Sharewatch: ITV Rises As Digital Channel Goes Live
The UK’s largest commercial broadcaster, ITV, saw a rise yesterday, adding 1.17% to close at 108źp. Last night saw the company launch its latest digital channel, ITV3, aimed at older viewers and designed to broaden the broadcaster’s portfolio of viewers.
A last minute deal with BSkyB allowing ITV to purchase its 49.5% share in multi-channel operation Granada Sky Broadcasting also meant that the new channel could launch on Sky’s digital satellite service in place of entertainment channel, Plus. The deal, worth £10 million, also serves to strengthen the new channel, giving it access to an additional catalogue of popular titles from GSB’s back catalogue (see ITV3 Launches On Sky Following GSB Acquisition).
ITV Sales also announced the creation of its long-awaited ‘Values of Fame’ marketing programme next week, in an attempt to convince brands of the benefits of television advertising. The campaign forms part of ITV’s effort to become more client focused, and will centre around the proposition that television is the medium that best guarantees advertisers the ability to build ‘brand fame’ (see ITV Launches Campaign To Boost Television Advertising).
Elsewhere, BSkyB saw its share price rise by 0.44% to close at 510žp following news of its deal with ITV late yesterday. In addition to the sale of Sky’s share in GSB, the satellite superpower now stands to receive 49.5% of any proceeds, net of liabilities, from any sale of ITV’s Men and Motors channel (see ITV Puts Plus and Men & Motors Under The Hammer).
GWR was one of only a handful of media companies to see a decline in its share price yesterday, losing 0.76% to close at 260žp. Yesterday saw news emerge that Capital Radio‘s proposed £711 million merger with GWR could be delayed by up to six months if advertisers and rival radio groups call for a Competition Commission enquiry into the deal (see Capital/GWR Merger Could Face Competition Enquiry).
The FTSE 100 performed well yesterday, with the London market buoyed by bidding speculation surrounding supermarket chain J Sainsbury. The market added 49.6 points to close at 4,673.8, while the FTSE 250 added 39.4 points to close at 6,361.2.
The closing prices of media company shares on Monday were:
