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TV3 - ITV1 Ireland?

Canwest selling shares... (January 2006)

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DE
denton
murf1000 posted:
marksi posted:
Another if.

If UTV buy 45% of TV3, it would make UTV a more attractive takeover target for ITVplc. It instantly creates ITV1 Northern Ireland and ITV1 Republic of Ireland.


That could be a trap that ITV may well set.

But do ITV want all them radio stations?


UTV could simply sell off its ITV franchise for Northern Ireland (in a manner of speaking) to ITVplc, while retaining the radio stations and facilities at Havelock House.

Even with continuity for the channel centralised in England to save money, ITVplc would still have to provide a regional news service based in Northern Ireland. UTV could produce and sell that news service, and even some regional programming such as Insight, back to ITVplc.
RD
rdd Founding member
TV3's peak-time schedule already closely resembles ITV1's - there is room to introduce more ITV Productions (as we must now call them) in the off peak which is still very different to ITV1, This Morning for example could be broadcast fairly easily with practically no rights issues involved and little cost in terms of displacing existing programming.

In terms of contract requirements...the BCI alas does not publish the programme contracts agreed with any specific contractor, so nobody really knows what TV3's contract requirement. The Radio and Television Act 1988 contains the general requirments for programme contractors (Part III) , but the 20% News and Current Affairs requirement (under Section 9 (1) (c) ) does not apply to the television programme contractor (ie TV3) - they only have to produce "a reasonable proportion" of news programming.

TV3 could probably get away with broadcasting the entire ITV1 programme schedule as long as they kept Ireland AM and the news intact, Some would say it would be an improvement on what they broadcast now.

I don't think a name change could be ruled out either, and certainly politicans would probably not object - they don't generally watch TV3 anyway, and the name "TV3" is no more Irish than "ITV1"....

I would rule out UTV taking over TV3. With their radio interests and effectively a national television service already, I don't see them being allowed own a second national TV station. The BCI would object as would the Competition Authority.
AB
aberdeenboy
Thanks for that.

You can just imagine the marketing campaign if they tried a name change can't you... "ITV is Ireland's Television" or "ITV- Irish Television"
TE
Telefis
Very Happy

At the minute UTV's penetration isn't high as you would think Woody_streatham, it's only c.66% (and we've four million in the RoI, with 1.5 million in the North). However this will probably increase with Freesat now available nationwide and UTV now on board.

As things stand with TV3, there is a set amount of home-produced content that it must broadcast, however I forget what the figure is in hours - a pittance anyway. In fact I calculated it before, and if you add up all their Irish content, plus repeats during the summer and news repeats at the weekends it barely scrapes it in Rolling Eyes

They get away with the quota by broadcasting no less than a three hour long Ireland AM - absolute insanity, but it's permitted. Infuriating not only because it's rubbish, not only because it's coveted Irish air-time that's being shown in the depths of the morning, but also because it's stretched out to fill a ridiculous three hours - in no other country in Western Europe would a broadcaster be allowed get away with that. It just screams "oh well if we're putting on a pricey home production, we might as well maximise its 'value' and tack on an extra hour".
I remember when this programme finished its first season Kelloggs were reluctant to sponsor it anymore because it got an average of 7,000 viewers!!! I sincerely hope that has increased somewhat! Very Happy

Indeed I was only in Leinster House today (*cough* as you do Smile) talking with a politican involved in broadcasting and he was positively apoplectic over the 'soft touch' regulation - as it's become known as - of TV3.
How they're allowed get away with expending their Irish quota like that I do not know - they do it with news repeats too, as well as with repeats of Ireland AM during the summer! Even a trashy American film trailer programme is included in the quota - the only Irish element to it being the fact it is chucked together on an Avid in Dublin.

At this stage I doubt there will be much political sensitivity to ITV moving in on TV3 as has been suggested. A market-driven ideology permeates through Irish society and politcal classes to an extraordinary degree these days. Whereas the vast majority of people still care for the protection of RTÉ as public service broadcaster, most couldn't care less for the fate of our single commerical station.
Most will probably welcome ITV's influence, however dodgy some of its content is.

But certainly real questions over UTV's future will be raised should ITV's level of simulcasting or general programming input on TV3 equal that of the Northern Ireland franchise.
And I don't know how the BCI are going to consider this...
AB
ABC Australia
i don't see the problem of a three hour breakfast program, we've got two: Sunrise (Channel 7) and Today (Channel 9) (although Sunrise completly crushes Today in the ratings), plus Channel Ten is introducing a 6-7am breakfast program too.
AB
aberdeenboy
Yes, it will be very interesting to see how UTV responds to any ITV takeover of TV3... or at least any move to turn the station into an "ITV1 affiliate".

