Scotland’s STV is continuing to build its production suite by investing in former Channel 4 exec Joe Churchill’s new digital outfit, Fan Club.
At the same time, the commercial network is bringing its linear and streaming services together in one unit, while its CEO says there is “no ceiling” for international growth at production wing STV Studios.
In a deal announced at a Capital Markets Event this morning in the UK, STV has taken a minority stake in Fan Club for an undisclosed amount, taking the number of indie producers in its stable to 22.
Fan Club differs to the others in that it’s positioned as a branded content specialist that focuses on turning brands into broadcasters, developing channel identities and content strategies and growing audiences on brands’ owned and operated channels.
Churchill led commissioning at Channel 4’s social branded entertainment unit, working on expansion deals for shows such as The Secret Life of 5 Year Olds and Kojey’s Block Party. Prior to that, he ran Studio Weekend, a commercial production company that he founded. Churchill announced his exit from Channel 4 earlier this month.
The deal comes just months after STV announced it had increased its majority stake in Joe Lycett’s Got You Back producer Rumpus Media and two years after Deadline revealed it was buying producer incubator Greenbird Media from Keshet International. The latter agreement brought the likes of Lego Masters maker Tuesday’s Child and Frank Spotnitz’s Big Light Media into fold at STV Studios, whose boss David Mortimer has expressed a desire to turn the company into the biggest owner of independent producers outside of London.
“Fan Club is an exciting investment opportunity for us, bringing something different and complimentary to our existing portfolio of production labels,” said Mortimer, STV Studios CEO today. “Joe is uniquely positioned to build and deliver long-term market strategies for UK and international brands. He’s an expert at what he does with a creative genius and flare for developing highly engaging branded content that truly engages consumers, and we’re delighted to be working with him in this exciting new venture which has enormous growth potential.”
Plan 9 Consultancy brokered the Fan Club investment, with legal representation from Richard Parsons.
The deal was unveiled at the Capital Markets Event this morning in which STV said it was targeting £200M ($268M) in annual revenue at STV Studios by 2030, which is double the current figure. At least 25% of revenues will come from international markets, the company pledged. Operating margins of 10% and a new commercial radio station are also part of the plan.
The STV Studios forward order book at the end of April was £66M, which recognized revenues of £17M and new commissions worth £7M.
Elsewhere, CEO Rufus Radcliffe revealed the creation of an Audience division that will house the STV network and streamer STV Player, as part of a ‘FastFwd2030’ strategy that updates previous targets for 2026.
According to STV, the Audience division would “deliver a cost-efficient, future-proofed total audience and advertising proposition” and position the broadcaster to deliver margins of 15%.
Trading guidance issued today shows total advertising revenue in line with previous guidance, with the January to April period down 2% year-on-year, with regional and VOD advertising up. National advertising was down 7%, slightly behind expectations.
Radcliffe, who joined STV from ITV in November, said: “Today’s FastFwd 2030 strategy refresh outlines our vision to not only grow our presence in Scotland but to further establish STV on the international stage. Combining our broadcast and digital divisions and extending into audio both simplifies and further diversifies our advertising business. The launch of a new radio station and the continued growth of STV Player enable us to unlock exciting new opportunities for our customers.
“There is no ceiling to the international growth of STV Studios and we are delighted to welcome Fan Club into our family of labels. We have a clear vision and plan to 2030 to maximise the growth potential of the business and we will move at pace to ensure we deliver for our investors, customers, partners, viewers and our people.”
With Q1 stats ad numb down, it is expected half-year results will be down 10%. In March, STV posted Q1 revenue of £188M and adjusted operating profit of £20.6M.
The post Scotland’s STV Invests In Former Channel 4 Commissioner’s Branded Content Indie, Merges TV & Streaming Units And Eyes Big Studios Growth appeared first on Deadline.
