SMG plc Totally Explained

Everything about Smg Plc totally explained

SMG plc (formerly Scottish Media Group) is a Scottish media company. Originally formed as Scottish Television plc, it changed to its current name in 1996 when it acquired Caledonian Publishing, owners of Glasgow-based newspapers The Herald and Evening Times (both of which have since been sold). It then went on to acquire its fellow Scottish-based ITV license holder Grampian Television in 1997. In 1999 it launched a new Sunday broadsheet newspaper, the Sunday Herald. The company finally renamed itself as "SMG plc" in 2000 by which time it had expanded further through the acquisitions of Primesight (outdoor advertising), Pearl & Dean (cinema advertising) and Ginger Media Group, which included Ginger Television and the UK radio station, Virgin Radio. ITV plc holds a 16.9% stake in the business.

Television

STV

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SMG owns two Scottish ITV licences, Scottish Television, which covers Central Scotland, and Grampian Television, covering Northern Scotland.
On 2 March 2006, it was announced by SMG plc that Scottish Television would revert to using its former brand name of "STV", which it previously used from the start of colour broadcasting in 1969 until 30 August 1985, and which the station is still informally known as in parts of Scotland. At the same time, Grampian Television would also become known as STV, so one identity will serve the two SMG licences. The name change took place on 30 May 2006. The stations are the most popular peak-time stations in Scotland and broadcast a mix of network shows such as Coronation Street and The X Factor alongside local programming such as Scotland Today and North Tonight and the worlds longest-running sports programme, Scotsport.

Other channels

SMG ran its own digital channel, S2, throughout the Scottish and Grampian ITV regions. S2, which aired on the Digital Terrestrial platform, was launched April 30, 1999 and replaced with ITV2 just over two years later - as part of a deal with ITV Digital - on 27 July 2001. Sky Scottish was a satellite television channel operating on the analogue Sky TV service between 1 November 1996 and 31 May 1998. The service was a joint venture between British Sky Broadcasting and SMG plc. It initially broadcast between 6.00pm and 8.00pm in Scotland. The channel was closed due to poor ratings.

SMG Productions

SMG Productions is the network television production arm of SMG plc. With bases in Glasgow and London, its output includes drama, factual/factual entertainment, entertainment and children’s programming. With a client list that includes all the UK terrestrial networks as well as the major satellite and cable channels, the company is one of the key programme suppliers to the UK television market.

Ginger Productions

Ginger Productions, alongside its big brother production company, SMG Productions, is part of the network production arm of SMG plc. Based in Waterhouse Square in London, its output focuses on Entertainment and Factual Entertainment.
Ginger was acquired as part of SMG’s acquisition of the Ginger Media Group in 1999.

Radio

SMG owns Virgin Radio, a British commercial music radio station based in London.
Virgin Radio was launched as 'Virgin 1215' nationally on 1215 kHz (although some regional transmitters used other frequencies) at 12.15pm on 30 April 1993 by Richard Branson as part of his Virgin brand. It has since been sold to Ginger Media (which was subsequently bought by SMG plc) but has kept the Virgin name.
On 12 April, 2007, it was announced that SMG are to sell Virgin Radio, to enable the company to focus on its television station, STV.

Advertising

SMG formerly owned outdoor billboard advertiser Primesight and cinema advertiser Pearl & Dean, whose rival Carlton Screen Advertising is owned by ITV plc.
In 2006, SMG plc announced it plans to sell off Pearl & Dean and Primesight.
In August 2007, SMG finally sold Primesight for up to £62m to a private equity firm. SMG said in a statement that the price GMT Communications Partners is paying represents a "clear uplift" on offers previously received for Primesight. Primesight have been prosecuted a number of times for the display of advertisements without consent which is an offence under UK Planning Acts. The lack of consent for many of Primsights displays is said to have reduced the selling price by up to £30 million.

Internet

peopleschampion.com

peopleschampion.com is a consumer advice page with targeted on a wide array of subjects from choosing energy suppliers to getting mortgages.

smartycars.com

SMG's new car website.

stv.tv

The URL stv.tv is the address of the main website of STV. The website currently offers News, Sport, Weather, Entertainment, Competitions, Bingo, Romance, and STV programme information, and TV listings. The STV news teams also produce three exclusive video blogs for the website - The Real MacKay, Northern Exposure and Weather Blether.

scotlandontv.tv

SMG has launched a broadband television service in the autumn of 2006, which will make thousands of hours of programmes, such as the first episode of Take the High Road, available over the web.
The Glasgow-based media company says the new channel, called Scotlandontv.tv will make use of a back catalogue stretching back 50 years.

virginradio.co.uk

Virgin Radio runs well-known and established internet websites, offering live streaming, on-demand audio and a variety of services.

Studios

The SMG studios in Glasgow were located on Renfield Street in Cowcaddens, Glasgow since Scottish Television's launch in 1957, but moved to new studios in Pacific Quay, a development situated next to the River Clyde, in July 2006, alongside BBC Scotland's new studios and the Glasgow Science Centre. SMG's Aberdeen studios moved to a new purpose-built site in the city's Tullos area in 2003, from their previous location (a converted tram shed), which they occupied since Grampian launch in 1961.
STV also has studios in Edinburgh, Dundee and Inverness providing regional news coverage in their particular area.

Relationship with ITV plc

SMG plc has had a turbulent relationship with ITV plc and both Carlton and Granada, the predecessor companies that merged to create it. ITV plc owns the ITV franchises in England, Wales and the Scottish Borders and operates, or has operated, several operations using the ITV name, such as ITV Digital and the ITV Sports Channel. SMG threatened to take legal action over the use of the name 'ITV' because it's the name of the Independent Television network, which Scottish and Grampian are both part of. One of the problems facing SMG is that ITV is the senior partner when it comes to its two TV stations, since London-based ITV effectively controls most of the scheduling and is also responsible for selling stv's advertising airtime. Rumours persist of a possible takeover of SMG by ITV plc (see below).

Merger proposals

In September 2006, SMG officially rejected a merger offer from Northern Irish ITV franchise holder UTV. The merger approach from would have given SMG shareholders a 52% stake in the combined company. The Scottish group said its board had examined a revised merger proposal from UTV - which operates the ITV franchise in Northern Ireland - but didn't believe it reflected the value of the company. ITV is considering making an offer for SMG plc, the Mail on Sunday reported. The newspaper quoted an ITV source as saying John Cresswell, acting chief executive at the broadcaster, was most interested in SMG's television franchises but that any deal would be for the whole group, including Virgin Radio, which SMG also owns. An ITV spokesman declined to comment on the report.
SMG said earlier this month its 2006 profit would be materially behind expectations, sending its shares down more than a quarter in value to a 15-year low.
On January 10, 2007, SMG and Belfast-domiciled UTV agreed the details of their merger, including a revised share split between the two. UTV, would own 54% of the group. SMG would take the remaining 46%.
This merger was finally rejected at the end of February, and a new board and management were introduced at SMG shortly afterwards. The company announced plans to concentrate on its core TV business, floating off Virgin Radio and selling Pearl & Dean and Primesight.

Further Information

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