TV Market Round-Up – March 2004

Total terrestrial television revenue dipped by 4.4% year on year during March ahead of the upsurge expected when coverage of the Olympics and the Euro 2004 Football championships begins later this year.

The forthcoming sporting events are expected to provide a much needed boost to terrestrial advertising revenue, which slipped below the £210 million mark last month, despite talk of the industry’s recovery gaining momentum (see Recovery Slowly Gathers Pace For UK Advertisers).

Billetts predicts the Olympics and the Euro 2004 Football championships will help boost the total television airtime market by 3.0% during 2004, as advertisers flock to associate themselves with two of the biggest events in the sporting calendar (see Television Advertising Revenue To Rise By 3% This Year).

ITV was the worst hit with revenue dropping by 5.7% year on year to just over £132 million. However, the UK’s largest commercial broadcaster recently announced that it is continuing to perform satisfactorily with revenues for April and May expected to rise by 2.5%.

Channel 4 suffered a 2.5% year on year decline to just over £52 million and is expected to be further hit as its long-running ratings winners Friends and Frasier come to end. However, the broadcaster saw profits triple last year after holding advertising revenues flat during 2003 and cutting non-programme costs to focus on its core business (see Outlook Improves For Channel 4 As Profits Triple).

Five also failed to escape the Spring downturn with advertising revenue dropping by 0.7% during the same period to just over the £20 million mark. Last month the broadcaster acknowledged that it needs to forge closer links with commercial rivals such as Channel 4 or BSkyB if it is to survive in the increasingly competitive multi-channel environment (see Five To Link With Rivals For Survival In Digital Age).

Satellite channels continued to go from strength to strength in March with revenue rising by 19.1% to almost £58 million. However, Ofcom recently warned that just 78% of British households are likely to have adopted digital television in time for the proposed 2010 deadline for the switch-off of the analogue signal (see Government Set To Miss Deadline For Digital Switch).

ITV Franchises

LWT saw the most significant downward movement amongst the ITV franchises with its share of the broadcaster’s overall revenue dropping by 1.24% points during March to 10.40%. Central also performed poorly with a 0.80% points decline during the same period to 17.24%. However, at the other end of the scale, Yorkshire/North East enjoyed a 0.65% points increase in its share of revenue to 11.08% and Carlton improved by 0.52% points to 14.35%.

Cost Per Thousand

Commercial impacts fell across the board during March, with ITV experiencing a notable 8.3% year on year drop in the both the Women and Housewives categories. However, Channel 4 saw a more significant 20.2% dip in the Housewives with Children categories and Channel Five dropped by 7.3% in the ABC1 Adults category during the same period.

Commercial Impacts

Commercial impacts rose virtually across the board during March, with the exception of ITV, which saw a 3.7% year on year drop in the Men category and a 1.8% dip in the ABC1 Adults category. Channel 4 experienced a slight 0.4% decline in the Men category, but this was off-set by a 9.9% increase in the Women category. Satellite channels saw the most significant upward movement with a notable 26.8% increase in the Housewives category.

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