Matt Cook
31-08-2004, 11:35 PM
MC: This is a major sign of commercial confidence in the UK DTT system.
Presently, a large proportion of digital only channels are partially or
fully owned by the UK government or are full of infomercials.
Seven has historically followed ITV in a number of ways. Seven's proposed
subscription DTT service was a very similar idea to ITV's OnDigital (later
ITV Digital). Hopefully the government will change the law, and Seven will
again be inspired by ITV's actions.
This move can also be seen as a sign that if a government sufficinently
backs a DTT platform by providing enough good channels, commercial
opperators will follow. Perhaps this is a lesson for our federal government.
ITV to launch five new digital channels
Owen Gibson in Edinburgh
Tuesday August 31, 2004
ITV chief executive Charles Allen is to launch up to five new digital
channels to rival the BBC in an effort to stay ahead in the multichannel
world.
The network currently operates two channels and is about to launch a third,
ITV3, but Mr Allen said this wasn't enough to ensure ITV remained a force in
an all-digital TV age.
He refused to say what the new channels would be but hinted that one could
be a children's service in conjunction with a US broadcaster.
"We'll see much more collaboration, particularly in the area of children's.
I do see us partnering with international partners to get more money
onscreen. We're talking to everybody," said Mr Allen.
The ITV chief executive is currently working on a disposal programme to
reduce the company's £700m debt that it inherited from Carlton after the
merger with Granada TV.
This has restricted the expansion of the network and its ability to grow
through acquisition. Mr Allen said it will be interested in buying
properties that come on the market, including elements of the BBC's
commercial operations that may come up for sale following a review by the
corporation's chief operating officer, John Smith.
However, he admitted he would not be in a position to make any moves for
about a year because of the debt situation.
It is also not clear if two of the five new channels - which will be
launched over the next five years - will be rebranded versions of Granada's
joint venture channels with BSkyB, Men & Motors and golden oldie station
Granada Plus.
Mr Allen said that within five years ITV would have a portfolio of digital
channels to rival the BBC's eight services. The corporation has six digital
channels in addition to BBC1 and BBC2, including youth service BBC3, arts
channel BBC4 and children's channels CBeebies and CBBC.
He said that the broadcaster, which has been hit recently by poor summer
ratings and a falling share price, needed to expand its portfolio if it was
to retain a strong position in an all-digital market.
Its decision to launch more channels comes two and a half years after the
£1bn-plus digital TV fiasco and the shaky start of ITV2, which has recently
seen its viewing share grow thanks to spin-off shows to big hits such as I'm
a Celebrity... Get Me Out of Here!.
As take-up of digital TV continues to rise in the run-up to the digital
switchover expected in 2012, ITV will continue to lose viewers and so hopes
to make up the difference by launching its own spin-off channels.
The ITV managing director, Mick Desmond, confirmed the broadcaster was
already in serious discussions over the nature of the new channels, but said
they would not be announced until ITV3 had been launched.
Mr Allen said that, as well as launching more ITV branded channels, the
broadcaster would continue to run GSB, its joint venture with BSkyB that
broadcasts channels such as Granada Plus and Men & Motors. "GSB has been
successful and we will continue to run it," he insisted.
ITV3, aimed at a 35-plus audience and featuring reruns of archive shows
between one and five years old, will launch this autumn.
The broadcaster announced earlier this year it would pour an extra £36m a
year into its digital strategy and set a new target of making £150m a year
from advertising on the channels by 2005.
Speaking at the MediaGuardian Edinburgh International TV Festival, Mr Allen
also renewed his lobbying campaign to persuade Ofcom to drop its public
service commitments to religion, children's and regional non-news
programming.
The broadcaster is also campaigning for a reduction in the £200m in licence
fees it pays to the Treasury.
"We haven't had the debate. What do we want it to be in the digital world
going forward? The two things I'm putting on the table are our regional
programming and national and international news," Mr Allen said.
"We're principally a drama channel - drama and major events. You'll see us
focusing on drama, on factual and on big events."
Despite admitting the broadcaster had endured "a tough six weeks", during
which its audience share dipped to record lows, Mr Allen promised ratings
would come back strongly in the autumn.
"We've had a tough six weeks. We've had the Olympics, we didn't expect Big
Brother to be as big as it was," he said. In the autumn, the channel will
launch a big marketing push behind four or five big shows that Mr Allen
hopes will be the cornerstone of the schedule.
Ahead of the company's annual results, Mr Allen said it would unveil
advertising revenue growth of 4.5%, the biggest rise since the dotcom boom
in 2000. He said the full year would see growth of between 4.5% and 5%.
