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Multi-Channel TV Overtakes Terrestrial Rivals

Multi-Channel TV Overtakes Terrestrial Rivals

Multi-channel broadcasters are continuing to increase in popularity and have overtaken their main terrestrial rivals in the ratings, according to the latest unofficial viewing figures.

The data shows that multi-channel television accounted for 26.1% of all viewing in the week ending Sunday 20 April, while BBC1 made up 23.9% and ITV1 accounted for 23.8%.

The figures are being seen as further evidence of the migration away from terrestrial channels towards the niche programming of multi-channel TV. They will also provide a boost to the Government’s plans to switch off the analogue television signal by the current 2010 deadline.

The growth of multi-channel TV is likely to prove problematic for the UK’s largest commercial broadcaster, ITV, which depends on large audiences to generate its advertising revenue. Unlike the BBC, ITV has a relatively minor stake in the multi-channel marketplace following the collapse of ITV digital (see ITV Digital Creditors Lose More Than £1 Billion).

However, Andrew Canter, broadcast director at Media Planning, believes that the increasing popularity of multi-channel broadcasters will not prove too detrimental to ITV’s audiences.

He said: “There is no doubt that the migration towards multi-channel TV is a growing trend, which has been accelerated by Freeview entering the market. However, non-terrestrial platforms comprise hundreds of different channels, while ITV1 remains a single channel through which advertisers can reach huge audiences.”

It is clear that the entrance of Freeview into the market has accelerated the migration towards multi-channel TV, which many believe will exacerbate the problem of declining ad revenues at ITV.

However, the BBC views the increasing popularity of the medium as a purely positive development. A spokeswoman for the Corporation said: “The growth of multi-channel TV is a good thing for us because we are platform neutral. We have a strong presence in multi-channel homes, where BBC1 is statistically the most popular channel.”

The BBC believes the viewing patterns seen during the week ending Sunday 20 April were particularly unique due to the Easter holidays. The spokeswoman claimed: “The Easter break saw big movies and sporting events on satellite channels, which increased viewing alongside the fact more people were watching TV because they were on holiday.”

There is little doubt the success of the BBC’s digital endeavours may have a high price for commercial broadcasters and a recent report from Zenith Optimedia has warned that ITV’s audiences could continue to decline during 2003, as Freeview becomes increasingly popular (see ITV Could Lose Audiences To Freeview In 2003).

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