ITV America
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Transcript of ITV America
International Marketing
By:Michael LamAndy LoBJ McCahillJeremie Mairesse
ITV AMERICA – A greater view
Table of Contents
ITV - A brief history
Country Selection - USA Expansion
Competition
Launch & Promotions
Conclusion
ITV – A brief history
ITV – Independent Television Legal name is channel 3
ITV launched in 1955 after the 1954 television act – which allowed commercial television.
1990 Broadcast Act allowed regional companies to merge
1994 Granada buys LWT 2000 Granada owned 6 regional licences and Carlton
owned 5 This led to 2003 Communications Act – Competition
Commission approved merger plans. ITV plc is the name of company that owns the
licences to broadcast in the 11 regions
ITV Portfolio
The ITV CompanyITV1 is the current branding given to the network by ITV plcITV plc is listed on London Stock exchange – is a constituent of the FTSE 250 Index2008 Figures:
Revenue: £2,029 million Operating Income: £2,647 million Net Income: £2,553 million
The channelsITV1Main channel on terrestrial televisionFour biggest entertainment shows on commercial television
X-factor, Britain’s Got Talent, Dancing on Ice and I’m a Celebrity.
Britain’s Got Talent 2008 final – 13.9 million viewers and 56% share.
ITV Portfolio
Digital Channels
ITV2Aimed at young viewers
Biggest UK digital channel in terms of adult share of commercial impacts
5.8% share of aged 16-34 viewers - second to Channel 5 which has 6.6% share.
ITV3Aimed at older audience
ITV4Aimed at males and sports viewers
ITV SWOT
Strengths
The strongest commercial network in the UK in terms of audience figures and advertising revenue
Large proportion of programming is in-house produced
A commitment to content with investment and retention of creative talent.
Weaknesses
Has suffered slightly during economic downturn with decline in advertising revenue and overall revenue.
Focuses very heavily on one type of programming (reality TV and Talent shows)
ITV SWOT
Opportunities
Has a long term strategy to expand globally and already produces programmes for other areas
Has developed strong inroads into online technology and can expect it to become significant part of business in the future
Can use low cultural distance between US and UK in terms of language barrier and entertainment tastes
Can use market strength to attract new advertisers and sponsorship Threats
Market and economic conditions as well as broadcasting regulation rules can affect cash flow
Failure to understand foreign market during global expansion leading to commercial and creative loss
Americans can be culturally resistant
Trial Expansion
ITV studios has taken steps towards international expansion Produces and sells programmes for broadcasters in many territories
including: US, Belgium, Hong Kong
Recently penetrated Singapore’s TV market
Global content revenue was £622 million in 2008 – a growth of 10%, increasing a further 11% in 2009
Online revenue has growth rate of 8% in 2009 Example: Germany
ITV Studios is known by its former name Granada when it produces programming for foreign territories
Successful German versions of “Come Dine With Me” (“Das Perfekte Dinner”) and “I’m a Celebrity”
Has also a bought 51% stake in Imago TV – a German producer
Matrix Factors: Market Size
Population (2009 estimate): 307,966,000 (3rd Worldwide) GDP: $14,441 trillion (2008 estimate)
99% of American households have a TV set Children watch TV 4 hours/day average => 18,000 hours by the time they graduate
Number of TV sets per U.S. household average: 2.24U.S. Homes with three or more TV sets: 66%Americans who pay for cable TV: 56%
For wired households, the US still holds a lead over the UK in broadband penetration of 62.5% vs. 55.7%
SCORE: 5
Matrix Factors: Market Size
Additional Factors
Buying Power (Score: 5)
Household Income Average: $46,32620% Top from $92,000+
Buying Structure (Score: 5)
Average US hour of TV had 13:54 minutes of commercial messages in 2009
Average 30-minute US show now includes 8 minutes of advertisements
UK average of 7 minutes per hour, with limits of 12 minutes for any particular hour
ITV ownership of production and programs equal limited licensing fees
Additional Factors
Market Growth (Score: 2)
Stagnating: GDP growth: 0.4% in 2008; -0.7% in 2009
Rise due to broadband and satelite services:
• Broadband is one of the fastest adopted products/services in the history of this country
• The DSL and cable operators have been aggressively pushing the market over the past year and half
Country Risk/Openness/Economic Risk (Score: 4)
Politically stable
Free market economy
Recovering from economic crisis
Competitive Strength
Competitive Strength
Competitive Strength
Supplier Power, Buyer Power and the threat of substitutes are in our advantage.
Barriers to Entry are high but we have strong knowledge and capital to pierce through.
Rivalry is by far the toughest, but if we target our market right we can still find the right niche-market.
