TV Market Round-Up – August 2004

ITV put in a relatively lacklustre performance last month with revenue dipping by 6% year on year to just over £105 million as it struggled in the face of increasingly tough competition.

The latest agency estimates compiled by MediaTel Group reveal a disappointing performance for the UK’s largest commercial broadcaster, which was hard hit by the success of the BBC’s Olympic coverage and a bumper summer for Channel 4.

However, ITV is putting its faith in a strong autumn schedule which includes a range of new dramas and star-studded entertainment shows. This already appears to be paying off with figures revealing a strong performance for lynch pin shows Parkinson and Doc Martin (see Parkinson Gives Boost To ITV’s Saturday Schedule).

Meanwhile, Channel 4 put in a more positive performance with revenue inching up by 1.7% during August to £43 million, despite the absence of ratings winners, Friends and Big Brother, from its peaktime schedule. Chief executive, Andy Duncan, is currently looking to at ways to future-proof Channel 4 and is considering strategic links with the BBC (see Channel 4 Confirms Intention To Link With BBC).

Five saw revenue rise by a solid 4% year on year to just over £19 million, but this was overshadowed by an impressive 14.7% increase for GTMV, which bucked the downturn affecting ITV to see revenue top the £4 million mark. ITV is currently attempting to buy Scottish Media Group’s 25% stake in the breakfast television franchise in a move that has caused concern amongst advertisers (see IPA Demands Separate Sales House For ITV-Owned GMTV).

Satellite broadcasters continue to go from strength to strength with revenue rising by more than 16% during August to £44,2 million. The latest figures from Ofcom show that total number of UK households with access to digital television increased to 55% in the second quarter of this year, up from just 53% in the previous quarter (see Digital Penetration Increases As Deadline Looms).

ITV Franchises

LWT experienced the most significant increase amongst the ITV franchises, with its share of revenue rising by 0.46% points year on year during August to 11.36%. Rival London licence Carlton also performed well with a 0.40% points rise to 14.93%. At the other end of the scale, Northwest/Border saw its share of revenue decline by 0.69% points to 10.40% and HTV dipped by 0.54% during the same period to 5.64%.

Costs Per Thousand

Channel 4 saw costs per thousand drop across the board during August, with the exception of the Men category, which increased by 7% year on year. ITV saw a significant 12.7% increase in the Housewives with Children’s category, but this was overshadowed by a more notable 33.1% rise in the same category for Five.

Commercial Impacts

Both ITV and Five saw commercial impacts decline across the board year on year during August, with heavy downward movement in the Housewives with Children category. Channel 4 saw a 5% dip in the Men category and Satellite broadcasters once again saw positive growth across all sectors.

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