84 ITV plc Annual Report and Accounts 2023 ITV plc Annual Report and Accounts 2023 85 G STAKEHOLDER ENGAGEMENT O VE R NAN Complying with the 2018 Corporate Governance Code, we ensure that we engage C CUSTOMERS (INCLUDING ADVERTISERS) E with our stakeholders as it is fundamental to the successful delivery of our Description Link to strategic priorities strategy. The Board’s clear understanding of stakeholders’ issues, expectations Customers (including sponsorship, content buyers and advertiser relationships) are integral to Expand Studios globally; and perspectives ensures that stakeholder views are carefully considered during monetising our content and delivering on our strategy. Supercharge Streaming: see Our Strategy decision-making processes. Forms of engagement Outcomes and impact on principal decisions Meetings and presentations • Strengthened customer proposition and priorities for the • Attendance by Board members at the ITV 2023 Palooza event in November, reflecting on supercharged streaming strategy. Board discussions one year of ITVX, launching the Head First award, an advertiser-facing wellbeing initiative, benefited from Gidon Katz’s streaming knowledge and The Board both directly engages with relevant stakeholders and assesses details provided by management and other colleagues to allow the and celebrating ways ITV had helped to build brands during the year through creativity and expertise Directors to understand how organisational decisions have taken stakeholder interests into account and also to influence future addressable advertising • Board support for the launch of addressable advertising decision-making. The General Counsel and Company Secretary supports the Board in ensuring that due consideration is given to stakeholder • Meetings between the Executive Directors and their industry counterparts (many of whom initiatives on both ITVX and linear. Board discussions on this issues and papers submitted to the Board detail the impact of proposals on key stakeholder groups are also buyers of Studios content)topic benefited from Graham Cooke and Duncan Painter’s • Regular engagement by the Chief Executive and various members of the Management digital and commercial expertise At least once a year, the Board identifies its key stakeholders, reviews the issues that matter to them most and discusses potential Board with advertisers and agencies through key ITV and industry events• Endorsement of: innovative initiatives in response to enhancements to engagement with them. The Board also has the opportunity to give feedback on areas needing more focus as part of our • Meetings between members of the Management Board and senior ITV employees with advertisers’ and agencies’ desired outcomes, assessments Board evaluation. Our Section 172 statement on pages 92 to 93 includes examples of how the Board and its Committees had regard for potential buyers of Studios contentand recommendations to deliver growth in Studios; and stakeholder interests through its discussions and decision-making during the year. recommendations to manage risk and opportunities • Annual Northern ITV Showcase event associated with the growing subscription streaming market The table below sets out the key stakeholders which the Board has identified as being important to ITV’s success and some of the key Board and Committee reviews and assessments• Investment in ITV AdVentures Media for Equity initiative, • Review of the advertising market and content spend offering TV advertising to potential leading, high-growth, engagement mechanisms used in 2023. digital-first companies in the UK in return for equity • Board strategy sessions on: the evolving commercial strategy to address ITV advertising • Investment in, and creation of, new Studios labels to cater to clients’ needs; video on demand and linear addressable advertising to support ITV’s growing markets and customer base streaming ambitions, including feedback from clients, subscription streaming market growth and impact on Studios, including analysis of major subscription streaming buyers • Global Producers Retreat allow feedback about learning, VIEWERS AND SUBSCRIBERS across territories, regular ITVX’s launch updates collaboration and sharing of creative ideas • Regular Board updates on key relationships and developments in the advertising market, DescriptionLink to strategic prioritiesincluding ITV’s engagement and relationship initiatives with its advertisers and agencies, Through regular engagement, the Board recognises the evolution of ITV’s relationship with and potential growth opportunities for the Studios business Optimise Broadcast; viewers, which has been pivotal in shaping the Company’s strategy.Supercharge Streaming: • Regular reports on Commercial and Studios performance by the Chief Executive to the rest see Our Strategy of the Board Key issues or priorities identified Read more Forms of engagementOutcomes and impact on principal decisions • Continue to promote ITVX for the content investments made during the year Board and Committee reviews and assessments• Growing, enhancing and integrating our ad-funded and Our Business Model (from page 2) subscription streaming services on ITVX, through • Mitigate the risk of detrimental advertising market changes (a principal risk) • Analysis of target audiences and viewing habits, as part of Board strategy sessions, • Maintaining commercial broadcaster relationships and further developing scripted talent (a particularly with the focus of increasing reach for our ITVX productinvestment in product, content, distribution, data, tech and Key Performance Indicators (from page 14) analytics priority for streamers in some markets) • Regular Chief Executive reports to the Board on viewing and subscription figures• Continue to educate our customers on the effectiveness of TV advertising (including impact Risks and Uncertainties (from page 55) • Use of one content budget for the M&E division as a whole to • Board session on viewer performance, including subscriber trends as well as marketing enable the business to optimise its content (including its of TV advertising versus online advertising) updates regarding new viewers’ and subscribers’ experiences on the ITVX platformwindowing) strategy and enhance its experience for viewers• Delivering audience profile and size to optimise advertising sales • Reviews by Management and Divisional Boards, on which Executive Directors sit, of viewer • Decision to make changes to schedules to enhance viewing • Further creation and exploitation of IP to drive viewing and enhance IP monetisation sentiment, concerns and/or data through internal research studies; monitoring of linear performanceopportunities viewing figures; compliance reports and Ofcom reports • Reviews by members of the Management Board and senior ITV employees of feedback • Board discussions benefited from Graham Cooke and from viewer services (which serves as a conduit for viewers to channel their comments and/Duncan Painter’s technical, digital and commercial or concerns) and monitoring the complaint processexpertise. The Board also benefited from Gidon Katz and Marjorie Kaplan’s streaming knowledge and expertise Key issues or priorities identifiedRead more • Changing viewer habits (a principal risk) • Driving awareness, through programming and campaigns, of key social, environmental and Our Business Model (from page 2) topical issues with ITV playing an important role as a trustworthy and accurate source of Key Performance Indicators (from page 14) information • Authentic representation of the diversity of modern Britain on-screen Social Purpose strategy (from page 32) Risks and Uncertainties (from page 55)