UK content serves as a point of differentiation
Only one other British channel available in US market
SCORE: 3.5
BBC America
Only other fully British channel operating in US market
Launched in March 1998-now reaches over 65 million homes on both satellite and cable
Originally aimed at British citizens living in US
Uses Video-on-Demand system as well as iTunes TV store for additional content
Programmes currently include: Doctor Who, Dragons' Den, Robin Hood, BBC World News, How Clean is Your House, Cash in the Attic, and Skins
BBC America
“From award-winning drama, mind-blowing mysteries and outrageous comedies to trend-setting makeovers and world-renowned news programs, BBC AMERICA pushes the boundaries to deliver high quality, highly addictive and eminently-watchable programming to viewers who demand more.”
Challenges:
Inexperience with ad sales
Unclear channel identity without target demographic in mind
Programming does cater to an older audience which in America tends to be more xenophobic than youth
Difficulty creating loyal viewers with scattered programming
Most programmes need severe editing to fit into standard timing format due to ad space
Measurement scale development
1Very poor
2Poor
3Mediu
m
4Good
5Very good
% Weigh
t factor
Result (gradin
g x weight)
X 35 175
X 15 30
X 20 100
X 20 100
X 10 40
100 445
A. Market attractiveness
B. Competitive strength= 3.5
Market size
Market growth
Buying structureBuying power
Country risks
Total
Market attractiveness = 445/100 = 4.45
The market attractiveness/competitiveness
strength matrix
High 5
4
3
Low 15High
4 3 1Low
Invest/grow
A countries
C countries
Harvest/divestcombine/licence
B countries
Selectivitystrategies
Dominate/divestJoint venture
Market/countryattractiveness
Competitive strength
CommunicationsAdaptation
Common language allows for programmes to transition easily with minor editing for additional ad space
Programme selection based upon cultural relevance in US
Much of the network remains standardised apart from new promotions
Advertising has to change because most is done on ITV Channels which have a large audience in the UK
New channel won’t have built in audience so channel and shows must be promoted elsewhere
British-themed ad campaign utilises standardisation
Launch
Billboard Advertising
Posters
Subway Ads
Taxi Ads
Cross Channel Promotion
CBS: One of America's oldest television networks, launched in 1941
Launched 6 channels in the UK in November 2009
“There’s latent awareness of the CBS brand, and that it stands for quality US entertainment… Our job is to build that out.”
Offer to promote CBS's UK channels through the ITV channels in the UK, in exchange for promotion on CBS channels in America.
Recent Network Developments: Comedy Central launched April 2009
Cable broadcaster Scripps Network Interactive are looking to launch Food Network throughout Europe in 2010.
Also approach E! and Bravo which share similar core audience to ITV America
Internet Advertising
Huge growth over the last few years despite the economic downturn
YouTube recently signed deal with Channel 4 allowing online full-length programs
There would be no fees for content, instead revenues generated by advertising on the website
"The shows section of the site will make it easier for users to discover videos from the biggest names in British broadcasting, and help our content partners
reach new audiences and generate new revenues"
Patrick Walker, YouTube's video partnerships director
To succeed in American launch, use of Youtube and ITV player must be maximised
ITV Personalities
Jack Osbourne
Cheryl Cole
Colleen McLoughlin Rooney
Harry Hill
Katie Price
Simon Cowell
Piers Morgan
Dannii Minogue
Peter Andre
Ant & Dec
Holly Willoughby
Fearne Cotton
Press Stops
TV
The Tyra Banks ShowTV Guide Network The Ellen ShowJimmy Kimmel Live!Bonnie Hunt ShowLate Late ShowChelsea LatelyExtraThe SoupThe InsiderEntertainment TonightGood Day LA
Print/Online Publications
OK! MagazineSharon WaxmanPeople MagazineThe WrapUS WeeklyDeadline HollywoodLife & StyleThe Daily BeastVanity FairHarper's BazaarHuffington Post
Sample Press Tour
Colleen McLoughlin on The Tyra Banks Show to discuss body image in relation to her Real Women program
Harry Hill guest spot on sister program The Soup
Katie Price interview and photo spread in OK! Magazine US edition
Jack Osbourne interview segment with Chelsea Handler on Chelsea Lately
Cheryl Cole on The Ellen Show with possibly CD release tie in
Topshop Tie-In
Topshop launched their American flagship store in March 2009, New York
Market segments targeted by ITV America and Topshop are similar
UK celebrities have been known to do billboard campaigns for many fashion brands in Britain, why not the USA?
The British Invasion / The British Are Coming
Offer Topshop advertising space on the new ITV America channel, in exchange for promotion through Topshop and it's clothing line
Conclusion
Much of the network remains standardised apart from new promotions
Possible expansion into additional US TV markets
Possibility to create programs wholly by ITV America
Possibility to extend ITV channel line up targeting other demographic
Any Questions?