Originally Posted by mlt11:
“How do you think it's looking financially?
Is it worth spending £40m to boost ratings by 0.3m for approx an hour a day even over a few months?
And then you've got to allow for the decline in ratings of other programming as set out in your post.
OK, CBB did significantly better but that was only for a much shorter time period.
It looks pretty questionnable to me.”
Having done some rough sums, I think you're right: it's looking questionnable.
Channel 5 are paying reportedly £40m per year for BB - it might be true, it might not be true, but this is the rough amount we have to assume based on what we've heard. Let's take off about £5m for the spin-off shows, meaning that for the main show itself it's probably costing C5 c.£35m for 93 hours this year = ~£380,000 per hour.
Celebrity Big Brother averaged 2.5m in the overnights. About 32%, I'd say on average, of its audience were aged between 16-34, meaning it had about 0.8m 16-34s watching throughout the series.
I don't know for sure how much it costs an advertiser to reach 1000 16-34s on Channel 5. It'd certainly be lower than the £42 figure for ITV1.
This page suggests that on C5 the cost per thousand for 16-34 Men is about £50 (on ITV1 it's about £110). So taking that into account, it would suggest that CPT 16-34 adults on C5 (in relation to ITV1's £42) would be just under £20. This correlates with a CPT figure of £28 on C4 as seen
here (you'd expect C5 to be less than C4). But let's be generous and say reaching 1000 16-34s on C5 costs about £30 (even though it could well be less than that!).
With an average of 0.8m 16-34s watching CBB, it would generate ad revenue of about £580k per hour (and remember each hour costs about £380k). So a revenue ratio for CBB of 1: 1.5. Pretty good.
Now for normal Big Brother, highlights shows have been averaging 1.4m so far. Let's say that with the launch and higher rated Friday 9pm eviction shows included, it'll average roughly 1.6m (this once again is being quite generous, as ratings for HLs could well fall in subsequent weeks). With about 32% of its audience in the 16-34s, that suggests on average about 0.5m in that age bracket watches. With a CPT of £30 for 16-34s, that suggests ad revenue would be roughly £360k per hour during normal BB, in line if not slightly under how much the show is costing C5 per hour (~£380k if reports are in the right ballpark). So the revenue ratio for normal BB is looking like 1: 0.9/1.0. Not good.
So when you factor in that about 23 hours of CBB is at a revenue ratio of 1: 1.5 and 70 hours of normal BB is at a ratio of 1: 0.9-1.0, overall for the 93 hours they're looking at a ratio of about 1: 1.0-1.1.
So not too good, really. IF the £40m budget figure quoted is correct (this is important- if it was £30m/yr it'd make a noticeable difference in the results), then I don't think they'll be making much, if any, profit from the acquisition overall from C5's POV (perhaps Desmond's other assets such as Daily Star/OK magazine will experience more of a boost). If they are making a profit, it's not really looking like a substantial amount (i.e. a ratio of 1: 2). Remember, however, all of the above is based on ifs and buts (with regard to the budget, CPTs, next few weeks' ratings etc), so don't take it too seriously!