UK Broadcasting
TV: Still hiding behind the sofa?
Overview
We have entered a critical time for the UK’s television broadcasters, with companies
impacted by the changing regulatory environment while struggling to meet the
challenges of a volatile consumer market and the constraints of their current business
models. In this overview report, we highlight the following issues:
• TV advertising trends – where’s the recovery?
• Regulatory and other reviews – we assess the impact of a number of regulatory
reviews and government papers, including the OFT Contract Rights Renewal; the
Ofcom PSB Review and Pay TV Consultation; Digital Britain.
• The BBC – its position in the market and impact on the commercial broadcasters.
• Stock valuations – We have used sum-of-the-parts and DCF models to value to
quoted broadcasters
Stock coverage initiations
In this note we are initiating coverage on the following stocks:
• BSkyB – BUY, target price 535p
• ITV- SELL, target price 31p
• stv group – HOLD, target price 70p
• UTV Media – BUY, target price 81p