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Investing in the Scottish economy

deafscotland Conference 15 March 2019 Simon Pitts, STV The Victim, STV Productions for BBC One Despite a decade of disruption, TV viewing is very resilient

Live TV TV Playback Broadcaster VOD Subscription VOD

4:00

3:30

3:00

2:30

2:00

1:30

1:00

0:30 HRS VIEWED PER DAY (ALL INDS) (ALL PERDAY VIEWED HRS

0:00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: 2007-2017, BARB / Broadcaster stream data / OFCOM Digital Day / IPA TouchPoints 2017 2 TV still accounts for 71% of our video day

Source: 2017, BARB / comScore / Broadcaster stream data / IPA TouchPoints 2017 / Rentrak 3

Scots watch a lot of TV, on average 214 minutes per day, 11% higher than the UK average Average peak time individuals

358 354

107 96

65

38 32 29 22 21

BBC 1 STV BBC 2 CH4 Channel 5 ITV3 ITV2 E4 Film4 BBC 4

Source: BARB Jan-Dec 2018, peak time (18:00 - 22:30), individuals 4

Scots are also faster adopters of Netflix and Amazon Prime than anyone else in the UK

% Homes with SVOD ( Netflix/Prime/Now TV)

Source : BARB Est Survey Q3 2017 Source: BARB Q3 2018.

5 Spend on Scottish productions is also set to grow significantly, driven by increased “nations and regions” investment

Increasing Scottish production

+£250million increase in C4 regional spend over next 5 years

6 STV in 2020

• A brand famous for a wider range of high quality programmes

• Every Scot, at home and abroad, with our app installed on their device

• A magnet for the best creative talent from and beyond

• A leading UK producer, making world class series for domestic and international players

• Working in partnership to drive the Scottish economy and showcase Scotland to the world

Scotland’s home of news and entertainment

7 We have a clear vision at STV

Agile, creative, fun place to work A magnet for Giving back creative talent to Scotland

Connecting Making a with audiences Scotland’s home of news range of great and advertisers and entertainment content

Embracing the personalised Clear and future of TV committed Digital front and branding centre

8 Our 3 strategic objectives drive everything we do

Maximise the value of our broadcast business by delivering 1. high quality, cost-effective news and entertainment

2. Drive digital growth by creating an STV for everyone

3. Build a world class production business

9 2018 was STV’s best viewing performance in a decade

STV all-time viewing share +13%

STV all-time viewing volume +8%

Source: BARB 2009-2018, share and avg aud, figures incl. HD & +1, 09:00-24:00, 10 STV News at Six is now the most watched news programme in Scotland

News audiences since STV News at Six was re-launched in September

Source: BARB 2019 V 2018; Graph Brab : Weekday News Audiences from10TH Sept – 31/12/2019 11 Our new STV Growth Fund is helping to drive the Scottish economy

£3m+ allocated so far

115+ deals with companies right across Scotland

54% of advertisers new to TV

Due to its success we are now doubling the size of the fund to £10m 12 STV Player continues to grow strongly, underpinned by the best exclusive content and now universal distribution

VOD market share by platform

13 We have increased the supply of boxsets to the Player

Vera Midsomer Murders The Bay The Widow

Manhunt Endeavour Taggart Cheat

Cleaning Up Torvill & Dean Grantchester

*All available in Q1 on the STV Player 14 We have launched an ad-free subscription service, STV Player+, for £3.99 per month

£3.99/month No contract, cancel anytime

Catch up minus the ads

Watch abroad (EU only)

Download to watch offline

15 STV Productions delivered 11 shows including 7 series, and produced over 100 hours of television in 2018 Antiques Road Trip on BBC2 Catchphrase on STV

The Victim on BBC1 BBC Scotland

16 There is a real opportunity to put Scottish TV production right back on the map

An exciting new creative partnership to co- Exclusive writer deals to adapt best-selling produce entertainment formats in Scotland Scottish novels for TV

We are making two peak-time dramas for BBC1 this year – The Victim and Elizabeth is Missing 17 Our charity initiatives further underscore our commitment to Scotland

£19m raised

180k 79,000 customers children supported

£3.3m 1,100 to projects charity supported

Shining a light on the causes and impact of child poverty in Scotland 18 The public service broadcasters lead the way in the delivery of access services

98% 42%

of STV programmes subtitled of STV Player programmes including all local content subtitled and rising....

19 2019 will see a significant boost to STV’s subtitling output

Later this year we will add subtitles to our programme trailers

for the first time

A further 1.2million Scottish homes will see subtitles on STV Player following launch on Virgin and Sky this year

However, challenges remain. We can get better and global providers like Netflix and Amazon should also step up…. 20 Coming up at STV in 2019....

•Complete News transformation, particularly digital 1. Broadcast •Continue to drive Scottish economy through STV Growth Fund •Full HD launch on Virgin and Sky

•New features and personalisation •More boxsets 2. Digital •Launch STV Player on Sky •Focus on live experience ahead of Rugby World Cup 2019

•Continued focus on returning series •Launch new formats on STV 3. Production •Secure more Scottish drama commissions •Identify next creative partnerships 21