Commercial broadcaster ITV has had a hard 12 months. It has been relegated from the FTSE 100 index and suffered at the hands of a shrinking advertising market as the economy slows down. ITV joined the FTSE 100 in 2004, but it has seen its profits fall by 28 per cent in the first half of 2008 and as Google overtook it for advertising revenue, it didn't see much light at the end of the tunnel.
To combat the decreasing advertising revenues ITV has a savings programme in place that has a target of £35 million by the end of 2010. Its chairman, Michael Grade said ITV was "not immune to wider economic pressures." The online business has received an extension of two years to its deadline to achieve annual revenues of £150 million. ITV, in partnership with the BBC has developed the Kangaroo online broadcasting platform, which will contribute to this target.
Grade said the Turnaround Strategy is implementing wide ranging cost savings across the business. "We are implementing a new cost efficiency plan which will deliver £35 million in additional savings by the end of 2010."
CIO Richard Cross says, "The largest part of my role here is to manage "media" technology outside of traditional IT such as broadcast engineering, transmission networks and post-production technology. These are all critical areas for our business and represent significant opportunities to drive business value."