GROWTH OF +1 CHANNELS
It's four years since the appearance of the first time-shifted TV channel with the debut of Channel 4's E4+1, but recent weeks have seen a proliferation of similar launch announcements, including the first terrestrial TV repeats channel, with Channel 4 again to the fore.
"This is the first one in my view that has raised the profile of +1s," says Jim McDonald, head of broadcast at Media Planning Group. "All of a sudden, if Channel 4's impacts are to rise 10%, then it's significant."
Media Week (4 September, page 6) recently reported that, in its first week of transmission, Channel 4+1 only accounted for 4.5% of Channel 4's total impacts, falling short of its 10% target.
However, Mike Parker, Channel 4's head of strategic sales and commercial marketing, points out that it is early days, adding that Channel 4+1 was expanding audiences impacts as the week progressed. To combat criticisms over lack of viewer awareness, Channel 4 is also ploughing marketing budget into this.
Viewer convenience
Regardless of 4+1's early performance, its birth is another sign that +1 channels are all the rage. Virgin Media's Virgin 1 is due for launch this autumn and will provide a +1 channel for subscribers. Virgin expects to increase impacts to the main channel by up to 20%.
Sarah Golding, associate director of trading and strategy at Virgin sales house Interactive Digital Sales, says: "The whole thing around +1s is they offer viewers more choice and convenience."
However, Gary Digby, managing director of ITV Customer Relations, contests this: "My view is that +1s are purely a defence mechanism," he says, acknowledging that ITV's digital +1s are just that. I think (Channel 4+1's launch) is desperation, because its main channel is not performing very well. I don't think it offers consumers something different. Is it a USP or point-of-difference? No."
Kelly Williams, sales director of Five, partially concurs. "Traditionally, +1s have been launched to help broadcasters have a growth story year after year, and, on occasion, been used as a defence mechanism," he says.
Defence mechanism, or not, +1s are proving popular with viewers. According to Barb data, Film4+1 attracted 40% of the audience share achieved by Film4 12 months after its launch, and More4+1 levelled out at 10% in its first year. ITV2+1 and ITV3+1 achieved about 10% and 5% respectively.
While it is easy for broadcasters to trumpet how +1 channels benefit consumers, their motives are not purely altruistic. For advertisers, +1 channels give them the chance to have two shots at consumers.
"If you can air the same commercials an hour later to another audience, then it grows a commercial audience," says C4's Parker.
But MPG's McDonald says that this does not necessarily translate into more money for broadcasters. "They don't sell +1s to advertisers," he says. "You automatically get your ad. It's not something you can choose to invest in or not to invest in."
Digby agrees. "I can't believe advertisers will pay the same for Channel 4+1 as for Channel 4," he says, adding: "At the moment it's free, but Channel 4 will negotiate later in the year."
But while +1s may help broadcasters at the negotiating table, they are hardly cash cows. Tess Alps, chief executive of Thinkbox, says: "They're not cheap, there is significant cost involved. It's an expensive thing to do because you have to buy extra rights to shows," she adds.
There is also the argument that, as PVR ownership grows through Freeview, Sky and cable, +1 channels will become redundant.
Channel hoppers
Not so, says Channel 4's Parker: "In terms of PVR ownership, it's a different situation - viewers actually make a decision to record," he argues. "But ultimately, a lot of +1's audience is about people zapping through. If you've got universal PVR ownership, then there is still a place for +1s."
Channel 4's decision to launch a +1 version of a terrestrial channel was nothing if not pioneering. Five's Williams doesn't rule out the possibility of Five+1. "We've considered a +1 channel for our main channel," he says. "We've not dived in because of distribution costs and the rights, when you've got a terrestrial show. We'll keep an open mind and watch Channel 4+1's development."
ITV, however, is unlikely to launch an hour-delayed incarnation of its flagship channel because of the risk of cannibalising its terrestrial audience and losing ad revenue through the contract rights renewal mechanism.
Repeats channels are a canny way for broadcasters to maximise commercial impacts, and a service to viewers when PVR penetration is low. But, when this is universal, the audience for them may be confined to casual zappers with nothing better to watch and nothing on their PVR.
July 2003
E4+1
December 2005
More4+1
July 2006
Film4+1
October 2006
ITV2+1 and ITV3+1
August 2007
Channel 4+1 (replacing Film4+1 on Freeview and Virgin), Five US+1 and
Five Life+1 launch on cable and satellite only, and Virgin 1+1, planned
for launch later in the year.