TV Market Round-Up – September 2004

ITV put in an impressive performance last month with revenues soaring by 9.2% year on year to just under £159 million following the launch of its high-profile autumn schedule.

The latest agency estimates compiled by MediaTel Group highlight public acceptance of ITV’s revamped programme line-up, a success that will serve to repair the damage done to the broadcaster’s revenues by the BBC’s successful Olympic coverage in August (see NewsLine).

ITV has been criticised heavily over recent months, with several high-profile media commentators claiming that the broadcaster is preoccupied with profits at the expense of creating valuable programming content. However, the revamped schedules, along with a new on-screen identity looks set to increase viewer enthusiasm for ITV’s content and should boost viewing figures overall (see ITV To Drop Celebrity Idents As Part Of Rebrand).

Elsewhere, ITV’s rival terrestrial broadcasters put in an equally strong performance during September, with Five proving particularly successful and adding 19.6% year on year to give a total of £27.5 million. The broadcaster’s increase could be due to several high-profile programmes, including the now infamous reality-TV programme, The Farm. The show, a cross between Big Brother and Vets in Practice, grabbed headlines and guaranteed Five consistently large audiences.

Satellite broadcasters maintained their perpetual growth, adding 16.2% to their revenues year on year in September. The sector now brings in over £61.7 million, a figure sure to continue to climb following Sky’s continued efforts to attract more subscribers to its pay-TV service (see Sky Launches Starter Pack To Tempt Freeview Viewers).

ITV Franchises

LWT continued to see the largest revenue share increase amongst the ITV franchises during September, adding 1.63% points year on year to 12.33%. At the opposite end of the spectrum rival London licence Carlton saw a decline in its revenue share, losing 1.20% points to contribute 16.14% of ITV’s total revenue. Central also saw its share of revenue decline by 0.25% points to 15.16%, and North West/Border lost 0.29% points in the same period to contribute 9.80% of the broadcaster’s total.

Costs Per Thousand

All three commercial terrestrial broadcasters saw their costs per thousand rise during September, with ITV leading the board in the Men and ABC1 Adults categories with increases of 23.1% and 18.6% respectively. Channel 4 also increased its costs, adding a significant 22.5% to the Housewives with Children category, however, this was overshadowed by Five’s increase of 25.4% in the same category.

Commercial Impacts

ITV saw declines in its commercial impacts across the board, with particular downward movement in the Men category which fell by 11.4% year on year, along with Channel 4, which dropped by 4.8% in the same period. Five made increases in all but the Housewives with Children category, which fell by 4.7% year on year, while Satellite broadcasters continued to see increases across the spectrum.

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