Media Empires & Philosophy

A one off perhaps?

The Business

When I studied for my MA in Mass Communication one of the figures under the microscope was Rupert Murdoch -and he was/is a very interesting figure. (not just because he kept a bust of Lenin when he was a student at Oxford university).

He's only recently got married to wife number 4 (Jerry Hall)  and denies that he's stepping back from the fray.

At 86 he was/is still a significant player but the announcement that Disney is to takeover much of his empire indicates a couple of things.

1) Traditional Media is under siege - from Amazon, Facebook and Netflix

2)  Murdoch is mortal and the second generation of the media magnate's loins do not have the same driving  ambition that he did.

So this really could be just an acknowledgement that TV/The Internet  is now where media empires live.

Further to this what we can see is that Cinema is under threat as never before - 'Box Sets' offer the home viewer something the 'Picture Palace' can't provide - we've also got the possibility of affordable massive slim screens - they can be 3D or UHD and the possibility of the screens being used to provide great works of art in the home is another 'game changer'.

Samsung - Replacing a visit to the Gallery?

Why are some figures Driven?

The other question (perhaps unfathomable) is why does an 86 year old man  with more money than can be imagined (unless you're one of the modern day Titans like Jeff Bezos) carry on wanting to make the next big deal.

What did Rupert's relationship with his father Keith really mean to his son and will his dynasty carry on into the 22nd Century?

And the next changes

Perhaps we'll not know the answer into what drives Rupert (or any of us) but more will become clear on the consolidation of media companies (and the net neutrality)  in 2018 ,.

Discovery (my last employer) is looking a bit of a dinosaur adrift without visible means of support as cable cutters liberate themselves (in the USA at least) , BT (another previous employer of mine) perhaps shouldn't have got into battling (Sky UK) and the once mighty  BBC is unlikely to be able to become a league one player while it remains a state broadcaster (and what will happen to ITV?)

ITV wants to be seen as pure while call revenues roll in

After the resignation of a high-up honcho from GMTV there was an article in yesterday’s Times that highlighted both the importance of call revenues and viewer trust to ITV.
The problem may be that trust and high revenues may prove to be mutually incompatible, the share-price is currently little changed from where it was a year ago (which some may consider a minor success) but problems around the company’s shareholding by Sky cast something of a question mark over the future rating.

Finding links

ITV's recent Timeline

Since ITV Play was launched last year a number of things have happened to the business of ITV, while not saying that there is an absolute link between them all I intend to produce a timeline showing what I consider to be factors in ITV’s business performance – they will be related to the ITV share price (also the sector performance).

The sort of things I will include (I hope are) the media coverage – the headline audience figures announcements (like the arrival of Michael Grade). I do not seek to imply cause and effect but hope that the terrain that the research is playing out across will be registered.

If you can think of factors in ITV over the last 12-18 months that are of significance drop a line to itvplaysurvey@btopenworld.com –thanks Tim

How to get responses for a research

I'm not sure if anyone has tips as to how to get responses from letters?

When I first started this research I wrote to a few people to ask for input, Charles Allen (he’d been ITV boss when the channel launched) – no reply
Richard Woolfe (Sky) – no reply (and now he’s having employment tribunal trouble)
William van Rest –ITV Play at least I got a no.

Channel 5’s News supremo Chris Shaw kindly replied and did give a note of an article he’d written for the Media Guardian.

If anyone want s to help or has information about Telemedia (where the presenters are trained) I’d be grateful details to itvplaysurvey@btopenworld.com

ITV sport - hope it's not an own goal

Sport
It’s a bit of a coup for ITV/Setanta to secure the FA soccer deal, it sends a clear signal that ITV will spend on content but I hope that Michael Grade has done the sums and they add up it hasn’t come cheap.
Letters
Encouraging news on the writing to your MP front I’ve had a good and speed response from Stephen Pound on my worries over Zimbabwe please consider the situation there and if you can do something towards highlighting the issue please do.
There are three worldwide situations that I am particularly concerned with (the other two being Iran and Somalia), the difference is that in Zimbabwe a large section of the country’s people want change and I believe that it is our responsibility to at least lobby for a removal of Mugabe.

On a more trivial note it's good to also have a fast response from Tesco who have written to confirm that they’ll look into the missing cashew nuts.

Comedy review

Today’s Times review of the Goth detectives paints a similar picture to mine (I hope) but I think is more charitable on the support acts than it needs to be.

A blessing or a curse?

ITV what’s the long game?

ITV results have come out today largely in line with expectations profits are down around 19% but turnover is slightly better than predicted nearly holding to the previous year, Michael Grade has a strategy centred around content and an improved New media performance.

