The Stage

High cost drama threatened as digital ratings top main channels

Published Tuesday 2 November 2004 at 13:50 by Liz Thomas

Digital channels have overtaken both BBC1 and ITV1 in their share of television audiences the first time for an entire quarter.

Figures compiled by industry regulator Ofcom and covering the second quarter of this year show that the digital channels combined account for a greater share of viewers than either of the two main channels, posing a challenge for future high budget, mainstream arts and entertainment terrestrial programming. Previously this had only happened for one single month, during August 2003.

In the report, Ofcom claims the rapid increase in digital take-up, with more than 55% of UK households now receiving services, and an increasingly competitive and fragmented market is eroding the audience share of the five main channels.

A spokesperson for ITV1 agreed all terrestrial channels were facing challenges as more competitors came into the market but did not believe it was a significant threat. She said: “ITV is already a major player in the digital world. ITV2 is currently the third most watched digital channel and the arrival of ITV3 this week further strengthens our digital proposition. As the market fragments, the benefits to advertisers of a channel like ITV1 that reaches mass audiences is increased.”

However, BARB figures show the networks share of commercials were down 7% in the first half of this year. This deterioration has the potential to seriously affect the budgets of programmes - particularly high cost drama and entertainment.

Industry commentator Maggie Brown said: “It’s a confusing time. If audiences fragment they will no longer be delivered in bulk so will the advertisers go with them? If this happens there will be a terrible crisis - ITV has put more and more money into its primetime schedule as advertising stagnates. Can they continue to funding programmes at that level, if advertising goes?”

Ofcom found that audience reach - defined as the proportion of all viewers who watch at least 15 minutes of a given channel in a typical week - declined for all of the main five channels in the first half of 2004. BBC2 was worst hit with more than half of multi-channel homes watching less than 15 minutes a week.

The report stated: “ITV1 and BBC2’s shares in terrestrial-only homes also fell in the first six months of 2004 suggesting that their declines in total audience share cannot be explained merely by growing digital penetration alone.”

A spokesperson for the Corporation said it was not realistic to make comparisons between a total combination of channels and a single one. She added: “We are committed to offering viewers increased choice with our digital strategy and clearly these figures show that we do.”

Ofcom also highlighted new forms of competition emerging in the digital TV market, using broadband internet as the distribution channel rather than broadcast technologies. It said: “These services are starting from a low base but they have the potential to dramatically change the way TV is viewed in future.”

The BBC is also looking into alternatives to traditional broadcast platforms. The Corporation’s director of new media and technology, Ashley Highfield, has announced plans for the interactive media player - iMP - which has just undergone technical trial. Using a broadband connection, it enables people to download television and radio programmes, record whole series and watch programmes they have missed.

• ITV3 launched on November 1 with a schedule of movies, repeats of ITV1 dramas and a behind-the-scenes shows aimed at older viewers. The channel will be available on Sky Digital following an eleventh hour deal between ITV and BSkyB that is expected to cost the terrestrial broadcaster £10 million.