Australians are continuing to desert free-to-air TV and to a lesser extent pay-TV.
Free-to-air viewing fell by 5% in the first 10 months of this year, including live viewing and time shifted viewing within a week of the initial broadcast. October viewing was down 4.2% on a year ago.
Pay-TV viewing was off by 2.2% according to OzTam data, although that does not factor in the growing proportion of people who watch Foxtel through other devices.
The Seven Network dominated the October ratings with a 42% share of all people boosted by The X Factor, Dancing with the Stars, The Blacklist and Agents of S.H.I.E.L.D. Nine lost ground in October, its all people share slipping to 35% from 37% in September.
“Australia’s Got Talent performed adequately but was well beaten by X Factor, while Big Brother ratings have been materially down on last year,” Credit Suisse said in a briefing to clients.
Ten's share was 23% in October, reflecting less competition from Nine. Credit Suisse noted that ratings for Ten’s new breakfast schedule have been disappointing with Wake Up struggling to deliver better ratings than last year’s cancelled Breakfast, although Studio 10 has fared slightly better. The Big Bash, which kicks off on December 20, will be the next catalyst for a potential ratings recovery in 2014, the broker predicts.
After Ten’s investor day, Credit Suisse retained its neutral rating on the stock but said the network is “heading in the right direction [and] appears to be adopting the necessary strategy to turn the television network around. Financial pressure has been alleviated. Ratings have somewhat stabilised. The leadership team has been enhanced. Sales and marketing appear to be reaping the low hanging fruit through closer partnerships with advertisers and an improved digital offering.”
The broker said Ten’s new strategy is to focus on a broader, older and more profitable demographic (25-54) that resonates strongly with advertisers. “The new funding facility will enable TEN to increase investment in event TV and become more opportunistic,” it said. “The three terrestrial channels will become more differentiated with Eleven skewing younger and One focusing on men.”
Ten’s summer schedule starts on December 1. The network says Homeland and Sleepy Hollow will continue to be fast-tracked on Monday and Tuesday nights. Also continuing are The Project and Sunday night quiz Have You Been Paying Attention?
American Idol, American Horror Story: Coven, Supernatural and Glee will be fast tracked on Eleven, which will also air new episodes of Ben and Kate, Fresh Meat, How To Live With Your Parents For The Rest Of Your Life, King of the Nerds,1600 Penn, Dancing On Ice UK and Britain and Ireland’s Next Top Model.