Channel 6 seeks slice of €287m TV market

Media& Marketing: Channel 6 becomes the 18th channel available to NTL basic subscribers this evening

Media& Marketing: Channel 6 becomes the 18th channel available to NTL basic subscribers this evening. This is a record number. It's worth remembering that at one time Ireland could boast only one channel, RTÉ 1.

The number of digital channels available in the main cities is even more mind-boggling. This correspondent counted 110 television and radio channels available on NTL's digital package.

Fortunately for the various Irish channels, NTL and Chorus have agreed to group them towards the start of what is known as the electronic programme (EPG) guide. This means is that on NTL Digital, RTÉ 1 comes first, RTÉ 2 is second, TV3 is third, TG4 is fourth, Setanta is fifth and Channel 6 is sixth. The order on analogue sets is up to the viewer.

The position of a channel is critically important. While digital viewers use their televisions in different ways, the majority still move up the channels from 101 starting with RTÉ 1 and so on.

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The size of a station's audience is not what determines its position on the digital running order. If that were the case BBC would be ranked higher on the EPG than Setanta, for instance. "We base our EPG number and genre allocations on a combination of factors - which include Irish and UK rating data, content and relevance to our customer base," NTL said yesterday.

Either way Channel 6's commercial potential will be boosted by its high placing on the EPG. Its bigger problem may be that approximately 13 stations are now chasing advertising revenue in the Irish market.

The total cake for the Irish television market is estimated to be worth about €287 million, with RTÉ taking the lion's share. Getting a decent slice of this will initially prove difficult for Channel 6. But there is one factor in its favour. The television advertising market is growing strongly - up 14 per cent year-on-year in January.

Channel 6 has decided to stick rigidly to its target group, the under-35s. Unlike RTÉ, which has a wider mandate, Channel 6 will not be straying from this even if the viewership statistics exceed expectations. This is the most saturated part of the market, however. TV3, RTÉ 2, Channel 4, E4, Sky One, MTV and Paramount Comedy are all aimed at under-35s in some way or other.

The television market is also starting to mirror some of the changes in radio. Radio stations are increasingly finding it hard to make money. For example Dublin's Country Mix, which is available for sale, has yet to make a profit. Yesterday, the Independent Broadcasters of Ireland (IBI) expressed growing frustration at ongoing delays which are preventing the publication of the long-awaited Broadcasting Bill.

The group wants any commercial radio licences to be introduced "on a gradual and phased basis". Spokesman Dave Tighe said the independent radio sector now had a total of 26 commercial radio stations and the market was "becoming increasingly crowded".

"We believe we are close to reaching market equilibrium but, with the prospect of three new regional youth services, a new quasi national service and five special interest channels in the offing, we run the danger of saturating the market. IBI accepts the need for competition but the introduction of new operations should be phased in over time to ensure that the market can sustain each new arrival." If Minister Noel Dempsey takes such a measure he may have to consider doing the same for the television market.

'Metro' battle

Which is more important, newspaper circulation or newspaper readership? Well, the answer depends on which advertising agency or media owner you talk to. So far the two new freesheets - Metro and Herald AM - have produced circulation data. Between them 121,000 copies are hitting the streets of Dublin each day.

Because they are freesheets they are solely dependent on advertising, so readership statistics are vitally important. So far neither title has been added to the Joint National Readership Survey (JNRS), which is published by the National Newspapers of Ireland.

Metro has warned, however, that it believes it should be included in the survey, even though its not a "paid for" newspaper. It said it hoped an amicable solution could be reached, but it was not ruling out legal action on competition grounds. The paper has surveyed all the main advertising agencies in the Republic and the vast majority support the addition of freesheets to the survey, said Metro chief executive Lee Thompson yesterday.