ITV ad revenue loss the lowest under CRR

by Emma Barnett, Media Week 11-Dec-07, 08:30

LONDON - ITV is set to lose £18m in ad revenue in 2008, its lowest loss since the inception of the contract rights renewal mechanism in 2004, according to TV buyers. This year it lost around £59m across its channels and £170m in 2006.

It has been estimated that ITV1 will lose 1.5% from its CRR position, but retain 1% through its digital channels.

Channel 4 is still expected to be the main beneficiary of the overall loss, despite disappointing figures on its main channel over the summer and autumn periods.

Agency TV directors said that Five could also benefit to a lesser extent because its digital channels have shown growth and Neighbours is set to debut in January.

TV buyers have also predicted that approximately 1% of spend will be pulled from Sky after continuing problems with its sales and bookings system and deals that have failed to be delivered following the loss of 3.3 million Virgin Media customers to Sky basic channels. It is said to be over-traded by at least £10m in TV ad deals this year.

Starcom MediaVest group UK trading director Chris Locke said: "I expect [Virgin Media, UKTV and Setanta sales house] IDS to be the main beneficiary from Sky’s losses. If agencies are looking to buy cheaper for their clients and for good value, then IDS is the way to go. It’s probably its turn to grow its business."

However, another agency’s head of broadcast, said: "IDS is being quite punchy, but it has only got one real story to tell, with Dave. It should do well, but it will hit a plateau because there is only so much you can give those types of channels."

Richard Oliver, head of investment at Universal McCann, said: "It's all very tight this year. ITV is holding on to most of what it’s got, C4 isn’t moving back and IDS is set to benefit from Sky's loss.

"Five is the channel where there could be many outcomes.

"There’s not much spare cash and its reasons for growth aren’t that compelling. It will need to battle to stand still."