TV Market Round-Up – October 2004

Britain’s smallest terrestrial broadcaster, Five, put in a strong performance during October, notching up a revenue increase of 11.6% year on year to just under £29.6 million as the broadcaster explored merger possibilities with rival Channel 4.

The revenue increase is more than double that of Channel 4, which rose by 5.6% in the same period to reach a total of just under £69.2 million, according to the latest agency estimates compiled by MediaTel Group. However, the two broadcasters pulled out of merger talks in late November, with Channel 4 understood to be unhappy over the share of profits requested from a combined business by Five’s shareholders, German television group RTL and United Business Media (see Channel 4 Walks Out On Merger Talks With Five).

However, if rumours are to be believed, Five may be able to secure an alternative merger deal with Flextech, part of cable company Telewest, which could secure the broadcaster’s continued survival in an increasingly competitive multi-channel future (see Five Looks To Flextech Merger To Secure Future).

Elsewhere, ITV was the only terrestrial broadcaster to see a dip in revenues during October, albeit a by just 0.1%. The broadcaster now commands a total of nearly £174.1 million and looks likely to increase its revenues with healthy advertising income from the latest series of I’m a Celebrity Get Me Out Of Here (see I’m A Celebrity Off To Good Start For ITV).

ITV franchise GMTV saw an impressive 16.5% rise in profits year on year, while the nation’s satellite broadcasters continued to see healthy growth, notching up a 16.2% increase in the same period to give a total of over £67 million.

ITV Franchises

LWT saw the largest revenue share increase amongst the ITV franchises in October, with a 1.40% points increase placing it ahead of all other regional broadcasters under the ITV umbrella and contributing 12.08. Rival London licence holder Carlton was less fortunate, however, losing 0.68% points but contributing a higher percentage to ITV’s total revenue with a total of 14.89% for October.

Central saw the largest decline in revenue share, losing 1.00% points to contribute 15.53% overall, while North West/Border continued to decline, losing 0.36% points in the same period to a total of 9.87%.

Costs Per Thousand

ITV was the only commercial terrestrial broadcaster to see its costs per thousand fall during October, with costs for Adults declining by 0.3%, Women dipping by 4.4% and Housewives falling by 2.8%. Channel 4 lead the board in terms of increases, with costs in the Housewives with Children category increasing by a significant 28.1%. Five also increased its costs, adding 23.1% and 14.6% to the Men and Adults categories respectively, the largest increases of any terrestrial broadcaster to those demographics.

Commercial Impacts

Channel 4 saw a downward turn in commercial impacts across the board, with the Housewives with Children category declining the most at 17.6%. Five also saw a spate of declines, with downward movement in the Adults and Men categories, sliding by 2.6% and 9.4% respectively. ITV1 saw the biggest increase in commercial impacts amongst terrestrial broadcasters, adding 4.1% to its Women category, while satellite impacts continued to see increases across the spectrum.

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