INTERNATIONAL MARKETING MANAGEMENT

International Marketing Management



Environmental Management Policy: West Africa

Introduction

The television industry in the U.K has seen a major change in its structure since the merger of Granada and Carlton. The pair have completed an 4.6 billion merger which is an major landmark in the television industry. The merger increases ITV television advertising market hold to 52%. This enlargement of the company has significantly increased ITV impact on the competitive side of the market. Mrs Hewitt regional franchises quoted "ITV would be better equipped to compete with rivals, including BSKYB and BBC."

ITV now seem stronger and able to invest in and provide programming of high quality. ITV clearly seem to be a new business now being able to compete more effectively in today's multi channel industry. However, having said that, the Carlton and Granada merge still have not managed to appoint a new chairman for ITV Plc. Since the removal of ex chairman Michael Green who was head of the new company board.

Background

In 2001, TV companies in UK consisted of terrestrial broadcasters as well as satellite and cable companies who were concerned with television functions other than simply transmitting channels. Table 1 shows that international receipts again increased. Between 20001 and 2001 receipts rose from £551 million to £673 million - an increase of 22 per cent. International payments have also shown an increase from £767 million in 20001 to £1,007 million in 2001 an increase of 31 per cent and the largest figure since 1995. The negative balance for imports and exports by the TV industry increased from £216 million in 20001 to £334 million in 2001 the second highest deficit since 1995. Table 5 gives a geographical analysis of the imports and exports of TV companies'. As in 20001, the largest share of exports (54 per cent) was to Europe, amounting to £360 million, followed by exports to the USA of £170 million (25 per cent of total exports).

TV industry imports from the USA were estimated at £586 million in 2001 and £357 million from Europe. Other transactions in services In 2001 exports of other services by the film and television industries fell by 15 per cent to £365 million and imports grew by 28 per cent to £230 million (Table 6). The balance therefore has fallen to £135 million, returning to a level similar to that in 1999 following the rise in 20001.

Competition

The rivalry between ITV and BBC has been very intense towards the number 1 spot in the UK television industry. Previously BBC has had the honour of being and holding the number one spot. Although they still hold the number one spot, ITV has become and is remaining the most dominant channel at peak time hours taking a 31.6% share of the audience compared to BBC at 27.7%. ITV1 peak time line up is overcoming BBC1 schedule on 2 out every 3 evenings so far this year (67% of evenings). Moreover ITV1 has formed a bigger audience in peak time hours than all its commercial ...