ITV is an integrated producer broadcaster. It is the largest commercial television network in the UK operating a family of channels including the rebranded ITV. It also delivers content across multiple platforms either directly or via itv.com and ITV Player. ITV Studios is an international production and distribution business which produces and sells programmes and formats in the UK and worldwide.
Broadcast & Online
The ITV broadcast network is made up of ITV – the largest commercial channel in the UK – and the digital channels ITV2, ITV3, ITV4 and CITV. ITV2 and ITV3 are the largest digital channels in the UK. The ITV Family of channels attracts the largest audience of any UK broadcaster other than the BBC, with a 22.3% Share of Viewing in 2012, and has the largest share of the UK television advertising market at 45.8% in 2012.
For viewers, ITV competes with the BBC and other commercial broadcasters – predominantly C4, C5 and Sky. For advertising revenue, ITV competes with commercial broadcasters and other advertising
media, such as the Internet and Press. Over the last few years television has broadly maintained its share of total advertising spend, whilst the Internet, which is growing rapidly, continues to take share from Press.
ITV also delivers programming across multiple platforms either through ITV Player which allows users to access catch up services, for example on Virgin and Sky, or through content deals, for example Netflix and LoveFilm. ITV content is now available on 15 platforms. Online, Pay and Interactive revenues are sourced through advertising and through pay deals for either our entire schedule or for selected programmes within our catalogue.
We also hold broadcast assets that include the multiplex operator SDN, who operates one of the six digital terrestrial multiplex licences in the UK which make up Freeview, and a partner in the YouView joint venture which launched in summer 2012.
ITV Studios is the largest production company in the UK producing over 3,000 hours of original content each year featuring Drama, Factual and Entertainment, and has an archive of around 35,000 hours. It comprises ITV’s UK and International production companies and Global Entertainment – ITV’s international distribution business. In 2012 we made a number of strategic acquisitions to strengthen these businesses.
ITV Studios UK produces programming for ITV’s own channels and for other UK broadcasters – such as BBC, C4, C5 and Sky. ITV’s International production business has five bases – US, Australia, Germany, France and the Nordics, who produce for local broadcasters in these regions. Global Entertainment licenses ITV’s finished programmes and formats and third party content internationally.
In the UK and internationally we compete with a large number of independent producers, which range in size from the super-indies such as Fremantle and Endemol, to a large number of small independent producers. They are largely privately owned and do not have the advantage that ITV has of being an integrated producer broadcaster.
Media environment and our strategy
Our vision remains to create world class content which we can make famous on our channels, before exploiting its value across multiple platforms, free and pay, in the UK and internationally.
ITV operates in an evolving digital market in which advances in technology are changing the way
people consume media. In spite of the rapid increase in online viewing, linear viewing remains robust. The proliferation of entertainment platforms and the increasingly competitive nature of the broadcasting industry is creating demand for quality and proven content and formats that travel. As an integrated producer broadcaster, with strong channel brands and the ability to create content, we are in a unique position to be able to execute on our strategy.