TV Market Round-Up – August 2004

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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…


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).

Total Television Revenue – Aug 2004
Total Revenue% Change
ITV1112,040,000105,370,000-6.0
C442,270,00043,000,0001.7
Five18,650,00019,400,0004.0
GMTV3,600,0004,130,00014.7
Total Terrestrial (inc. GMTV)176,560,000171,900,000-2.6
Total Satellite41,770,00044,200,00016.2
Source: Agency Estimates   

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%.

August ITV Franchise Revenue Share Comparison
StationAu 03Aug 04% Point Change
Scotland6.146.350.21
Anglia TV7.217.350.14
Carlton14.5314.930.40
LWT10.9311.390.46
Central16.4016.21-0.19
North West/Border11.0910.40-0.69
Meridian11.8411.81-0.03
West Country2.062.130.07
Ulster (UTV)2.272.620.35
HTV6.185.64-0.54
Yorkshire/North East11.3411.17-0.17

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.

CPTs
ITV1% Ch YoYChannel 4% Ch YoYFive% Ch YoY
Adults6.874.86.45-4.54.7817.7
Men1810.11571116
Women111.611-12.98.3119
Hwvs101.910-6.97.3117.7
Hwvs/Ch5212.742-16.93433.1
ABC1 Adults208.913.68-6.91518.4

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.

Commercial Impacts
ITV1 Impacts% Ch YoYC4 Impacts% Ch YoYC5 Impacts% Ch YoYSatellite Impacts% Ch YoY
Adults18,594-10.38,0786.44,923-11.615,1646.5
Men7,034-14.63,413-5.02,095-10.37,1410.9
Women11,560-7.54,66516.82,828-12.68,02411.9
Hwvs12,412-7.75,0189.23,215-11.68,3479.5
Hwvs/Ch2,442-16.61,24722.4686-21.93,27312.1
ABC1 Adults6,511-13.63,8109.21,586-12.26,3385.8

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