Carlton and Granada have announced a 7% increase in ITV1’s network programme budget after the Government cleared the way for their £4.2 billion merger.
The £57 million year on year increase to £849 million for the current financial year, from 1 October to 30 September 2004, could increase once cost savings from the merger a factored in.
Carlton and Granada estimate that combining their operations would save them between £35 and £55 million a year in costs. However, former head of Channel Five, David Elstein, claims that up to £100 million can be extracted from a single ITV (see Sales House Divestment Will Not Halt ITV Merger).
The budget increase will bring particular benefits to ITV’s factual, entertainment, drama and comedy programming.
ITV1 also plans to increase its investment in free-to-air sport, with live coverage of the Rugby World Cup, the football European Championships 2004, the UEFA Champions League and Formula One motor racing.
Commenting on the increased investment, Charles Allen, chief executive of ITV plc, said: “We have made clear our commitment to shaping a stronger ITV delivering high quality television to viewers and advertisers.”
He continued: “With greater programme investment than any other commercial broadcaster in Europe, ITV1 has the resources to deliver winning schedule in the future. This announcement is good news for ITV1’s commissioning team, for programme makers and particularly for our viewers.”
Earlier this week ITV unveiled a wide-ranging seven point plan for growth that will help it stave off any American take-over through the launch of a series of new digital channels and a new commitment to produce more format-based television programmes (see ITV Unveils Growth Plan And Vows To Fight Off Takeover Bid).
The strategy was unveiled by Charles Allen and Michael Green, who will take up the respective posts of chief executive and chairman of the merged ITV company. Six non-executive directors, three from Carlton and three from Granada, have also been appointed to guide the merger (see ITV Unveils New Board).
