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Audience and Institution Research Assignment.

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Media Studies 12C/MD1 Audience and Institution Research Assignment Hannah Partridge 12E2 "Granada was one of the original ITV franchises, and Carlton gained a licence only in 1991, snatching the weekday London rights from "Thames." When Carlton and Granada decided to merge, it was for the central reason of increasing their ITV1 programme budget, which increased by 7%. The merger itself, cost �4.5bn. The companies identified opportunities for making �55m in efficiencies from the deal. The eventual budget is �849m for the current financial year from October 1st to September 30th 2004. This paves the way for a fully consolidated ITV. The merger brings together two of Britain's leading distributors of television programmes and films. The main reason behind a merger is that the companies will benefit from what is known as economies of scale, this means the company can operate at lower average costs, e.g. it becomes cheaper for them to produce their product or service. The main efficiencies are likely to be made in support services e.g. finance, human resource and estates divisions. Economic analysts said that the two largest ITV broadcasters who supply 93% of the budget could not have afforded the increase if the merger had been blocked. The outcome would have been managing a business in decline said Kingsley Wilson an investigative Securities analyst. ...read more.


* Shareholders are also likely to benefit from significant synergies together with the increased scale and cash flow of the merged groups; which enables exploitation of future growth opportunities. The growth opportunities far outweigh those that would be available to Granada and Carlton separately. Carlton shareholders will receive 32 per cent of the normal share capital of the merged group upon completion of the merger; which could potentially increase to 34 per cent. Granada shareholders will receive 68 per cent of the regular share capital of the merged group and �200 million of cash upon completion of the merger. * The merger between Carlton and Granada will offer viewers several benefits such as increased programme quality as money and ideas are shared, enhanced programming investment designed further to improve quality and choice, with more premieres, more event entertainment, more dramas and strong regional identity. * The benefits for advertisers will be to be able to maximise the value of its programming, thus improving the audience share and commercial impacts, particularly to the key demographic groups. Advertisers have the opportunity to increase the size and efficiency of their reach for the products they are trying to sell. The main losers from the merger will be some of the employees of Carlton and Granada who are likely to lose their jobs as a result of savings made through economies of scale. ...read more.


Just as many people didn't know about the merger of Carlton and Granada, as the amount of people that did . To this question four people answered yes, and 16 people answered no. This shows that the public are conscious of the merger and what could happen for the better or for the worse. In my opinion, both Carlton and Granada are big commercial broadcasting companies that wished to merge together to unite ITV, the most popular commercial channel in the UK. This would create the largest commercial television production company in Britain according to research. I believe that certain mergers can be beneficial as it may create more quality viewing for the audience. However, in instances where a duopoly or monopoly could occur then it may be bad for the audience in terms of choice. They may not get as many products to choose from and advertisers may be charged ridiculous amounts because of the lack of competition. It is hard to say whether the merger will be successful, because there are no known outcomes. ITV will always have viewers but whether Granada and Carlton can actually work together efficiently is something very different. I believe the merger will affect competition, as companies will not have to compete with one another for the ITV slots anymore and may settle for less quality programmes as a result. ...read more.

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