ITV is in the spotlight after analysts played down fears that traditional television was losing out to new competitors and time-shifted viewing.
Liberum issued a buy note entitled Live TV lives on with a 255p price target, helping push ITV shares 2.1p higher to 221.7p. Analyst Ian Whittaker said live television viewing was in a much stronger position in the UK than consensus realises, with even lower viewing by younger audiences not a new phenomenon. He said:
On a five year view, linear TV has held up very well. The dips in recent years seem to be linked more to the economic recovery, as the rises in viewing during the recession reverse.
Traditional TV still dominates. TV watching accounts for nearly half of all adult media consumption and it has far more reach than other media. It also is the most effective advertising medium.
Time-shifting still a minority. Traditional “live” TV viewing still dominates, with 88% of viewing being live as opposed to 12% time- shifted. Even amongst younger age groups, live TV wins out.
The amount of live TV watched is significantly underestimated, especially by those who work in advertising agencies - so be wary of some of the claims you read online.
