Originally Posted by rzt:
“Just onto a wider point though, I think one of the reasons why ITV1 has lost so much ratings share in the last decade or so is that they've considerably reduced their programming budget in that time in order to adapt to a changing advertising market, the recession, increased multichannel competition etc - something which probably had to be done, though maybe not to the extent it has been. Since 2003, the main channel's annual budget has been reduced by -20% (after adjusting for inflation) which of course has had a major impact on the choice of programmes they now air and thus a knock-on effect of their ratings. They don't show anywhere near as much drama as they used to, which is the one genre that normally delivers the highest ratings for them on a daily basis (bar the soaps). They've had to seriously cut back on their Saturday night schedule outside of Autumn resulting in some poor schedules which just about have new programming between 7-10pm even though previously it would've been between 6-11pm. They used to show 3 hours of pre-watershed drama (besides the soaps) per week most of the year, now they don't really show any - they can't afford to. They hardly commission anything for post-10pm anymore. They've slashed their news budget, leading to poorer quality news coverage and many viewers switching to alternatives. All these things make a big difference from a ratings point of view because they've replaced those above things which normally have a high ratings-threshold level with generally filler and repeats that have a lower ratings-level. In the meantime since 2003, BBC One's annual programming budget has remained static so they've continued to invest in lots of quality programming for a lot more different timeslots (pre-7pm Saturday, post 10pm, slots up against the soaps etc). And so the ratings gap between the two channels has progressively got bigger and bigger - 8 years ago the two channels had a similar budget, now BBC1 has a 20% bigger budget.
I think ITV need to consider increasing their investment in programming otherwise their main channel ratings share will continue to decline at a pretty rapid rate. Moving the Champions League to Tuesdays isn't going to do anything overall for them ratings-wise, all that's going to happen is Tuesdays will rate better 15-weeks of the year but all the current cheap Tuesday programmes will move over to Wednesdays and Thursdays, the latter day of which will rate considerably worse than it is at the moment. If they want a serious chance of ITV1's ratings increasing or flatlining overall, they have to increase the programme budget and invest in more drama/sport/high-end entertainment. It's a bit like Channel 5 and Sky 1 at the moment, C5 are reportedly spending an extra £40m on their schedule than a couple of years ago to accomodate BB and it's helped them increase their viewing figures (certainly the CBB part anyway), whilst Sky 1's increased investment in original drama and comedy has seen their ratings go up too. If you invest more into your programmes, you'll get the ratings reward. The ITV shareholders would probably disagree with that as long as the company's turning a decent profit, they'd say what's the point in spending more money on programmes. But for the long term future of ITV1, it's surely a bad thing if their programme budget is kept so low compared to the major competitor as viewers will be driven away to other channels and their natural base audience (which used to be 30%, then 25%, then 20%, now more like 15-20%) will simply continue to decline, making it harder for them to launch new hit programmes and that'll bite them in the back in the future when the current set of big-hitters (bar Corrie and Emmerdale which I think will run and run but to slowly declining audiences) fall out of favour with the public and they have difficulty launching new hit programmes.”
rzt - superb, high quality post as ever.
However the question has to be - if ITV invested more in drama would it be profitable? A few thoughts:
1) Your overall summaries of monthly viewing shares vs prior year generally show quite a high level of stability - ie viewing shares (especially on the main 5 channels) don't change much despite all the individual successes and failures discussed on here. I think this shows viewing habits are highly ingrained. Which begs the question - if ITV1 (or indeed C5) invests a lot of extra money, can they gain enough extra viewers to make the extra investment profitable? Sure, viewing figures will rise, but will they rise enough?
2) Competition is still increasing so is it realistic to think that the overall viewing share of a main 5 channel could rise significantly? They are battling against the long term tide. I think recent viewing figures / results suggest a more effective strategy is to build up the digital channels. The budgets of ITV2/3/4 are all tiny compared to ITV1 yet ITV2/3/4 all seem to have a much lower cost per viewer than ITV1 so it may well be better to invest any extra money there rather than in ITV1.
3) Final minor point - is advertising minutage an issue? ie With more adverts during Emmerdale and Coronation Street then the revenue upside elsewhere is constrained.