Adam Boulton
ITV: The Long View
March 05, 2008

350_itvSky News business editor Michael Wilson

The bar of Rover's Return is a welcome retreat from the merciless glare of the midday sun. And no, I'm not talking Wetherfield, but the Rover's in Aq'aba, Jordan.

Under the poster of a plumpish Bet Lynch, and squirted from a Newton and Ridley pump, the rather thin 'beer' finds a thirsty appreciation from locals and expats alike. The fish and chips aren't bad either.

But importantly, as far as Corrie's owners are concerned, it's an international endorsement of a powerful brand, something which they need to exploit if ITV is to make its shareholders happy again. How the veteran TV company gets there though, will be a long haul.

Since Michael Grade joined the company in 2007, the share price has fallen by 36% and audiences have slipped away.

There are many more hands in the advertising pot than there used to be, and its audience share is always going to be diluted by the proliferation of other media, not just in television and radio but in the explosion of trendy online outlets.

So, what of today's results? ITV announced annual profits down by 35%, but said its 'turnaround plan is on track', according to its executive chairman, Michael Grade.

The finance director John Cresswell told me that he'd be happy to be judged on ITV's success in three or four years time. I also spoke to industry observer and ex-BBC and Carlton man Steve Hewlett, who thinks that no matter what the future success of ITV1, the station's main channel,'where's the growth story for investors?'.

His view is that if you look at the figures, ITV should be split into a broadcast company and a content company.

That was a possibility when private equity companies were poking around last year – but others now believe that with debts just below £1bn ITV is too expensive to be a private equity target.

For now. Grade's team is a strong one. Dawn Airey, ex-Sky, will do well with the company's product distribution, say the pundits.

Peter Fincham, former programme controller of BBC1 was a steal and ebullient Rupert Howell, director of 'brand and commercial' brings a long pedigree of advertising experience to the company.

The task, according to one of the most successful independent television producers, Peter Bazalgette,is this. It is, unsurprisingly, all about good programmes. He told me: 'television companies used to be called broadcasters because they were defined by their method of distribution.

Now there's been a shift of gravity. Now they need to be creators of branded content. They need hits that they own from which they can create products, properties and downloads on digital and web sites they can exploit - and they need to use secondary channels to launch new shows.

They need great dramas, to attract huge audiences, with a modern feel'. But ITV's real strength is No other commercial 'broadcaster' or 'branded content creator' can do that.

Even if, in five years' time, its audience share goes down to an expected 15%, that's still a lot of people. Michael Grade and co simply need to give them something good to watch. On telly, that usually does the trick.

Written by Sky News Business Team, March 05, 2008

Comments

Sir
It appears that the curse of the BBC has long last engulfed its way through eye TV as many a programme neither delights nor provides much to the entertaining cell.
Since the revamp of commercial teresstrial TV, digital platforms as used by http://www.sky.com not only provide greater viewer interactivity but affordable multi camera options as viewed when viewing http://www.sky.com/sports on said Sky digital platform.
Television has been further ruined by virtue of the so called competitive edge many a political head so laboriously acclaim, whilst Ofcom have done nothing to ensure creative programming.
Any way, if they want to give their viewers something new, fresh and enjoyable, they need not say [Son I Que] and just subscribe to http://www.[Sky].com and watch a movie or two in front of a cosy fire.
And if you press the red button on your digital remote control, theres a surprise for you on channel 501
Enjoy!


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