Investors

Broadcasting & Online

ITV’s Broadcasting and Online business operates its family of channels, ITV1, ITV2, ITV3, ITV4 and CITV, which are broadcast free-to-air on analogue (ITV1 only), Freeview, digital satellite (Sky/ Freesat) and cable. ITV’s broadcast assets also include the multiplex operator SDN which operates one of the six digital terrestrial multiplex licences in the UK which make up Freeview. ITV is the largest commercial television network in the UK.

Aside from the HD channels, ITV’s channels are delivered free of charge to consumers and are funded primarily by advertising revenues, alongside sponsorship revenues and interactive revenues (viewer competitions and voting). In 2010, the UK television advertising market was stronger than expected, growing at 15%. ITV outperformed the market, growing at 16% to achieve £1,496m in revenues from advertising during the year.

ITV1 is the largest commercial channel in the UK. It consistently attracts the largest audiences of any UK commercial broadcaster and has the greatest share of the UK television advertising market at 45.1%. ITV’s digital channels continue to grow their audiences and most recently saw the launch of high definition (HD) versions of ITV1 on Freeview and Sky and ITV2, 3 and 4 on Sky behind the paywall. ITV1+1 was also recently launched.

Online, ITV is focused on delivering ITV programming across multiple platforms including itv.com, video on demand on cable television and other ‘closed’ platforms, mobile devices and games consoles. itv.com incorporates the ITV Player, which allows users to access catch-up services and watch clips from the best ITV programmes. ITV player recently launched on PS3 and our aim is for it to be available across a broad range of platforms. Online revenues are primarily sourced from advertising.

In 2010, itv.com made progress with unique users averaging 10.2 million per month, an increase of 17% year-on-year. Online video viewing of ITV programming has also continued to grow rapidly. Including catch-up and short form clips, video views across the year on itv.com totalled 234 million, up 9% from 2009. Long-form views were up 79% at 129m.

ITV Studios

ITV Studios produces and sells programmes and formats in the UK and worldwide. ITV Studios comprises ITV’s UK production operations, ITV’s international production operations and ITV’s international distribution, home entertainment, publishing, merchandising and licensing business ITV Studios Global Entertainment.

ITV Studios produces programming for ITV’s own channels and for other UK and international broadcasters across a wide range of programme genres, including drama, soaps, entertainment, factual, daytime, arts, current affairs, quizes and game shows. The business has a growing portfolio of international production offices around the world, including US, Germany, Australia, Sweden, Spain and France.

In 2012 the Company’s Manchester base will be moving to MediaCityUK in Salford Quays and we will be building a high-tech production and studio centre for Coronation Street.

ITV Studios Global Entertainment has over 35,000 hours of original and formatted programmes that it distributes to broadcasters in 240 territories worldwide. ITV Studios’ external revenues in 2010 totalled £293 million with an additional £261 million of revenues from sales of programming to ITV.

Further Details

For further details on ITV’s businesses please see our 2010 Report and Accounts or visit our corporate website, www.itvplc.com