Carlton Announces Partnership With Sainsbury’s
Carlton Communications is joining up with Sainsbury’s to create a definitive food and drink portal on the internet. The deal is one of a series of partnerships aimed at strengthening the media group’s online and interactive services.
Carlton Food Network, and Sainsburys.co.uk will work together to promote and sell online groceries as well as specialist food, wine and cooking equipment. Carlton will provide advertising for the venture and Sainsbury’s will deliver in-store promotion.
Carlton, which owns regional ITV franchises in London, the Midlands and the south-west, has also formed an alliance with four European broadcasters – Kirsch, Mediaset, Telecinco and TF1 – to develop pan-European net and interactive projects. Michael Green, Carlton’s chairman, said of the deal: “Our free and pay television platforms broadcast to over 22 million people. By guiding viewers to our online content we can generate substantial e-commerce revenues.”
The raft of net-related deals announced today also included an agreement with First Call, which will give Carlton exclusive rights to sell and market UK concerts and events over its entertainment websites, and a 10% stake in US internet radio site, WWW.com, which will allow Carlton to take its first step in net broadcasting by bringing the site to a UK and European audience.
Rupert Miles, director of Carlton Online, said: “Entertainment and food have huge potential. We are using our strengths as a media company, our dedicated online teams and our strategic alliances to build profitable internet businesses.”
The deals were announced as Carlton reported pre-tax profit of £171m for the six months to 31 March, compared to £164.9m for the same period last year. Investment in digital television doubled to £98 million, but the group said that ONdigital, its digital terrestrial platform jointly owned with Granada, was on target for 1 million subscribers by the end of this year.
Advertising revenue increased by 8% in the first six months, and the group’s three ITV regions are on target to achieve combined growth of 18% in the third quarter, ahead of ITV as a whole. Its cinema advertising arm, Carlton Screen Advertising, is benefiting from increased cinema attendance and has just completed a deal to acquire Screenvision, the largest cinema advertising group in the US (see Carlton Buys US Cinema Ads Group).
Today’s news came as merger talks between Carlton and United near closure. The Competition Commission has extended the deadline for its enquiries into the proposals, with a decision expected on 16 June (see Competition Commission Extends Deadline To Report On Carlton/UNM).
Michael Green said: “2000 will be a defining year for Carlton. We are focusing on television, advertising and new media. Our plans, subject to regulatory approval, to merge with United News & Media will bring leadership in UK commercial television and an excellent platform for further expansion in the UK and overseas.”
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