The Daily Observer London Desk: Reporter- Kathryn Williams
Winning strategy: ITV chief executive Carolyn McCall
ITV will this week reveal the fruits of its boss Carolyn McCall’s bold strategy to take on titans such as Netflix and Disney in the global streaming wars.
The broadcaster’s full-year results on Thursday will show it has turned a corner in its long-term plan to reduce its reliance on old-style terrestrial TV.
It will confirm that revenues from its streaming and studios businesses – both expected to report double-digit growth – now account for more than half of the total.
McCall’s idea to replace the ITV Hub with a new online service called ITVX, was initially poorly received, but the project has boomed since its launch in December.
As McCall’s plans gain momentum, sources expect her to stay in the chief executive role until at least 2026 to oversee the revamp’s completion.
McCall, 61, joined ITV in 2018 after a seven-year stint leading budget airline easyJet. She staked her credibility on her blueprint to transform the fortunes of the FTSE 250 broadcaster.
Many in the City believed ITV had missed the boat with the streaming revolution and had fallen behind rivals such as the BBC and Channel 4.
Star attraction: Helena Bonham Carter as Noele Gordon
The company budgeted £120 million to launch ITVX. It is expecting to spend £195 million this year and £185 million per annum in the coming years.
In a trading update in January, ITV said the first month after launch saw a 55 per cent rise in streaming hours.
There was a 65 per cent increase in online users compared with last year, although this was helped by the World Cup.
ITV unveiled a range of big-budget shows exclusively available through the platform, including the Kim Philby defection drama A Spy Among Friends starring Damian Lewis. There is also an exclusive mini-series called Nolly, with Helena Bonham Carter as Crossroads star Noele Gordon.
There is a free option with adverts. There is also a paid-for ad-free option, including BritBox, a joint venture between ITV and the BBC.
A City source said advertisers were ‘flocking’ to ITVX, with its huge viewing figures. Millions tune into shows like Love Island every evening for several weeks. Its studios arm – which makes programmes for the parent company and also other networks including the BBC – has also gone from strength to strength. Shows it has produced include Line Of Duty and Cold Feet. McCall has indicated that she wants to hold on to the studios division for the long term.
Group revenues are expected to have risen slightly from £3.5 billion in 2021 to £3.6 billion last year and are forecast to rise in the coming years.
ITV is worth £3.6 billion. Its share price has fallen from around £1.69 when McCall joined to 89p now. But shares have surged by almost a fifth so far this year.
