ITV has today announced that its multi-channel revenue target for the next three years has been set at £150 million, with an increase of £36 million being invested in programming.
The investment increase will enable ITV to double ITV2’s programme budget and launch the new ITV3 channel at the end of this year.
After reports earlier this month that ITV faced a £100 million revenue shortfall due to advertisers negotiating more competitive deals, the commercial broadcaster said this morning that net advertising revenue for the six months to June 2004 was up 4.9%, with ITV1 up by 3.7% and ITV2 up 74% (see Interpublic Sees 2.6% In Q3 Revenue).
ITV’s audience share for the five months to May 2004 was down to 41.8%, when compared to the 42.7% share achieved for the whole of 2003. However, due to BBC1’s weak ratings performance this year and ITV’s success to date with Euro 2004, audience impact share is expected to pick up over the remainder of this year.
Looking ahead, advertising revenues for July are expected to be up 4% on last year, while the three months from June to August 2004 are also looking promising with a 5.5% growth forecast.
ITV1 will deliver a strong autumn schedule said the statement, with the return of the biggest reality show on UK television, I’m A Celebrity … Get Me Out Of Here! and the first project from TV’s Mr Nasty, Simon Cowell, who has signed an exclusive deal with the broadcaster.
ITV said that it is already on track to deliver £100 million of cost savings from the Carlton and Granada merger and are already achieving these savings faster than originally planned with the December 2004 target already met.
Charles Allen, chief executive said: “Just four months after the creation of ITV Plc our strategy is delivering. The merger has enabled us to attract and retain the best talent in the industry. Already the benefits of one ITV are apparent in our performance and efficiency. We have a strong foundation for the ambitious plans we have to grow our business.”
Yesterday, the man behind ITV’s rebranding, marketing and commercial director Jim Hytner, quit after three years to join Barclays bank (see Hytner Quits ITV After Three Years To Join Barclays).
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