Interview: STV chief executive Simon Pitts on creating further growth episodes for the broadcaster

STV chief executive Simon Pitts on driving diversified growth for the Scottish broadcaster in a rapidly changing media market.

Simon Pitts says he never had the kind of career plan where he would be “in a certain role by a certain age”, for example. Instead, “I just knew that I loved working in TV… I was passionate about it, and also passionate about sport, and interested in politics, and thought if I could, in some way, combine those things in a career, I'd be doing something right.”

He has brought this vision into Technicolour reality as chief executive of Scottish media giant STV Group, which describes itself as “Scotland's home of news, entertainment and drama” also broadcasting major sporting events such as the Rugby World Cup.

The executive is bullish over the longer-term outlook for the London-listed firm, which is based at Glasgow’s Pacific Quay, and has been pursuing a diversification strategy. The group now includes the STV Player streaming service and major growth engine STV Studios in addition to its core broadcast channel. It expects to deliver at least 60 per cent of this year’s earnings from streams beyond broadcasting, “comfortably” ahead of its 50 per cent target.

'We always knew that this year was going to be a challenging year in terms of the ad market, but actually, we’ve delivered a pretty strong, resilient performance so far,' says the STV boss. Picture: Kirsty Anderson/STV.

“We are, I think, in good shape to continue to invest and grow our business for the long term,” says Pitts. “That isn't to say it's not tough out there – it is.” The CEO in a trading update last month highlighted the “challenging linear advertising and commissioning market impacted by ongoing economic uncertainty in the UK”.

“We always knew that this year was going to be a challenging year in terms of the ad market,” Pitts states. “But actually, we’ve delivered a pretty strong, resilient performance so far,” with its digital and production arm STV Studios operations “more than offsetting any decline to the linear advertising business”. And he believes TV advertising, and advertising more generally, is robust. “And if you're a reasonably big player in that market, as STV is, we should be well placed to benefit when that recovery does come.”

Its STV Studios arm – which it says is the biggest TV production company in Scotland and one of the biggest in the UK – is adding much horsepower, seeing its income grow by almost 300 per cent year on year to £27.2 million in STV’s 2023 interim results. The division makes shows including Bridge of Lies for BBC One, prison drama Screw for Channel 4, and Celebrity Catchphrase for ITV, as well as drama Criminal Record starring Peter Capaldi, and will debut on Apple TV+ in more than 100 countries next month.

It is is aiming to become the UK’s top nations and regions producer, and Pitts hails it more than trebling its number of returning series, with 40 on its slate, across 20 production labels, and it is expected set to generate more than £70m of revenue, and at least £5m of profit this year. It also this summer snapped up UK reality TV production network Greenbird Media, behind shows such as Lego Masters, for about £24m. The deal was earnings-enhancing and earnings per share-accretive from day one, notes Pitts. “But more important than that, we've now got loads more fantastic creative leaders in our business.” Furthermore, STV Studios just signed a US series development deal with NBCUniversal. “There's an opportunity here, we think, to not just be the biggest production company in Scotland and the UK, the nation's regions producer, but be a globally successful producer based in Scotland,” says Pitts.

STV Studios makes drama series Screw, filmed at Kelvinhall in Glasgow. Picture: Mark Mainz/STV/Channel 4.

He took the STV helm at the start of 2018, and it has since grown operating profit by more than a third to “record” levels last year of nearly £26m, for example, he says. The executive’s path to becoming a TV boss came about after, having studied languages at university, followed by a Masters in European law, politics, and economics, he worked at the European Parliament. “It was both enjoyable, and convinced me that I didn't want a career in European politics,” he jokes.

The stint included advising on media policy, which led him to UK broadcaster ITV where he spent nearly two decades, latterly head of its online, pay TV, interactive and technology operations, working with major business names such as turnaround expert Archie Norman currently working his magic at M&S.

Pitts has had to navigate a TV market in which viewers “want to engage with content on their terms when they want it where they want it”. Media regulator Ofcom said in its Media Nations 2023 report that people under 25 have collectively decreased their average daily broadcast viewing by nearly three-quarters since 2012.

However, Pitts is adamant that traditional broadcast television still has its place, the pandemic having bolstered its importance as a “highly trusted” source of news, for example. STV has many competitors including streaming platforms, and such rivals also have their place, he adds, but says Scots in the first half of this year watched five times more broadcast content than they did from the streaming services combined. STV “will therefore keep focusing on what we think is a very compelling offer, because it's free – and you can't undercut free”.

The organisation inevitably believes TV is the best way to build an advertiser’s brand, and its Growth Fund launched five years ago has worked with at least 1,000 Scottish smaller firms and allocated about £25m to help get them ad break exposure. The initiative encompasses its Inclusion Fund to make advertising more accessible to diversity-championing organisations, and a Green Fund for sustainable operators.

STV is an ambitious and delivery-focused commercial operation, but looking beyond the balance sheet, in addition to giving back to the community, enjoys being a showbusiness-focused business, says Pitts. “And it's exciting. We're not saving the world, but we are doing something that brings joy and information and awesome things to many millions of people every day, no matter where, or what their circumstances.”