Now is this correct? If it is then ITV should probably consider a split along transmission and origination lines, there are still some costs that can be cut in both these centres (some distribution costs have already been addressed ) this would release funds for improvements, on content in producing more and better content and in distribution in improving the margins.

My feeling is that there are deals to be done with the content library that ITV has, content is the future and the chosen distribution method is not that significant to the consumer/viewer.

The other angle which needs to be exercising ITV’s collective mind is how can they make themselves attractive to a larger media conglomerate? The Sky holding is likely to act against any deal and even if Sky wasn’t stopping a deal with the former NTL (Virgin Media) then this would clearly not be a deal made in heaven, getting out of this fix is not an easy one unless the Darling intervention (the UK minister rather than a theatrical one) comes through.

BBC to take on iTunes
Rather confusingly it’s the BBC that continues to act in an entrepreneurial fashion and is looking at setting up a competitor to iTunes, not sure that the timing or the nature of the UK state broadcaster means this makes any sense whatsoever but along with other initiatives is makes me wonder if the licence fee settlement wasn’t a touch too generous to the Beeb.

Man with a cross
Oddly enough on my journey back from the centre of London yesterday on the Central line I was literally blessed.

A relatively smart OAP type figure (without being ageist) who was working his way through the compartment I was in was holding an ornamental cross and blessing all the travellers (I think) in a relatively measured way- I don’t think it caused offence but it made me recall another odd religious experience I suffered in Roma which I’ll relate on another occasion. (and I did get home safely last night)

Review

Looking back a year it’s interesting to see where I was and what I thought (tomorrow I’ll do some thoughts on 2007) here’s a look back on 2006.

David Cameron – looks like he’ll be the next prime minister after a Gordon interlude.
ITV – still needs to be resolved and Michael Grade will just make it more saleable.
Pete Doherty -think the jury is still out

Recycling/de-clutter and accumulating less – I’ve been trying to keep my resolution on this and with help of e-bay and BookMooch I could be getting close but need to do more – here are some links (from the independent newspaper) that might help me in 2007.

www.swapz.co.uk Site for those who want to exchange unwanted stuff with one another.
www.freecycle.org/
A group of local societies dedicated to swap­ping items that are no longer wanted, to keep things out of landfill.
www.bookmooch.com
Are your shelves past capacity with nov­els you've already read, and-have no intention of re-reading? This exchange service will find them a deserving home - and get you something else to read.

More on ITV

So just when you think ITV has lost the plot they bring a rabbit from out of the hat. BBC now facing some issues (chief one being licence fee but also approval for the iplayer to sort out).

Mr. Grade is charismatic and was not suited; in my view to the very political post that chairman of the BBC Trust would be - I tip Portillo for that one..

Here's a piece I wrote before the bombshell was dropped, it sort of stands up but one of the best players has just joined the other side and the game's a bit more even (my own go at a dodgy football analogy).

The battle for ITV’s Control.

ITV has in the last couple of weeks seen a flurry of activity resulting in the TV network’s share price being driven to a peak of around 115p the price has now settled to a little over 111p still a considerable improvement on mid-September when it was hovering around the £1.00 mark. So why the increase and interest in ITV and how is it likely to affect the UK’s TV viewers over the next few years?

The UK’s top commercial broadcaster has suffered a loss of audience while the number of multi channel digital TV homes has leapt over the last 4 years to over 18 million homes but it remains the first stop for advertisers who want to reach the UK population ‘en masse’, it has a weekly reach of around 80% of the potential UK TV viewers, it has near universal coverage and a strategy that is showing signs of success in bringing its audience with it into the segmented market that now characterises broadcast TV.

Now there’s discussion if it was James Murdoch the Sky CEO or his Dad Rupert the Chairman or a combination of the two who managed the coup that delivered 17.9% of ITV to Sky but a coup it most certainly was and at present it appears successful, although Skys’ official line is that it does not want undue influence and that ‘Our investment is a long-term and supportive shareholding in ITV’ ‘ it is undoubtedly a case of Sky getting it’s retaliation in first.

The respected media commentator Raymond Snoddy has a theory which he’s floated in Brand Republic the theory goes along the lines that Sky are lining up RTL to buy ITV, RTL are historically a free to air broadcaster and won’t spoil Skys’ hold on the UK pay TV business. Sky will in time take Channel 5 off the current owner RTLs’ hands at a knock down price, this certainly has logic to it but the price for Five will have to be a heavily discounted one; it’s noticeably failing to win audience share and its own multi channel strategy has a question mark hanging over it.

The headline interest for NTL is that ITV has content and it reckons that the combination of NTL and ITV will constitute a combined operation that can give Sky a run for its money when bidding for attractive films and top notch sports. Flextech the content provider the outfit owns currently delivers profit but this is underpinned by a deal with BBC Worldwide that is favourable to the cable giant but which will in due course be renegotiated.