Obviously, they'll huff and puff... as they've done already over TV3's simulcasting of Corrie and Emmerdale. As for the practical effects of any major changes to TV3 though on UTV as a business... well these could be quite significant.

UTV could, quite reasonably, argue that it is contributing towards the cost of ITV network programming - only to find that material is then being re-broadcast by a rival company in direct competition.

I'd imagine that if UTV and TV3 started to show near identical schedules, most people in the south would opt for TV3 - if only because the reception was better or for news from Dublin. But as UTV's current audience includes a significant number of viewers in the south this could result in a significant drop-off in their ratings and revenue.

I suspect that if ITV buys TV3, it will cast further doubt on the viability of UTV as a stand-alone franchise and hasten its incorporation into ITVplc. The big question. Will ITV simply buy UTV's franchise as a going concern - or buy the actual company complete with its radio and internet interests?

Anyway, no doubt we'll find out in the next few days who's actually buying CanWest's stake. It could well, of course, turn out to be UTV, Setanta or some other interested party... and not ITV! My hunch is that ITV will go for it though. I suspect in the short term buying TV3 would actually prove more beneficial to ITV shareholders than any move for SMG or UTV. Lots of savings through integration.
CN
CN
The strategic suggestion that UTV buy into TV3 and then ITV take over their TV assets is unlikely given that in UTV plc, their TV advertising revenue makes a far greater contribution to their reported earnings than any of the radio stations put together. Last year TV made a profit of £7m which is significant because it neither rose nor fell unlike other independent broadcasters. For as long as they've some excess costs to chop away to keep the profits up while advertising revenues fall, I shouldn't expect them to even consider any sale of their TV assets just yet.
TE
Telefis
Which if the case, will make life very difficult for UTV.

It has to be considered that UTV has more viewers in the South that in all of Northen Ireland! The different jurisdiction that it's broadcasting into is of greater value than its home country!

With in excess of 2.7 million accessed viewers in the South compared with c1.6-7 million in the North, an ITV plc buy-out of TV3 has major implications for UTV that cannot be ignored.
Saying that, UTV has a significant following in the South - when Coronation Street moved from RTÉ to TV3 the audience did not simply swap over from RTÉ. RTÉ had had average audience of 800,000 for Cor St - when it moved to TV3 a split occured, with about 500,000 moving to TV3 and 300,000 or so moving to UTV. I know in my grandmother's house in Dublin she would never dream of watching Coronation St on TV3!

It still has major implications though - TV3's market share has been increasing year on year since launch, even if ithas levelled off recently. It's at its strongest now than it ever was.
GB
GavBelfast
An update from today's 'Sunday Times' suggesting ITV may misss-out if it doesn't bid, and that UTV may be interested in creating an all-Ireland television channel via TV3.

http://www.timesonline.co.uk/newspaper/0,,176-2003501,00.html
RD
rdd Founding member
The Sunday Tribune today has an argument suggesting much the same thing as that Times article above - so I suspect there is definitely some truth in this (most other sources are still suggesting this is a straight sale of the 45%).

The Sunday Tribune article says the following is basically the shareholders agreement:

* ITV plc have first refusal on the 50% stake in CanWest Granada Media Holdings that is being sold
* If ITV plc takes up the stake, rhe remaining 10% shareholders of TV3 Teleivsion Network also agree to sell their shares to ITV plc.
* If ITV plc refuses, it agrees to sell its stake in CanWest Granada Media Holdings along with CanWest and the remaining TV3 shareholders agree to sell their shares to the same person.

Either way, the buyer of the shares ends up with 100% of the issued share capital of TV3 Television Network Limited .

As a change in ownership in a programme contractor it will need the agreement of the BCI, and as a media merger it will need the agreement of the Competition Authority and the Minister for Trade, Enterprise, and Employment, Micheal Martin. I reckon all that will be enough to foil a UTV bid, and that if ITV plc does not buy it will either be Setanta or a non UK/Ireland player like RTL.
AN
Andrew Founding member
GavBelfast posted:
An update from today's 'Sunday Times' suggesting ITV may misss-out if it doesn't bid, and that UTV may be interested in creating an all-Ireland television channel via TV3.

http://www.timesonline.co.uk/newspaper/0,,176-2003501,00.html

Another angle is, if ITV PLC don't buy it and UTV do. Would UTV want to turn TV3 into UTV Ireland and carry most of the ITV Network schedule?

Therefore the ITV Network schedule may end up on TV3 regardless of who buys it, and if UTV buy it then ITV wouldn't have to put their hands in their pockets
MU
murf1000
Setanta would love get there hands on TV3 as they have wons the rights for the 2007 rugby world cup in Ireland, so therefore if they did get their hands on the channel then it would be a big win for TV3 and a major headache for RTE and TG4 as setanta will bid for free to air sports.

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