Proactive Investors - ITV PLC (LON:ITV) shares have fallen 11% since downbeat results at the start of March warned advertising revenues were likely to remain soft this year and with concerns over the amount of investment needed to challenge streaming giants Netflix (NASDAQ:NFLX), Disney and the like.
A first-quarter update this coming Thursday are sure to confirm the struggles with ad sales so far this year.
The first three months of the year were anticipated to have seen an 11% decline in total ad revenue compared to a year ago and 1% compared to pre-pandemic 2019, the FTSE 250-listed group said at the time of its results, with January down 9% year-on-year, February down 9% and March down around 16%.
Early indications were that total advertising revenue will be down 10-15% in April.
Some analysts have been supportive, however, with Deutsche Bank (ETR:DBKGn) saying ITG’s streaming strategy “appears to be the most appropriate in the current environment and the investment needs appear to be well-managed”.
There have also been more positive views of prospects for ITV after the UK government unveiled proposed rules to try and level the playing field with streaming giants.
The new framework is designed to provide new privileges and freedoms to the country's biggest broadcasters, including the BBC and ITV, while bringing major video-on-demand services under a new content code.
It will supposedly allow public service broadcasters to produce more top-quality British content, invest in new technologies, and better adapt to changing viewer habits as people increasingly watch TV on digital devices instead of traditional 'linear' TV.