TV Market Round-Up – January 2005

Channel 4 performed admirably throughout January, marking an excellent start to the year for the broadcaster with a 16.5% increase in revenues year on year, pushing its total to more than £55 million. Channel 4 recently announced that the beginning of the year had brought its best January in five years, with the broadcaster’s audience share reaching 10.3%, an achievement echoed by the company’s expanding revenues (see Channel 4 Sees Best January In Years After Audience Boost).

Five also performed well in January, increasing revenues by 14.9% year on year to just over £21 million. The company’s impressive rise in revenues surpassed that of ITV, which saw an increase of 12.1% in the same period. ITV remains the highest earning terrestrial broadcaster, with revenues approaching £130 million.

GMTV also saw a rise in revenues at the beginning of the year, but struggled to break the 1% mark, adding 0.7% year on year. The breakfast broadcaster recently announced the departure of iconic presenter Eamonn Holmes who has presented in the early morning slot since GMTV’s launch in 1993 (see Holmes Quits GMTV After More Than A Decade).

Satellite revenues also increased in January, adding 18.5% year on year to surpass the combined rises of terrestrial broadcasters, which added 13.3% in the same period.

ITV Franchises

Revenue shares amongst ITV’s francises remained fairly stable throughout January, with none of the broadcaster’s regional operations breaking the 1% point change mark in either increase or decline. London based LWT put in the largest increase, adding 0.5% points to contribute 12.28% of ITV’s total revenue, while fellow london operator, Carlton, added 0.3% points in the same period, accounting for 15.3% of the broadcaster’s total.

Scotland saw the largest downturn in comparison to other ITV franchises, although minor overall, losing 0.3% points year on year to contribute 6.53 of ITV’s total.

Costs Per Thousand

ITV saw the most dramatic change in its costs per thousand during January, with double digit percentage increases across the board. The largest rise came in the Housewives with Children category, in which ITV rose by 45.1% year on year. Five also saw a substantial rise in the category, adding 8.1% in the same period, while Channel 4 saw its cost drop by 10.2%.

The decline was the only cost reduction in any category by any broadcaster in January, with both ITV and Five seeing rises in all categories. Five saw its largest increase in the Men category, rising by 18.6%. January saw the broadcaster looking likely to acquire the rights to screen cricket highlights after satellite giant BSkyB applied for consent from Ofcom to broadcast exclusive live coverage of matches played in England in 2006-2009 (see Five Set To Scoop Cricket Highlight Broadcast Rights).

Commercial Impacts

ITV saw sharp declines in its commercial impacts during January, with the largest downturn occuring in the Housewives with Children category, down 22.7% year on year. The broadcaster also saw impacts dip by double figures in its Men and Adults categories, shedding 11.7% and 10.2% year on year.

Five also saw a decline in the Men category, losing 3.1% year on year while Channel 4 was the only terrestrial broadcaster to see increases across the board. In contrast to ITV’s performance over the same period Channel 4 notched up an increase of 29.8% in the Housewives with Children category, and also enjoyed growth of 10.6% in the Men sector.

Satellite impacts continued to grow across the board at the beginning of the year, with Men leading the way at 20.8% up year on year.

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