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, with revenue dropping 16.9% year on year, 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 8.6% 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 10.9% 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.
| Total Television Revenue – June 2003 | |||
| Total Revenue | Jun 02 | Jun 03 | % Change |
| ITV1 | 142,760,000 | 118,590,000 | -16.9 |
| C4 | 51,770,000 | 47,330,000 | -8.6 |
| Five | 17,730,000 | 19,670,000 | 10.9 |
| GMTV | 3,800,000 | 4,130,000 | 8.7 |
| Total Terrestrial (inc. GMTV) | 216,060,000 | 189,720,000 | -12.2 |
| Total Satellite | 38,000,000 | 46,370,000 | 22.0 |
| Source: Agency Estimates | |||
ITV Franchises
June was yet another month of mixed fortunes for the ITV franchises. LWT saw the biggest decline in its share of revenue, which dropped by 0.99% year on year. In contrast, the lucrative Carlton region saw its share of ITV’s total revenue rise by 1.27% year on year to 15.92%. The Central region also experienced a 0.49% increase year on year.
| June ITV Franchise Revenue Share Comparison | |||
| Station | Jun 02 | Jun 03 | % Point Change |
| Scotland | 6.33 | 6.14 | -0.19 |
| Anglia TV | 7.65 | 7.26 | -0.39 |
| Carlton | 14.65 | 15.92 | 1.27 |
| LWT | 12.52 | 11.53 | -0.99 |
| Central | 15.84 | 16.33 | 0.49 |
| North West/Border | 10.00 | 10.11 | 0.11 |
| Meridian | 12.30 | 12.08 | -0.22 |
| West Country | 1.97 | 2.00 | 0.03 |
| Ulster (UTV) | 2.37 | 2.54 | 0.17 |
| HTV | 5.71 | 5.80 | 0.09 |
| Yorkshire/North East | 10.66 | 10.31 | -0.35 |
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, which rose by 12.6% year on year and the Housewives category, which climbed by 12.4% in June. Five also saw an increase in the lucrative ABC1 category, which improved by 9.1% year on year.
At the other end of the scale, 1TV1 experienced its largest declines in the Housewives with Children and the Women categories, which fell by 17.8% and 16.5% respectively. Channel 4 saw its ABC1 Adults category decline by 6.4% year on year.
| CPTs | ||||||
| ITV1 | % Ch YoY | Channel 4 | % Ch YoY | Five | % Ch YoY | |
| Adults | 7.42 | -8.9 | 6.29 | -2.2 | 4.34 | 10.5 |
| Men | 10 | 9.1 | 15 | 2.2 | 10 | 9.1 |
| Women | 12 | -16.5 | 11 | -5.3 | 7.78 | 11.6 |
| Hwvs | 11 | -15.4 | 10 | -5.5 | 6.67 | 12.4 |
| Hwvs/Ch | 48 | -17.8 | 36 | 2.6 | 30 | 12.6 |
| ABC1 Adults | 20 | -8.3 | 14 | -6.4 | 14 | 9.1 |
Commercial Impacts
Satellite channels saw commercial impacts rise across the board during June. The biggest increase was seen in the ABC1 Adults category, which rose by 23.4% year on year. In contrast, commercial impacts were mixed across terrestrial channels. ITV1 experienced a notable decline in the Men category, which fell by 19.7%. Channel 4 also experienced a significant decline in the Men category, which dropped by 10.5% year on year.
| Commercial Impacts | ||||||||
| ITV1 Impacts | % Ch YoY | C4 Impacts | % Ch YoY | C5 Impacts | % Ch YoY | Satellite Impacts | % Ch YoY | |
| Adults | 19,375 | -9.0 | 9,117 | -6.6 | 5,921 | 0.4 | 13,536 | 16.4 |
| Men | 7,504 | -19.7 | 3,820 | -10.5 | 2,427 | 1.7 | 6,459 | 19.7 |
| Women | 11,871 | -0.7 | 5,297 | -3.5 | 3,063 | -0.6 | 7,077 | 13.6 |
| Hwvs | 12,700 | -2.0 | 5,753 | -3.2 | 3,572 | -1.3 | 7,340 | 14.4 |
| Hwvs/Ch | 3,008 | 0.9 | 1,588 | -10.9 | 805 | -1.5 | 2,919 | 6.5 |
| ABC1 Adults | 7,081 | -9.7 | 4,071 | -2.4 | 1,754 | 1.7 | 5,847 | 23.4 |
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