Annual TV Market Round-Up 2002

Revenues

The ongoing advertising downturn continued to take its toll on ITV1 during 2002, with revenue falling by 0.8% year on year to below £170 billion. The heavy losses experienced during 2001 continued well into 2002. However, increased bookings for the World Cup boosted revenue from May onwards, with June seeing an 11.3% year on year increase. The year ended on a less than positive note for the channel, with revenue slipping by 4% during December.

2002 ITV1 Revenues
Month	Revenue (£) 2001	Revenue (£) 2002	% Change
January	140,920,000	118,060,000	-16.2
February	143,030,000	121,950,000	-14.7
March	159,700,000	147,650,000	-7.5
April	156,530,000	138,550,000	-11.5
May	138,600,000	151,680,000	9.4
June	128,210,000	142,760,000	11.3
July	117,940,000	122,360,000	3.7
August	115,090,000	123,256,000	7.1
September	142,340,000	146,340,000	2.8
October	160,190,000	176,400,000	10.1
November	168,270,000	173,550,000	3.1
December	129,780,000	124,650,000	-4.0
Total	1,700,600,000	1,687,206,000	-0.8
Source: Agency Estimates

In an analysis of the ITV franchise companies, Meridian saw the biggest increase in revenue share during 2002, with a 0.7% point increase to 12.2%. Carlton, which saw the biggest increase in revenue share during 2001, witnessed a 0.6% point decline during 2002. Central continued to command the largest share of total ITV revenue for the year, adding 0.1% points to 16.3%.

Average 2002 Share Of Revenue By ITV Franchise
Franchise	Average 2001 Share	Average 2002 Share	% Point Change
Carlton	15.8	15.2	-0.6
LWT	11.9	11.1	-0.8
Central	16.2	16.3	0.1
N West/Border	10.1	10.3	0.2
Yorkshire/N East	11.1	10.7	-0.4
Scotland	6.2	6.3	0.1
HTV	5.8	6.1	0.3
Meridian	11.5	12.2	0.7
Anglia	7.4	7.5	0.1
W/Country	2.1	2.0	-0.1
Ulster	2.0	2.3	0.4

Channel 4 got off to a bad start during 2002 as the annus horribilis that was the 2001 proved hard to shake. After four consecutive months of losses, revenue picked up in May and continued strongly throughout the rest of the year. The most notable increase occurred in October, when revenue was up by 15.8% year on year. Overall, revenue at the channel increased by 4.9% during 2002 to £633,520,000

2002 Channel 4 Revenues
Month	Revenue (£) 2001	Revenue (£) 2002	% Change
January	47,500,000	43,600,000	-8.2
February	52,100,000	47,600,000	-8.6
March	59,070,000	57,780,000	-2.2
April	55,630,000	53,770,000	-3.3
May	51,200,000	56,330,000	10.0
June	49,250,000	51,770,000	5.1
July	43,880,000	46,500,000	6.0
August	36,830,000	41,230,000	11.9
September	49,840,000	56,170,000	12.7
October	56,830,000	65,830,000	15.8
November	59,150,000	66,270,000	12.0
December	42,600,000	46,670,000	9.6
Total	603,880,000	633,520,000	4.9
Source: Agency Estimates

Channel Five erased the lacklustre performance of the previous year with a bumper 2002, which saw revenue increase by 20.3% year on year. July was the most lucrative month for the fledgling channel, with revenue up by almost 40% on the same period the previous year. Changes to its programming strategy and a full-scale rebrand (see Channel 5 Relaunched As Five) ensured that the channel finished the year on a positive note, with revenue up by 25.5% during December.

2002 Channel Five Revenues
Month	Revenue (£) 2001	Revenue (£) 2002	% Change
January	14,630,000	14,130,000	-3.4
February	15,650,000	15,640,000	-0.1
March	17,600,000	19,020,000	8.1
April	17,900,000	19,630,000	9.7
May	15,820,000	20,470,000	29.4
June	15,820,000	17,730,000	12.1
July	12,880,000	17,950,000	39.4
August	13,330,000	17,333,000	30.0
September	16,600,000	21,770,000	31.1
October	19,270,000	25,400,000	31.8
November	19,130,000	25,100,000	31.2
December	13,570,000	17,030,000	25.5
Total	192,200,000	231,203,000	20.3
Source: Agency Estimates

After a strong 2001, Cable & Satellite revenues continued to improve during 2002, increasing by 14.8% year on year to 490 million. April was the only month to show a loss, although the second half of the year was notably better than the first half, with revenue rising by more than 30% during September and October. Revenue was up by 16.5% during December when the number of people watching cable, satellite and digital terrestrial TV channels outnumbered those watching ITV1 during the Christmas week (see Multichannel Broadcasters Overtake ITV1 At Christmas).

