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ITV NAR crunch point: ITV FY 2008 results - Venture Insights

Report Overview

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ITV NAR crunch point: ITV FY 2008 results

PublisherEnders Analysis.
Publish Date March 5, 2009
Sector FTA TV.
Company ITV.

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ITV has switched from a turnaround to a survival strategy focused on preserving its core broadcast and content production business. The switch comes against a backdrop of plunging total TV NAR (net advertising revenues) due to the devastating mix of severe recession and major structural decline in the TV advertising medium.

ITV plans to cut programme budgets outside regional news by £65 million in 2009 versus 2008 and rising to £135 million by 2011, raising the spectre of a downward spiral in programme budgets, audiences and NAR.

We expect the eventual programme budget cuts to be at least double those already planned, given the scale of the unprecedented advertising crisis. Despite this, ITV may just squeeze through without getting sucked into the spiral, but it will be close.