Observed Signal · Mar 5, 2026 · Earnings Report · Source: VideoWeek · Impact: 4/5 · Sentiment: Positive
ITV Leverages AI to Cut Costs and Boost Revenues
On its full-year earnings call, ITV said embedding AI across production workflows has helped reduce costs and increase productivity at ITV Studios, contributing to a 5% year‑on‑year fall in total Studios costs in 2025. Group revenues grew 5% as 5% growth in Studios offset a 5% decline in linear TV advertising; digital ad revenues rose 12% and now account for 31% of ad revenue. ITV is expanding targeted advertising capability in linear inventory (30% at end‑2025, targeting 50% by year‑end) and working on outcomes measurement (Lantern) and a self-serve ad product (Universal Ads). The broadcaster remains in ongoing talks with Sky over a potential sale of its M&E business.
ITV's earnings call reports meaningful AI-driven cost reductions in production and shows Studios growth offsetting ad revenue decline; expansion of targeted ad capability and engagement in TV outcomes measurement (Lantern) have implications for TV monetization and measurement across the industry.
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Key Takeaways & Evidence Grounding
- ITV integrated AI across R&D, pre-production, production planning, post-production and marketing.
- Total ITV Studios costs fell 5% year‑on‑year in 2025; content costs down 5% and non-content costs down 6%.
- Group revenues rose 5% for the full year; 5% growth in Studios offset a 5% decline in ad revenues.
- Digital ad revenues grew 12% and represent 31% of ITV's total ad revenues.
- At end of 2025, 30% of ITV's linear inventory could run targeted ads; target is 50% by end of 2026.
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ITV Predicts Q4 Ad Slowdown, Maintains Digital Growth
ITV recorded a 2% year-on-year increase in total revenues for the first nine months of 2025, driven by its production arm and digital advertising. The broadcaster warned of a slowdown in total ad revenues in Q4 due to advertiser budget uncertainty ahead of the UK Budget. To protect margins, ITV will implement one-off cuts to content spending and the marketing budget in Q4. Ad revenues were flat in Q3 and down 5% year-to-date, with a projected 9% drop in Q4. Digital growth remained strong: digital ad revenues rose 15% YoY in the nine-month period, and total digital revenues reached £432 million, while total streaming hours grew 14% to 1.66 billion. ITV reiterates its £750 million digital revenue target for 2026; achieving this would require about 18% YoY growth. ITV Studios posted an 11% YoY revenue increase, with external ITV Studios revenues up 20% YoY.
Meta Bans TikTok Ads on Its Platforms in Multiple Regions
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Musician sentenced for AI streaming fraud
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