ITV announced plans to reduce its programming budget by £30 million, with £25 million in content cuts and £5 million in other operational savings. The broadcaster characterized these reductions as temporary measures. The announcement comes as the company navigates a challenging media landscape marked by declining revenues and increased competition from streaming platforms.
Data released by the British Film Institute revealed a significant contraction in UK production spending. Investment in film and high-end television productions—defined as shows with budgets of at least £1 million per episode—fell to £5.2 billion in the year ending in September. This represented a 28% decline from the previous period’s £7.26 billion in spending, which had been a record year featuring major productions including Marvel films and the inaugural Harry Potter television series.
ITV’s chief executive attributed the advertising revenue challenges to broader macroeconomic uncertainty and the rise of digital advertising on global streaming platforms. The company forecasted that advertising revenues would decline between 5% and 10% during the final quarter of the year, with full-year ad sales expected to drop between 2% and 3%. Additionally, new regulations imposing a 9pm watershed on television advertising for less healthy food products contributed to revenue pressures.
The broadcast sector faced broader headwinds, with other major networks also announcing significant changes. The BBC planned substantial job reductions, while Channel 4 was implementing layoffs. ITV stated its proposed cost savings would not result in staff cuts. The company’s shares declined nearly 4% following the announcement and have lost approximately one-fifth of their value since the beginning of the year.
ITV is pursuing a £1.6 billion sale of its television and streaming operations to Sky, which the company views as essential for long-term viability in competition with well-capitalized streaming companies. However, the government’s culture secretary issued a public interest intervention notice triggering regulatory review by Ofcom and the Competition and Markets Authority over concerns about market concentration and editorial independence. ITV maintains the transaction is proceeding as planned, with completion expected in the second half of 2027.
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