Carlton Communications and Granada Media, joint owners of cash-haemorrhaging ITV Digital, have called in beancounters Deloitte & Touche to advise on a “fundamental restructuring” of their offspring’s cost base.
The review will examine ITVd’s structure and staffing, as well as the cost of programming. Some six hundred jobs are already in the terminal mill and more could follow post-Deloitte.
Carlton and Granada, which between them have invested £800 million ($1.134bn; €1.310bn) to date in their digital co-venture, say it is a matter of urgency that the cost base undergoes radical surgery “in order to secure the long term future of the business”.
Despite ITVd’s current agonies, Carlton and Granada insist it is on course to move into the black by the 2003-04 fiscal. The magic formula for transmogrification of red ink into black is 1,7000,000 subscribers, say the companies. Currently the figure stands at 1.25 million.
Data sourced from: The Times (London); additional content by WARC staff