TV Market Round-Up May 2004

Total terrestrial television revenue jumped up by almost 7% year on year during May to just under the £250 million mark as the sector displayed further signs of emerging from the downturn.

The latest agency estimates compiled by MediaTel Group reveal a strong performance for ITV, which enjoyed a 5.2% increase during the same period to almost £156 million after experiencing a surge in demand for commercial spots during its Euro 2004 coverage (see ITV Set To Score £6 Million From England Game).

However, reports suggest the UK’s largest commercial broadcaster could face a deficit of around £100 million in revenue as growing numbers of big brand big-brand advertisers seek to negotiate more competitive deals following its recent decline in audience share (see Dip In Share Leaves ITV Facing Revenue Shortfall).

Channel 4 also performed positively during May with revenue surging by more than 10% to over £64 million. Advertisers are thought to have paid up to £100,000 for a 30-second spot during the final episode of Friends and the launch of this year’s Big Brother, which attracted record numbers of viewers to the channel (see Channel 4 Hits Ratings High With Friends And Big Brother).

Five enjoyed a healthy 8.3% year on year increase to just under £25 million thanks to its UEFA Cup coverage and Bruce Willis season of action films. However, this was overshadowed by satellite broadcasters, which saw revenue rise by an impressive 21.8% to around £60 million.

Satellite broadcasters received a boost recently with news that BSkyB to launch a free-to-air satellite package of more than 200 television and radio channels in an attempt to compete with the BBC-backed Freeview service (see BSkyB To Launch Free-To-Air Satellite Package).

ITV Franchises

Central experienced the most significant increase amongst the ITV franchises, with its share of revenue increasing by 0.63% year on year during May to 16.42%. Carlton also performed well well with a 0.57% rise to 15.84%. At the other end of the scale, Yorkshire/North East saw its share of revenue decline by 0.60% to 10.18% and Meridian dipped by 0.29% during the same period to 11.91%.

Cost Per Thousand

All broadcasters saw costs per thousand rise across the board during May with ITV and Channel 4 seeing some significant upward movement in the Men category. Five experienced a 12.9% increase in the Housewives category and Satellite broadcasters saw a 14.3% jump in the Housewives with Children category.

Commercial Impacts

Both ITV and Channel 4 saw commercial impacts dip across almost all categories last month. The former saw a 14.8% decline in the Housewives with Children category and the latter experienced a 2.4% drop in the Housewives category. Meanwhile, Five saw a 5.1% increase in the Women category and Satellite broadcasters experienced an 11.9% rise in the Housewives category.

Subscribers can access ten years of media news and analysis in the Archive