TalkTalk renews X Factor deal as it ups game with pay-TV rivals

TalkTalk has extended its deal to sponsor ITV’s The X Factor as it ups its game in rivaling pay-TV companies such as BT, BSkyB and Virgin Media.

After reporting a positive financial year, adding 150,000 subscribers in the first quarter to become the fastest growing new TV business, TalkTalk has renewed its contract with the popular reality TV show for another three years, estimated at £20 million.

The company believes that The X Factor is a sure-fire way to reach its target market of approximately eight million Freeview digital terrestrial households that are unable to record programmes on set-top boxes – described as “value-seeking” customers.

“You could say it is a Freeview assault, it is the perfect property to be engaged with to drive our TV service,” said Tristia Clarke, commercial director at TalkTalk.

“One of the original reasons for the launch of YouView was a way to enhance Freeview. The sheer scale of X Factor is of course very important, it is the biggest show on UK TV, but it also allows proper engagement with customers. You can make offers, such as tickets, and drive customer engagement in a way you can’t sponsoring, say, drama.”

The company’s idents will air for almost an hour in total across the 12 week series of The X Factor and the same for the US version of the show broadcast on ITV2, bringing the idents’ worth up to more than £10 million at rate card value.

TalkTalk now has 230,000 subscribers and reached revenues of almost £1.7 billion in 2013.