TV Market Round-Up – April 2004

Total terrestrial television revenue increased by a healthy 3.4% year on year during April to just under the £238 million mark as the Easter break helped to attract advertisers to the small screen.

The latest agency estimates complied by MediaTel Group reveal a positive performance for each of the UK’s terrestrial broadcasters, with ITV seeing revenue rise by 1.6% during the same period to more than £148 million.

The UK’s largest commercial broadcaster is preparing to see revenue surge over the coming months as advertisers clamber for commercial spots during its coverage of the forthcoming European 2004 football championships.

Reports suggest that a single 30-second spot during the Euro 2004 tournament could cost advertisers between £250,000 and £300 000, with the premium for appearing during an all-important England game pushing the rate to around £350,000 (see ITV Sees Revenue Surge As Euro 2004 Approaches).

Meanwhile, things were also looking up for Channel 4, which saw revenue increase by 4.7% year on year to more than £60 million. The channel is expecting to experience a bumper May with advertisers looking set to pay up to £100,000 for a spot during the final episode of Friends later this month (see Advertisers Line Up For Channel 4 Friends Finalé).

The most impressive performance came from Five, which saw revenue rise by a notable 13.2% during April to top £24 million. Speculation over the future of the UK’s smallest commercial broadcaster has been rife since RTL hired investment bank JP Morgan to consider all the options for its stake in the channel, including off-loading its shareholding if there is deemed to be little opportunity for expansion in the UK (see RTL Hires JP Morgan To Help Boost Stake In Five).

Satellite revenue continued to rise in year on year analysis with non-terrestrial broadcasters experiencing a 16.5% year on year increase to just below the £69 million mark. Earlier this month it was revealed that the number of UK homes with access to multi-channel television reached 11.5 million in the first quarter of this year (see Freeview Pushes UK Multi-Channel Homes To 11.5 Million).

ITV Franchises

Scotland experienced the most significant increase amongst the ITV franchises, with its share of revenue increasing by 0.52% year on year during April to 6.61%. North West/Border also performed well with a 0.50% rise to 10.50%. At the other end of the scale, Central saw its share of revenue decline by 0.66% to 16.06% and Meridian dipped by 0.38% during the same period to 11.86%.

Cost Per Thousand

All broadcasters saw cost per thousands rise across the board during April, with the exception of Channel 4, which saw a 5.2% decline in the ABC1 Adults category and a 2.4% drop in the Housewives with Children category. ITV1 experienced a notable 14.1% increase in the Men category and Five saw a 12.1% rise in the Housewives with Children category.

Commercial Impacts

ITV1 saw commercial impacts decline across all categories year on year during April, with an 11% dip in the Men category and a 9.9% drop in the Housewives with Children category. Meanwhile, Channel 4 and Five both saw some significant upward movement in the ABC1 Adults category, which rose by a respective 10.5% and 6.7%. Satellite broadcasters experienced a notable 14.3% increase in the Housewives category.

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