While U.S. linear channels are keeping relatively quiet on the subject, the U.K.’s ITV and Channel 4 are making no secret over their financial woes. ITV CEO Carolyn McCall (pictured) said they’re experiencing, “the worst advertising recession since the (2008) global financial crisis,” resulting in pre-tax profits falling by 61 percent. While Channel 4 chief executive Alex Mahon described their financial situation as putting the channel in “market shock territory.”
One good ray of financial sunshine is the fact that ITV sold its 50 percent share in Britbox to the BBC for £255 million (U.S. $317 million) and ITV studios saw digital revenues rise 19 percent to £2.2 billion (U.S. $2.73 billion).
In addition to staff layoffs and other cost-cutting measures, there’s a run-on effect: some production companies, content suppliers to both entities, have had to close shop, including RDF, one of the U.K.’s biggest. (By Mike Reynolds)
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