ITV insists online and video merger is not a cost-cutting tactic

ITV has insisted that its decision to integrate its online assets into its programming operations last week was not a cost-cutting tactic.

The restructure will see all of ITV’s online assets, which include video streaming, ITV programming and project Kangaroo, fully integrate with ITV’s family of broadcast channels (see ITV integrates online and programming operations).

Michael Grade, executive chairman at ITV, said: “With content at the heart of our turnaround strategy, it now makes sense to integrate fully all our platforms to ensure the very best of our content is available to viewers wherever they wish to view it.”

The broadcaster said the move is “absolutely not a cost-cutting measure”, despite reporting a decline in ad revenues that has forced a significant amount of restructuring at ITV.

Last week, ITV announced a 5% fall in broadcasting revenue in the first nine months of 2008, to £1.2 billion (see ITV reports fall in broadcasting revenues).

The broadcaster also experienced a 2.5% drop in net advertising revenue in the first nine months, bringing its total revenue (to the end of September) down 1% year on year.

However, online revenues were up 6% year on year to £25 million following a “spectacular increase” in video viewing of 472% across ITV.com of 82 million views in the first nine months.

ITV has already used its website to expand TV content, with the example of three alternative endings to Liam’s murder in Coronation Street being made available at ITV.com, pulling in a significant 650,000 views in one weekend.

The new series of I’m a Celebrity…Get Me Out Of Here! is also being backed by a web celebrity tracker, allowing users to upload it onto Facebook profiles and blogs.

ITV: 020 7843 8000 www.itv.com