ITV Online Viewing Up 75%

ITV has reported strong growth in its OTT services in Q1 2020. Compared to the same period last year, long form online viewing hours were up 75% to 169.4 million, simulcast viewing was up 112% and reach up 40% on the company’s AVOD product, ITV Hub. ITV is also seeing “good growth for BritBox free trial starts and subscriptions”. Broadcast revenue was up 2% at £500m (2019: £489m) with ITV total advertising up 2% and online revenues up 26%. 

On the negative side, however, ITV said that:

• Total external revenue was down 7% at £694m (2019: £743m)
• Total ITV Studios revenue was down 11% at £342m (2019: £385m), impacted by the phasing of deliveries and restrictions on working practices due to COVID-19. That said, “ITV Studios Global Distribution is seeing good demand for library content internationally”
• And there was a significant impact on the demand for advertising across most advertising categories, particularly from April which was down 42%

ITV is aiming to reduce overhead costs by £60m in 2020, £30m of which will be in CAPEX savings. The broadcaster’s programme budget has been cut by £100m to £1bn and around 800 staff – 15% of the total workforce – have been furloughed. A recruitment and salary freeze has also been implemented.