News that Michael Grade is to give up as ITV chief executive has sent the papers into a spin in search of the next CEO. Most focus on the business problems caused by the recession which has turned Grade's tenure at ITV into a particularly awful time. The notion that the network's programme performance has improved is widely accepted - as is often the case with Michael Grade, timing is everything and in this case he's bowing out while Britain's Got Talent is enjoying a spectucular run, fired up by the YouTube phenomenon Susan Boyle.
There is a problem with the 'programmes good, business bad' spin on ITV. It is that the network's fortunes depend entirely on a handful of mega-shows which eclipse almost all other shows, including the soaps. There's a widespread belief that the network's schedule is in transition - yet at 6pm it still has the unloved regional news shows. We'll know the transition is really in full-swing when ITV1 schedules a chatshow or quiz at 6pm.
For all that it says it has changed, ITV1 remains an old-fashioned network with a few contemporary hits. So although Britain's Got Talent audience figures are crucial to ITV's audience figures, the company's financials point to its long term future. As the FT reported this morning: "A company with a market capitalisation of £4.4bn before Mr Grade’s revival plan is now worth less than £1.3bn."
In fact it says something about the fragility of the schedule improvement that a show like Hell's Kitchen, stripped across primetime and generously resourced, is only drawing around 4 million. But even if Hell's Kitchen had rated at double that figure last night, would it make much difference in the context of that capitalisation number?
Best not to let Talent's success create a false sense of security. It's difficult to see ITV surviving much longer as an independent company. When Michael Grade first joined ITV I wrote in my column that he tends to be a lucky guy - Britain's Got Talent gave him an almost immediate boost. Actually, on reflection, he's really a guy with great timing, and this week's announcement show's he hasn't lost his touch.
Friday, April 24, 2009
Wednesday, April 15, 2009
When it works...
When it works, ITV1's schedule can look very good. And when it has exciting live football or big entertainment, ITV1 works. So the eight goal drama of Tuesday night's Chelsea vs Liverpool in the Champions League, peaked just short of 10 million viewers. And,better still there was 10.5 million/45% share for the return of Britain's Got Talent on Saturday night.
But such successes put into relief other programmes which perhaps should do better - Hell's Kitchen being the latest example, returning on Monday with 5 million/21% share.
Saturday night's primetime share was 26% and Tuesday's was 27%. But Monday was just 23%.
As I said, when it works, ITV1 can still look very good.
But such successes put into relief other programmes which perhaps should do better - Hell's Kitchen being the latest example, returning on Monday with 5 million/21% share.
Saturday night's primetime share was 26% and Tuesday's was 27%. But Monday was just 23%.
As I said, when it works, ITV1 can still look very good.
Wednesday, April 01, 2009
Fifteen Million Quids-worth of Concrete
When people ask me if the BBC's Mediacity currently being built in Saldford will be good for my business, I usually say 'I hope so' or 'I'm sure it will be good for the North West'.
I sometime add that what would be more interesting to me, as a North West-based independent, would be a fund, of say £20m, which I and other indies could bid for programmes. Rather than an office block, which looks nice, and accomodates BBC staff.
On Tuesday I heard a figure which made me re-think those responses when one of the consultants currently fitting out Mediacity told a conference in Salford that £15m a month was being spent on pouring concrete into the three BBC Mediacity office block buildings (which are called, imaginatively A, B and C).
Suppose the developers had one less month of concrete and instead put that £15m into a programme fund, to be spent at a rate of £5m a year for three years on independent production from the North. That would have a transformational impact on the production sector.
Of course the BBC will argue that it is not spending £15m a month on concrete - it will be renting the completed buildings from the developers. But it's still BBC money that will pay for the buildings ultimately. Maybe Towerblock C would have to be a couple of floors lower than A and B if there was £15m less concrete. But by the time the BBC arrives in 2011, that £5m a year could have stimulated a vibrant production sector to work alongside the incoming BBC staff.
I sometime add that what would be more interesting to me, as a North West-based independent, would be a fund, of say £20m, which I and other indies could bid for programmes. Rather than an office block, which looks nice, and accomodates BBC staff.
On Tuesday I heard a figure which made me re-think those responses when one of the consultants currently fitting out Mediacity told a conference in Salford that £15m a month was being spent on pouring concrete into the three BBC Mediacity office block buildings (which are called, imaginatively A, B and C).
Suppose the developers had one less month of concrete and instead put that £15m into a programme fund, to be spent at a rate of £5m a year for three years on independent production from the North. That would have a transformational impact on the production sector.
Of course the BBC will argue that it is not spending £15m a month on concrete - it will be renting the completed buildings from the developers. But it's still BBC money that will pay for the buildings ultimately. Maybe Towerblock C would have to be a couple of floors lower than A and B if there was £15m less concrete. But by the time the BBC arrives in 2011, that £5m a year could have stimulated a vibrant production sector to work alongside the incoming BBC staff.
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