ITV CEO on Planned U.K. Ban on Junk Food TV Ads for Children: “We’re Going to Have to Mitigate It”

ITV CEO on Planned U.K. Ban on Junk Food TV Ads for Children: “We’re Going to Have to Mitigate It”

As a seasoned observer of the ever-evolving television landscape, I find myself deeply impressed by the strategic prowess of Carolyn McCall, CEO of ITV. Her ability to navigate the complexities of digital transformation and maintain a strong foothold in both traditional and emerging markets is truly commendable. The growth trajectory of ITV’s non-advertising revenue from 45% in 2016 to an anticipated two-thirds by 2026 is nothing short of remarkable.


In 2016, ITV, a major U.K. television broadcaster, earned approximately 45% of its overall income from non-advertising ventures. However, this year is expected to see a shift as the company aims to generate 60% of its revenue from production and digital sectors, according to CEO Carolyn McCall at a London conference on Tuesday. Additionally, her team expresses optimism that these profitable areas will constitute around 66% of ITV’s total income by the year 2026.

At the Royal Television Society’s London Convention 2024, she talked about various aspects during a keynote interview. Among these topics was ITV’s digital overhaul, particularly its ad-centric streaming platform, ITVX. She elaborated on how this streaming business complements its traditional broadcast networks and delved into the expansion of its production unit, ITV Studios, which has been bolstered through acquisitions. Furthermore, she explained why her team chooses to back productions like “Mr Bates vs The Post Office“.

She mentioned that we’re seeing an increase in viewings,” and “she noted that the length of time users spend on ITVX has grown,” is one possible paraphrase for the original statement. This rephrasing aims to maintain the meaning while using more natural and easy-to-understand language.

Additionally, she concurred with Alex Mahon, CEO of Channel 4, that digital views are more valuable than traditional views, attributing this to the increased cost per thousand viewings due to the premium on highly targeted advertising. Nevertheless, the head of ITV also pointed out: “Yet, there’s no alternative to the substantial financial gain from a large-scale event that attracts 15, 20, or even 22 million viewers simultaneously.

However, the conversation became more heated when McCall was queried regarding the Labour government’s intention to execute a strategy initially proposed by Boris Johnson’s previous Conservative administration, aimed at prohibiting junk food advertisements on television before 9 pm as a means to combat childhood obesity. “Ninety-five percent of adults watch ITV, ninety-five percent of children are on YouTube,” she argued, expressing doubts about the plan’s efficacy. “Children aged 16 to 25 are seldom found watching TV… We have carried out extensive research indicating that this measure will not significantly impact obesity rates, but it is a politically charged issue, and as such, we must find ways to lessen its impact.

The CEO didn’t specify an exact figure, but indicated that the financial impact on ITV will be substantial (in the millions), likely requiring measures to reduce this effect. This situation is expected to unfold at the end of the following year, and the ITV leader expressed confidence that they will navigate through these challenges.

In March, ITV announced a strategic overhaul aimed at redefining costs, increasing profitability, and bolstering its key growth sectors: Studios and streaming services. The company anticipates that by the end of 2024, this initiative will have generated additional annual savings of £50 million ($64 million).

The business has predicted that ITV Studios will achieve unprecedented profits for its full year 2024. This is due to a rise in more profitable catalog sales and ongoing efforts to boost efficiency. However, annual earnings are anticipated to decrease slightly. This reduction is primarily due to the 2023 Hollywood writers and actors strike, which has caused approximately £80 million ($103 million) worth of revenue originally expected for 2024 to be shifted to 2025. Additionally, there’s lower demand from European free-to-air broadcasters in the immediate future.

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2024-09-17 18:24