ITV Unveils Growth Plan And Vows To Fight Off Takeover Bid
ITV has 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.
The strategy has been unveiled in an interview in the Sunday Times with Charles Allen and Michael Green, who will take up the respective posts of chief executive and chairman of the merged ITV company (see ITV Unveils New Board).
Both Allen and Green have vowed to work together closely to make ITV more “outward looking” following the Government’s recent decision to clear the way for the £4 billion merger of Carlton and Granada (see ITV Cleared To Merge With Sales Houses Intact).
They have vowed to stave off any American takover of ITV and refute the idea that a US bidder would swoop on the company, which is capitalised at around £4.2 billion. Green said: “We intend to keep adding value and when something is reflecting value, it is less vulnerable.”
The seven-point plan for growth also includes the promise to turn ITV into a multichannel broadcaster by launching a series of new channels including ITV Gold, a children’s channel and a range of offerings that show delayed coverage of favourite programmes such as Coronation Street.
There will also be a commitment to produce more format-led television shows like I’m A Celebrity Get Me Out Of Here, which has proved a highly successful international franchise for Granada Enterprises.
Allen and Green told the Sunday Times that a reorganisation of the news function will be central to the plan, which will govern how the new ITV company is run in its first year. There will also be a new commitment to protecting regional news, which is an area that some opponents of the merger claim will suffer when the two companies unite.
The plan also includes a commitment for ITV to remain a producer-broadcaster. It is understood that this will centre on the network building up high rating “banker” programmes such as Coronation Street and creating a range of new shows.
Allen told the paper that point five of the plan would involve: “Getting everyone in the organisation focussed on delivering commercial impact. There will also be a focus on developing new talent and technology,” he said.
Finally, the pair will attempt to win another regulatory battle and plan to lobby the Government to reduce the £300 million “super tax” that the ITV companies currently have to pay for their analogue licences.
BBC director general, Greg Dyke, recently argued that ITV should not be forced to pay so much for its annual licence and warned that the network is so weak that financial help was needed to prevent it abandoning its traditional public service role and becoming a purely commercial broadcaster (see Dyke Calls On Government To Strengthen ITV).
Advertisers have so far given a mixed reaction to the Government’s decision to allow Carlton and Granada to merge without selling off their sales houses and remain concerned that a single ITV will exercise too much power in the television advertising market (see Advertisers Give Mixed Reaction To ITV Merger).
ITV: 020 7843 8000 www.itv.com
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