Anyone want a social networking site? Going Cheap thanks to ITV and Michael Grade
Anyone want a social networking site? Going Cheap thanks to ITV and Michael GradeITV reports losses of £2.7bn (circa $3-4bn). As a result they are planning to cut 600 jobs and sell off their Friends Reunited social networking site.
Now, I don’t think that Michael Grade is totally to blame. The television networks in the UK were all clubbing together on something called Project: Kanagroo . This was supposed to an online video download service offering programmes from BBC Worldwide, Channel 4’s On Demand service and ITV.com. However, the British Government in their infinite wisdom… NOT… has decided that this is anti-competitive.
So how is this possible when we’re no longer an island. We’re no longer in isolation – we’ve got the physical connection to Europe via the Channel Tunnel and the internet has made life very difficult in getting copyright laws applied – downloads of films are available pretty much from the day they are launched.
So do you think that the government should have stopped this joint service?
Anyway, back to the main story. ITV needs to cut costs and this is something that Michael Grade has been trying to do and woo viewers back onto their programmes. However, with a cut of £65m this year in the programming budget and a planned £70m cut in 2011. Are we going to be given endless re-runs of Morecambe and Wise, Porridge and Allo Allo? Not that I’m complaining – anything other than yet another reality TV show.
more than Channel Four and Five combined, with shows like I’m A
Celebrity, The X Factor, Law & Order: UK, Dancing On Ice, Wild
at Heart all due for outings this year.
“
Did you know that ITV cannot mention in its programmes sub divisions on its programmes. So if there is an episode in Coronation Street regarding the perils/addiction of social networking they can mention any site they want other than Friends Reunited (only because they own it) – how insane is that? I wonder whether there is any need for Friends Reunited because of the massive take up of Facebook.
Friends Reunited, despite the poor state of the market, insisting it was
still a good business.
He said: “Looking at it from a strategic point of view, the phenomenal success
of ITV.com has eclipsed Friends Reunited. It doesn’t play to our strengths.”
Mr Cresswell added: “We’re not allowed to mention our online businesses, like
Friends Reunited, on air during programmes — it would be easier to mention
websites we don’t own than those we do, which is perverse.””
So let me make notes:
* British Government doesn’t feel that such a venture (as Kangaroo) is competitive
* Downloads coming from all over the world are impact ad revenues for British firms
* Government doesn’t appear to be helping at all
* Government seems more interested in helping banks (most with strong political ties)
Source: The Times
