Brand Failures
Brand Failures Brand Failures
216 Brand failures for digital television as of interest only to ‘sad people who live in lofts.’ However, ITV Digital later mimicked BSkyB’s football-centric strategy, by paying £315 million for the rights to televise matches from the Nationwide Football League. They also ended up buying movies from the satellite firm. ‘The inherent contradictions from the top down confused viewers,’ reckoned The Observer newspaper. The Observer also pointed the finger at Charles Allen and Michael Green, the chairmen of the platform’s two shareholders, Granada and Carlton, and the other management figures: Many in the City expect that, even if Allen and Green manage to hang on to their positions, allowing them to make a more leisurely exit later in the year, some of their lieutenants will soon have to fall on their swords. Question marks hang over the head of Granada chief executive Steve Morrison, who, at the height of negotiations with the Football League, opted to take a holiday in New Zealand. And it is hard to see how Stuart Prebble, a former journalist who, despite having no experience in the pay TV arena, rose to become chief executive of ITV and ITV Digital, can stay in the ITV fold. But alongside managerial failings, some things were beyond the company’s control. For instance, despite assurances from the Independent Television Commission (ITC) that the power of ITV Digital’s broadcasting signal would be increased, nothing happened. Coverage was reduced to include only about half of the UK. Also, the ITC’s decision to force Sky out of the original consortium – over ‘fears of a Murdoch dominated media’ according to The Observer – meant that none of the companies behind the platform had solid expertise within the pay-TV arena. ‘The ITC kept Sky out. If Sky had been allowed to stay in, ITV Digital would have got to three million subscribers by now,’ said Dermont Nolan of media consultancy TBS in April 2002. That some month ITV Digital met its demise and called in the administrators from Deloitte and Touche. Although there were over 100 expressions of interest in the platform’s assets most of the interest was to do with the brand’s mascot, the ITV Digital monkey which became something of a celebrity in a series of adverts featuring comedian Johnny Vegas. Unfortunately, the monkey’s popularity didn’t rub off on the platform it was promoting.
Rebranding failures 217 Lessons from ONdigital/ITV Digital Be available. Technological problems meant that the platform wasn’t available in many parts of the UK. Be reliable. These same problems led to a reputation for unreliability. Have a strong incentive. ITV Digital didn’t simply require people to switch channels. They needed to go out and get completely new technology to place on top of their TVs. To do that, they needed a very strong incentive – the ability to watch something they loved, which they couldn’t find elsewhere. Deliver on your promises. ‘ITV Digital’s promises ran ahead of its ability to deliver, it was a totally new system,’ says Marc Sands, the platform’s first director of brand marketing. Don’t tarnish related brands. ‘The greatest mistake was to rebrand it ITV Digital, dragging ITV, one of the strongest consumer brands, into disrepute,’ says Sands. Be realistic. ‘I know what it costs to set up digital transmitters,’ says Gerald H David, chairman of Aerial Facilities, experts in digital radio engineering. ‘ITV Digital’s demise is all part of a pretty unrealistic plan. The ITC put the cart before the horse when it licensed it.’ Understand the competition. ‘Carlton and Granada didn’t anticipate such a competitive environment,’ says John Egan, director of operations and strategy for the platform until 1999.
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Rebranding failures 217<br />
Lessons from ONdigital/ITV Digital<br />
Be available. Technological problems meant that the platform wasn’t<br />
available in many parts of the UK.<br />
Be reliable. These same problems led to a reputation for unreliability.<br />
Have a strong incentive. ITV Digital didn’t simply require people to switch<br />
channels. They needed to go out and get completely new technology to<br />
place on top of their TVs. To do that, they needed a very strong incentive<br />
– the ability to watch something they loved, which they couldn’t find<br />
elsewhere.<br />
Deliver on your promises. ‘ITV Digital’s promises ran ahead of its ability to<br />
deliver, it was a totally new system,’ says Marc Sands, the platform’s first<br />
director of brand marketing.<br />
Don’t tarnish related brands. ‘The greatest mistake was to rebrand it ITV<br />
Digital, dragging ITV, one of the strongest consumer brands, into disrepute,’<br />
says Sands.<br />
Be realistic. ‘I know what it costs to set up digital transmitters,’ says Gerald<br />
H David, chairman of Aerial Facilities, experts in digital radio engineering.<br />
‘ITV Digital’s demise is all part of a pretty unrealistic plan. The ITC put<br />
the cart before the horse when it licensed it.’<br />
Understand the competition. ‘Carlton and Granada didn’t anticipate such<br />
a competitive environment,’ says John Egan, director of operations and<br />
strategy for the platform until 1999.
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