STV aiming to close loss-making channel with 59 jobs at risk

STV is to close its loss-making STV2 channel as part of a major three-year restructuring plan that will result in 59 job losses.

The broadcaster said it had taken the “difficult decision” to close the channel, with 25 jobs affected, as STV’s content investment shifts online.

It has also launched a News 2020 change programme which will deliver savings of £1 million per year, with 34 job losses.

STV said its growth strategy aims to establish the producer-broadcaster as Scotland’s “home of news and entertainment”.

The new organisational structure will create three distinct divisions across broadcast, digital and production, each with its own managing director.

The broadcaster said the decision to close STV2 at the end of June reflects the challenging economics of local television and anticipated new competition from BBC Scotland.

The channel, which launched in April 2017, features news and entertainment as well as news programme STV News Tonight anchored by Halla Mohieddeen. The move will deliver savings of £1m a year.

STV chief executive Simon Pitts said: “This is a positive vision for STV that will re-establish the company as a creative force in Scotland and beyond.

“We will invest in creative talent, new original programming and digital to ensure STV becomes Scotland’s home of news and entertainment and delivers long-term value for advertisers, shareholders and viewers alike.”

The changing face of Scotland’s media landscape was brought into sharp focus yesterday as STV announced its plans for the future. The broadcaster is to ditch the “loss-making” STV2 channel, just over a year after it was launched.

Changes to news output are also in the pipeline, resulting in the loss of 59 jobs.

STV has blamed challenging economic conditions for the decision.

Increased competition from the BBC is also cited as an aggravating factor.

The channel’s vision had ultimately included local television stations catering for specific locations, such as Aberdeen and Dundee.

However, it appears the scale of STV’s ambition outweighed its ability to make ends meet.

We are told that digital will now be placed “front and centre” of STV’s operations – although exactly what that means remains to be seen.

Despite the loss of dozens of jobs, STV’s chief executive Simon Pitts was quick to insist the future is “positive”, claiming changes are required to keep the company competitive.

While such pledges will doubtless bring little more than cold comfort to those losing their jobs, it will nevertheless be fascinating to see how the company evolves its offering in the weeks and months to come.