Sir Richard Branson the largest shareholder NTL is performing as spokesperson for the deal and is keen to be seen as the wounded party as he was in his earlier giant killer’ battles with British Airways rather than a shareholder in a US listed hostile bidder, NTL is in the process of re-branding itself as Virgin Media and in the last 12 months has merged with both Telewest and Virgin Mobile, the cable company has shown ambition in spades but historically has repeatedly failed to deliver and NTL in the past have failed to gain the subscribers it desires or address the poor service reputation it holds.

The challenge for ITV’s board is to speedily fill the whole left by Charles Allens’ departure with a CEO who can offer vision and inspiration, ITV has a number of channels and a potentially significant ‘new media’ brand in Friends Reunited but it has to look at monetizing its content as well as providing the brand that advertisers can rely on to deliver audiences to its commercials.

The next few weeks will be potentially amongst the most significant of ITV’s illustrious history and the difference between holding the number 3 button for posterity on the nations TV’s and becoming a mere also ran will be decided. Sky may prove to have delivered ITV from a fate worse than death, but the ITV board should watch its new best friend carefully, it’s pushed itself into the driving seat and it’ll be a powerful force that can grab the wheel away.

What a week in media

ITV saga continues

Perhaps NTL got it right Sky have spent nearly a billion to make life difficult for those who want an ITV/NTL merger. RTL owners of Channel Five are also said to be considering a bid, this though methinks exposes the lack of value of their own channels.

Despite the bad mouthing that is going on ITV has what other companies want and need compelling content, the truth of the matter is that TV is now operating in a far more competitive market and ITV is not doing that badly (that’s not to say it couldn’t do better) –I still fancy a so called New Media company deal long term (perhaps Yahoo). The thing is Sky paid 135p per share and has put titself in the driving seat while ITV has no effective CEO.

As a sideline issue Sky can probably bring some pressure to its new best friend ITV on its involvement in the yet to be launched satellite version of Freeview which the BBC and other non Sky channels has been championing.

And amongst other blows to the BBC

The BBC’s battle for an above or even pegged at inflation rate settlement and if that was not enough it seems Channel four has outflanked it on a broadband TV vision.

Channel Four is to make content delivery on demand a paying proposition, this has ramifications for the BBC who are looking to put a fair amount of their content on the net for UK viewers for free, a free offering would certainly have implications for companies seeking to commercialise such a service. The idea that licence fee payers should super serve broadband users is also questionable

BT in deals

BT as well as being in the market for buying broadband users is moving out of satellite as seen with the sale of their Broadcast Satellite interests, what’s slightly surprising is that reports say they’ll retain the Occasional Use (Ad hoc Sports and News coverage events need these) element which had been the original trigger for them to seek a buyer.

BT could of course be another potential buyer of ITV PLC

ITV and NTL you must be joking

On the day that interest rates in the UK rose to a 5 year high of 5% the Finance story that took my fancy was that ITV and NTL are in merger talks.

Now I've been predicting an ITV takeover for nearly a year and have bought and sold shares as the rumours have ruffled the metaphorical curtains of the city but I really find this idea a bit rich.
Serial bankrupt NTL (now working as Virgin Media) to buy troubled (but profitable) ITV.

Why -so Stephen Carter can have a job where he used to (NTL)?

What's the synergy (about zero)?

To me this looks like a marriage made in hell, I'll probably be proved wrong but I've sold my ITV shares anyway.

this week ..

Cinema

I went to see the Devil wears Prada and to my surprise I really quite enjoyed it. Meryl Streep was very amusing and the craft in the film was evident- some fine use of music plus cities of  New York and Paris always make  attractive backdrops - not earth shattering but another film that I stayed awake throughout and the cinema was full.

Media
The two big media stories for the week ahead are
1) Google to take over Youtube, which I'm not sure will happen and don't think is desirable .
and
2) ITV's search for a new CEO which now seems to be turning into ITV looking for a new CEO and also a new chairman.

The other interesting development is the start of 18 Doughty Street a political news service TV delivered by IP unencumbered by OFCOM's need for a balanced view it will not be the usual muddy centre (it's a right leaning outfit). If it's well funded it could be worth watching - it could tho' be awful.

Media week

Unbox from Amazon

While Mac movies speculation has been spreading like wildfire Amazon have come up on the outside with a spectacular launch of movies that will include content from BBC Worldwide

BBC and MySpace Clone
In an unrelated (ish) development BBC Worldwide is rumoured to be on the outlook for a My Space clone – interesting that the talk is of Worldwide doing this – presumably no requirement then for the BBC board to run a public value test ?

EX BAA for ITV?
Few names in the to be itv’s new boss frame, frontrunner now looks to be Clasper but someone with a more rounded Media background could still win out.