ITV hits the rocks as advertising revenue collapses
ITV has today issued a stark review of the UK economy, television advertising and the short to medium term future for the industry. Well-known TV executive Michael Grade, the executive chairman of ITV, has announced a loss of 600 jobs and a multimillion pound reduction in the group's budget for this year. With rumours abound that ITV is in talks with both Channel 4 and Channel 5 about a merger it appears as though television advertising in the UK is falling through the floor.
This is a stark contrast to the welcome Michael Grade received when he took on the chairmanship of ITV in 2007 with many seeing him as the saviour of the ailing television company. However, even the intervention of Sky, which brought a sizeable stake in the operation but was then forced to reduce this by the authorities, has not stopped the downward spiral which is a reflection of the UK economy. What next for ITV?
The group is on course to deliver savings of £245 million over the next three years and has put its social networking site Friends Reunited up for sale with expectations that it will receive just a fraction of the amount spent on the acquisition. ITV is now valued at less than £1 billion and in desperate need of a partner in the short to medium term with the long term future of the group unclear at this moment.
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