Chief pledges to revive ITV

ITV boss Michael Grade today pledged to invest in original programming under a “self-help” plan to revive the broadcaster.

Mr Grade said he wanted the broadcaster to be the UK’s favourite source of free entertainment by 2012 as he unveiled plans for self-funded, “content-led” growth.

ITV said advertising revenues continued to improve in the third quarter – up 2% at flagship channel ITV1 and 5% across the group.

Mr Grade, who is the company’s executive chairman, will also phase out ITV Play’s call TV programming by the end of the year after the bad publicity over the apparent “duping” of viewers by broadcasters across the industry.

Mr Grade, who rejoined ITV nine months ago after former chief executive Charles Allen resigned last year, said he wanted to ``maintain and accelerate'' ITV1's recent ratings improvement.

The broadcaster is launching a new peak-time strategy to improve ITV1’s performance in the key 9pm weekday slot, although there will be no extra cash for programming.

Mr Grade said: “We believe ITV1’s recovery can be achieved within its existing programming budget.”

ITV is, however, investing an extra £20m (€30m) in fast-growing digital channels, with the target of ITV2 overtaking rival Five as the third most popular commercial network for 16 to 34-year-olds.

The executive chairman reaffirmed the target of the group’s network of channels achieving a 38.5% share of commercial impacts – audience share – by 2012.

But Mr Grade is also looking for a doubling of revenues from the group’s content business to £1.2bn (€1.7bn) by 2012.

The division, which makes programmes for ITV channels as well as overseas versions of hits such as I’m A Celebrity… Get Me Out Of Here!, will achieve the target through a combination of higher sales and growth through acquisitions.

The executive chairman wants ITV’s online revenues to increase to £150m (€220m) by 2010, with at least 75% coming from display, video and classified ads. Mr Grade hopes to grow itv.com into one of the UK’s leading commercial entertainment sites.

He added: “This is a plan rooted in self-help. Our priority is to put our own house in order, making our assets work better, harder and more in tune with each other.”