Feature: Channels With “Mass-Appeal” Slip As TV Market Fragments

Terrestrial, free-to-air television channels’ share of viewing is being increasingly cannibalised by the growth of multi-channel, pay-TV in the UK. As Media Track recently showed (see Feature: Pay-TV Channels Account For Almost Half Of All Viewing In Digital Homes), viewing to ITV in digital homes is on the decline, down to 19.6% on average so far this year. As a result ITV’s share in all TV homes has dipped below 30% for the first time.

According to the second quarter Trends in Television report from the IPA, ITV’s share averaged 29.5%. Viewing shares are currently shifting away from the two ‘mass-appeal’ channels, ITV and BBC 1, as newcomers such as Channel 5 and the non-terrestrial stations continue to establish their hold on the market.

BBC1 commands 27% of viewing, but other commercial channels, which include the non-terrestrial stations, have risen from 14.3% to 16.3% quarter on quarter. Channel 5, meanwhile, has managed a 6% share for the first time, up from 5.4% this time last year and from 5.6% last quarter.

Overall, ITV has more of the most popular programmes for adults than the BBC. However, the AB audience’s top twenty programmes show an equal split between the two main channels. In contrast, among DE adults, only 1 programme from the top twenty choices came from the BBC.

ITV has lowered its self-imposed target for share of peak time viewing from 39% last year to 38.5% by the end of this year. In 1999 the Network missed this target by 0.2% points. In the year so far, ITV’s peak time viewing share has averaged 37%, meaning the next six months are critical if the target is to be met. England’s early exit from the Euro 2000 competition earlier in the year will not have helped matters and industry thought is that ITV really needs to reach its targets if it is to justify the rising price of its advertising slots.

It’s not all bad news for the Network though, as a new study by the Billett Consultancy claims that for advertisers a rating on ITV is worth much more than a rating on Sky One where the ad clutter is much higher (see TV Clutter Is Reducing Value For Advertisers, Says Report). “We would encourage advertisers and their media buyers to take this into account when scheduling expenditure,” says the study. Billetts is concerned that using BARB TV ratings figures alone, planners are getting no indication of the clutter created by an increasing number of on air promotions and sponsorships, which are particularly evident in centre-breaks on Sky One.