Swot and pestel analysis of tv industry Essay

September 30, 2017 Management

The telecasting industry in the U. K has seen a major alteration in its construction since the amalgamation of Granada and Carlton. The brace have completed an 4. 6 billion amalgamation which is an major landmark in the telecasting industry. The amalgamation increases ITV telecasting advertisement market hold to 52 % . This expansion of the company has significantly increased ITV impact on the competitory side of the market. Mrs Hewitt regional franchises quoted “ITV would be better equipped to vie with challengers. including BSKYB and BBC. ”

ITV now seem stronger and able to put in and supply scheduling of high quality. ITV clearly seem to be a new concern now being able to vie more efficaciously in today’s multi channel industry. However. holding said that. the Carlton and Granada merge still have non managed to name a new president for ITV Plc. Since the remotion of antique president Michael Green who was caput of the new company board.

( 2. 2 ) Competition

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The competition between ITV and BBC has been really intense towards the figure 1 topographic point in the UK telecasting industry. Previously BBC has had the honor of being and keeping the figure one topographic point. Although they still hold the figure one topographic point. ITV has become and is staying the most dominant channel at peak clip hours taking a 31. 6 % portion of the audience compared to BBC at 27. 7 % . ITV1 peak clip line up is get the better ofing BBC1 agenda on 2 out every 3 eventides so far this twelvemonth ( 67 % of eventides ) . Furthermore ITV1 has formed a bigger audience in peak clip hours than all its commercial challengers can rally between them. ITV1 31. 6 % portion peers to an mean audience of 6. 8million viewing audiences compared to the other 6. 4 million commercial portion audience norm. However. some commercial challengers such as Channel 4 has managed to interrupt 5 million viewer barrier on certain programmes sharing success in their side along ITV.

On the other manus. BSKYB is garnering per centum additions in audiences quickly particularly with its big sum of assortment of channels to accommodate all demands. However BSKYB in the yesteryear have face Acts of the Apostless from the office of just trading. which has been lobbied by rival broadcasters to examine 2abuses” by BSKYB under the competition act. Although declined to uncover any specific country of concern in BSKYB trading patterns. BSKYB kept to its promises and made in 1996 wage telecasting unfastened to rival broadcasters. ITV tried to come in this market through on-digital. This investing was non a success and BSKYB were charge with soaking for its Prime Minister channels doing it hard for challengers to do net income from broadcast medium. ITV on-digital dream went into disposal. This has made BSKYB the leader in wage telecasting and UK Television industry with no existent competition. ITV. BBC and the all other commercial broadcasters the U. K are providers to BSKYB.

( 2. 3 ) Technology

Television sector is undergoing major alteration. Technological developments have led to a rapid addition in the channels available. and in the figure of families able to have them. Multi-channels incursion is likely to go on to turn as a consequence of the advancement of the orbiter and overseas telegram companies. the successful launch of free position and authorities announced its purpose to shut down parallel transmittals by the decennary. This clearly shows development in engineering is a necessity for all Television webs in the Television industry. The merge between Granada and Carlton has come at a clip were investing in engineering is been seen as a necessity. In 2003 ITV is in the prognosis to have merely over half of all telecasting advertisement gross. down from the 60 % in 1999. Its audience portion has fallen from 55 % to 40 % of viewing audiences of commercial telecasting. This diminution has been really good to multi-channel broadcasters like BSKYB and challengers such as channel 5. Multi-channel incursion is likely to turn as a consequence of go oning advancement of the orbiter and overseas telegram companies.

However. when taking in footings of engineering BSKYB leads the market in front of BBC and ITV. BSKYB are developing and presenting engineering at a utmost yesteryear. Features such as WAP ( Wireless application Protocol ) and WML ( Wireless mark up Language ) have released new trade goods to Television. by giving viewing audiences a wide environment that enhances the viewing audiences to see Television in a entirely different manner such as leting them to prosecute interactively while watching T. V

( 2. 4 ) Entertainment

Entertainment on Television today is undergoing a dramatic alteration. Audiences today vary from many cultural backgrounds and possessing a big assortment of new avocations. To accommodate all the demands for possible audiences is disputing. This is the way the Television industry seems to be heading towards. Supplying viewing audiences with a huge sum of assortment through many channels. BBC purposes of increasing viewing audiences are to link with all audiences. One manner BBC is traveling about in accomplishing this. is by conveying younger audiences to BBC services by following bold and advanced programmes and guaranting that it is run intoing with the demands of the audiences of all states and parts in the UK.

