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ITV plc

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This article is about a television channel operator. For the nation-wide group, seeITV (TV network).For the channel, seeITV1.For other uses, seeITV.

ITV plc
Formerly2232nd Single Member Shelf Investment Company Limited (November–December 2003)[1]
Company typePublic
LSE:ITV
FTSE 250component
ISINGB0033986497
US45069P1075Edit this on Wikidata
IndustryMedia
Predecessors
Founded2 February 2004;20 years ago(2004-02-02)
HeadquartersLondon
Key people
Products
RevenueDecrease£3,624 million (2023)[2]
Decrease£238 million (2023)[2]
Decrease£209 million (2023)[2]
DivisionsITV Studios
Websiteitvplc.com

ITV plcis a British media company that holds 13 of the 15 regional television licences that make up theITV network(Channel 3), the oldest and largest commercial terrestrial television network in the United Kingdom.

ITV plc is listed on theLondon Stock Exchangeand is a constituent of theFTSE 250 Index.

History

Pre-acquisition

ITV plc was the result ofGranadapurchasingCarltonfollowing the various mergers and acquisitions between the companies of theITVnetwork that had taken place from 1994 when the ownership rules were relaxed.[3]

The first wave of mergers began withYorkshire TelevisionacquiringTyne Tees Televisionin 1992, forming a parent group calledYorkshire-Tyne Tees Television.[4]In 1994,Carlton Communications– which had owned a 20% stake inCentral Independent Television– acquired the remainder of the company[4]and, because of Central's shareholdings, inherited a 20% stake inMeridian Broadcasting.Later that year, Granada acquiredLondon Weekend Television[4]through a hostile takeover worth in the region of £750 million. MAI, which controlledMeridian Broadcasting,acquiredAnglia Television;[4]MAI became United News & Media after merging with United Newspapers – owners ofTheDaily Expressin 1996.[4]Ownership rules, that previously restricted ownership of ITV licences by one company to two outright, plus 20% in a third, were relaxed, and so Carlton went on to acquireWestcountry Television[4](later re-branding it Carlton, along with Central), Granada acquired Yorkshire-Tyne Tees Television[4](with the parent group becoming Granada Media, later simply Granada) and United acquiredHTV.[4]

Year: 92 93 94 96 97 2000 01 04 08 09 11 16
Central Carlton
Communications 		ITV plc
(Thames) Carlton
(TSW) Westcountry
HTV
(TVS) Meridian UNM
Anglia
Granada Granada plc
LWT
Yorkshire YTTTV
Tyne Tees
Border Capital
(TV-am) GMTV
Channel
UTV
Year: 92 93 94 96 97 2000 01 04 08 09 11 16
Diagram displaying consolidation of ITV franchisees into ITV plc

The idiosyncrasies and business model of the future ITV plc operation can be found in the way these new conglomerates operated their franchises. Carlton re-branded all of its stations with its own name, creating a single identity across the whole expanse of its territory. By contrast, Granada and United, while keeping the franchisees' names, centralised their continuity departments – Granada inLeedsand United inSouthampton.All three, however, merged the network production operations of their franchises, creating Carlton Productions, Granada Content and United Productions.[5]

By the end of the 1990s, there were three dominating owners of the ITV franchises in England and Wales:Carlton Communications,Granada plcandUnited News and Media.In 2000, after an aborted merger attempt with Carlton, UNM decided to leave ITV and Granada bought all the UNM franchises,[4]but sold HTV to Carlton in order to comply with the permitted audience percentage covered by a single broadcasting interest.[6]It kept the production arm ofHTV,however, renaming it Granada Bristol and moving it out of Bath Road to a new, smaller office in Whiteladies Road (near theBBC). This arm of the company closed in 2006, following later rationalisation of ITV's production operations. The last remaining independent ITV franchise inEngland and Wales,Border Television,had been bought by Capital Group in 2000, and was sold on to Granada in 2001,[7]with Border's radio assets being retained byCapital Radio plc.[8]

