The X Factor is undoubtedly ITV’s biggest show, and figures released today show its the biggest cash-cow it has too.
While the current series of The X Factor ended this weekend, a bidding war is already likely to break between companies as the one-year sponsorship deal that Talk Talk signed with the show has ended. Talk Talk has sponsored the popular talent show for the last two years, giving ITV £6 million per series for the privilege.
But ITV could squeeze significantly more cash out of a new sponsorship deal if The X Factor contract is put out on the open market, which is likely to spark a bidding war. At this stage though, they intend to open discussions with Talk Talk to try and sign a new deal.
But that is just the sponsorship side of ITV’s revenue. The X Factor raked in revenue well in excess of £20 million pounds in telephone votes alone for the entire series. ITV take an undisclosed cut from telephone votes, while the rest of the revenue goes to Simon Cowell’s TV production company, Syco.
The two-night X Factor final, which was spread over 2 x 2 hour shows and saw Joe McElderry take the crown, also netted the broadcaster an additional £21 million in TV advertising revenue during the ad-breaks. The figures released today are based on a 30-second TV commercial for time during X Factor breaks costing between £170,000 and £250,000. It’s estimated that 96 30-second commercials ran during the four hours of Saturday and Sunday nights final.
In light of these figures, Simon Cowell has demanded an additional £3 million to be spent on next years series before he signs a new contract. If ITV turn down his request for the extra cash, he’s said he will pull the plug, and take the show to another broadcaster.
So an estimated total that The X Factor made for the entire series this year, works out to £47 million pounds. This estimate doesn’t include the advertising revenue earned from any live shows broadcast BEFORE the X Factor Final, so you can bet they made an additional £30 million from those shows, taking the estimate up to £77 million pounds.
Not a bad series for ITV then, don’t you think?