ITV advertising record reported for 2021 – The Hollywood Reporter
British television giant ITV announced its ad revenue record for the year 2021 on Thursday and painted a very healthy post-pandemic picture across the board.
The company, led by CEO Carolyn McCall, saw its total external revenue climb 24% to £3.4bn ($4.6bn), a sharp increase from the £2.7bn figure. pounds impacted by COVID in 2020. Total revenue from its ITV Studios production arm rose 28% to £1.7 billion, now just 2% below pre-pandemic 2019 levels. external ITV Studios rose 30% to £1.17bn. In the group’s media and entertainment arm, total revenue rose 21% to £2,282, with advertising revenue up 24%, the highest in ITV’s history (including video on demand advertising increased by 41%).
Alongside the financial results, ITV also announced plans to “boost” its streaming business with a “digital-first” content strategy, and announced the UK’s first AVOD/SVOD platform. ITVX, as it will be known, is set to launch in Q4, with viewers able to watch thousands of hours of content for free in an ad-supported tier or choose a subscription service that provides all of that content ad-free and in plus provides thousands more hours of UK box sets from BritBox and content from other partners. The first digital windowing strategy will see most new content broadcast first on ITVX before moving to ITV’s linear channels months later.
This streaming push is part of a target to double digital revenues to £750m ($1bn) by 2026, with ITV committing to an initial digital content investment for ITVX of £20m £27m ($27m) this year, rising to £160. million ($214 million) in 2023. He said the additional annual revenue would cover the cost of ITVX by 2026
“ITV delivered an outstanding financial performance in 2021 with total external revenue growth of 24% and adjusted EPS [earnings per share] 40% growth, fueled by strong performance across our two divisions,” said McCall. “ITV Studios has enjoyed both ratings and critical success and currently has around 500 programs in production in the UK and overseas. Media and Entertainment has satisfied viewers and advertisers with a compelling list of entertainment shows and dramas and must watch sports on ITV channels and streaming. Total advertising revenue had a record year and in this video on demand, advertising increased by 41%. »
Production arm ITV Studios reported a revenue gain for 2021 after the unit trended 32% from 2020 after the first nine months. The division has produced “the biggest dramas of (2021) to date on the BBC and ITV and revenue from streamers around the world is growing very strongly,” McCall said late last year. Among his shows last year were people like snowdrops for Netflix, Ten year old Tom for HBO Max, Physical for AppleTV+, Vigil for BBC One, The long call and Effort for ITV, as well as a global hit show the island of love.
McCall also argued in November that ITV’s financial trends over the past year “illustrate that ITV has successfully completed the first phase of its More Than TV strategy and is accelerating the second phase of digital transformation as we do evolve our products, user experiences and ways of working”.