2002 Satellite Revenues
Month	Revenue 2001 (£)	Revenue 2002 (£)	% Change
January	33,830,000	34,480,000	1.9
February	34,850,000	35,870,000	2.9
March	36,800,000	44,640,000	21.3
April	41,900,000	41,490,000	-1.0
May	39,200,000	41,200,000	5.1
June	34,400,000	38,000,000	10.5
July	26,200,000	33,900,000	29.4
August	29,490,000	33,433,000	13.4
September	35,100,000	47,420,000	35.1
October	38,900,000	52,090,000	33.9
November	42,620,000	48,600,000	14.0
December	33,520,000	39,050,000	16.5
Total	426,810,000	490,173,000	14.8
Source: Agency Estimates

Costs Per Thousand

Costs per thousand rose across all categories and all channels on average during 2002, with the exception of Channel 4’s Housewives category, which fell by 3.3%. In a marked contrast to the previous year, some of the most significant rises were seen at ITV1, where the Housewives With Children increased by 11.3% and at Channel Five, where the Men category rose by 12%.

Average ITV1 CPT
Category	Average CPT 2001 (p)	Average CPT 2002 (p)	% Change
Adults	725.2	783.4	8.0
ABC1 Adults	1,971.0	2,140.7	8.6
Women	1,202.0	1,318.8	9.7
Men	1,830.0	1,931.0	5.5
Housewives	1,127.0	1,244.2	10.4
Housewives/Ch	4,684.0	5,214.8	11.3

Average C4 CPT
Category	Average CPT 2001 (p)	Average CPT 2002 (p)	% Change
Adults	720.3	751.0	4.3
ABC1 Adults	1,616.0	1,724.9	6.7
Women	1,320.3	1,370.8	3.8
Men	1,588.3	1,661.4	4.6
Housewives	1,190.0	1,150.2	-3.3
Housewives/Ch	4,788.0	5,110.5	6.7

Average C5 CPT
Category	Average CPT 2001 (p)	Average CPT 2002 (p)	% Change
Adults	404.3	424.8	5.1
ABC1 Adults	1,207.0	1,276.6	5.8
Women	757.3	753.3	-0.5
Men	869.3	973.4	12.0
Housewives	640.0	652.8	2.0
Housewives/Ch	2,633.0	2,754.3	4.6

Commercial Impacts

Commercial impacts on ITV1 were down across all audience categories on average during 2002. For the second consecutive year the largest fall was seen in the Housewives With Children category, which was down by 18.9%.

Average ITV Impacts
	Adults	Men	Women	Housewives	Housewives/Ch	ABC1 Adults
Average 2001	23,869	9,479	14,391	15,342	3,694	8,801
Average 2002	19,859	8,078	11,781	12,496	2,996	7,271
% Ch YoY	-16.8	-14.8	-18.1	-18.5	-18.9	-17.4

The story was the same for Channel 4, which saw the most significant year on year reductions in its ABC1 Adults category and its Men category, which were down by 8.5% and 7% respectively during 2002.

Average C4 Impacts
	Adults	Men	Women	Housewives	Housewives/Ch	ABC1 Adults
Average 2001	8,481	3,853	4,628	5,135	1,286	3,784
Average 2002	7,954	3,584	4,370	4,892	1,217	3,462
% Ch YoY	-6.2	-7.0	-5.6	-4.7	-5.4	-8.5

Channel Five saw commercial impacts increase across all audience categories in 2002. The most significant increase was a 7.9% rise in the Women category.

Average C5 Impacts
	Adults	Men	Women	Housewives	Housewives/Ch	ABC1 Adults
Average 2001	4,809	2,238	2,571	3,043	738	1,617
Average 2002	5,038	2,194	2,844	3,283	782	1,670
% Ch YoY	4.8	-2.0	10.6	7.9	6.0	3.3

Cable & Satellite continued to see commercial impacts increase by the most significant amounts during 2002. These included a 24.3% jump in the Women category and a 20.3% rise in the Housewives category.

Average Cable/Satellite Impacts
	Adults	Men	Women	Housewives	Housewives/Ch	ABC1 Adults
Average 2001	9,630	4,882	4,748	5,174	2,211	4,189
Average 2002	11,409	5,509	5,901	6,224	2,541	4,604
% Ch YoY	18.5	12.8	24.3	20.3	14.9	9.9

A summary of the Key events in the Television media during 2002 is available by clicking End Of Year News Round-Up: Television.

Subscribers can access the Television database by selecting “Television” from the drop-down box at the top of this page.