Fragmentation driving down value of UK TV
Joseph O'Halloran | 16-07-2012
New research from IBISWorld has concluded that the fragmentation of audiences between free TV, pay-TV and digital TV in addition to increased competition, has made TV advertising less appealing, driving down subscription values.
The result, as predicted in Television Programming & Broadcasting in the UK: Market Research Report, will be that revenue will likely grow by an annualised 0.4% in the five years through 2012-13, reaching £12.9 billion. This includes a forecast 3.0% increase in 2012-13.
The analyst believes that even though it is dominated by a few major names—such as the BBC, ITV, Channel 4 and Channel Five—fragmentation of the media has led to a proliferation of new companies rushing to fill the void created by the advent of new viewing technologies. Yet it argues that traditional networks have found that they are now unable to satisfy public demand for video content leading to the industry likely to post modest growth coming years.
Commented IBISWorld industry analyst Arna Richardson: “The fragmentation of audiences between free TV, pay-TV and numerous digital channels has made TV advertising less appealing to companies, driving values down…in coming years, the industry is likely to post modest growth, as revenue from internet-based advertising for TV on demand and programmes viewed online is included more completely in the industry's income.”