The acquisition

Logo used from 2 February 2004 to 15 January 2006

In 2004, Granada purchased Carlton and renamed itself ITV plc, a single company for all ITV franchises in England and Wales.[9]One of the consequences of the merger was (according to the company) an over-capacity of studio facilities and production units around the country, which had previously been rivals, but were now all part of the same group. In order to make cost savings, several large regional headquarters, studio sites and programme departments closed and merged. Among the casualties were network production and studio facilities of Tyne Tees inNewcastle upon Tyne,Meridian in Southampton, Central inNottinghamand Anglia inNorwich.In all cases, ITV moved the regional franchisee to a new location complete with hi-tech facilities for news production, but with a minimal number of (physically smaller) studios and the loss of many jobs. Tyne Tees' factual department merged with Yorkshire's inLeeds(which has since closed and re-emerged as Shiver Productions);[10]Meridian's factual and sport production moved to London; all network production inNottinghamwas re-allocated to London,ManchesterorLeeds(and the localCentral Newsstudio moved toBirmingham), and Anglia Factual, reduced to a satellite operation ofITV Studiosand primarily producing output for the international market or occasionally third parties in the UK, was eventually closed in January 2012.[11]

Post-acquisition

Prior to the acquisition, and despite being rivals within ITV, Granada and Carlton had already been involved in several joint ventures, including the digital terrestrial television operatorITV Digitalthat went bankrupt, and collapsed in 2002.[12]They also owned the digital channelITV2,which had launched in December 1998, and 65% of the (re-branded)ITV News Channel,previously owned by ITN and was originally launched as the ITN News Channel. As well as consolidating its (now 40%) shareholding in ITN itself, the newly merged company was able to buy the final 35% stake in the ITV News Channel from ITN's original partnersNTLin April 2004.[13]In November the same year, and following a frantic last-minute deal withBSkyBto buy its half of theGranada Sky Broadcastingjoint venture, they launched the digital channelITV3,replacingGranada Pluswhich ITV plc closed down on satellite and cable. A year later they launchedITV4.However, due to multiplex issues (and the fact that it was losing money) the ITV News Channel controversially had its hours onFreeviewreduced, and was finally closed down on 23 December 2005, with its Freeview space being taken over by replacementsITV4andCITV,which launched in November 2005 and March 2006, respectively.[14]

On 27 April 2005, ITV plc boughtSDN,thedigital terrestrialfranchise holder of Multiplex A (now transmitting ten channels) from its shareholders,S4CandUBMfor £134 million.[15]

In April 2006, the participation channelITV Playwas launched. It was also an overnight block on ITV1. Following a series of scandals surrounding participation TV, the dedicated ITV Play channel was closed down in March 2007, followed by the late-night phone-in quiz shows on the ITV Network in December 2007, however the brand continued to be used for a time for part of the gaming section ofitv.com.[16]

In August 2006, the company sold its 45% shareholding inTV3 Ireland,which had been bought by Granada in 2001, toDoughty Hanson & Co.[17]

Reorganisation

Logo used from 16 January 2006 to 13 January 2013

There were rumours of take-over and merger bids during 2006. For example, on 9 November 2006,NTLannounced that it had approached ITV plc about a proposed merger.[18][19]The merger was effectively blocked byBritish Sky Broadcastingon 17 November 2006 when it bought a 17.9% stake in ITV plc for £940 million,[20]a move that attracted anger from NTL shareholderRichard Branson[21]and an investigation from media and telecoms regulatorOfcom.[22]On 6 December 2006, NTL announced that it had complained to theOffice of Fair Tradingabout BSkyB's move. NTL stated that it had withdrawn its attempt to buy ITV plc, citing that it did not believe that there was any possibility to make a deal on favourable terms.[23]At the same time as the NTL bid,RTL,the then-owner ofChannel 5,was also rumoured to be preparing a bid for ITV plc, with the possibility of a stock-swap with BSkyB; the plan would have seen RTL acquiring BSkyB's stake in ITV plc (with the aim of further acquisitions of shares in the future) in exchange for BSkyB taking full control of Channel 5.[24] In the end, no movement was made on this possible deal and RTL sold Channel 5 to Richard Desmond'sNorthern & ShellNetwork in July 2010.[25]

