Hollywood Strikes Ripple Effect Continues as U.K. Broadcaster ITV Sees 8% Drop in Revenue
The effects of 2023’s dual actors and writers strikes are continuing to ripple through the industry globally.
U.K. public service broadcaster ITV, which broadcast shows this year including Sophie Turner-starrer “Joan” and “Mr Bates v the Post Office,” is the latest to fall victim, reporting an 8% drop in group revenue from £2.9 billion ($3.5 billion) to £2.7 billion ($ 3.8 billion) in its third quarter, which it partly blamed on the strikes affecting program schedules.
Revenue for its production arm, ITV Studios, was down 20% in Q3, from £1.5 billion £1.2 billion. According to the latest financial report, the strikes resulted in a delay of around £80 million of revenue from 2024 to 2025. The report also said the drop was down to “lower demand from free-to-air broadcasters in Europe in the short term.”
ITV, which is ad-funded, reported that advertising revenue was flat while Q4 is expected to be impacted by uncertainty in the market as the U.K. awaited the Labour government’s first budget. Over the full year, the company expects advertising revenue to be up around 2.5% compared to 2023.
The result is a further plan to reduce costs by £20 million, of which half will be comprised of a reduction in content costs. This is in addition the £40 million cost savings plan previously announced as a result of restructuring and the implementation of an “efficiency program.”
“ITV Studios is performing well despite the expected impact of both the writer’s strike and a softer market from free-to-air broadcasters,” said ITV CEO Carolyn McCall.
“Our cost saving programme is progressing well and today we are announcing further cost savings in addition to the previously announced £40 million of incremental cost savings through restructuring, improved efficiency and simplifying ways of working. Coupled with our strategic delivery and revenue outlook, this continues to give us the confidence that we will deliver an increase in group profit this year.”