BBC possesses 8 channels. which display a assortment of programmes accommodating all age groups. ITV on the other manus. ain and display 14 channels. This is a little contrast to the leaders BSKYB who display over 400 channels. As a consequence ITV have become provider to BSKYB for their broadcast services. BSKYB dominate the show of large events that attract a immense audience in the UK such as rights to premiership football and other chief featuring events. BSKYB offers amusement for all viewing audiences of any background or involvement taking the Television industry in footings of amusement

( 2. 5 ) SWOT analysis of ITV

* Strengths

* Well known trade name name

* Leading manufacturer of telecasting scheduling: assortment of popular programmes

* Large market portion

* Large viewers’ audience

* A “highly experienced and successful direction squad. who have a proved path record of turning the concern both organically and through acquisitions ;

* Established repute as a premium manufacturer of content ;

* Proven ability to pull and retain cardinal on and off-screen endowment ;

* The largest pool of production endowment in UK commercial telecasting ;

* A successful path record of turning its programme production concern. chiefly through the development of bing trade names and development of new 1s ;

* A content creative activity capableness able to provide the turning demand for content from both individual and multi platform operators – free to air and pay Television broadcasters. telecommunications operators and ISPs ;

* Recently created new media assets. and airing assets such as ONdigital with important new media chances ;

* A significant programme library with big sum of hours of scheduling ; and

* A strong repute and established relationship with advertisers”


* 20m subscription charge to BSKYB

* Unable to publicize ITV athleticss channel on BSKYB

* Shareholder discontent over their corporate administration since amalgamation


* Merger between Carlton and Granada will enable ITV to raise the economic systems of graduated table. cut down costs and increase the quality of airing both in footings of content and service.

* Acquisition of other companies to extent the market portion and countries of influence

Vertical integrating: for illustration into picture lease

Horizontal integrating: for illustration to other states or parts.


* Rise in overseas telegram and pay-per-view Television

* Rise in broadband connexions makes Internet the serious rival to Television

* Potential amalgamations between other Television companies ( NTL and Telewest )

( 2. 6 ) PESTLEI analysis


Technological factors have important consequence on Television industry.

Fast gait of technological alteration. To maintain up with technological developments Television companies need to carry on updates and alterations to their service on the changeless footing. Pay-per-view is the illustration of invention that was made in the recent old ages. Companies in this industry besides compete on the footing of technological development and it is critical for them to follow the invention before the rivals.

R & A ; D. Resulting from the fact that Television companies both produce and distribute their merchandises ( Carlton ) extensive research and development is mandatory for them. R & A ; D into demand. manner and engineering gives companies the chance to vie successfully on this market. Apart from that R & A ; D of minor betterments is indispensable: polls. premium rate phone lines and etc.

Technological factors have high impact upon the Television industry as most of the inventions bring either cost cuts or service betterment. This leads companies like Carlton and Granada towards accommodating alterations in the conflict for consumer.

Political and legal

Political environment is extremely of import for Television companies as it provides authorities statute laws. licenses. quality criterions and other regulating information.

Anti-monopolies statute laws and Competition Commission suggest the maximal market portion the company may hold. ( International Journal of Retail & A ; Distribution Management. 1994 ) . As in the instance of Granada and Carlton Competition Commission revealed that the combined group would hold approximately 54 per cent of the telecasting advertisement market. This was the grounds why planned amalgamation between the ITV companies Carlton and Granada was referred for a full Competition Commission enquiry.

Environmental protection Torahs imply certain regulations on the corporate societal duty of the companies. Taxation policies direct companies to pay high corporate revenue enhancements from net incomes. Due to this ground several companies donate proportion from their net incomes to charities. which decreases the sums charged.

Foreign trade ordinances have important impact upon the Television companies because the distribution and gross revenues of content return topographic point both inside and outside the UK. Government Torahs affect operations of Carlton and Granada: content. advertisement infinite. advertisement monetary value. employment issues and etc.


Social ( cultural ) environment consist of “institutions and other forces and affect society’s values. perceptual experiences. penchants and behaviours” ( Kotler et. Al. 1999 ) .

The fact. that Britain’s population is aging ( HRMagazine. 2000 ) affects Television companies as they need to accommodate the content of their programmes harmonizing to the gustatory sensations and demands of ageing population. Increased degree of instructions affects the consumer penchants. which requires Television companies to carry on uninterrupted research for new information and amusement merchandises.

Change in life styles requires Television companies to be adaptative. For illustration offering of place shopping. Social duty affects Carlton and Granada in footings of enlisting policies. environmental policies and other concern moralss.

The growing in single-person families. and working adult females act upon the mixture of programmes and movies that Television companies need to put on offer.


Economic environment is presented by the “factors. which affect consumer purchasing power and disbursement patterns” ( Kotler et. Al. 1999 ) .

Interest rates affect Television industry. as when involvement rates rise people spend less and when involvement rates fall disbursement degrees addition. This have the influence on the patrons of Television programmes. which select the optimum clip for their commercials to be shown.

Inflation besides affects monetary values which companies need to pay and money that they receive from the advertizers. Degree of unemployment in the state besides affects the advertizers which select to publicize certain merchandises or services. therefore alter the sum Television companies receive.

Degree of disposable income besides influence disbursement form.

Handiness of resources alters the costs of Television companies.


Increased cost of energy and other resources have important impact upon the Television companies. which forces them to seek for the cheaper options and increase the monetary value for advertizers. Despite the fact that Television transmittal has about no consequence on pollution and natural resources used Television sets produces some radiation.


Due to the fact that Carlton and Granada are bring forthing untouchable merchandises – industrial factors do non hold influence upon these companies.


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