The company then entered into a series of disposals of non-core activities: in March 2009 the company sold its investment inFriends Reunited(a website dedicated to reunited former school friends or colleagues in a number of countries) which it had acquired in December 2005.[26]Also in May 2009 the company sold Carlton Screen Advertising (the largest cinema advertising business in theRepublic of IrelandandNorthern Irelandand now known asWide Eye Media).[27]

In 2010, a large-scale business reorganisation, called the "five-year Transformation Plan" was launched. Thanks to stringentworking capitalmanagement and cost management some of the set goals were already achieved in 2012. These include a ranking upgrade (from BB− to BB+), an increase inaudience shareand reduction of debt (from net debt of £730 million at the end of 2008, to a positive net cash position of £16 million at the end of the first quarter 2012).[28]

Logo used from 2013 to 2024;ITV1used this logo from 2013 to 2019.

In December 2013 the company sold its remaining shareholding inSTV Group plc(owner of theScottishandGrampianITV franchises) which had been bought by Carlton in 1999.[29]

On 17 July 2014, BSkyB's 6.4% stake in ITV was sold toLiberty Global,valued at £481 million.[30]

On 19 August 2015, ITV purchasedUTVfor £100m ensuring that 13 out of the 15 licences (it does not hold the two in Scotland) were in its control.[31]

In July 2016 the company soldUTV IrelandtoVirgin Media.[32]

In August 2016, it was revealed that ITV had made an offer to acquire Canadian multinational film and television distributorEntertainment Onefor around £1 billion. On 10 August 2016, it was announced that eOne had rejected the offer, considering it to be "fundamentally undervalued".[33]

In 2017, it was announced that ITV plc had acquired a majority stake in British Production companyWorld Productions,behind the hit BBC seriesLine of Duty.As a result of the deal, World Productions is now part of ITV Studios.[34][35]

In 2022, the company announced the arrival of ITVX, which it said would be Britain's first integrated advertising and subscription funded streaming platform, and would complement its catch-up service, ITV Hub, and would include access to BritBox.[36][37]

On 1 June 2022, it was announced that it will be demoted from the FTSE 100, and became a constituent of theFTSE 250 Indexon 20 June.[38]

On 28 February 2024, ITV plc revealed a corporate brand refresh, reinforcing its three strategic pillars of expanding Studios, supercharging streaming and optimising broadcast. The new logo is a new coloured version of the logo introduced in 2013.[39]

Operations

Organisation

ITV plc is divided into two divisions:[40]

  • Media and entertainment, which operates the TV networks (including theITV NewsGroup, which runs the ITV regional licensees)
  • ITV Studios,which comprises both UK and international production, ITV's facilities businesses and Global Entertainment which exploits programme rights.

Network licences

ITV-owned licences in 2004 (Channel TV since 2011)
ITV-owned licences since 2016

Through ITV Broadcasting Ltd, ITV plc holds 13 of a total 15ITV networklicences, withSTVholding two ITV licences in Scotland. ITV plc holds all licences in England and Wales, and the single ones in both the Channel Islands and Northern Ireland:[41]

ITV plc is also the sole owner of the ITV nationalbreakfast televisionfranchiseITV Breakfast,formerly known asGMTV,which airs and producesGood Morning Britain,andLorraine.

