While the BBC is support by the licence payer’s fee, TV companies in the real world need to find their funding from advertising, and this has been going fairly well. But fears of a worldwide recession have made some advertising think twice about their advertising budgets and have begun to cut back.
Clearly the two main channels affected are going to be ITV and Channel Four, while industry experts ponder around the facts and figures it is these two channels who could be looking at some serious reductions in the amount of advertising cash available some people feel that there could be a reduction of around twelve million pounds in the first quarter alone.
ITV1 is going to be hit the worst with a fall of around £9 million and Channel Four will be looking at getting about £3 million less for the first quarter of the year. However, it is fortunate for both Channels that are supported by well funded digital channels, which in fact do show a rise in advertising expenditure.