Earnings: ITV Hurt By Ad Falls While Online Relaunch Faces Further Delays
By Robert Andrews - Thu 17 May 2007 03:04 AM PST
A digital plan can’t come soon enough for ITV but its mysterious new website has now been delayed again. First-half advertising revenue at main channel, ITV1, fell 9.6 percent (overall ad sales down 5.7 percent) because, under regulators’ rules, it is not able to raise ad rates in the face of falling viewer numbers. Meanwhile, its revenue from premium-rate phone-ins is down 20 percent after it canceled its ITV Player quiz show channel following public outcry over voting scandals.
Successive poor content offerings have turned viewers to multichannel alternatives so, amid the gloom, ITV is trying to trumpet its portfolio of digital TV channels (but no figures to indicate their success) and its $40 million VOD-heavy website relaunch. The new ITV.com was originally scheduled for March, then a launch event was held in May to say it’s coming “soon”, but the detail in the broadcaster’s statement to the annual general meeting reveals a further delay: “On May 1, we held a press launch for our new broadband offering, ITV.com, which we are confident will be the most comprehensive website offered by any UK commercial broadcaster. ITV.com will provide an attractive, free service to consumers and compelling online opportunities for our advertisers. ITV.com launches to consumers this summer and will offer live streaming of ITV’s channels, a 30 day catch-up service and a ‘best of ITV’ archive. Our regional broadband TV service, ITV Local, has been extended to the London and Central regions and now covers 45% of the UK population.”
The sooner ITV can get its online act together and take advantage of the web advertising boom, the sooner it can hope to shore up its bottom line.
Posted in: Advertising, Countries, UK & Europe, Entertainment, Media, TV, VOD, Money, Earnings
