ITV has had a terrible start to 2006, with media buyers estimating that advertising bookings on its flagship channel are down by as much as 14 per cent in the first quarter, The Times has learnt.
The broadcaster is suffering from a loss of viewers, a weak market and a series of bruising negotiations with media buyers in which one leading group has withheld bookings.
Buyers say that ITV1 has booked about £352 million of business in the first quarter, down £55 million on the same period last year. The picture is similar when ITV’s digital channels are included, with revenues standing at £390 million, down 10 per cent from last year’s £432 million.
The weak performance comes amid weekend reports that shareholders, including Brandes and Fidelity, have been considering a demerger of the broadcaster. The plan, being drawn up by unidentified rebel shareholders, would involve the demerger of ITV’s production operation from the broadcasting business. ITV has denied that it is contemplating a demerger, although the rebel shareholders’ plan has reportedly been presented to Brandes, which owns 7 per cent of ITV, and Fidelity, a 14 per cent stakeholder.
ITV, which is due to report full- year results next month, has signalled that it expected a weak start to the year, but the figures demonstrate how far the commercial broadcaster is struggling against a resurgent Channel 4.
The company has also been in dispute with Group M, the powerful media-buying agency owned by WPP, over terms of trade for the new year. Group M refused to book airtime on ITV’s digital channels until the row was resolved on Thursday.
The broadcaster has further suffered from viewer defections, weakening it against its key rival, Channel 4. Last year ITV1 lost 6 per cent of its audience. Channel 4’s was unchanged.
Media buyers estimate that ITV1’s commercial share has plunged by about 5 percentage points to about 40 per cent.
ITV declined to comment.