Channels

Channel Type Launch date Purpose
ITV1/UTV Network licence in 13 of the 15 ITV regions 22 September 1955 – 14 September 1962 Flagship ITV channel
ITV2 Wholly owned 7 December 1998 Aimed at the 16–34 age group
ITV3 1 November 2004 Repeats of ITV dramas
ITV4 1 November 2005 Sports, cult classic films, US dramas and ITV action shows
ITVBe 8 October 2014 Reality TV & unscripted shows

ITV plc wholly owns all of its channels throughITV Digital Channelsapart from ITV1.[42]ITV plc also operatestimeshift servicesandHDfeeds forITV1,ITV2, ITV3, ITV4 and ITVBe.[43]

Children's television blocks

ITV plc runs children's programming through children's television blocks. First is the long running children's blockCITV(formerly known as Children's ITV) that launched 3 January 1983 onITV.Currently the block is broadcast onITV2after being moved 2 September 2023, the morning after the closure of the CITV Channel. It is currently being broadcasts between 5am and 9am everyday.[44] The second is the dedicated preschool block,LittleBethat launched on 3 September 2018. It is currently broadcast between 9am and 12am everyday onITVBe.The launch of this block was to be a replacement for its predecessor called Mini CITV, originally launched 7 January 2014 on the CITV Channel. Mini CITV ended 7 January 2014 when the CITV Channel removed all preschool programming from both its weekday and weekend schedules with the exception ofSooty.[45]

Streaming

ITV launched its first on demand service as ITV Catch Up. It was rebranded ITV Player on 5 December 2008.[46]On 23 November 2015, the app and website were rebranded as ITV Hub. A paid subscription service allows users to watch ad-free and download content.[47]

In November 2022, ITV announced a new streaming service to replace ITV Hub. It launched on 8 December 2022. ITVX will provide archive ITV shows, shows and films for which ITV plc owns the license, live events and original programming. In total, ITV says the service will have 10,000 hours of content.[48]There will be a free ad-supported tier and a premium subscription which will be ad-free and allow access toBritBox.[49]

