Notesale: Turn your study into money

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This report studies the strengths, weaknesses, opportunities and threats
of the business, offering recommendations for continued success
and further improvement in the future
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0 Terms of Reference
This report is being composed as part of the Business Skills module I study within the Accounting
and Finance course that I have undertaken at the University of Kent
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ITV has grown significantly since then and now sells
advertising on behalf of all fifteen licences; it is the largest commercial television network in the UK
(itvplc
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It broadcasts a variety of different programmes on its five channels which are all
aimed at different audiences on both the television and the internet
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The
majority of the company’s revenue is accumulated by selling both regional and local advertising
across its channels, however a significant amount is also generated from competitions and voting
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All research which has
been carried out in order to analyse the business and investigate into its strengths, weaknesses,
opportunities and threats has been taken from secondary sources; these sources include reliable
online websites and research articles
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A very significant topic which needed to be researched in order to assess
ITV’s performance was its competition
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In addition, the Keynote website has
provided information on the broadcasting and media industry as a whole, which gave a useful
insight into the industry, enabling me to further evaluate the strengths, weaknesses, opportunities
and threats to ITV PLC
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0 Findings and Analysis
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More specifically, it has
expanded its number of channels, starting with the introduction of ITV2 in 1998, and later
on ITV3, ITV4 and CITV (Children’s ITV), aiming each one at a different market to increase
its audience, therefore increasing its number of overall viewers and revenue
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This is a
very significant increase, indicating great success in the future in this market
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It provides ITV
player as a free and easy service to use, meaning that viewers have no motivation to
search for a more low cost source
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Similar to this, Sky
Movies loses revenue from box office films and movie channel subscriptions because of
viewers preferring to use paid on-demand services such as Netflix or illegally downloading
films, whereas ITV sees little revenue lost from this as its strategy is not to be one of the
first to broadcast new films
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co
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ITV has a significant advantage
with football coverage overall as it is the only broadcaster with free-to-view channels which
has coverage of most major football tournaments such as the FA Cup and UEFA
Champions League and Europa League (with the exception of BBC’s coverage of the
World Cup)
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com)
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As ITV’s channels are all available as standard with a digital television,
they are all free to view and therefore this puts ITV in an advantageous position as their
viewing numbers should rise with less choice of channels
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2 Weaknesses
An increasing number of channels are entering the digital market, causing problems for ITV
that are out of its control
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In addition to this, advertisers also want to promote on these new channels,
making the expenditure on advertising also more dilute across channels
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co
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If the number of people watching ITV on the
television decreases because it is more convenient for them to catch up online when it suits
them, ITV loses out on advertising revenue
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ITV
Player could lose viewers due to poor internet speeds
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If the viewer is not willing to persevere, ITV will lose viewers
and again more advertising revenue
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One of
ITV’s main opportunities is expansion into other countries
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ITV had a UK turnover of £2,140 million in 2011, and
an overseas turnover of £1,900 (FAME)
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Another major opportunity for ITV is
to expand on its online services which are available
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With more and more children being familiar with and having access
to computers, there is a great opportunity here to increase viewing numbers online which
would lead to the increase in revenue from advertisers of children’s toys and other products
which are aimed at young people
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As well as ITV Player, ITV
Samantha Chamberlain

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has recently launched its new online “Pay Player” which allows viewers to pay a small price
to watch old series of ITV programmes which have long been removed from the regular ITV
Player for catch up
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For example, not every series is available for most programs, therefore
viewers currently will have a gap between the last series they can rent, and the new series
which is currently being aired
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This
would go on to encourage viewers to continue watching the latest series of a program live
once they have watched all of the old ones, therefore increasing viewer numbers
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com)
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4 Threats
Like every business, ITV PLC faces threats from competition in the same market
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ITV
PLCs two most significant commercial competitors are Channel 4 and BSkyB
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78% in the last ten years, while Channel 4 has increased by 0
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67% (barb
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uk)
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More specifically, BSkyB are becoming increasingly more of a
threat to ITV due to the number of channels it broadcasts ands its potential to create any
number of new channels through its subscription service
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Another business which has recently become a threat to ITV PLC is Apple
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In order to compete ITV will have to ensure that what they are offering is
unique as Apple have been offering this service for much longer and therefore have more
knowledge in that particular market
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Lastly, the return to recession at the
start of 2012 is a very unpredictable threat which could lead to a large decrease in revenue
generated from marketing and advertising (keynote
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uk)
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Other commercial broadcasters such as Channel 4 and BSkyB,
although successful, still have a difficult challenge with regards to matching ITV’s viewing figures,
but this does not mean that they do not pose a threat
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Such opportunities presented to ITV will allow them to become more competitive with the likes of
BBC who currently have the highest viewing percentage of all broadcasters in the UK (barb
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uk)
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Looking at the strengths, the
first recommendation that can be made is that ITV keep all of its channels free-to-view; several of
ITVs strengths are based around this factor
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A unique selling point of ITV is that it is the only free-to-view
broadcaster to regularly show major football tournaments, and by keeping the service free, ITV can
remain unique in this way, giving viewers who do not subscribe to Sky Sports and ESPN, no other
place to watch these tournaments
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One way in which the business can achieve this is to promote
fibre optic broadband as this will encourage viewers to upgrade their current internet service in
order to get rid of slow internet speeds, therefore making ITV Player a much more efficient service
for them
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Another weakness which was mentioned was the increased success of ITV Player and the
lack of advertising there is on this service compared to television
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In terms of opportunities, it is very important that ITV pursue these in order to fulfil
their objective of becoming less reliant on advertising and stay ahead of competition
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The report mentions ITV’s existing production
offices in Europe, the US and Australia, however there appears to have been no effort to introduce
its channels to Africa and Asia
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The business also has a very large opportunity within its new Pay
Player service as there is much room for improvement, and if ITV is to compete with existing
services of a similar kind, such as iTunes, it will need to offer more unique features and more
episodes
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Other threats which need to be eliminated include competition from Channel 4 and BSkyB
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One idea is that this
channel could be primarily to show films, whilst still being free-to-view, this gives ITV a significant
advantage over Sky as they charge an extra cost for movie channels on top of the price of
subscription
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itvplc
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barb
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uk Accessed 07/12/12
http://www
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co
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chain
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ac
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live-footballontv
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html Accessed 09/12/12
http://www
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co
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mediaweek
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uk/news/1137870/ Accessed 09/12/12
https://fame-bvdinfo-com
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kent
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uk/version2012127/Report

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