ITV Studios faces a sharp international revenue downturn while preparing for independence, reporting a 17% drop in U.S. earnings and a 24% slide internationally during the first half of the year, according to half-year results released this morning.
Navigating Softening Free-to-Air Demand
The revenue declines in the U.S. and international markets stem primarily from a softening of demand within the traditional free-to-air television space, according to ITV Studios chief Julian Bellamy. Speaking on a results call with press, Bellamy noted that the shift underscores the critical importance of expanding production for streaming platforms and scaling the Zoo 55 digital arm.
“Let’s not forget, we’re on the up,” Bellamy said on the call, pointing to the 2% overall revenue growth. “We feel confident about the progress we are making.”
Weighing in on market conditions during the presentation, ITV CEO Carolyn McCall clarified that leadership does not view the wider market as soft. Instead, McCall characterized the drop as affecting only one specific segment of the industry.
Pro Tip: When evaluating studio performance during transition periods, industry analysts look beyond legacy free-to-air metrics to gauge the health of streaming pipelines and digital diversification.
Streaming Pipeline and Upcoming Releases
To offset traditional broadcast declines, ITV Studios has anchored a major portion of its growth strategy on securing production deals with major American streamers. While international contraction has sparked industry jitters, upcoming high-end deliveries are expected to stabilize revenue streams.
Major titles slated to premiere during the latter half of 2026 include the second season of The Gentlemen for Netflix and Apple TV’s Guilty Creatures. Both projects are produced by independent labels operating under the ITV Studios umbrella.
Path to Independence and Shareholder Support
The studio’s financial evolution coincides with structural corporate changes. When the Sky-ITV deal completes around this time next year, ITV Studios will be unleashed onto the market as an independent, publicly listed company.
Addressing market speculation about potential buyers, McCall pushed back on acquisition talk, pointing to the company’s existing assets. “We’re confident about competing because we have scale,” McCall stated, highlighting the business as a globally scaled, diversified entity possessing extraordinary intellectual property.
McCall also noted that shareholders strongly support maintaining a listed, pure-play studios model. The comments followed recent remarks from the CEO of Banijay downplaying acquisition interest from the French behemoth now that Banijay is merging with All3Media.
Did You Know? ITV announced an early share buyback of £100M for shareholders this morning, a move executed prior to the completion of the pending Sky-ITV transaction.
Sky Transaction and Newsroom Independence
Beyond studio operations, McCall declined to comment on broader industry speculation regarding whether Sky will be put up for sale following its divestment by Comcast. “There is a huge amount of speculation about virtually every company in America so I can’t really comment,” McCall said.
On the topic of regional and national journalism, McCall reaffirmed Sky’s commitment to ITV News once the £1.6B deal officially finalizes. According to leadership, the pay-TV giant has made it clear that the arrangement will maintain two distinct, separate editorial voices while creating promotional opportunities for regional news coverage on Sky platforms.
Frequently Asked Questions
Why did ITV Studios experience revenue declines in the U.S. and internationally?
Leadership attributes the 17% U.S. drop and 24% international slide to a softening of demand within the free-to-air broadcasting sector.
When will ITV Studios become an independent company?
ITV Studios is set to be unleashed onto the market as a publicly listed company around the time the Sky-ITV deal completes next year.
What major shows are coming up for ITV Studios?
Upcoming high-profile deliveries include Season 2 of The Gentlemen for Netflix and Guilty Creatures for Apple TV.
What are your thoughts on ITV Studios’ strategy to counter free-to-air declines by targeting streaming giants? Share your perspective in the comments below, or subscribe to our newsletter for weekly media industry updates.