Presently, a large proportion of digital only channels are partially or
fully owned by the UK government or are full of infomercials.
Seven has historically followed ITV in a number of ways. Seven's proposed
subscription DTT service was a very similar idea to ITV's OnDigital (later
ITV Digital). Hopefully the government will change the law, and Seven will
again be inspired by ITV's actions.
This move can also be seen as a sign that if a government sufficinently
backs a DTT platform by providing enough good channels, commercial
opperators will follow. Perhaps this is a lesson for our federal government.
ITV to launch five new digital channels
Owen Gibson in Edinburgh
Tuesday August 31, 2004
ITV chief executive Charles Allen is to launch up to five new digital
channels to rival the BBC in an effort to stay ahead in the multichannel
world.
The network currently operates two channels and is about to launch a third,
ITV3, but Mr Allen said this wasn't enough to ensure ITV remained a force in
an all-digital TV age.
He refused to say what the new channels would be but hinted that one could
be a children's service in conjunction with a US broadcaster.
"We'll see much more collaboration, particularly in the area of children's.
I do see us partnering with international partners to get more money
onscreen. We're talking to everybody," said Mr Allen.
The ITV chief executive is currently working on a disposal programme to
reduce the company's £700m debt that it inherited from Carlton after the
merger with Granada TV.
This has restricted the expansion of the network and its ability to grow
through acquisition. Mr Allen said it will be interested in buying
properties that come on the market, including elements of the BBC's
commercial operations that may come up for sale following a review by the
corporation's chief operating officer, John Smith.
However, he admitted he would not be in a position to make any moves for
about a year because of the debt situation.
It is also not clear if two of the five new channels - which will be
launched over the next five years - will be rebranded versions of Granada's
joint venture channels with BSkyB, Men & Motors and golden oldie station
Granada Plus.
Mr Allen said that within five years ITV would have a portfolio of digital
channels to rival the BBC's eight services. The corporation has six digital
channels in addition to BBC1 and BBC2, including youth service BBC3, arts
channel BBC4 and children's channels CBeebies and CBBC.
He said that the broadcaster, which has been hit recently by poor summer
ratings and a falling share price, needed to expand its portfolio if it was
to retain a strong position in an all-digital market.
Its decision to launch more channels comes two and a half years after the
£1bn-plus digital TV fiasco and the shaky start of ITV2, which has recently
seen its viewing share grow thanks to spin-off shows to big hits such as I'm
a Celebrity... Get Me Out of Here!.
As take-up of digital TV continues to rise in the run-up to the digital
switchover expected in 2012, ITV will continue to lose viewers and so hopes
to make up the difference by launching its own spin-off channels.
The ITV managing director, Mick Desmond, confirmed the broadcaster was
already in serious discussions over the nature of the new channels, but said
they would not be announced until ITV3 had been launched.
Mr Allen said that, as well as launching more ITV branded channels, the
broadcaster would continue to run GSB, its joint venture with BSkyB that
broadcasts channels such as Granada Plus and Men & Motors. "GSB has been
successful and we will continue to run it," he insisted.
ITV3, aimed at a 35-plus audience and featuring reruns of archive shows
between one and five years old, will launch this autumn.
The broadcaster announced earlier this year it would pour an extra £36m a
year into its digital strategy and set a new target of making £150m a year
from advertising on the channels by 2005.
Speaking at the MediaGuardian Edinburgh International TV Festival, Mr Allen
also renewed his lobbying campaign to persuade Ofcom to drop its public
service commitments to religion, children's and regional non-news
programming.
The broadcaster is also campaigning for a reduction in the £200m in licence
fees it pays to the Treasury.
"We haven't had the debate. What do we want it to be in the digital world
going forward? The two things I'm putting on the table are our regional
programming and national and international news," Mr Allen said.
"We're principally a drama channel - drama and major events. You'll see us
focusing on drama, on factual and on big events."
Despite admitting the broadcaster had endured "a tough six weeks", during
which its audience share dipped to record lows, Mr Allen promised ratings
would come back strongly in the autumn.
"We've had a tough six weeks. We've had the Olympics, we didn't expect Big
Brother to be as big as it was," he said. In the autumn, the channel will
launch a big marketing push behind four or five big shows that Mr Allen
hopes will be the cornerstone of the schedule.
Ahead of the company's annual results, Mr Allen said it would unveil
advertising revenue growth of 4.5%, the biggest rise since the dotcom boom
in 2000. He said the full year would see growth of between 4.5% and 5%.