Gardam, announced his intention to step down, prompting Kevin Lygo to jump ship from Channel Five (see Channel 4’s Director Of Television To Step Down).
New kid on the terrestrial bock, Five, continued to buck the wider sector decline, rising by more than 10% year on year. The channel has benefited from a number of high profile films and art shows, alongside the continued success of lucrative sponsorship deals of its Australian soap Home and Away.
ITV Franchises
June was yet another month of mixed fortunes for the ITV franchises. LWT saw the biggest decline in its share of revenue, while the Carlton region rose by 1.27% year on year to 15.92%. The Central region also experienced a slight year on year increase in its share of ITV’s total revenue.
Costs Per Thousand
Costs per thousands were mixed in June, with both ITV and Channel 4 experiencing some significant downward movement. However, Channel Five experienced gains across the board, most notably in the Housewives with Children category and the Housewives category. Five also saw an increase in the lucrative ABC1 category. At the other end of the scale, 1TV1 experienced its largest declines in the Housewives with Children and the Women categories. Channel 4 saw its ABC1 Adults category decline by 6.4% year on year.
Commercial Impacts
Satellite channels saw commercial impacts rise across the board during June. The biggest increase was seen in the ABC1 Adults category. Meanwhile, commercial impacts were mixed across terrestrial channels, with both ITV1 and Channel 4 experiencing notable declines in the Men category.
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