ITV eyes 1+1 service to rival Channel 4

ITV is considering launching an ITV1+1 service in the wake of rival broadcaster Channel 4 setting up a time-shifted version of its main channel last month.

ITV set up its ITV2+1 and ITV3+1 channels in October 2006, but has not yet established ITV1+1 for fear of cannibalising existing audiences and commercial impacts.

In an interview with Media Week TV that goes live today (see www.mediaweek.tv), ITV executive chairman Michael Grade said: “The decision might have to wait until we have a sales and marketing director in situ to get their input, because obviously that would be crucial – but it’s definitely something we have to look at.”

Grade added that ITV hadn’t completed the search process for the sales and marketing director to replace former commercial director Ian McCulloch. “We still have some people to see,” he said. “The process has been delayed by the summer holidays, but there’s no panic. I’d hope to have the appointment made by Christmas.”

Dawn Airey starts her job as ITV’s director of global content next week, charged with doubling production and distribution revenues within the next five years.
Separately, ITV has put Men & Motors up for sale. The men’s lifestyle channel is the last station remaining from the joint venture set up by Granada Television and BSkyB in 1996. ITV is now the sole owner of Men & Motors. Sky originally had a deal to receive 49.5% of the proceeds of any sale.

Grade is also keen for Friends Reunited, which ITV purchased in December 2005, to be reconnected to the ITV business. The website will be “integrated” with ITV.com – but not merged. “We’ll build a bridge to it,” said Grade. “We don’t want it to lose its identity. It’s got a unique voice and we want to preserve that.” Some features will be made free to use, and new features and functionality will be added.

“It’s got an older audience skew and a clear consumer proposition,” said Grade. “It’s very successful and it’s growing. The guys who work there are on track to hit their earn-out targets at the end of 2008.”

Revenue was up 38% at Friends Reunited in the first half of 2007, from £8m in the same period in 2006 to £11m, achieving a 55% margin. It has 18 million registered users, 6.4 million of whom are active.

ITV has also translated its “soft gaming” affiliate partnership with Partygaming into a white-label deal. Under the deal, Grade said ITV will offer its users access to bingo, National Lottery-style gaming and “flutter”-type products.

Source: Media Week