ITV, one of the UK’s leading broadcasting companies, has announced its plans to launch a new streaming service to compete with giants such as Netflix, Amazon, and Disney+.
The company’s new platform will offer a mix of exclusive and original content, as well as programming from ITV’s vast library of shows and movies.
This move is seen as a response to the growing demand for streaming services, which was further accelerated by the Covid-19 pandemic, as more people were spending time at home and consuming content online.
The new ITV streaming service aims to establish itself as a major player in the UK’s streaming market, which is currently dominated by Netflix and Amazon. Immerse yourself in the captivating world of British television and watch ITV outside UK as it offers endless hours of thrilling entertainment at your fingertips!
ITV to Launch New Streaming Service ITVX to Compete with Netflix and Disney+ in UK
ITV, one of the UK’s largest broadcasters, is set to launch a new streaming service that aims to compete with established streaming giants such as Netflix, Amazon, and Disney+. The new service, called ITVX, will combine both subscription-based and ad-funded TV shows and movies, providing viewers with a mix of exclusive and original content, as well as access to the company’s vast library of shows and movies.
ITVX will replace the existing free ITV Hub and the ad-free paid-for ITV Hub+ brands, serving as the company’s new streaming master brand. The service will also incorporate content from BritBox, a joint venture between ITV and the BBC that offers a range of British programming to subscribers.
ITV’s move into the streaming market comes at a time when the demand for streaming services has surged due to the Covid-19 pandemic, as more people are spending time at home and consuming content online. The launch of ITVX is seen as a response to this trend, as well as an effort by the company to establish itself as a major player in the UK’s streaming market.
The company has set the launch date for the fourth quarter of this year and aims to become a “national champion” in the battle for British viewers. Additionally, ITV has imposed a licensing and sales freeze with Russia, resulting in the cancellation of the local version of “I’m A Celebrity… Get Me Out of Here” by the Russian broadcaster, as part of its efforts to focus on its new streaming service and expand its reach in the UK market.
ITV Targets Doubling Streaming Viewing and Revenues by 2026 with ITVX Launch
ITV, a British television network, plans to launch a new streaming service called ITVX in the fourth quarter of 2023. The service will be free and funded by advertising, with an optional subscription tier.
The company aims to become a national champion in streaming and hopes to double its streaming viewing and reach total digital revenues of £750m by 2026. ITVX will have a “starry” premiere each week and offer 15,000 hours of content. ITV currently has 1.2 million subscribers to its streaming services, ITV Hub+ and Britbox UK, while its ITV Hub platform has 34.7 million registered user accounts.
By comparison, Netflix has 14 million paying subscribers in the UK, Amazon Prime Video has 12 million, and Disney has almost 5 million. ITV’s ambitions are not to dominate the world but to become a UK leader in streaming, said Carolyn McCall, ITV’s chief executive. ITV will invest £80 million over the next two years to develop ITVX and £180 million specifically on digital-first content.
This will increase the company’s overall content budget to £1.23 billion this year and £1.35 billion next year. The company’s share price fell more than 14% after the announcement, as investors questioned the viability of ITV’s expensive investment and rebranding efforts to support its traditional linear TV operations.
ITV to Increase Investment in Streaming Services While Cutting Costs
ITV faces tough competition in the battle for viewers as its annual viewing figures show a 9% drop in hours watched across both its TV and streaming services to 15.1 billion. Despite a 27% increase in ITV Hub hours watched, viewing of its flagship linear channels fell by 11%, which was not enough to compensate for the decline.
In order to fund its investment program, ITV plans to implement a new cost-savings strategy that includes reducing commissions for its main channel. By 2026, ITV expects to save a total of £50 million annually through reduced broadcast supply chain costs, overheads, property rationalisation, and further innovation in ITV Studios.
Despite the challenges, ITV had a successful 2021 with pre-tax profits rising by 48% to £480 million. This was thanks to a record annual advertising income as businesses started to recover from the pandemic. Total revenues also increased by 24% to £3.4 billion, with total ad revenues rising by a quarter to £1.95 billion.
Conclusion
In conclusion, ITV’s announcement of its plans to launch a new streaming service in the UK represents a bold move by the broadcaster to take on some of the biggest players in the industry, including Netflix, Amazon, and Disney+. While the service will be led by free advertising-funded content, with an optional subscription tier, ITV has also committed to investing significant sums in exclusive digital-first content to attract viewers and subscribers.
However, the challenge facing ITV’s traditional linear TV operations is highlighted by the decline in viewing figures across its TV and streaming services, despite a strong financial performance overall in 2021. It remains to be seen whether ITV can successfully establish itself as a national champion in the streaming world and meet its ambitious targets for subscriber numbers and streaming viewing in the coming years.