References

  1. ^"ITV plc overview - Find and update company information - GOV.UK".Companies House.18 November 2003.Retrieved15 March2024.
  2. ^abc"Annual Results 2023"(PDF).ITV plc.Retrieved7 March2024.
  3. ^Medhurst, Jamie (2010).A History of Independent Television in Wales.University of Wales Press. p. 6.ISBN978-0-7083-2213-0.
  4. ^abcdefghiAn Overview of Television in the UKOfcom, 2002
  5. ^Willis steps into new role at GranadaThe Guardian, 12 July 2001
  6. ^"Carlton buys HTV".The Independent.UK. 24 October 2000.Retrieved18 April2011.
  7. ^"Granada to buy Border TV assets for £50m if Capital wins bid battle".The Independent.UK. 17 April 2000.Retrieved18 April2011.[dead link]
  8. ^"Capital agrees Border carve-up".BBC News. 17 April 2000.Retrieved18 April2011.
  9. ^Carlton-Granada merger clears last hurdleThe Guardian, 2003
  10. ^"what we do".Shiver Productions. Archived fromthe originalon 29 January 2011.Retrieved18 April2011.
  11. ^"ITV Studios to close Norwich base with loss of 35 jobs".BBC News.13 January 2012.Retrieved25 January2012.
  12. ^"BSkyB facing legal threat over Ondigital".The Independent.UK. 17 August 2003. Archived fromthe originalon 27 March 2010.Retrieved18 April2011.
  13. ^"ITV buys NTL's share in news station ITV News".Cableforum.co.uk.Retrieved18 April2011.
  14. ^"CITV celebrates its first birthday".Digital Spy.UK. 13 March 2007.Retrieved18 April2011.
  15. ^"ITV buys SDN for £134m".28 April 2005. Archived fromthe originalon 9 April 2017.Retrieved8 April2017.
  16. ^ITV Play digital channel axedThe Guardian, 13 March 2007
  17. ^"TV to sell TV3 stake to Doughty Hanson".Irish Times. 23 August 2006.Retrieved8 April2017.
  18. ^"Ntl Incorporated Discussions with ITV plc"(Press release).NTL.9 November 2006. Archived fromthe originalon 13 November 2006.Retrieved6 December2006.
  19. ^"ITV and NTL 'in merger talks'"(Press release). ITV plc. 9 November 2006. Archived fromthe originalon 30 November 2006.Retrieved6 December2006.
  20. ^Welsh, James (17 November 2006)."Sky buys 17.9% of ITV".Digital Spy.Retrieved6 December2006.
  21. ^Wilkes, Neil (20 November 2006)."Sky/ITV: Branson statement in full".Digital Spy.Retrieved6 December2006.
  22. ^Welsh, James (21 November 2006)."Ofcom examines impact of Sky's ITV stake".Digital Spy.Retrieved6 December2006.
  23. ^Oatts, Joanne (6 December 2006)."NTL complains about Sky as it drops plans for ITV Ofcom".Digital Spy.Retrieved6 December2006.
  24. ^Oatts, Joanne (16 November 2006)."RTL to make ITV decision this week".Digital Spy.Retrieved6 December2006.
  25. ^"Daily Express boss beats rivals to buy Channel 5".Daily Express. 24 July 2010.
  26. ^"ITV in £25m Friends Reunited sale".BBC News. 6 August 2009.Retrieved8 April2017.
  27. ^Darren Davidson."Carlton Screen Advertising sold to joint venture for £500k".Brandrepublic.com.Retrieved8 April2017.
  28. ^"Frankfurt Business Media".cfo-insight.com.Archived fromthe originalon 2 April 2015.Retrieved16 March2015.
  29. ^"ITV sells final part of stake in STV for £7.5m".The Scotsman. 11 December 2014.Retrieved8 April2017.
  30. ^Clover, Julian (17 July 2014)."Liberty Global makes £481m investment in ITV".Broadband TV News.Retrieved17 July2014.
  31. ^"ITV buys Irish broadcaster UTV for £100m".Independent. 20 August 2015.Retrieved29 November2015.
  32. ^"TV3 owner Virgin Media buys UTV Ireland for €10m".Irish Times. 11 July 2016.Retrieved8 April2017.
  33. ^"eOne Rejects $1.3B ITV Approach That" Fundamentally Undervalues "Company".Deadline.com.10 August 2016.Retrieved10 August2016.
  34. ^"ITV Studios acquires Line of Duty Producer World Productions".Press Centre.Retrieved3 September2018.
  35. ^Mitchell, Robert (2 May 2017)."ITV Studios Takes Over World Productions".Variety.Retrieved3 September2018.
  36. ^"ITVX - ITV announce brand new streaming platform to launch later this year".TVZoneUK.3 March 2022.
  37. ^Goldbart, Max (3 March 2022)."ITV Launches Streaming Service ITVX; Shows Will Air Months Before Being Given Linear Slot; Full Year Results Show Record Ad Spend".
  38. ^Wearden, Graeme (2 June 2022)."ITV and Royal Mail to drop out of FTSE 100 in reshuffle".The Guardian.Retrieved2 June2022.
  39. ^"ITV details corporate brand refresh to reinforce its three strategic pillars".ITV Press Centre.28 February 2024.
  40. ^"What we do".ITV (TV network).Retrieved8 April2017.
  41. ^"Review of ITV Networking Arrangements"(PDF).Ofcom. p. 1.Archived(PDF)from the original on 9 April 2017.Retrieved8 April2017.
  42. ^"Digital Channels".ITV (TV network).Retrieved8 April2017.
  43. ^"Catch-up TV kills the +1 channel".RX RV. 22 March 2022.Retrieved15 November2022.
  44. ^Thornham, Marc (24 August 2023)."Changes to ITV1 and ITV2 after CITV closure".RXTV info.Retrieved2 September2023.
  45. ^"ITV set to reintroduce pre-school block".TBI Vision.4 July 2018.Retrieved8 March2019.
  46. ^"ITV's Catch Up rebranded ITV Player".Media Week. 5 December 2008.
  47. ^"ITV Hub+ - All of the action. None of the ads".ITV Hub.Retrieved29 July2018.
  48. ^"ITVX the UK's freshest streaming service to launch on 8th December".Press Centre.Retrieved15 November2022.
  49. ^"What is ITVX? Launch date speculation, prices, shows, BritBox news".Radio Times.Retrieved15 November2022.
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