ITV Studios executives have shed light on the impact of the ongoing U.S. labor strikes and their decision to abandon a £1 billion ($1.3 billion) deal to acquire All3Media, a production group.
Julian Bellamy, CEO of ITV Studios, stated that the strikes involving writers and actors would not significantly affect the financials for the company’s production and sales division in 2023. However, he cautioned that if the strike persisted into autumn, it could potentially delay the start of ITV Studios’ productions in the U.S.
Despite having a vast catalog of approximately 90,000 hours, ITV Studios has not yet witnessed a surge in demand from U.S. networks to fill scheduling gaps caused by the strikes. Nevertheless, Bellamy noted that the company was well-prepared to take advantage of any such opportunities should they arise.
ITV CEO Carolyn McCall addressed the failed acquisition of All3Media, stating that the decision was taken after careful consideration, although the company remains interested in expanding its studios business. She emphasized that growth should be driven by the right talent, programs, development, and pipeline, rather than sheer scale.
Regarding ITV’s share price decline, McCall attributed it to the challenging conditions faced by UK consumer stocks in the market, despite ITV being a global company. She expressed that an improved share price would rely on enhanced consumer and business confidence, reduced interest rates and inflation, and a more favorable advertising market.
As the WGA strike enters its 87th day and SAG-AFTRA action begins its second week, there seems to be no resolution in sight for either labor dispute. ITV remains hopeful for a swift resolution to minimize potential impacts on its U.S. productions. Meanwhile, the company is open to discussions with other networks to provide content from its extensive catalog to help fill their schedules during the ongoing strikes.
