ANALYSIS: ITV reacts to a troubled 2001 - David Liddiment, ITV's director of channels, talks to Poppy Brech about performance in 2001, the challenges this year and the new commercial reality

David Liddiment bears no sign of scars, despite the barrage of

criticism directed at ITV1 recently. As ITV director of channels,

Liddiment carries the can for the schedule's performance - yet he comes

across as relaxed and cheerful.



The facts are drearily familiar: ITV 1 was narrowly beaten in all-time

figures by BBC One for the first time; it failed to meet any of the

performance benchmarks for 2001 set by then marketing and commercial

director John Hardie; it continues to perform poorly in daytime.



So, an annus horribilis for ITV1? "Not really," says Liddiment. "I can

see why for ITV as a whole, with the ITV Digital issues and the

shareholder issues, it's been a very difficult year. For ITV the

network, it's been a challenging year - a year of great programming,

great creativity, and rich with its particular challenges. As the market

gets more complex and the behaviour of our competition changes, the

ironic thing is that it makes the job even more interesting."



Not everyone in his team is so sanguine. Last week, Maureen Duffy, ITV1

controller of daytime, fell on her sword over the network's lacklustre

performance in daytime.



Decline in daytime



The facts speak for themselves. In January, Hardie spelt out plans to

narrow BBC One's 4.1% daytime lead over ITV1. By the end of the year,

BBC One had widened the gap to 6.6%. The decline in daytime was also a

key factor in BBC One's much vaunted victory in beating ITV1's share of

all-time viewing - albeit by 0.01%.



Liddiment says he is not about to follow Duffy's example and quit, but

admits ITV's performance in daytime is not good enough. He says: "Our

decline in daytime is driven by two factors. One, we lost Home and Away

two years ago and to date we've not found the programme with the

capability to deliver comparable performance. Two, we have been losing

audience over the past two years, but that has accelerated since we lost

Richard and Judy early in the year.



"So we're putting a lot of energy into restoring some of our losses in

daytime, but we're not doing so at the expense of maintaining a

competitive proposition in peak."



He adds, however, that advertisers can expect to see some improvements

in the next few months. A key change to the schedule has been the

introduction of first-run brand drama repeats such as Where the Heart Is

in the early afternoons, playing against the BBC's repeats of

Shoestring. He is also working hard with This Morning producers at

Granada to "aggressively tackle" the problems the show has experienced

following Richard and Judy's defection to Channel 4, which has seen

figures slip to one million.



The outlook for the newly resurrected Crossroads, however, seems less

clear. "It's not imminent, but we'll have to make a decision about

whether Crossroads will have the growth in it to be a permanent fixture

of ITV daytime or not."



He believes it is too early to say what the future holds for Night and

Day, ITV's tea-time replacement for Home and Away. Meanwhile, he says

the candidate he has in mind to replace Duffy comes from outside ITV and

"will bring freshness and energy" to the role of overseeing daytime

TV.



So what of ITV1's overall performance? Liddiment admits that "it doesn't

feel good" that ITV1's share of all-time audiences fell below BBC One's

or that ITV1 dropped three share points in peak.



He concedes that some advertisers have had their confidence in ITV1

knocked, but says some of the criticisms are unfair. "I am not

complacent about our performance last year, but in peak time I think we

put in a commendable performance, given the market conditions. We had a

number of new entertainment hits, we had strong factual events, we had

nine out of the top ten dramas and we had eight out of the top ten

entertainment shows. We won every night of the week last year, bar

Christmas night. These are not inconsiderable achievements."



While he is not looking for excuses, Liddiment is determined that the

performance of the schedule should be judged in the context of two

factors over which he has no control: the commercial behaviour of BBC

One and the growth of multi-channel.



"Whenever people contemplate the performance of ITV, they look back at

those glorious days when there wasn't much competition and we had over

half the available audience watching us.



"The end of 2001 underlined the speed of change, the growth of

multi-channel and the exercise of choice. There is now a purely

commercial perspective driving the BBC's programming schedule.



"Those changes are bound to have a greater impact on the market leader

than on our other commercial competitors that have a niche, more

bespoke, part of the market."



Nevertheless, Liddiment denies he is now in a position of managing

decline.



"I don't accept the notion of decline at all. I have to ensure we

respond as competitively as we can to keep delivering ITV's unique

proposition of rapid cover, high-impact, talked-about TV with bigger

numbers than anyone else in the commercial sector by a million miles. I

passionately believe this will remain the case for many years to

come."



New commercial era



Liddiment's optimism may be severely tested following publication of

ratings from the new Broadcasters Audience Research Board (Barb)

panel.



While the figures only cover the first two weeks of this year, and the

panel still needs to settle in, ITV's apparent 25% drop in viewing is

cause for concern.



In this new climate of realism it makes sense that ITV1 has abandoned

the performance indicators that have left it open to criticism over the

past two years. "We must not lumber ourselves with targets that don't

properly reflect the competitiveness of the market," says Liddiment.

"It's important to our ability to make the right decisions for

advertisers and audiences."



Instead, ITV director of marketing and communications Jim Hytner will

make a series of presentations to advertisers and bodies such as the

Incorporated Society of British Advertisers about ITV1's ambitions for

the channel.



Dropping the targets is part of a package of measures to change the way

ITV1 is perceived and judged. These will include ITV's first conference

for advertisers and agencies in May.



According to Liddiment: "Jim is working on a plan that will see real

change in the way the channel presents itself to viewers, the way we

look on air, the way we market the strength of our programming and our

schedules both to our customers and viewers."



Hytner, says Liddiment, is one of ITV's big hitters working alongside

"the strongest team of creative executives and schedulers in British

TV".



And Liddiment promises they are working to deliver the best performance

possible.



"We are not sat with our feet up saying 'Oh dear isn't life terrible';

we're saying this marketplace is really challenging and interesting. How

are we going to crack it, how can we do even better for our advertisers

and our viewers? That question preoccupies us in all of our waking

hours."



CHANGING TV MARKETPLACE

Channels' % share of viewing in all-time

ITV1 BBC One BBC Two C4 C5 Multi-

channel

2001 26.8 26.9 11 10.1 5.8 19.3

2000 29.4 27.2 10.7 10.5 5.8 16.4

Source: ITV.



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