ITV explores spinning off production & distribution arm ITV Studios

Love Island

ITV could split ITV Studios (ITVS) from its parent UK commercial broadcaster, as it seeks to support an ailing share price.

The production and distribution division last year unveiled plans to double the amount of scripted hours it produces within five years and is also aiming to increase the number of global formats produced.

ITV is now “actively reviewing the future” of ITVS, according to the Financial Times which broke the news, with the Love Island network exploring a potential spin-off to raise funds.

Industry sources suggest the ITVS division could be worth north of £2bn ($2.25bn) although there is likely to be considerable resistance to breaking up the broadcaster-producer model. Share prices jumped by 7% early Monday following the news.

The ITV Studios umbrella covers around 60 production companies in 13 countries, making it one of the largest producers of scripted and unscripted content in Europe.

ITV has continued to expand this production footprint, with the company most recently acquiring a controlling stake in Plimsoll Productions, the UK natural history producer behind Apple+’s Tiny World and Animal for Netflix, for £103.5 ($126m) in June.

ITV Studios, which saw an 84% increase in its sales to streamers over the first half of 2021, is also making a push into AVOD and FAST, launching two channels in Europe, including one that the global distribution giant says will become the “home for the best European drama” produced by its own labels.

It struck a deal with Whip Media that will enable it to track the performance of its content, in particular across its growing FAST channels operation, with analytics informing content acquisition and programming decisions.