BUSINESS MODEL

We want to deliver high quality outcomes for all our stakeholders, and to achieve that we rely on a number of key strategic assets.

Our people – People are at the heart of everything we do at STV. Their creativity, commitment, skills, passion and diversity are key to our success.

Our brand - STV is a trusted brand continuing to play an important role in creating value for its stakeholders: as a trusted news and current affairs partner with a high quality source of affordable entertainment; supporting its communities through the STV Children’s Appeal; and helping to grow Scotland’s creative sector.

Our platforms – we operate the leading marketing platform in Scotland (STV, channel 3) and broadcaster Video on Demand platform, STV Player. These combine to give us unique scale and reach across all demographics, enabling us to offer bespoke competitive commercial deals to advertisers and agencies.

Our location – we run Scotland’s largest production business, which is also a meaningful player in the UK production sector following the acquisition in July 2023 of Greenbird Media. With bases across Scotland, England, Wales and Northern Ireland, we are uniquely placed to take advantage of broadcasters’ increased commitments to nations and regions production in the UK, as well as win
commissions from international buyers.

Our intellectual property – we own, or have access to, the rights of a diverse portfolio of programmes that are popular across the UK and internationally.

Our relationships – we have strong relationships with our viewers, advertisers, commissioners and communities to deliver value and boost the economy.

Financial capital – we have strong financial discipline and significant liquidity and covenant headroom that provide us with the capital to invest in medium to long-term growth initiatives as well as continue to meet our pension obligations and make distributions to shareholders.

We operate an increasingly diverse business, generating value from four principle revenue streams:

Advertising revenue – we offer bespoke spot advertising and sponsorship solutions on our linear television channel, STV, and addressable Video on Demand (VOD) advertising through Planet V on our UK-wide streaming service, STV Player.

Commercial partnerships – we work with multiple TV platforms under a series of long-term partnerships, as well as with advertisers to provide a ‘one stop shop’ for  advertising services, extending beyond the sale of  advertising to creative design, post campaign analysis and related activities.

Programme production and distribution – we produce original content for broadcasters and platform owners in the UK and internationally from our production bases across the UK. We also own the rights to a library of content that we sell and licence to buyers across the world.

Direct to consumer – we directly monetise audiences through on-air competitions and a paid-for VOD service, STV Player+, which provides the option to stream our content without adverts.

This is supported by:

• Creative and inclusive culture that values honesty,  transparency and fairness
• Effective risk management and internal control frameworks
• Strong principles of corporate governance
• STV Zero, our sustainability strategy embedded into our business practices
• Organisation structure built to enable accountability and autonomy
• Vibrant internal communications programme to keep our people motivated and aligned on key strategic goals
• Frequent, transparent and meaningful engagement with external stakeholders

We respond to the changing needs of all our stakeholders and create value for them through  efficient delivery of our business operations.

Audiences – through a high-quality TV schedule providing the largest peak time audiences in Scotland for the fifth year running, and with an increasing number of exclusive  premieres and other content available to watch on demand via STV Player.

Advertisers – through our unique scale and reach, boosted by the £30m STV Growth Fund (incorporating the Green Fund and Inclusion Fund) which is aimed at attracting new advertisers to TV.

Our people – by developing a supportive, open, inclusive, creative and collaborative culture; prioritising the wellbeing (mind, body, lifestyle) of our people and providing training, development and mentoring for our people.

Communities – by providing trusted news, facts and information through a comprehensive local news and current affairs service across Scotland; improving on and off screen diversity to reflect the true face of modern Scotland; raising much needed funds for families and young people in poverty in Scotland through the STV Children’s Appeal; driving the local economy through job creation; supporting Scottish business through the Growth Fund (making advertising affordable); and championing climate action through STV Zero, our sustainability strategy.

Investors – accelerating the growth of Digital and Studios to rebalance the Group towards digital streaming and IP-ownership to deliver sustainable growth and maintain a progressive dividend.

Platforms and partners – through a range of successful, long-term relationships with platforms, fellow broadcasters, distributors and suppliers, through which they share in our success.

Government and regulators – STV delivers on its public service obligations and is working with stakeholders to create a sustainable future model for public service media, including consultation responses on the Media Bill which would give prominence for PSBs in the digital age.