ITV may buy to boost its studios arm
ITV may grow its struggling studios division through acquisitions, according to its chief executive Adam Crozier.
The broadcaster is desperate to strengthen the division to provide a revenue stream that is less volatile than advertising income.
A bounce-back in the ad market trebled ITV’s pre-tax profits to £321m last year.
However, it saw a steep fall in profits at its studio division, which slid 11 per cent to £81m, with revenues dropping 12.5 per cent to £293m.
This has led analysts to question how susceptible ITV may be to a second economic downturn. Crozier sees a bolstered studios division as a key growth area, allowing ITV to export programming abroad and cushion against a drop in advertising.
A number of high profile independent production firms have been mooted as possible targets, although sources close to ITV have distanced themselves from any imminent bids.
A glut of ITV executives have left the firm to start production companies and these firms top the list of likely acquisitions. These include:
• Mammoth Screen, the firm run by former ITV executives Michele Buck and Damien Timmer, which produces shows including Wuthering Heights.
• Left Bank Pictures, set up by ITV-man Andy Harries, which produces Wallander.
• All3Media, the so-called “super-indie” behind shows such as Midsomer Murders, which is run by former ITV bosses including Steve Morrison, David Liddiment, Jules Burns and Wayne Garvie.
• Gallowgate, the Ant and Dec production vehicle with strong ties to ITV.
• RTL-owned TalkbackThames, the production arm of X-Factor maker Freemantle, although it is questionable whether ITV could afford it.