ITV’s deal with ‘Traitors’ producer sparks fears for local news
ITV’s early stage discussions with Abu Dhabi-backed RedBird IMI to spin off its production arm into a seperate £3bn entity have sparked growing concern over the future of its commitment to local and regional news.
As first reported by the Telegraph, the proposed tie up with All3Media, the company behind Traitors and Call the Midwife, would see ITV studios hived off and listed independently on the stock exchange, leaving the core ad-funded broadcast arm operating alone.
The move, while potentially unlocking shareholder value and bolstering the UK’s position in global content production, has triggered concerns in political and media circles.
Critics have said the shift could undermine ITV’s ability, or willingness, to continue delivering its public service remit in a sustainable way.
ITV’s production ambitions resurface
The potential break up comes as ITV faces mounting pressure to monetise its fast growing studios business.
The Telegraph reported that ITV resumed talks with RedBird IMI – the fund led by former CNN chief Jeff Zucker. RedBird IMI acquired All3Media in 2022.
The aim is now to combine the two production powerhouses and float them as a single entity on the London market.
Dame Carolyn McCall, ITV’s chief executive, believes the move could help investors better appreciate the studios division, which now contributes to almost half of ITV’s revenues thanks to successes like “Love Island” and “The Voice”.
ITV’s structure has long relied on profits from its production arm to help subsidise its public service commitments.
Yet, with studios potentially gone, its core broadcast operation would be left exposed, raising questions about its long term ability to fund regional news.
Former culture committee chair Damian Collins warned that shifting to a system where ITV’s public service would remit is carried by a purely ad-funded broadcaster would be “not sustainable” over the long term.
Former media minister John Wittingdale echoed that, saying ITV risks finding itself “back to square one” by offloading its most lucrative division.
Concerns over RedBird IMI
RedBird IMI’s involvement in the deal has intensified scrutiny.
The fund remains mired in controversy over its failure to divest from the Telegraph, after giving UK ministers a formal commitment to do so more than a year ago.
The same fund now seeking to partner with ITV has yet to follow through on that pledge – which hasn’t been lost on Westminster.
Liberal democrat leader Sir Ed Davey said RedBird IMI should “get that sorted and sold before turning their attention elsewhere”, referring to its failed Telegraph takeover.
While ITV insiders argue that the current licence provides uncertainty until 2034, the long term trajectory seems less stable.
Stewart Purvis, former chief executive of ITN, and Channel 4 member, said that local news will continue “while ITV has a regional terrestrial network”.
But he added: “In a decade’s time, when terrestrial TV may be turned off, I think there’s a real threat to local news.”