Newly-appointed ITV (LON:ITV) chief executive Adam Crozier has hit the ground running with a decisive move into pay-TV.
The deal will see three of the free-to-air broadcaster’s high definition channels shown on rival Sky’s subscription platform and was announced alongside a £75 million additional investment in programming.
Crozier’s job of turning around ITV is made a little easier by the improving financial backdrop.
An encouraging set of interim results showed that net advertising revenues rose 18 per cent in the six months.
Operating profit more than tripled to £165 million from £46 million12 months earlier. At the same time the company’s debts fell to £437 million from £612 million.
The agreement with Sky will create high definition output for ITV2, 3 and 4. It is part of a five-year strategy that will see half the broadcaster's income come from non-advertising sources.
"For the past decade ITV has not faced up to the challenges presented by the rise of Internet-based platforms, the continuing growth of pay TV and subscription services and the globalisation of content," new CEO Crozier said.
"Re-shaping the economics of ITV will require changes not only to the strategy but also to ITV's management, culture and organisation and to deliver this we are today announcing a five-year transformation plan."
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